Laserfiche WebLink
5/7/2021 Agenda <br />Economic Development Authority (EDA) <br />Meeting Date: 05/13/2021 <br />By: Sean Sullivan, Community Development <br />4.4. <br />Title: <br />Consider Implementation of Metropolitan Council Sewer Availability Charge (SAC) Deferral and Financing <br />Program <br />Purpose/Background: <br />The purpose of this case is to determine if the EDA is supportive of adding an additional business assistance <br />tool to finance Metropolitan Council Sewer Availability Charge (SAC). <br />The City of Ramsey has recently put in place a revised SAC and Water Availability Charges (WAC) Deferral <br />program for for -profit restaurants. The program provides for a 5 year, forgivable 0% interest loan for up to <br />70% of the charges due. This program is limited to restaurants only as they have been identified by the EDA as <br />a targeted industry for recruitment and development. <br />All new construction that results in the creation of new space, expansion of existing space or increase in <br />intensity of use of existing space is required to pay SAC and WAC fees at time of Building Permit. SAC and <br />WAC fees are based on the size and use of the business. For existing spaces, additional charges are only due if <br />the intensity of the use is expanded based on a clearly defined formula. <br />The Metropolitan Council has a SAC Deferral and Financing Program that can be used for any type of <br />business. They will allow a maximum of 80% of 25 SAC units to be deferred/financed from a period of up to <br />10 years. Cities have the ability to modify or otherwise restrict up until the maximum amount to tailor their <br />own local program. The City must commit to making the SAC Payment to MCES once an agreement is put <br />into place. It is up to the City to enter into a separate agreement with the participating business to ensure the <br />business pays on time. The arrangement for SAC <br />Staff would like to know if the EDA would like to explore this program further and to potentially develop a <br />draft policy for consideration. A draft application from the City of Rosemount has been supplied for reference. <br />Notification: <br />N/A <br />Observations/Alternatives: <br />Staff understands that implementation of a program of this type will create more administrative work for both <br />Economic Development, Building and Finance, but something that is completely manageable. This is simply <br />another tool for the toolbox to help recruit and retain businesses. The purpose of this case is to get some <br />feedback from the EDA on whether adding a program like this would be beneficial to businesses and efficient <br />to operate and to explore further. In addition, discussion on the scope of a potential program would be helpful <br />in the the event that Staff is directed to do more research and to put together a sample policy or application. A <br />few items to consider for a draft policy are: <br />1. What is the maximum percent of SAC that would be deferred (capped at 80% of the fee)? <br />2. What is the maximum length of repayment timeframe (capped at 10 years)? <br />3. Should this be limited to certain business types? <br />4. What is the maximum amount of SAC units to be deferred (capped at 25 SAC Units - approximately <br />$2,500 per SAC unit for a total of $62,500? <br />5. Are there any other qualifying criteria the EDA would like to consider? <br />https://agendas.cityoframsey.com:8085/print_all.cfm?seq=21894&reloaded=true&id=0 11/12 <br />