4.1 DRAFT MINUTES (2 SETS) 02-21-2017

Home Browse Search

City Council Minutes Page 5 February 6,2017 ----------------------------- businesses. He didn't feel it was an ideal situation and felt it just "kicks the can down the road." Mayor Dietz discussed a meeting he had with Bryan Provo about the possibility of his donation of a piece of property adjacent to Mr. Provo's business to Spectrum. Dan DeBruyn,incoming Spectrum Executive Director,indicated they had met with Bryan Provo and discussed concerns raised during a preliminary review of the land donation, such as the property's steep slope towards a pond,power lines, and challenging access points to the high school parking lot area. He stated he wanted to reiterate what Spectrum was really looking for in regard to seeking solutions for their expansion plans. He introduced Craig Kepler, an attorney representing Spectrum, who outlined the reasons for the property located at 17823 Industrial Circle NW, as Spectrum's best option for their expansion of the 7ffi and 8"'grade classrooms as outlined in the submitted letter. He discussed the financial components to this expansion and its impact on the school. He indicated the necessity of recouping invested funds in the current Spectrum 6`h grade facility, should the school have an affordable opportunity to build a new facility, noting the resale concerns of a site set up for a school. Rick Peterson, Facilities Director for Spectrum,discussed the pros and cons of their review of two parcels that city staff reviewed with Spectrum as possibilities. Mr. DeBruyn indicated they too were surprised to hear tonight the 13-acre parcel was no longer available for consideration, commenting they understood it was still available. He discussed the financial impact of purchasing land for expansion,noting the high cost was not feasible for their school, and noting the money already invested in the current buildings they use. He outlined the positives of purchasing the building and property located at 17823 Industrial Circle NW, currently owned by ;CPE Exchange 26404,LLC, and believed this would be the best option for them. i'Councilmember Wagner expressed concerns regarding the potential for the city to have three industrial park building sites not generating taxes and in the future, difficult to offer as a resale opportunity when set up as a school. Mr. Kepler stated once schools are in place,they tend to stay in place for a long time, and their incurred debt is a 30-year debt. He stated although the buildings are off tax rolls, the school employs quite a few people, many who live in Elk River, and contributes to the city in ways other than property taxes. He stated the buildings are also subject to special assessments. Mr. DeBruyn noted Spectrum has paid approximately$250,000 in PILOT fees to the city, equating to approximately 5 years of property taxes on both of those buildings, and would most likely pay PILOT fees on the additional building. Councilmember Ovall noted his concerns regarding connecting traffic access through the business park. He asked for Spectrum's proposed student grown plans. POWERED 9r UREJ