Judge's ruling permanently closes Dakota Academy

A Burnsville charter school will permanently close its doors after a judge's ruling that its sponsor correctly terminated its contract with the school.

Under state law, charter schools need sponsors to operate. Late last week, a Dakota County judge ruled on behalf of Dakota Academy's sponsor, Crossroads College of Rochester, and the Minnesota Department of Education, saying not only that the correct procedure was followed in ending the contract, but that Crossroads can "more than sustain its position that it had good cause to terminate its contract."

Attorneys for Dakota Academy didn't immediately return phone calls seeking comment. The ruling means the state Department of Education can now formally continue its closure and audit of the school.

"We are pleased with the court's decision," said education department spokesman Randy Wanke, "and believe that it's in the best interest of the students."

According to a letter that the department sent to Dakota Academy in June, the school has to send students' records to their school districts of residence within 10 business days of the school's closure.

"The evidence in this case is overwhelming to the effect that Crossroads had legitimate concerns about the leadership and administration," wrote Judge John S. Connolly.

The history

The relationship between Dakota Academy and its sponsor started going south before the school even opened last fall, when Crossroads put the school on probation. Crossroads terminated its contract with the school in December because it said it was having problems getting financial data and other information from founders, Hennepin County District Judge Harry Crump and his wife, Faith.

Crossroads College and the Department of Education declared the school closed as of June 30, but Dakota Academy argued the college improperly terminated sponsorship because it canceled an informal hearing for the school to make its case for remaining open. Crossroads argued that Judge Crump canceled the hearing.

Last month, another Dakota County district judge ordered the Department of Education to halt the closure pending the outcome of a hearing that took place earlier this month to determine whether Crossroads' termination of the contract was valid.

The argument

The disagreement over whether Crossroads College correctly terminated its contract with the school centered on an informal hearing that Dakota Academy requested.

Charter schools whose sponsors want to terminate their contracts may request a hearing with the sponsor, and Dakota Academy had a hearing scheduled for February. Failure to schedule a hearing within 14 days, state statute says, "shall be treated as acquiescence to the proposed action."

Dakota Academy's stance centered on the argument that Crossroads canceled the hearing, which could have made the contract termination invalid.

But Crossroads cited an e-mail from Judge Crump to Crossroads College, saying that "I've discussed this matter with the Dakota Academy and [the school's attorney], and we've agreed that the informal hearing should be cancelled," because the school wanted to find a new sponsor.

Judge Crump testified that he meant only to cancel the hearing date and not the hearing, but Connolly was not convinced.

"The letter is quite clear about canceling the hearing," he wrote in the ruling, dated Aug. 23. "In fact, it could not be much clearer."

Bob Damon, charter school liaison for Crossroads College, said Crossroads is pleased with the decision.

But, he said, "the closing of the charter school is unfortunate on many levels. While we believed in the original vision for Dakota Academy, Crossroads College leadership is grateful the court validated its termination process and rationale."

Emily Johns • 612-673-7460

Emily Johns • ejohns@startribune.com