Agenda - Council - 12/11/2012 - Laserfiche WebLink

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• Lorrie Louder, St Paul Port Authority • Jay Scherer, Savage • Bruce Loney, Shakopee Various meetings were also attended by: • Mary Ubi, Minneapolis Brief History on Current SAC Policy After a stakeholder group discussion in 2005 and 2006, changes to the then current SAC credit policy were adopted and the SAC program went to a 'no net credit' system effective at the beginning of 2010. Prior to that time, a community could use SAC credits on a community -wide (net credit) basis. The calculation of SAC credits were based either on: i) the payment history of SAC for a property and ii) properties built before 1973 were "grand -parented" into the system, and both types were allowed to generate credits on site or net credits for use off site. Property use/demand was not taken into account in the determination of credits. In 2010, community -wide credits were disallowed and credits became limited to the amount needed on a specific site for a new use. The calculation of SAC credits are determined based on prior use over the last seven or eight years (the `Look -Back Period'). The impetus for the 2010 changes centered on difficulties in accessing 1973 data, perceived inequity in long vacant or underused properties not paying regular sewer fees to help maintain sewer capacity, and fewer net credits taken community -wide mean more SAC paid to reduce SAC rate pressure. The changes were also proposed with the intent of making the program simpler to administer. The Council did not want to incept a de -intensification of development where infrastructure was already in place. Metro Cities convened a work group of city officials in 2006 to make recommendations and the final product had wide agreement. Nevertheless, the SAC changes that were implemented effective January 1, 2010 have since generated numerous concerns, some stemming from impacts of the recession on businesses and restrictions on SAC credits, particularly the challenges associated with redeveloping properties and the inability to use net (community -wide) SAC credits in those efforts. Recommendation: SAC Credits The current work group finalized a set of recommendations which, when SAC has been paid fora site, in large measure represents a reversal of current policy on SAC credits to again allow for the use of credits community -wide. These changes are intended to both make the program more flexible for communities and to simplify the administrative aspects of the program for all parties (as SAC payment records are in good order and usually not controversial). The changes proposed, which received unanimous support by the group, are as follows: SAC paid at any time (1973-present) is sufficient evidence in generating potential SAC credits_ in such cases, net credits can occur that can be used community -wide or left site -specific at the community's option (a one-time election with monthly reporting). The Look -Back Period and vacancy rules would no longer apply. Also, non -conforming use credits (where SAC was not paid) would be available but limited, If a community shows either grancl-parented (between 1968-1978) or continuous demand (property built post-1973 but did not pay SAC and has been in existence 10 years prior to the current determination) 21Fag