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school but also a member of the community with a 30-year lease with the PACT School and part <br />of Ramsey for many years to come. He noted the attendance of Dave Thorsen who has been <br />working with the design of the building and will speak about those concepts. He advised that the <br />members of the PACT school are also excited about putting this together. <br /> <br />Dave Thorsen, Academic Investments, stated he is also working with TSP Architects of <br />Minnetonka, and with a dynamic group of people from the PACT Charter School. He stated this <br />is revolutionary; how they think about school to address the best interest of the students and <br />parents and make an educational facility "out of the box" that is also good for the community. <br />Mr. Thorsen offered to present the plans or field questions of the Council. <br /> <br />Councihnember Elvig stated he has questions related to the financial aspects. He stated that they <br />all hope this is as great a project as it looks to be, and he is excited about it, but is concerned <br />about the constant financing changes for schools in Minnesota. He asked how this school would <br />be protected since it would be a taxable entity at this point. <br /> <br />Mr. Lenno f explained that the school is a 501 C3 and not a taxable entity. The question is the real <br />estate taxes on the site and project. He stated they are trying to exempt the school from real <br />estate taxes and have an elaborate system of how the ownership will flow to the school, within a <br />501C3 shell, to give it the best opportunity to not be subject to property taxes. Mr. Lennof stated <br />that charter schools are considered tax-exempt schools so they feel they have a good opportunity <br />to keep it from paying real estate taxes. He stated the County will make the final decision on <br />whether it is a taxable entity. However, if they have to pay real estate taxes, they have made <br />provisions so the school has the option to purchase the school, which would exempt it from <br />taxes. He stated he feels they have done a lot of work on that issue and will have some advanced <br />warning since full taxation will not occur until 2005. If they know that will happen, they can <br />start to take the steps necessary to keep it off the tax rolls. <br /> <br />Councilmember Elvig stated if the school were to cease for any purpose he wants to assure it is <br />not turned into another set of hands that are not taxable and the City has no control at that point. <br />He stated that his concern is whether there is a proof of alternative use to a school. <br /> <br />Mr. Lennof stated this school building is not quite to the design that some other schools are <br />where it can be converted into senior housing. In this case, since there are no schools in the <br />western part of the Anoka Hennepin School District and due to the increase in population, if the <br />PACT School does not succeed, they feel another school could go into that building, public or <br />charter. He stated they believe this building use will remain a school for a long time. <br /> <br />Councilmember Elvig asked if the developer is familiar with the obligations under the <br />development agreement. He stated the PACT Charter School is the first secondary developer the <br />Council has met and asked if they have seen the contingencies. <br /> <br />Mr. Lennof stated they just received that document tonight and not had an opportunity for review <br />or legal comment. He stated they may have some questions but are not prepared to raise them <br />tonight. With regard to the master agreement, they received a copy but have not been able to <br /> <br />City Council/September 23, 2003 <br /> Page 29 of 41 <br /> <br /> <br />