The Moyer Hypothesis: Why didn't Moyer buy its building at sheriff's sale?

From today's New Journal regarding the execution of a sales agreement:

Stephenson said the school is simply waiting for some procedural and bureaucratic hurdles to be cleared before signing a final document. And he said K12 was strongly committed to “standing by” Moyer.  http://www.delawareonline.com/article/20130719/NEWS/307190038/Department-Education-denies-charter-school-s-requests-make-changes

From Moyer's Amended and Executed Lease Agreement:
 

FIRST AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT THIS FIRST AMENDMENT TO AMENDED AND RESTATED LEASE AGREEMENT (this "Agreement"), is made this 28th  day of June, 2013, by and between THE NEW MAURICE J. MOYER ACADEMY, INC., a Delaware non-profit non-stock corporation Herereinafter called "Tenant"), and REINVESTMENT II, LLC, a Pennsylvania limited liability company(Hereinafter called "Landlord').

Only, I received the following information from the Executive Director of the Delaware State Board of Education in response to a request for assistance:

John Carwell of the DOE Charter Office has informed me that after speaking with the New Moyer Academy Board President, he understands that they do not have a current non-profit status with the IRS.  He also informed me that the Board president told him that they had not accepted any donations, thus no one had to be concerned about gifts or improper deductions.  Additionally, he stated that their attorneys have begun the necessary paperwork with the IRS to correct this matter.

And that, my friends is the likely the "procedural and bureaucratic hurdles" that Mr. Stephenson alludes to in today's News Journal story. 

Just to be sure, I have fact-checked this statement with the IRS, speaking with Ms. Smith, EID - 1796561 - who performed a search of the IRS records and could find nothing in the name of The New Maurice J. Moyer Academy Inc, or The New Moyer Academy, or any other variation of Moyer. She couldn't find their EIN at all.

Here's the background: 

The original Moyer charter school was verified as tax-exempt by the IRS in 2006 under the EIN of 56-2489408.  It was a B - Educational Institutions - and B29 - Charter School - organization.

The original Moyer had its exemption status revoked Nov. 15, 2010.  The IRS published the revocation on July 13, 2011. 

The New Maurice J. Moyer Academy Inc. was incorporate on December 21, 2010, signed by Gloria Grantham.

Nearly three years after the New Maurice J. Moyer Academy Inc. incorporated for the purpose a developing a charter application that (1) would be approved by the DOE and the SBE and (2) essentially return the school to local control from the charter management organization, K12, that had been installed by DOE following the Old Moyer charter revocation, The New Maurice J. Moyer Academy, Inc. has failed to file document 990 with the IRS.  

With the charter approval New Moyer was able to assume governance of the school while continuing to partner with K12 for the daily operations of the organization.  The New Maurice J. Moyer Academy, Inc. has governed the school for an entire school year, was previously subject to an audit, worked in tandem with its partner, K12, and yet, never attained it's tax-exempt status.

Department of Education Chief of Staff Mary Kate McLaughlin said the state has several options at this point. The most severe route would be for DoE to put Moyer in front of the state board for formal review, which could lead to closing the school or other harsh consequences.

But McLaughlin said that, for now at least, the state will simply work with Moyer to find a way to bring them into line with the system. Until an agreement is reached, the state board will get updates on the school at each of its monthly meetings.  http://www.delawareonline.com/article/20130719/NEWS/307190038/Department-Education-denies-charter-school-s-requests-make-changes

I'm not going to dog Moyer on this one. Pastor Curry is now engaged in rectifying the lack of status.  There is, however, a natural curiosity as to whether or not Moyer will pay Reinvestment Fund a sum closer to the $1.4 million they re-invested in the property to resume ownership from the defaulted Reinvestment II, LLC.  Or will Moyer, with a private mortgage through K12, purchase said property at the inflated price of $2.1 mil (per the unexecuted sales contract.)

However, the fact that a new corporation, created for the sole purpose of chartering a public school funded by tax payers, was able to move through the vetting process, receive approval, and assume governance of that school, all without a a non-profit status, potentially without ever filing with the IRS, is an epic fail that rests with the state and the leader charged with charter oversight.  It rests with Sec. Murphy, former secretary Lowery, and those who take their marching orders from Jack Markell. 

Perhaps, Moyer doesn't deserve formal review status.  Perhaps, it's DOE that should.