​Partnering with Brighton Academy Early Childhood Education

Who is Brighton Academy?

 

The owners/operators are Josh and Amanda Woods.  A lifetime resident of the Liberty/Kansas City area, Amanda has been Director of Operations for Brighton Academy since 2012, and took over ownership in 2020.  It is important to her to be close to her children and have a hands-on role in their development and growth while still educating the minds of other children.  Josh also grew up in Liberty, and is a Firefighter with the North Kansas City Fire Department.  Learn more about Josh and Amanda below...

 

Brighton Academy is an early educational learning environment that takes a traditional approach to child development.  They are a small, private daycare that is designed to give children individual attention while attending to all facets of their intellectual and physical growth.  They have a stellar reputation, and have been voted best of the Northland the past two years.  Their location at Hosanna! will officially be known as Brighton Academy North.  You can learn more about Brighton Academy on their website at https://www.brightonacademykc.com. 

 

Why are we partnering with Brighton Academy?

 

Since Hosanna! was founded back in 2000, members have dreamed of offering daycare in our facility.  While that has not been able to materialize as a ministry of the congregation, we are excited that a team of dedicated, experienced, and well-kno1wn daycare leaders want to use our facility.  This will give us the opportunity to address the shortage of affordable daycare in the Liberty area by making space for 50 more kids to attend, connect us with young families, and increase our visibility in the community.  Additionally, by renting the space, we will benefit from rental income, which will help us address the deficit between our income and expenses. 

 

Is our building able to hold a daycare?

 

It’s a great facility for daycare, but it does require some improvements to meet state guidelines.  We have already had visits from the Missouri Department of Health and Senior Services, the state fire marshal, and the Liberty fire marshal. 

 

We will share the costs of following up-front improvements with Brighton Academy North, with Hosanna! paying 30% of the costs, up to $5,000: 

• Fence in the area off the south (lower) patio to provide a playground space.  (Est. $3,500)

• Install a fire alarm system throughout the building.  (Est. $6,000)

• Upgrade internal doors to for longer fire ratings and door closers where needed.  (Est. pending)

• We have applied for a Central States Synod grant to help with our share of these expenses, and anticipate using memorial funds (currently over $11,000) for anything that doesn’t cover. 

 

Brighton Academy North will fully fund the following improvements:

• Installation of keypad on the office door.

• Doorway construction/painting/finish between the two downstairs classrooms with a sliding door.

• Doorway construction/painting/finish between the downstairs large classroom and corner classroom with a sliding door.

• Purchase and installation of freezer and refrigerator for daycare use.

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What kind of income can we expect? 

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Once full capacity of 50 children is reached, monthly rent will be $4,000.  We have agreed that as they begin, they will pay a pro-rated amount as they hire staff and enroll children, with a minimum of $1,200 for the first 0-15 kids enrolled.  The numbers go up $400 a month for every 5 additional kids.

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Utilities, trash, snow removal, etc. will be reimbursed each month based on the amount their operation adds to our current expenses.  We will begin with an estimated amount, most likely the same 70:30 ratio we used with the start-up improvements.  We will adjust these numbers as we monitor the impact of actual usage and costs. 

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What impact does this have on our insurance? 

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• After consultation with our insurance provider, Brighton Academy North will provide us a certificate of insurance, list Hosanna! as an additional insured on their policy, and sign a building use agreement. 

• Additional liability for the congregation will increase our annual premium only $20.  We will not receive additional discounts for the installed fire alarm system.

 

Will renting space to a for-profit entity jeopardize our tax-exempt status? 

 

Renting space to Brighton Academy North will not jeopardize our tax-exempt status. 

 

However, because we have a mortgage, we will most likely pay Unrelated Business Income Tax.  At most, we could be taxed on the rental income at the 21% corporate rate, though deductions and exemptions will reduce this liability.  This gets a bit complicated, so we will seek outside tax guidance.  Although congregations sometimes try to avoid taxes by asking renters to “make a donation” instead of paying rent, this would not hold up to an audit and could lead to large penalties. 

 

What areas will they use? 

 

The daycare will use all of our classrooms in the basement, as well as the library and the conference room upstairs.  The kitchen will be used daily to prepare meals.  Brighton Academy will provide their own refrigerator and deep freeze, which we’re looking to store in the closet off the fellowship hall.

 

Tables, chairs, and similar items will remain in the classrooms, and we will be able to continue using these spaces along with the daycare.  However, we will need to move unshared congregation property (mostly faith formation supplies) out of these rooms and relocated it to non-daycare spaces. 

 

When will this happen?

 

After the congregational vote, we will line up contractors and schedule the necessary improvements.  The hope is to open Brighton Academy North mid- to late- summer. 

 

Who is making the decisions for Hosanna?

 

It is up to the entire congregation to decide whether or not we rent the space.  This is the reason for the congregation meeting on Sunday, August 16 at 10:30.  We will have discussion and a vote.

 

Hosanna! has a Daycare Team of members who are working together and with Brighton Academy to research, negotiate, plan, and maintain an ongoing relationship with the daycare.  Members include Tony Belcher, Justin Noel, Harold Mason, Alissa Willett, Marie Summers, Katharine Fairchild, and Pastor Mike.  If you have questions about the daycare and arrangements, these are the folks to talk with.  

 

With an affirmative congregation vote, our Council would review the recommendations of the Daycare Team and have the authority to enter any contracts. 

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