Statement from Renaissance School Services

Regarding Taylor International Academy, the decision to close the school for this Thursday and Friday
was made by CMUs charter school office alone. Taylor has been struggling with finances for at least
three years, before Renaissance was engaged to manage the school. Since that time we have worked
with the board to resolve the financial issues, effectively by refinancing the school. In Nov. 2016
Renaissance, the schools lender, the board, and CMU were aware that the school was going to have a
cash flow issue in the spring. Prior to the winter break, a plan was assembled under which the lender
agreed to refinance the loan in May, assuming the schools enrollment stayed stable, which it did; CMU
agreed to forego its authorizer fee for the full year, which it did not; and Renaissance agreed to work
without its management fees for the remainder of the year, which we have done. All parties did this for
the benefit of the school.

In March the school terminated its lease with the schools landlord as it was too expensive. The lease
was in place when Renaissance arrived. The school engaged a commercial real estate broker to identify
new locations. CMU was fully aware that we had to move and were looking at locations.

It came to our attention in April that CMU was closing another campus with a large enrollment,
Michigan Technical Academy, not ten minutes from Taylor. On May 9 we pitched the idea of moving
Taylor to the MTA campuses to the MTA board at a public board meeting. This plan would have saved
three school communities Taylors and the two MTA campuses students, faculty, and
administration. The reaction from the MTA board was one of relief, to preserve their school
communities. The Taylor board was already in support of the plan.

On Wednesday May 10, this idea was described to CMU who said it was ingenious and issued no
objection. We then scheduled a call with MTAs bondholders at noon on May 11. At the beginning of
that call we were informed by the MTA board vice president that she had received a call from CMU
saying they would not allow Taylor to move to the MTA campuses. We continued the call with the
bondholders who fully committed to the deal and who without the deal would suffer a $20 million
default on the bonds if there was no occupant in the buildings.

On the evening of May 10, Taylors board president confirmed to Renaissance that CMU would not allow
the school to move to any new location, effectively killing the school, since we no longer had a lease.
Since May 11, Taylors board has been in direct discussions with the lender, CMU, and MDE over the
predicament at the school, precipitated by CMUs decision to not allow the school to move.
Renaissance has not been involved in any of these discussions since May 11.

Renaissance was advised on Friday May 26 that it was considered a non-critical vendor and would not
be paid; we said we would then terminate our relationship and remove the leadership from the building
on May 31. CMU has acknowledged knowing this since May 26. On Tuesday May 30 we issued our
formal letter of termination and advised the board to advise CMU to have people in place to manage the
school. On Wednesday May 31, CMU entered the building, had no plan to administer it, and decided to
close it at the end of the day for Thursday and Friday while it determined how it wanted to proceed.

We are planning on bringing the denial by CMUs charter office to allow Taylor to move to CMUs Board
of Trustees.