Ads and Guest Column

A Letter from the Board of Directors of Friends of Onancock School

September 9, 2024

We were unspeakably sad to read the attack against us in two full-page ads and a guest column in the September 6 issue of the Eastern Shore Post under the guise of transparency and accountability.  We are working quite diligently to create intelligent solutions that will help our whole community at reasonable cost.  Weagree that clear and open communications are vital, that honest and responsible government are imperative, and that taxpayer and donor dollars should be spent wisely. The actual proposal we made for the Town of Onancock is reasonable and affordable, as we can demonstrate.

The information advertised in the newspaper was melodramatically presented and unfortunately misinformed.  Half of the ad reprinted a letter detailing a visual assessment of the school by one company.  It surmised that $5.38 million would be needed to make significant improvements and repairs to the property, some necessary and others not.  It wasn’t a fully developed quote, competitively shopped or appropriately priced.

For the work we actually need to do in the next few months, we requested real quotes from reputable local companies without conflicts of interest. The aggregate quote was $532,000 to install new HVAC to replace a failing boiler and add A/C, replace windows for efficiency and upgrade electrical to accommodate the new HVAC. The published assessment that itemized these items as critical appeared to price the work at well over $3 million, more than 600% over the true cost.  The ad preposterously concluded: “The Question Is - Are we insane!  Or is it just Malfeasance?” No, HOS and the Town are acting appropriately.

Another misdirection in that ad was: “Even though FOS has stated they would repay ½ the loan to the town – they already owe $133,000* for other loans.”  The * referenced IRS form 990, 10/2023.  The facts?  FOS took out a Small Business Administration/EIDL loan for $63,500 in 2020 at 2.75% interest.  Due to the super-low interest rate and the much higher market interest rate on our reserves, we chose to be financially prudent and pay the loan as agreed without prepaying additional principal.  As of 9/7/2024, the balance of that loan, which is in good standing, is just $59,047, versus current liquid assets and reserves of over $140,000, which ensures stability in unforeseen crises, such as COVID.  

HOS has made a proposal to the Town of Onancock to help us with this project in a wise and cost-effective manner.  The details of the proposal are public and should have been referenced in any fair-balanced reporting or advertising.  

In 2007, HOS and the Town agreed that HOS could lease the property from the town for 40 years for $1/yr.  Now in its 17th year, the lease did not create a legal ‘partnership’ between the organizations.  However, as most citizens understand, informal ‘partnering’ with other organizations, including governments, offers a variety of benefits and efficiencies that help everyone.  For example, governments and non-profits are eligible (and ineligible) for different types of grants, loans and so forth, which means an informal ‘partnership’ is usually extremely practical, increasing non-taxpayer revenues and lowering costs.  This is the simple use of “partner” that we intend.

In the lease, HOS is responsible for “maintenance” of the building. To make the school the best place possible for everyone, HOS has invested over $650,000 and untold volunteer hours in maintenance and improvements over the past 17 years.  While we don’t own the building, we maintain and care for it. Over the years, all improvement benchmarks in the lease have been accomplished and exceeded, but there is more to be done.

We are willing and able to not only continue the maintenance of the property, but also to pay for half of the currently proposed capital improvements.  Anyone who argues that HOS cannot afford to do so does not have up-to-date data or could be interpreting it incorrectly.

The Town of Onancock is able, via the Department of Agriculture (USDA), to access a low-cost 40-year loan that is easily affordable to both organizations.  The current interest rate is 4%.  A $532,000 loan over 40 years at 4% would amortize at $26,882 annually. HOS proposes to pay half, in addition to all our other expenses, saving the town $13,441 in capital expenditures.  How many governments would not be willing to invest $13,441 per year into a property that offers such a laundry list ofpositive attributes as HOS?  This is NOT government waste. The annual amount of $13,441 is less than $12 per town citizen, per year.  HOS can afford to pay ½ of the annual loan payments from the energy savings and increased rents alone.  In addition, HOS brings in many visitors to Onancock who spend money in the town’s shops, restaurants and bed and breakfasts.  They pay non-resident sales and transient occupancy taxes, which decrease taxes for residents.  

To elaborate on the project to be funded:

The most critical issue, which must be addressed immediately, is to replace our 102-year-old boiler system.  An inspection several years ago indicated that the boiler was nearing the end of its useful life, so we have been as prudent as possible with services and repairs. Earlier this year a routine check brought into question the boiler’s ability to make it through the winter.  We worked to develop a reasonable resolution, which resulted in our loan proposal to the town.

An energy audit and advice from multiple other sources indicates that installing mini-split technology for our HVAC needs will be cleaner, more efficient and less expensive to run.  It would provide an enormous additional benefit:  air conditioning for the whole building.  This obviously provides comfort for businesses and the public but also helps preserve the building, reduce maintenance costs and, financially, allows for increased rents to help pay the loan.  

Also included is replacing the existing uninsulated single pane windowswith energy efficient windows to allow for smaller units and to reduce long-term energy costs.  

If the Town didn’t apply for a USDA loan on our behalf, who would care for and maintain the school? Who would perform the safety checks orcleanup and repair the playground equipment, chalkboards and Little Free Library? Who would maintain the grounds, soccer fields, disc golf course, nature trail, trees, shrubs and lawns?

What else would go away? Our spacious and affordable Gallery & Events room would not be available to the community. It is used by many diverse groups and organizations for numerous classes, art shows, fundraisers, meetings and celebrations.  We house numerous businesses who pay a fair market rent (according to an analysis by a local realtor), including many artist studios, classrooms, rec rooms, gift shops, a gym, a museum, seamstress, and a massage therapist.  HOS even hosts your CommUnity Band. Our soon to be finished Performance Pavilion, which we realize some people oppose, will host additional, worthwhile community events such as concerts and plays.

If we do not continue to care for the school and maintain it for all the activities listed above, who will? Will the Town hire people to do this? Will they sell it to developers? What would the cost of those options be to the town citizens?

We ask for the full support of the Onancock Town Council to work together with the Friends of Onancock School in a prudent manner so that we may provide a great facility to enrich the residents of Onancock and the entire Eastern Shore community.