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HomeMy WebLinkAbout4.b. SAC Grant Pilot Program EXECUTIVE SUMMARY Port Authority Meeting: August 17, 2021 AGENDA ITEM: SAC Grant Pilot Program AGENDA SECTION: Old Business PREPARED BY: Eric Van Oss, Economic Development Coordinator AGENDA NO. 4.b. ATTACHMENTS: Resolution and Program Guidelines. APPROVED BY: LJM RECOMMENDED ACTION: Motion to approve the Sewer Availability Charge (SAC) Grant Pilot Program. 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 offsetting SAC fees. Staff is recommending that eligibility be limited to only food and drink and brewery establishments as defined by the Met Council. After the July presentation and discussion, staff is recommending the program cover up to 50% 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 the Port Authority approve the proposed Sewer Availability Charges (SAC) grant pilot program. CITY OF ROSEMOUNT DAKOTA COUNTY, MINNESOTA RESOLUTION 2021- 03 RESOLUTION APPROVING THE CITY OF ROSEMOUNT, SEWER AVAILABILITY CHARGE (SAC) GRANT PROGRAM WHEREAS, City of Rosemount recognizes the important role that restaurants and other food and drink establishments play in the City’s vitality. Strategic Planning efforts of the Rosemount Port Authority identify attracting these establishments as an important objective; and WHEREAS, the City has piloted the Sewer Availability (SAC) Grant Program and has determined to use funds to provide grants to food and drink business in Rosemount; and WHEREAS, the guidelines for the Sewer Availability (SAC) Grant Program has been presented to the City Council, and NOW, THEREFORE BE IT RESOLVED by the Rosemount Port Authority as follows: 1.The Sewer Availability (SAC) Grant Program is approved. 2.The Council authorizes $20,000 in funds to be dedicated to the Program. ADOPTED this 17 day of August, 2021 by the Port Authority of the City of Rosemount. _______________________________________ Heidi Freske, Chairperson ATTEST: ___________________________________ Erin Fasbender, City Clerk Sewer Availability Charges (SAC) Grant Program Purpose 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. City staff identified 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 Sewer Availability Charges (SAC) Grant Program offers a way to help businesses alleviate some of the SAC costs associated with opening a new restaurant space. Eligibility Eligibility is limited to only food and drink and brewery establishments as defined by the Met Council. Businesses that apply for a Met Council SAC determination under this category will qualify for the City of Rosemount grant program. Eligible Uses Grant dollars can only be used to offset a portion of City SAC charges. Grant Amount The grant amount will be equal to 50% of the SAC fees charged by the City of Rosemount. The full Met Council SAC fees would still be collected. Number of Grants The City will offer downtown grants totaling up to $20,000 annually. Each applicant is eligible for one grant per calendar year. Grants will be awarded on a first come first serve basis. If eligible grant requests exceed the total funding capacity, the Port Authority may consider additional funding. Payments The grant will be applied at the time of building permit submittal. When fees are collected with the building permit, 50% of City SAC fees will be applied from the funding allocated for the Sewer Availability Charges (SAC) Grant Program.