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7.6. SR 04-17-2017 EOty1� ,.,�� Request for Action River To Item Number Mayor and City Council 7.6 Agenda Section Meeting Date Prepared by Public Hearings April 17, 2017 Zack Carlton,Planning Manager Item Description Reviewed by Conditional Use Permit: Institutional Use, Chris Leeseber , Senior Planner Spectrum High School, 17823 Industrial Circle NW Reviewed by Cal Portner, City Administrator Action Requested Approve,by motion, the Conditional Use Permit (CUP) request with the following conditions: 1. The applicant must apply for and receive approval for all required permits before any construction may begin. 2. Capacity of the school, combination of all three facilities (17796 Industrial Circle, 11044 Industrial Circle, and 17823 Industrial Circle) within the industrial park, shall not exceed 1,000 students. 3. No school related parking shall be permitted on the adjacent public street. 4. Due to the industrial nature of the neighborhood, the school recognizes that noise, odors, truck traffic, and other undesirable effects may be present. 5. Fees, as determined by the applicant and city, shall be collected in lieu of taxes for a period of four years. Background/Discussion The applicant is seeking approval of a CUP to establish an Institutional Use (school) at 17823 Industrial Circle. The subject property is zoned Business Park (BP) where schools are listed as a conditional use. In 2011, the applicant received a CUP to operate a school at 17796 Industrial Circle with an enrollment cap of 525 students. In 2014, they received approval for a second location at 11044 Industrial Circle for a sixth grade facility and an increase in the enrollment cap to 675 students. They are now seeking to expand into a third location, further expanding educational opportunities and relocating grades seven and eight. The expansion also proposes to increase the student cap for all of Spectrum's facilities in the business park to 1,000 students, add gym space, and reserves space for a future auditorium and athletic facility. The location operated as WS Packaging until recently and Spectrum will purchase the property which includes a large open area on the south half of the lot if the CUP is approved. Site Plan The site is developed and includes a parking lot on the north and west sides of the building. A loading dock and paved parking area is located in the rear (east) side of the building. And the south half of the lot is currently undeveloped. The current application includes a gym addition on the east side of the building. The expansion will need to comply with all city ordinances,including setbacks, stormwater management, and fire lane access. POWERED 6T AR Parking The site is developed and includes 66 parking spaces. The facility includes 15 classrooms and the parking requirement for elementary/junior high schools is two (2) stalls for each classroom. The subject property has the minimum number of stalls required by ordinance. Approval of this application will shift enrollment numbers at the other two locations. The sixth grade facility has ample parking for an increase to enrollment,but an increase at the high school facility creates a parking requirement that cannot be satisfied with the current site plan. Assuming an equal distribution of students, the high school site needs additional parking spaces. The applicant notes in their narrative that among their three sites, they have the required number of spaces. Staff spoke with the applicant and they agreed to shift their parking demands to ensure on-street parking is not needed for their operation. Staff will work with Spectrum to ensure all parking needs will continue to be met on-site, and not utilize the street for day to day parking needs. A CUP amendment will be needed if parking becomes an issue in the future. Drop Off/Pick Up The applicant proposes to adjust their bus routes to consolidate pick up/drop offs for all three sites at one location. The desired location is along the east (northbound) curb on industrial circle, adjacent to the currently proposed site. See the attached site plan for the bus staging and the proposed crosswalk and sidewalks. The buses will exit the business park at the north intersection of Industrial Circle and Twin Lakes Road. In the past, staff has received complaints from the community regarding safety at both intersections of Industrial Circle and Twin Lakes Road. No improvements at these intersections are planned at this time. Students The applicant's narrative notes that they currently serve over 600 students in grades 6 to 12 between the two facilities. Current projections anticipate continued growth in enrollment through 2022 reaching a capacity of 1,000 students with the current buildings. The CUP would increase the enrollment cap. Number of Employees Spectrum currently employs about 140 people and after the expansion is complete they anticipate hiring an additional 20 to 50 employees. The staff will be split between the three facilities. Spectrum will flex their employee parking locations to ensure adequate off street parking is maintained at each site. Hours of Operation While the hours of operation may change, currently the student school hours are 7:30 a.m. - 3:15 p.m. (Monday-Friday during the school year) Faculty school hours start at 7:30 a.m. (Monday-Friday during the school year) School year (End of August through May) Extracurricular activities vary in timing,but generally they occur between 3:30 p.m. and 5:30 p.m. N:APublic Bodies\Agenda Packets\04-17-2017\Final\7.6 sr Spectrum CUP.docx Applicable Regulation The issuance of a Conditional Use Permit can be ordered only if the use at the proposed location: 7. 1Vill not endanger, injure or detrimentally affect the use and enjoyment of otberpropegy in the immediate vicinity or thepublic health, safety, morals, comfort, convenience orgeneral nvr fare of the neighborhood or the city. This application will not detrimentally affect the use of nearby properties. This area is zoned industrial, and the school acknowledges that industrial businesses generate noise, odor, traffic, and other undesirable impacts. 2. 1Vill be consistent Pith the comprehensive plan. The City Council amended the zoning ordinance to allow institutional uses in the Business Park zoning district,which is guided for industrial uses. The change concluded that these uses are acceptable in industrial guided areas. 3. 1Vill not impede the normal and orderly development and improvement of surrounding vacantproperty. Surrounding properties are nearly fully developed, and future uses in existing buildings or sites will be consistent with the BP standards. This project will not impact that development. There continues to be some concern that the expanded presence of an institutional use in a business park will be a detriment to the leasing of nearby industrial spaces. However, staff does not believe this concern is significant enough to recommend denial of the application. 4. 1Vill be served adequately by and Pill not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, Pater and sen)er systems,parks and schools;and Pill not, in particular, create traf c congestion or interference Pith traf c on adjacent and neighboring public thoroughfares. The facility is served by public utilities, maintains access for emergency services, and will not adversely impact surrounding facilities. 5. 1Vill not involve uses, activities,processes, materials, equ pment and conditions of operation that Pill be detrimental to any persons orproperty because of excessive traffic, noise, smoke,fumes,glare, odors, dust or vibrations. The proposed institutional use will not involve uses or activities that would be detrimental to nearby persons or property. The busiest traffic times will occur in the morning and afternoon when parents and buses drop off and pick up students. Outside of these times the traffic impacts will be minimal, and staff does not believe this will be detrimental to the surrounding area. This area is zoned industrial, and the school acknowledges that industrial businesses generate noise, odor, traffic, and other undesirable impacts. 6. 1Vill not result in the destruction, loss or damage of a natural, scenic or historic feature of major importance. The project does not include exterior development that would result in the loss or damage of natural or historic features. The area is fully developed, and exterior impacts are localized to areas largely covered by impervious surfaces. 7. 1Vill fully comply Pith all other requirements of this Code, including any applicable requirements and standards for the issuance of a license orpeimit to establish and operate the proposed use in the city. The project meets all other standards described in the city code. If denial of such a permit should occur,it shall accompany recommendations or determinations by findings or a report stating how the proposed use does not comply with the standards set forth in Section 30-654. N:APublic Bodies\Agenda Packets\04-17-2017\Final\7.6 sr Spectrum CUP.docx In the review of the standards for CUP as outlined,it appears that the request is consistent with all of these standards. The applicant has also supplied a narrative describing the projects fit within the CUP standards. Planning Commission The applicant spoke during the public hearing and stated they were available for any questions. Staff has not received additional comments from the public in support of or against the current application. One member of the commission expressed concerns about potential impacts to businesses that may result from allowing further expansion of Institutional Uses in the business park. Staff noted that the current application does not displace any existing businesses,but cannot definitively say that it will not have an impact on businesses seeking to locate in the park in the future. The Planning Commission recommended approval of the CUP application 6-1. The Commission also directed staff to amend the ordinance and remove institutional uses from the Business Park zoning district. Financial Impact Establishing an institutional use on this site means that it will no longer be a taxable parcel. Consistent with previous approvals, the city recommends collecting fees in lieu of taxes for a period of four years. Statutory Review Period Per State Statute 15.99, the required 60-day review period ends on April 28, 2017. Attachments ■ Location Map ■ Applicants narrative dated February 23, 2017 ■ Site and building plans dated February 24, 2017 N:APublic Bodies\Agenda Packets\04-17-2017\Final\7.6 sr Spectrum CUP.docx O U No-p1 r r r ti tv dv 4-1 j Y Tit � - _ +' V C/D vp• F_ CL+ p If 11► _ CID Page 1 of 6 CUP Narrative – February 23, 2017 Submitted by: Spectrum High School Background Spectrum High School (Spectrum) is a 6th through 12th grade public charter school celebrating its 10th year serving the students and families of Elk River. Spectrum’s vision is to be a leader in fostering academic and personal excellence through programs emphasizing high academic standards in a small-school setting. The school accomplishes this through its mission, emphasizing college preparatory curriculum, a technology integrated environment, and community-based outreach. The school began operations in 2006, serving 66 students at the Boys and Girls Club located at 905 6th St NW. In 2007, Spectrum moved to modular classroom units located at 10129 181st Avenue – the current location of our Athletic Complex. Spectrum continued growing, leading to expanded operations serving 390 students in 2011 at our current high school location, 17796 Industrial Circle NW. In 2014, Spectrum moved its 6th grade students to 11044 Industrial Circle NW, across the street from the high school building. For the past two years Spectrum has been serving over 600 students in grades 6-12 between our two facilities, while employing approximately 140 people. Due to the continued success of Spectrum students and programs, the school is in need of additional facility space. The following proposed project anticipates future growth through 2022, reaching a capacity of up to 1,000 students. Detailed Description of Project 1. Spectrum Building Company (SBC) plans to purchase the property at 17823 Industrial Circle NW, Elk River, Minnesota, which consists of a rectangular parcel of real property of approximately 4 acres, the northern portion of which is improved with a building, and the southern portion of which is undeveloped. The building is owned by CPE Exchange 26404, LLC and is currently unoccupied. 2. SBC plans to develop the current building (approximately 25,000 ft2) to accommodate its 7th and 8th grade program, which will require the addition of a gymnasium attached to the east side of the building (approximately 10,000 ft2). 3. The field space located to the south of the building will be developed into a playing field and drive through. Future plans include enclosing the field with a structure. 4. 17823 Industrial Circle NW currently has 75 parking spaces available. If necessary, additional parking would be accommodated on the current vacant land. 5. Spectrum anticipates installing a sidewalk on the southernmost portion of the property to better accommodate people travelling between the three buildings. This would also allow for bus drop off/pick up on the east side of Industrial Circle. 6. Future facility growth (reaching a 1,000 student capacity) would be accommodated by maximizing the remaining space on the northeast corner of this building. 7. Spectrum will convert a portion of the current high school facility to a College and Career Center, continuing to maximize concurrent enrollment college opportunities for students. Timeline for Project Spectrum anticipates acquisition of the property as soon all approvals have been received and finances secured. This could be as early as May or as late as September 2017. The acquisition date will then drive the construction timeline, which will determine the rate at which students will be added. Current Hours of Operation Weekdays: (Staff) 7:30 a.m. – 4:30 p.m. (Students) 7:30 – 3:15 p.m. After School and Evening Activities: Hours vary between all school events and extracurricular activities Weekend Activities: Hours vary between all school events and extracurricular activities Number of Employees: Spectrum High School currently employees approximately 140 people With the full expansion, it is anticipated that the school will employee an additional 20 to 50 people Page 2 of 6 Number of Parking Stalls (existing and additional): Existing (currently available to Spectrum High School): High School Building = 130 Stalls 6th Grade Building = 98 Stalls Total Existing Stalls = 228 Stalls Additional Stalls: Stalls existing at 17823 Industrial Circle NW = 75 Stalls Total stalls available to Spectrum High School upon completion of the proposed project: 303 Stalls Is There Proposed Screening of the Site? Screening already exists for the current building. No additional screening is currently being proposed. Proposed Building Materials: 17823 Industrial Circle NW is currently constructed. Interior buildout will be steel stud, sheetrock, and cement construction, similar to current 6th grade building construction. The gymnasium will be built with tilt up cement panels. Interior buildout will be steel stud, sheetrock, and cement construction. How do they comply with applicable design standards? Rivera Architects, Inc. will ensure compliance with all applicable design standards. Signage Spectrum is currently planning one additional sign. The sign will be located at the northwest corner of the newly acquired building located at 17823 Industrial Circle NW. The size of the sign will be up to 36 feet (wide) by 6 feet (high). The sign will be illuminated of aluminum and vinyl construction. Is There Outdoor Storage? No outdoor storage is currently being planned for this site. Spectrum is honored to serve students and families of the Elk River community. We value the relationships built with local businesses and the connections our students have made through their ongoing service learning. We are enthusiastic about growing the school and continuing to provide this educational choice to students and families of the Elk River community. Supplemental Information Attachment A: Letter sent to the City Manager, Cal Portner, and forwarded to City Council members prior to the February 6, 2017 City Council Work Session summarizing the school’s efforts and framing the rationale for pursuing the property at 17823 Industrial Circle NW. Attachment B: Response to Applicable Regulations We look forward to the working with the City on the proposed expansion project for Spectrum High School. Sincerely, Rick Peterson Director of Athletics and Facilities Spectrum High School Page 3 of 6 Attachment A: Letter sent to City staff prior to the February 6, 2017 City Council Work 17796 Industrial Circle NW, Elk River, MN 55330 Phone: (&763) 241-8703 Fax: (763) 663-1380 www.specturmhighschool.org February 6, 2017 Cal Portner Elk River City Manager 13065 Orono Parkway Elk River, MN 55330 Dear Mr. Portner, 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 6 th 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 pric e. 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 sch ool bus ingress and egress as well as acquiring land to connect the site to the current high school site. Page 4 of 6 Thus, City Council directed City staff to pursue other land options within the City of Elk River for Spectrum to be located outside of the Business Park and bring those options back to the Council for the February 6 work session. Since that time, and in preparation for the upcoming February 6 City Council work session, Spectrum has pursued the two leads presented to us by City Staff. The first was a parcel of land located to the south east of the Business Park, off of Twin Lakes Road, owned by a private party. We met with the land owner of the 12.5 acre parcel. There were numerous reasons the land cannot work for the school. There are only 7.25 buildable acres and the owner is asking $1.3M for the property. This information was conveyed to City at the time. The second land owner that approached Spectrum was for property located in close proximity to Twin Lakes Elementary School off of Cleveland Street NW. While the developer has 50 acres and is open to selling land to the school, the price tag is $30,000/acre, which is well outside of Spectrum’s ability to pay. In addition to the excessive price of the land in both cases, the school is not in a position to build a new building without a sale of the sixth grade facility that recoups Spectrum’s investment in that facility, as discussed above. As the City Council work session is rapidly approaching, we want to communicate what the school feels would mee t our needs and allow us to realize the return on our investment. The option of having land donated to the school in close proximity to the high school facility is appealing. However, in order for the school to pursue this as an option, we would need to have at least the following in place: 1. Assurance of traffic access through the Business Park for both entering and exiting at the southernmost intersection of Twin Lakes Road and 175th Avenue NW; 2. Assurance that a sufficient access point is established between the current high school property and the 13 acres; 3. Assurance that the City will seek out a buyer or purchase the current Spectrum 6th grade facility, with a current price tag of approximately $4M. This is necessary in order for the school to have sufficient funds to build a new facility; and 4. Assurance that the land will be free or very low cost in order for the school to be able to afford building a brand- new facility. In light of the necessary assurances with the 13 acre parcel, the school believes the best option moving forward will be for the City to approve a CUP for Spectrum to purchase the building and property located at 17823 Industrial Circle NW, Elk River, Minnesota, currently owned by CPE Exchange 26404, LLC. Spectrum believes this would be the best option for the following reasons: 1. The building is currently unoccupied, therefore not displacing any current businesses; 2. The seller is interested in selling the building to the school at this time; 3. The building is in close proximity to both the 6th grade and high school buildings; 4. The open space on the southern portion of the parcel is perfectly located to provide the needed additional field space for the middle school; 5. The open space can also allow for additional parking and bus staging to address current and future traffic flow within the Business Park; 6. The open space can potential provide space for sidewalks and a cross walk – increasing safety within the Business Park; and 7. Since it is a current structure and would not require the purchase of additional land, it is an affordable option for reaching out intended growth target. Spectrum is grateful for the work of the staff and Council in seeking solutions for Spectrum’s expansion needs. We are also thankful for the recognition by City staff, the Planning and Zoning Commission, and the City Council of Spectrum as a high quality public school option in the City of Elk River. We look forward to continuing our work with the City. Sincerely, Dan DeBruyn Vanessta Spark Rick Peterson Incoming Executive Director Outgoing Executive Director Facilities Director Page 5 of 6 Attachment B: Response to Applicable Regulation Spectrum High School notes that the facility located at 17823 Industrial Circle NW meets the City’s regulations for a Conditional Use Permit in the following manner: 1. The use of this facility will not endanger, injure, or detrimentally affect the use and enjoyment of other property in the immediate vicinity or the public health, safety, morals, comfort, convenience, or general welfare of the neighborhood or the city. Spectrum has been located in the business park since 2011 (6 years) and has been intentional about ensuring the safety of its students, staff, and the general public. The addition of 17823 Industrial Circle NW will continue to improve the school’s ability to ensure vehicle and pedestrian safety through improved traffic flow and better separation of pedestrian and car traffic from buses. The improved traffic flow within the business park will also improve the comfort and convenience of other businesses within the park. 2. This application will not detrimentally affect the use of nearby properties. As noted above, the addition of this facility will positively affect nearby properties by improving the flow of traffic and pedestrians within the business park. Spectrum acknowledges that this is an industrial zoned area which may cause noise, odor, traffic, or other undesirable impacts to the school. 3. This facility will be consistent with the comprehensive plan. The City Council amended the zoning ordinance to allow institutional uses in the Business Park zoning district, which is guided for industrial uses. The change concludes that these uses are acceptable in industrial guided areas. 4. This facility will not impede the normal and orderly development and improvement of surrounding vacant property. Surrounding properties are nearly fully developed, and future uses in existing buildings or sites will be consistent with the BP standards. This project will not impact that development. The building is currently vacant and Spectrum High School will be making significant improvements to both the building and the open land increasing their value, aesthetics, and functionality. 5. This facility will be served adequately by and will not adversely affect essential public facilities and services including streets, police and fire protection, drainage, refuse disposal, water and sewer systems, parks and schools; and will not, in particular, create traffic congestion or interference with traffic on adjacent and neighboring public thoroughfares. The facility is served by public utilities, maintains access for emergency services, and will not adversely impact surrounding facilities. It is the school’s understanding, based on feedback from City staff, that Twin Lakes Road NW is designed to accommodate heavy traffic flow and, at some point, become one of the main thoroughfares for the City of Elk River. Page 6 of 6 Spectrum has been located in the business park since 2011. The addition of this facility and the eventual growth to 1,000 students (currently 670 students) will have minimal impact to traffic congestion or interference on Twin Lakes Road NW or on adjacent and neighboring public thoroughfares. 6. This facility will not involve uses, activities, processes, materials, equipment and conditions of operation that will be detrimental to any persons or property because of excessive traffic, noise, smoke, fumes, glare, odors, dust or vibrations. The proposed institutional use will not involve uses or activities that would be detrimental to nearby persons or property. Traffic will be in the form of buses and vehicles dropping off and picking up students consistent with previously approved Condition Use Permits. The addition of this facility will likely result in up to two additional buses within the next five years. The facility will result in increased efficiencies in traffic and pedestrian flow within the business park by combining bus pick up/drop off into a single area along the south and west side of the play field. 7. This facility will not result in the destruction, loss or damage of a natural, scenic, or historic feature of major importance. The project does not include exterior development that would result in the loss or damage of natural or historic features. The building is fully developed, and exterior impacts around the building are localized to areas already covered by impervious surfaces. The majority of the undeveloped space will be developed as a play field with a drive to connect the parking lot with the 6th grade building to further decrease traffic within the business park. A sidewalk (with crosswalks to the 6th grade building and high school) around the south and west side of the playfield will improve pedestrian flow and bus safety. 8. 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