The Land Deal — PCA's Building Purchase Option
The PCA charter contract with DPSCD includes a provision where Purpose Group LLC can purchase the school building at 10101 E. Canfield, Detroit. This provision is documented in the management agreement obtained via FOIA. This analysis examines the mechanism and its implications.
Source: Purpose Group Management Agreement (FOIA).
Analytical inference, not a legal finding. The implications described below reflect the complainant’s analysis of the contract mechanism and public records. They have not been adjudicated by any court or regulatory body.
The Mechanism
The building purchase option operates through a chain of charter authorization, management fees, and contractual property rights:
DPSCD authorizes the charter. DPSCD authorizes Brian Banks to run Purpose Charter Academy in a district building at 10101 E. Canfield. Source: DPSCD charter authorization records; Purpose Group Management Agreement (FOIA).
Purpose Group collects fees and costs. Banks’ management company, The Purpose Group LLC, collects 10% of state aid plus reimbursement for all operating costs under the management agreement. Source: Purpose Group Management Agreement (FOIA), Section 5.1 (10% of Gross State School Aid); Section 5.3 (operating cost reimbursement).
Purpose Group can exercise the purchase option. After establishing the school, Purpose Group LLC can exercise a building purchase option embedded in the management agreement. Source: Purpose Group Management Agreement (FOIA), building purchase provision.
Ownership transfers to the management company. If exercised, the building would be owned by Purpose Group LLC — the same entity that employs all staff and takes 72.67% of revenue from the sister school, MacDowell Preparatory Academy. Source: Purpose Group Management Agreement (FOIA); MDE financial records (72.67% revenue to Purpose Group LLC).
Who Benefits
| Party | What They Get | Source |
|---|---|---|
| Banks / Purpose Group | Building ownership (via purchase option) + 10% management fee + operating cost reimbursement | Purpose Group Management Agreement (FOIA); MDE financial records |
| Judge Miller (PCA Board Chair) | Board position at a publicly-funded school — governance power | PCA board records; DPSCD charter authorization |
| DPSCD | 3% authorization fee (~$147K/yr from MacDowell alone) | MDE financial reports; charter authorization fee structure |
| Wells-Stallworth | 12+ year Board presidency at a $4.9M/yr operation | MacDowell board records; MDE financial reports ($4.9M state aid) |
Who Loses
| Party | What They Lose | Source |
|---|---|---|
| Students (362 MacDowell + PCA enrollment) | Education outcomes — 3% math proficiency, 12% reading proficiency, uncredentialed teachers | MDE assessment data; SchoolDigger; U.S. News; MOECS credential audit (Sep 26, 2026) |
| Michigan taxpayers | $4.9M+/yr to an operation where 72.67% goes to one LLC | MDE financial reports |
| Detroit public school system | Public building potentially converted to private ownership | Purpose Group Management Agreement (FOIA), building purchase provision; DPSCD property records |
The Pattern
This is not unique to Banks. Charter management organizations across the country have used similar building purchase provisions to convert public school property into private assets.
What makes this case distinctive — analytical inference — is the combination of factors present simultaneously:
- A building purchase option exists in the PCA management agreement
- The management company is controlled by a superintendent with 9 criminal convictions
- The sister school (MacDowell) is ranked in the bottom 3% of Michigan (1,443 of 1,488)
Sources: Purpose Group Management Agreement (FOIA); DPSCD authorization records; SchoolDigger statewide ranking; criminal conviction records on file.
Verify It Yourself
- Wayne County Register of Deeds — search 10101 E. Canfield for property records
- DPSCD Charter Authorization records — public meeting minutes and authorization documents
- Michigan LARA MiBusiness Registry — search “Purpose Group” for LLC registration
This analysis is based on the Purpose Group Management Agreement obtained via FOIA and public property records. The contract language is available in the evidence repository.