Agenda - Council - 10/14/2003 - Laserfiche WebLink

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