Agenda - Economic Development Authority - 10/10/2024

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APPROVED 2/8/21 Full -Service Restaurant Subsidy: Water Availability Charge (WAC) and Sewer Availability Charge (SAC) Program The Program This subsidy program is intended to serve as a catalyst for securing new restaurants and to promote the expansion of existing restaurants in Ramsey by providing financial assistance to qualified restaurant businesses. The full -service restaurant must be located in The City of Ramsey. To facilitate new full -service restaurants, the EDA would provide zero interest, forgivable loans to eligible full -service restaurants for the purpose of financing their water and sewer connection fees. The maximum loan amount would be 70% of the proposed restaurant's Water Availability Charge (WAC fee) and Sewer Availability Charge (SAC fee). The 70% cap would ensure that the businesses are covering some of the fixed capital costs for the City's water system. The loan would be recorded as a subordinated mortgage, or security and the principal would be forgiven if the restaurant remained in operation and in good standing with the City for five years. The loan principal would be forgiven at a rate of 20% per year. In establishing the loan amount and the percentage of WAC and SAC subsidy, the EDA would advise the Ramsey City Council regarding several factors. The factors are (1) the size of the restaurant's capital investment, (2) the financial need and potential for long-term viability, and (3) the quality of the restaurant's concept. A full -service restaurant is defined as one that has washable plates, cups and utensils, wait staff, food served at tables, and whose projected SAC/WAC fees are charged at a rate of X unit per seat. Funding Source The funding for the Water Availability Charge (WAC) and Sewer Availability Charge (SAC) Program will come from the EDA Fund. Eligibility Eligible applicants are for -profit restaurant businesses considering new, additional or the expansion of existing restaurants in The City of Ramsey. Eligible businesses must devote a majority of their floor space to the restaurant concept. All applicants must be a permitted use in compliance with all laws, zoning ordinances, rules and regulations applicable to the business. The Ramsey EDA will review each application on a case -by -case basis and reserves the right to exclude activities not consistent with the City's Comprehensive Plan, or if the concept does not benefit the health, safety and welfare of the community.