HomeMy WebLinkAbout4.b. SAC Grant Pilot Program
EXECUTIVE SUMMARY
Port Authority Meeting: September 21, 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 , Application, 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 previous discussion during the Port meeting , 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. Staff is also recommending the program begin
on January 1, 2022. 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 Port Authority, and
NOW, THEREFORE BE IT RESOLVED by the Rosemount Port Authority as
follows:
1.The Sewer Availability (SAC) Grant Program is approved.
2.The Port Authority authorizes $20,000 in funds to be dedicated to the Program.
3.The Program will commence on January 1, 2022.
ADOPTED this 21 day of September, 2021 by the Port Authority of the City of
Rosemount.
_______________________________________
Heidi Freske, Chair
ATTEST:
___________________________________
Erin Fasbender, City Clerk
Sewer Availability Charges (SAC) Grant Program
Application/Information
Business/Organization Name: _____________________________________________________
Property Address: _______________________________________________________________
Building Owners: _______________________________________________________________
Contact Person: ______________________________ Title: ___________________________
Phone: ________________________ E-mail Address: ______________________________
Is the business a “food and drink” or “brewery or tap house” establishment as defined by the
Metropolitan Council? _________________________________
Please provide the Met Council SAC Determination: ______ SAC Credits
Applicant Signature ______________________________________ Date ______________
For program questions, please contact:
Eric Van Oss
Economic Development Coordinator
eric.vanoss@ci.rosemount.mn.us
S e w e r A v a i l a b i l i t y C h a r g e s
( S A C ) G r a n t P r o g r a m
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 SAC 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. Payments can begin after January 1, 2022 for qualifying
businesses.