HAS BAY CITY ACADEMY BECOME THE NEW 'RADIO SHACK'? In its first iteration, the Bay City Academy's five-year deficit elimination plan (submitted to the Michigan Department of Education for its approval on January 22, 2016) aimed to wipe out its $1.3 million deficit by “enrolling more students” at the school founded by convicted felon Steven J. Ingersoll.
Yeah, and people in hell want ice water!
But instead of growing, enrollment has been shrinking.
The Bay City Academy's deficit elimination plan (approved by the Michigan Department of Education on January 21, 2016) was based on the following student population growth targets:
However, due to the shuttering of its Madison Arts campus after Chemical Bank foreclosed on the building formerly owned by Steven Ingersoll, the Bay City Academy has been shrinking faster than the Wicked Witch of the West.
But there's an upside: free rent at the Mancelona building housing the Academy's satellite campus, the North Central Academy.
In a document filed on March 15, 2017 by US Bank (trustee for the building's previous owner, the now-defunct Concord Academy), the Academy reported its enrollment figures for the 2016-2017 school year to US Bank.
If enrollment exceeded 425 pupils for the school year, the Academy agreed to pay 50 percent of the cash flow attributable to the excess enrollment to US Bank as rent for the building.
According to the March 15 notice, Mitten Educational Management (run by Brian Lynch and Michael Randel) reported enrollment figures as 340 pupils for the fall and 336 for the winter.
So, free rent!
However, the sponger's special agreement terminates on June 30, 2017.
In addition, the building's been on the market at $690,000 since September 28, 2016 without a nibble. However, it's unclear whether Lynch and Randel, clearly cutting costs by reducing the number of buildings in use, will reduce their own Mitten Educational Management annual management fee.
According to the Bay City Academy's June 30, 2016 financial statement, the duo paid themselves a $321,802 management fee during the 2015/16 fiscal year, nearly 11 percent of the school's annual revenue.
And Lynch personally scooped up another $93K, with a canny self-dealing dip as the Bay City Academy's Superintendent!
Nice work if you can get it.
To hell with those kids!