6.1 PCSR 03-28-2017 - Laserfiche WebLink

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Attachment A: Letter sent to City staff prior to the February 6, 2017 City Council Work SPECTRUM HIGH SCHOOL GRADES 6-32 February 6, 2017 Cal Portner Elk River City Manager 13065 Orono Parkway Elk River, MN 55330 Dear Mr. Portner, 17796 Industrial Circle NW, Elk River, MN 55330 Phone: ( &763) 241 -8703 Fax: (763) 663 -1380 www.specturrnhighschool.org This letter is intended as a follow up to the December 19, 2016 City Council meeting. As you know, Spectrum has had active discussions with the City since August 2016 about our desire to expand facilities within the Business Park. Spectrum's first plan involved expanding within the remainder of the building in which Spectrum's sixth grade facility is located. After careful consideration and planning, including discussions with City staff, Spectrum applied for a conditional use permit (CUP) for this building. We were surprised to receive a negative response toward this plan at the Planning and Zoning Commission meeting in December. Based on that response, as well as new information presented to Spectrum from City staff about possible land south of our existing high school building being donated to the school, Spectrum withdrew that CUP application. As we explore other alternatives, we at Spectrum feel it is helpful to remind you of the dimensions of our expansion needs. Charter schools have limited funds for facilities. Unlike traditional school districts, charter schools cannot use the levy process to raise additional funds. Spectrum has invested substantially into its existing facilities in the Business Park, in reliance on the willingness of the City to grant CUP's to Spectrum. Spectrum has identified an expansion site within the Business Park: the building and land located at 17823 Industrial Circle, directly east from the high school across Industrial Circle (between the high school and the existing 6th grade). This site would work for Spectrum's expansion of its 7th and 8th grades and would fit within Spectrum's budget. We believe we could configure Spectrum's use of that site in a manner that would also improve traffic flow on Industrial Circle. Spectrum is ready to proceed with this plan if it can receive a CUP for the property. Spectrum is mindful of comments from some who not only oppose any expansion of Spectrum within the Business Park, but actively desire Spectrum to reduce its footprint within the Business Park. Spectrum is willing to accommodate that desire and pursue construction of a second facility on another site, coupled with vacating the existing sixth grade facility. However, any such option increases the cost to Spectrum to a level that is substantially beyond Spectrum's ability to pay. To make any other option work, Spectrum would have to sell its existing sixth grade facility for at least $4 million. We are not aware of any market opportunity to sell the sixth grade site for that price. Therefore, to make any off -site option viable, the City will need, at a minimum, to participate in a solution that purchases the sixth grade facility from Spectrum for approximately $4 million. As to new site options, at the request of City Staff, Spectrum initially focused it's planning efforts on the land to the south of the high school. However, as you know, the EDA and City Council expressed reluctance to donate the proposed land. Further, that land offers substantial challenges with respect to school bus ingress and egress as well as acquiring land to connect the site to the current high school site. Page 3 of 6