Is something unethical going on at the KIPP schools?

From the Times Union:

Many charter school operators counter that there’s more demand than space at their schools.

Kipp, for instance, operates a middle school and two small but growing elementary schools — totaling 830 students. It still has 1,200 students more on its waiting list, said Tom Majdanics, executive director of KIPP in Jacksonville.

http://jacksonville.com/news/metro/2015-08-22/story/school-starts-monday-duval-parents-see-growing-number-choices-education

The district however says they have never reached their max enrollment.

It’s a rather innocuous exchange at the 2 hour and 8 minute mark.

http://duvalschools.pegcentral.com/player.php?video=23cb8eaa6eea569bda7e840a3d75f64c

Superintendent Vitti asked if the KIPP School has ever maxed out their enrollment.

He asked a subordinate who answered they have come close but haven’t.

So why do they have a wait list if they have never reach their max enrollment?

Is it because they are picking and choosing who they take, because as I understand it that is both illegal and unethical.