Board of Directors OK's New Headquarters

Call to Action: Contact Senator Lautenberg Re: NCLB Reauthorization

NJSBA Seeks Input on 'Burden of Proof' Bill

NJSBA Seeking Executive Director

Board of Directors Highlights

Commissioner Urges Boards to Attend Funding Meetings

Sign Up for Certified Board Leader Courses: July 14

Work Together to Build a Quality Leadership Team

Seeking Workshop Volunteers

Delegates in Focus

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Centrally located near the New Jersey Turnpike, the $18 million facility will include modern meeting space for NJSBA training programs and will have distance-learning capability. Its completion will fulfill a goal of NJSBA’s 2005-2008 Long Range Plan, which calls for a “state-of-the-art” headquarters building accessible to the membership. The Long Range Plan was adopted by the Board of Directors in September 2005.

Architect’s rendering of NJSBA’s new headquarters and conference center in central New Jersey. NJSBA anticipates completion of the member-accessible, environment-friendly building in 2009. (SNS Architects & Engineers, P.C.)

Getting to Construction The Board of Directors’ vote followed the recommendation of the NJSBA Construction Review Committee to approve the architect’s rendering of a 51,174 square-foot two-story building and to budget $18 million for its construction. The project includes integration of natural light with the heating, cooling and electrical systems, preservation of open space on the property, and the use of earth-friendly materials, according to SNS Architects & Engineers, P.C. of Montvale.

By agreeing to budget $18 million for the new building, the board directed NJSBA to:

• Immediately list for sale its current headquarters in Trenton, as well as its field offices in West Caldwell and Voorhees Township. (The Association’s Manalapan facility is already on the market.)
  
  
• Apply $10.5 million in liquid assets toward construction costs. (These funds include $4 million in proceeds anticipated from the sale of the four buildings, plus $6.5 million previously transferred into capital reserve from surplus.)
  
  
• Secure a $7.5 million loan for the balance of the construction costs and convert the loan to a mortgage upon completion of the project.

Cost Adjustments The decision to immediately place the West Caldwell and Voorhees offices on the market reflects changes from earlier plans. The move to sell the buildings now—along with the decision to seek financing— was prompted by an increase in estimated construction costs from $10 million to $12 million in 2005 to $18 million today.

The architect’s rendering, approved Friday, scaled back office space from original plans, but left in place a conference center considered essential to future membership services. The conference space will eliminate fees NJSBA now pays to hotels and other facilities for its training events and meetings. Additionally, the conference center will provide NJSBA with revenue through rental to outside organizations.

No Service Reduction “Like a number of school districts, NJSBA found itself facing construction costs that escalated well beyond original estimates,” said Kevin E. Ciak, president. “The Board of Directors, however, has approved a plan that would allow the project to go forward with no intention of either reducing member services or increasing dues to pay for the building.”

The annual cost of carrying a $7.5 million mortgage on the new building will be approximately $500,000, according to the Construction Review Committee. To cover the cost, NJSBA will increase non-member revenue from Annual Workshop and other programs and services and will develop new fee-based services.

No Impact on Operating Surplus Strategies to develop new services will help drive the Association toward its long-term goal of decreasing reliance on dues revenue. NJSBA plans to shift its revenue base away from the previous 90/10 ratio of dues to non-dues revenue and over to a 60/40 dues/non-dues revenue base. The plan to finance the new building will not affect the surplus, or “rainy-day fund,” that the Board of Directors requires NJSBA to include in its operating budget.

In November 2006, NJSBA purchased the 10-acre site for the new headquarters in Hamilton Township, Mercer County, for $1.6 million. The purchase price was authorized by the Board of Directors in March 2006. The site is located a short distance from Exits 3 and 5 of Interstate 195 and about three miles from New Jersey Turnpike Exit 7A.

Build vs. Renovate Purchase of the land followed months of research by an eight-member ad hoc Facilities Committee, which examined the capacity and structural conditions of NJSBA’s existing Trenton headquarters and its three field locations.

 The facilities committee determined that the renovations needed to keep the Trenton headquarters in operation would not be a cost-effective use of Association funds. Furthermore, the existing building, along with its small parking capacity, could not meet NJSBA’s future membership service needs.