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ECONOMIC DEVELOPMENT AUTHORITY AGENDA REPORT
MEETING DATE: March 14, 2011
AGENDA #: 5A
PREPARED BY: Danette Parr, Community Development and Natural Resources Director
PRESENTED BY: Danette Parr
AGENDA ITEM: DISCUSSION OF A CONCEPT PLAN FOR A CHARTER SCHOOL ON A
COMMERCIAL SITE LOCATED AT 4385 FOUNTAIN HILLS DRIVE
DISCUSSION: Introduction
The purpose of this agenda item is to share a land use Concept Plan with the
EDA and provide an opportunity for the EDA to make a recommendation to the
City Council related to the economic development implications of the Concept
Plan.
Current Circumstances
Charter Property Solutions & JB Realty have submitted a concept plan for a
charter school to be located at 4385 Fountain Hills, south of 140th Street/CR 42
and west of Pike Lake Trail (location map attached). The site is approximately
3.5 acres. A 45,000 square foot vacant showroom/warehouse building currently
occupies the site.
This property is presently zoned C-2 (General Business Commercial) and is
designated as C -CC (Community Retail Shopping) on the 2030 Comprehensive
Plan Land Use Map. An Educational (Academic) use of this nature is not a
permitted use in the C-2 Zoning District. For that reason, in order for the school
to be allowed in the proposed location, one of the following must occur:
A Comprehensive Plan Amendment to change the land use designation
from a C -CC commercial designation to a residential designation, fol-
lowed by an Amendment to the Zoning Map to rezone the property from
a C-2 commercial use district to a residential zoning use district which
would permit a school under the Educational (Academic) land use.
2. An Ordinance Text Amendment to allow Educational (Academic) land
uses to be permitted within the C-2 Zoning District.
While City Staff is not recommending either option, City Staff does believe that
if a process to allow the charter school is conducted for the proposed site, op-
tion 1 is more appropriate because it would not impact the entire C-2 Zoning
District by allowing schools in the entire commercial district.
ISSUES:
All properties directly accessed from Fountain Hills Drive are commercial busi-
nesses. A school use will impact the area in different ways due to the nature of
the site. Additional traffic safety measures for the students may need to be ad-
dressed along the corridor. In addition, per the City's Liquor Control Ordin-
ance, grounds for denying the issuance, transfer, or renewal of a liquor license
include that "the premises to be licensed is located within 300 feet of any
church or school" (Section 301.600 (9)). Therefore, the presence of a school in
the commercial area could restrict nearby properties from the development of
restaurants, clubs, and other establishments which may require a liquor license.
The map exhibit included as an attachment to this report illustrates these areas
within 300 feet of the site.
The Fountain Hills commercial area includes over 22 acres of the approximately
149 acres of C-2 (General Business) zoned property in the City. In addition to
the subject 3.5 acre showroom/warehouse site, a 2.0 acre motor fuel station
with convenience store, and a 1.5 acre day care facility are currently located in
the Fountain Hills Development. A map and additional information is attached,
which shows the adjacent remaining vacant commercial land in the develop-
ment.
FINANCIAL IM-
PACT: The building on site has previously been used as a showroom, warehouse, and
office for a retail center, but currently remains vacant. The City Council has
emphasized the need for increased economic development of commercial
areas within the City. While allowing a school to occupy the site could be a
quality reuse of the existing vacant building in the short-term, it will eliminate the
possibility of utilizing the site for a commercial development to increase eco-
nomic development of the area and contribute to the City's tax base, while also
possibly limiting some of the uses of the directly adjacent commercial parcels.
City staff contacted the Scott County Assessor to verify the tax implications of a
school utilizing commercial space. The County Assessor indicated that in most
cases a school is tax exempt. However, in cases where a school leases a
commercial space, there are two determining factors: 1) Does the school pay
market rate for leasing the space, or are they given a discount because they
are a school? 2) What is the structure of the lease? According to the County
Assessor, a school that leases space is often given a discount and their lease
agreement is specialized to their use as a school, which in this case would justi-
fy tax exempt status. However, if the property owner rents space to the school
with no differentiation from the use of the school from that of other commercial
user, the property owner would be taxed at the same rate as any other com-
mercial entity leasing the space. In either case, it's noteworthy that the lease
agreement and the status of property ownership could change without any input
or notification to the city and thus change the tax implications.
ACTION REQUIRED:
The EDA is not required to take any formal action. However, the EDA may
want to make a formal recommendation to the Council detailing economic de-
velopment concerns related to the Concept Plan by resolution, simple motion or
direction to the staff.
ALTERNATIVES: 1. Direct staff to prepare a written recommendation reflecting the EDA recom-
mendations.
2. Take no action.
RECOMMENDED
MOTION: Alternative #1.
FOUNTAIN HILLS SHOWROOM
LOCATION MAP
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CONCEPT PLAN
Aspen Academy
4385 Fountain Hills Drive Prior Lake.. MN 55372
CURRENT SITE:
Currently the property at 4385 Fountain Hills Drive is vacant and has been foreclosed by the Leader.
The property is ar 45,000 sf showroom/wareshouse that was home to a lighting store. It is divided into
bays and the north bay has a mezzanine. Currently the site is zoned C2.
PROPOSED RENOVATI N/UE:
Chanter School Property Solutions is proposing the purchase the site from the Leader and renovate it for
Aspen Academy. The interior of the building will be demolished and a now layout of classrooms, offices,
multi-purpose rooms and storage will be rebuilt. After renovation, it will have 23 classrooms and a suite
f a dministr tive offices. There will be a gym/cafete Briar for t he student to haws p hys ica l education
classes as well have lurch.
All the renovation will happen in the interior of the premises and there will be minimal exterior work.
There are two existing entrances that will be blocked off with materials t match the existing exterior
finishes.
ZONING PTIONS:
There are a couple ofzoning options that w would like to explore:
Ordinance Amendment to allow for a charter school to operating in a C2 zoning.
Ordinance Amendment with some site specific restrictions to allow for a charter school t
operating on this specific site
ComprehensivePlan Amend mnt/rezone from a C2 zoning to ars R zoning which allows for
educational uses.
ASPEN ACADEMY:
Aspen Academy is a core knowledge tuition -free public charter school located in Prior Lake. I was
started in 2008 by Prior Lake parents. The parents, students and staff of Aspen Academy have worked
hard at building a school that is reflective of the value of it community. The test scores of its student
have consistently met of exceeds those of its peers in the arra.
With this new site, it will allow Aspen to better meet the reeds of its current student population and
offer an expanded enrollment for other interested students.
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For more information please contact:
Jenny I{ilkelly
Office: 952-882-1112
jenny@gonyealand.com
www.gonyealand.com
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Site: Acreacte; Acreage:
B 7.01
C 4.62
2.00
4.62
137,226
87,148
201,247
Current Zoning.C2 General Business
Traffic Courts; 20,000 CPD on CR 4
$686,130
$4359740
$906,612
Other Info: Sites are "pad ready" and
have excellent visibility.
For more information please contact:
Jennifer Kilkelly
Office: 952P.882-1112
jennyO)gonyealand.com
www.gonyealand.com
The information provided herein has been eonipiled from
various sources. We have no reason to doubt its accuracy,
but we de net guarantee it. The prospective Purchaser
should carefully verify all information contained herein and
check with the various governmental authorities prior to fi-
nal purchase.
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