Cliff Buchan
News Editor

Come early next year, a deal could be struck that will see the former District Memorial Hospital building in Forest Lake sold.

Officials of Fairview Lakes Regional Health Care said this week progress is being made on a potential sale of the old hospital building to Lakes International Language Academy, the new first-year public charter school. The school is now leasing space in the building, 246 SE 11th Ave.

The former hospital building has been under Fairview control since 1995 when the district governing board teamed with Fairview. That partnership led to the construction of the regional Fairview hospital in Wyoming.

The 10-year lease signed with Fairview expires at the end of the year.

Michael Perreault, chairman of the still-functioning district hospital board, said this week the board is monitoring the progress and anticipates the sale will take place early next year.

Cam Hedlund, director of the Spanish immersion school, said this week the non-profit company that owns the school is close to signing a purchase agreement to buy the building and just over five acres of land on the hospital campus site.

Dan Anderson, president of Fairview Lakes Regional Health Care, said Fairview will exercise its lease option to purchase the DMH assets for a nominal fee on Jan. 1, 2006.

ìWeíve told them (DMH board) we will do that,î Anderson said of the lease option.

If the current planning efforts are successful, the sale to the Lakes International Language Academy Building Company would shortly follow, he said.

A purchase price for the 40,000 square foot building and five acres of land will not be disclosed after the sale closes, Anderson said.

Growth the reason

A phenomenal growth rate for Lakes International Language Academy is the major reason behind the move to buy the building, Hedlund said last week.

The school wrapped up its first year last week with K-4 grade level enrollment of 175 students.

When the school opens this fall, Hedlund said enrollment will grow by 100 students with a Grade 5 component. By the fall of 2006, Grade 6 will be added and enrollment is projected to grow by another 80 students, Hedlund said.

ìWe started out looking at the old bowling alley building,î Hedlund said. ìWe would have outgrown the bowling alley rather quickly. This (the DMH building) is just a gorgeous site.î

To handle the 100-student growth this fall, Hedlund said the school will occupy basement space and move into several adjoining classrooms on the main floor. ìIt will be tight but manageable,î Hedlund said.

The director said the purchase is one of two key moves facing the school.

He said the school has also appointed a task force to explore educational opportunities for students once they leave the K-6 component. He anticipates meetings with ISD 831 officials to discuss all possibilities.

Fairview pleased

Anderson said Fairview officials are pleased with the possible sale of the building and grounds to Lakes International. That, Anderson said, will maintain Fairviewís intent to have the building fulfill some form of ìcommunity purpose.î

The remaining seven to eight acres of the old hospital campus is now under contract to John Duffy who is exploring a housing development, Anderson said.

By next year, Duffy Development is considering moving forward with an affordable housing complex on the site and is now in preliminary discussions with city of Forest Lake officials over the density level for the housing, said Chip Robinson, city administrator.

The addition of affordable housing units to serve as starter homes should also be important to the community, Anderson said.

The sale will mean some changes for the current building use.

Anderson said the Fairview recovery programs now housed in the former hospital building would be moved to the Fairview facility in Chisago City.

The purchase will be structured to allow the North Ambulance base to remain at its current Forest Lake location, he said. That would give Fairview two to three years to find a suitable building for the ambulance base, Anderson said.

Office space for Minnesota State Patrol troopers working this area will be lost. Troopers have been offered office space in the Forest Lake City Hall complex after July 1 when Washington County Court Services vacate the premises.

Public meeting

Perreault said last week the district hospital board will have a public meeting on Monday, Oct. 3 at American Legion Post 225 to discuss the Fairview decision to exercise its option to acquire the hospital facility.

The board will also consider an amendment to the current lease to clarify terms regarding the use of excess proceeds as defined in the lease. The excess proceeds clause is tied to the sale price of the building and grounds to Fairviewís assumption of prior debt on the facility.

Perreault said the lease amendment will attempt to stipulate that any excess proceeds from the sale price remain in and be used for health care needs in the regional health care system.

ìIt would be of benefit to Fairview,î Perreault said of the lease provision.

The October meeting, set for 7:30 p.m., is the next regular meeting of the governing board which meets infrequently. Its main function is oversee the condition of the hospital facility and grounds in Forest Lake.

The hospital district was formed in the early 1960s by citizens and the governmental units in Forest Lake, Forest Lake Township, Lino Lakes, Hugo, Centerville and Columbus Township.

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Forest Lake Times
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880 SW 15 St.
Forest Lake, MN 55025
651-464-4601
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