Bell said Blue Light would continue to focus on working with young people, including through driver licence training, life skills and leadership camps.
He said the decision was made by Blue Light independently, after an initial meeting with the Ministry of Education advising of the Government's intention to repeal the Partnership School legislation in 2018.
"We decided after much deliberation not to open and conveyed this decision to the ministry early on.
"This has enabled Blue Light and the ministry to work together to provide case by case support to the 23 students, and their families, who had registered an interest in attending the school, to ensure they have alternative arrangements for 2018."
Bell said Blue Light Ventures was pleased with the ministry's support and the outcomes of these discussions.
Both organisations agreed to discuss the contract position, following Blue Light's decision not to open the school.
Fred Beckers, one of the Wairakei village residents opposed to the planned school, said he hadn't been aware of Blue Light's decision not to go ahead with the school.
"That is news to me," he said when contacted by the Taupo & Turangi Weekender. "That would be a good thing for the village and the pupils as the whole set up was substandard. They were going to cram 100 pupils into a facility designed for 47 pupils."