HomeMy WebLinkAbout5.a. SAC Grant Pilot Program
EXECUTIVE SUMMARY
Port Authority Meeting: July 20, 2021
AGENDA ITEM: SAC Grant Pilot Program AGENDA SECTION:
New Business
PREPARED BY: Eric Van Oss, Economic Development
Coordinator AGENDA NO. 5.a.
ATTACHMENTS: None. APPROVED BY: LJM
RECOMMENDED ACTION: Discussion Item.
BACKGROUND
Staff is continuing to explore initiatives that will help attract and enhance the mix of businesses in
Rosemount. The Port has long emphasized a desire to attract more dining options in town, especially tap
houses and restaurants that utilize patios and roof tops. Staff has been identifying barriers that restaurants
face entering the market. Outside of available or desirable space, one of the biggest costs restaurants
potentially face is Sewer Availability Charges (SAC). SAC credits are determined by the Met Council and
businesses are charged both a Met Council and City SAC charge, which are currently $2,485 and $1,200
per SAC credit, respectively.
SAC charges are based on maximum capacity and not average daily usage, so larger restaurants with
seasonal space tend to have higher SAC credits assigned for new development or repurposing non-
restaurant space. While the SAC fees are important to maintain and build new infrastructure, they can
present a barrier to large users with tight margins like restaurants and bars.
The City of Rosemount recognizes the important role that having a diverse array food and drink
establishments plays in the City’s vitality. Staff is recommending the creation of a pilot grant program to
assist restaurant owners by offseting SAC fees. Staff is recommending that eligibility be limited to only
food and drink and brewery establishments as defined by the Met Council. The program would offset up
to $5,000 of City SAC fees when payment is submitted with the building permit. The Met Council SAC
fees would still be collected. Staff is proposing an initial $20,000 in funding. This program would both help
achieve the commercial goals of the Port, while also setting Rosemount apart from other cities within the
Metropolitan Council.
RECOMMENDATION
Staff requests feedback from the Port Authority on the proposed pilot program.