Dear MVM Community,
Thank you for your patience with this update. Our Facilities Team has been diligently working to secure a permanent home for our school, and today we have some pivotal news to share.
After extensive analysis of the building, and substantial negotiations with the seller, MMCI has made the decision to end our contract on 915 Toll House Avenue. We realize that this news may be alarming, and want to assure you that we’ve provided this update as early as it was feasible to do so. We also want to say that we understand and share in your disappointment, as we shared in your excitement for the desirable location and features of the Toll House building.
With this in mind, MMCI is also pleased to announce that we've found an alternate property, and as of Friday, March 31, we have a fully executed Letter Of Intent to purchase this new building. The new building is within Frederick City limits, is well-maintained, and decades newer than Toll House. We look forward to sharing the address of the property with the community as soon as the contract is signed.
Understandably, this news will bring about many questions from the community. We've provided a summary below of all factors considered prior to ending our contract on Toll House Avenue, as well as the current status of our new project, and we hope this information will help to address any misgivings you may have about this update.
Final Analysis and Negotiations for Toll House Avenue:
- Through building inspections, we learned that the roof required extensive work, and the HVAC system required full replacement, at an estimated cost of $2 million.
- We also learned of necessary structural repairs, with a mid-range estimate of $1.4 million.
- The original architectural drawings for Toll House Avenue are nonexistent, leaving some structural unknowns and potential for additional repair costs.
- We were recently informed that negotiations to remove the current tenant of Toll House would be our responsibility, which could also increase the cost of the project substantially.
- We had no guarantee that the seller would work with us to avoid needing a full site plan, which could have added 4-6 months to our timeline.
- Current comparable pricing pulled by our realtor was significantly less per square foot than our contract terms for Toll House Avenue, at a purchase price of $8.75 million ($192 per square foot).
- We were not able to come to an agreement with the seller to lower the purchase price of the building by the amount that would have been necessary for MMCI to secure financing for the purchase, structural and other repairs, and renovation costs.
- Our contract for Toll House Avenue was terminated by the March 31st contract deadline, and our $10,000 deposit will be fully refunded.
Current Status of the New Facilities Project:
- As of 3/31/23, we have a Signed Letter Of Intent and a pending contract for this property.
- Compared to Toll House Avenue:
- The new building is larger with 60K square feet.
- The new building is decades newer, having been built in 2002.
- The new building is well-maintained with a new HVAC system, and move-in ready bathrooms and elevators.
- The sales price is better aligned with comparable properties, at $7.5 million ($125 per square foot).
- The projected timeline for renovations to the new building is shorter.
- This property address is already zoned for educational use, because of MMCI’s previous work to obtain a zoning text amendment with the City of Frederick.
- Multiple contractors have assessed the property and feedback has been favorable for both project costs and timeline.
- We are currently moving forward with this project, and scheduling tours with the architects and representatives from various FCPS departments
MMCI and the MVM Governing Council will hold a Town Hall Meeting in late April/ early May, and we look forward to the opportunity to be together and answer your questions directly. In the meantime, public updates will be provided at GC and BOT Meetings, and will be included in Meeting Minutes and Facilities Committee Reports.
Thank you all for your continued engagement and understanding. We are grateful to have the support of our community throughout this process.
Vice President, MVM
MMCI Board of Trustees