8.2 EDSR 12-19-2016 tti ..r., Request for Action
River
To Item Number
Economic Development Authority 8.2
Agenda Section Meeting Date Prepared by
Work Session December 19,2016 Amanda Othoudt,EDD
Item Description Reviewed by
Spectrum Schools Relocation Cal Portner,City Administrator
Reviewed by
Action Requested
For discussion purposes.
Background/Discussion
Spectrum High School began operation of their high school location at 17796 Industrial Circle NW in
the Elk River Business Park in the fall of 2011.The initial capacity of the school was 525 students,which
were to be distributed among grades six through twelve.
In 2014 Spectrum received approval for a sixth grade facility at 11044 Industrial Circle NW without a
planned increase to the student capacity.The institutional use at this location shares the building with
industrial users that continue to operate their businesses.
Funding for the improvements within the business park come from bonds with a 30-year payoff.The
extended timeframe of the funding source for these facilities means that the school will not be in a
financial position to re-locate out of the business park,re-locate to another location within the city or to
another city in the near future.
The school,through its growing enrollment and need to expand,has proven that it is filling an
educational need within the community. The school also employs 140 people, and is plans to increase
the number of employees with their expansion plans.
Staff has weighed the impacts to the industrial park with the benefits to the community and feels that the
best option is to work with Spectrum to find an opportunity where they can grow near their existing
facilities,without occupying existing industrial space or displacing existing businesses.
Staff has identified a location of undeveloped EDA-owned property southwest of their high school
location and west of Twin Lakes Road. The property consists of 12.13 acres and has been marketed for
sale at$2/sf,or$1,056,765.60. The city has incurred approximately$24,260 of expenses related to
utilities,grading and park dedication fees for this property. The EDA has owned this parcel since the
Northstar Business Park was platted in 2005 and has received little interest in the property due to the
parcel shape,and presence of a gas line easement near the center of the parcel. These two items have
proven difficult for potential businesses to overcome,but may not be as challenging for Spectrum.
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The property is zoned Business Park,but staff would recommend re-zoning the property to a Planned
Unit Development specific to Spectrum's use. Once that change is made, the Business Park zoning
district would be amended to remove institutional uses as a conditional use,meaning that the Spectrum
facilities on Industrial Circle would be legal non-conforming uses that would be allowed to continue
operation,but future expansions would not be possible.
Staff believes that this is an opportunity to place a user on a piece of land that has not been marketable
from a business perspective,while giving Spectrum a place to grow with less negative impacts to existing
industrial users.
Financial Impact
None
Attachments
• Location Map
• Aerial Map
• Final Plat
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