Laserfiche WebLink
City of <br />Elk — <br />River <br />Request for Action <br />To <br />Item Number <br />Mayor and City Council <br />10.2 <br />Agenda Section <br />Meeting Date <br />Prepared by <br />Work Session <br />February 6, 2017 <br />Cal Portner, City Administrator <br />Item Description <br />Reviewed by <br />Spectrum School Expansion <br />Zack Carlton, Planning Manager <br />Reviewed by <br />Action Requested <br />Provide staff direction. <br />Background/Discussion <br />In September of 2016, Council directed staff to seek options for Spectrum School to expand their <br />programs to meet demands for school enrollment. <br />Spectrum currently has ownership of two buildings in the Northstar Business Park, which is a legal use. <br />Because they have outstanding bonds for the purchase if their existing facilities, they have little means to <br />capitalize their operation and move entirely to a new location. They currently have bonding capacity to <br />purchase more space in the Northstar Business Park and it would be a legal use with a Conditional Use <br />Permit. Spectrum also has access to a state grant to offset their planned expansion. They are concerned <br />about increasing interest rates that may decrease their bonding capacity as they seek further solutions. <br />The Council has long held a goal to increase the city tax base and has invested in city -developed business <br />parks to meet the goal. While Spectrum has paid a Payment in Lieu of Fees/Taxes for the four years <br />following the purchase of each of their current facilities, they are under no obligation to continue to make <br />payment when their existing agreements expire. <br />Since the January meeting in which the Council expressed consensus to not sell a city -owned lot that has <br />a number of easement encumbrances and is not on the tax roll, the city and Spectrum have been made <br />aware of a handful of potential sites for sale. In each case, the location, price and/or developable size of <br />the properties does not match their needs. <br />At this time, staff has exhausted all conceivable opportunities and recommends Spectrum proceed with <br />the option they are most comfortable with which will be approved/not approved by the Council. The <br />Council should also provide direction regarding a change to future uses in business parks to remove <br />institutions as a conditional use. <br />Financial Impact <br />N/A <br />Attachments <br />■ N/A <br />P a w E A E U a r <br />NaA f RE] <br />