03-31-14-WS - Laserfiche WebLink

Home Browse Search

AGENDA ITEM 1B MEMORANDUM DATE: March 31, 2014 TO:Honorable Mayor and City Council Members FROM: Patrick Klaers, City Administrator SUBJECT: Met Council SAC Credit Program Background/Discussion New rules dealing with the Met Council SAC credit program went into effect on 1/1/13. Attached is an article from the Metropolitan Council website that helps to explain the new SAC credit rules. In 2013, the Metropolitan Council Environmental Services (MCES) completed a SAC determination for TCAAP site based on demolished buildings that were previously connected to the regional sewer system. The City received final confirmation in January 2014 that MCES had granted 4,564 units of credit. These credits would not have been available under the old rules. The MCES SAC rate for 2014 is $2,485 per unit. The AUAR zoning scenario (at full development) would generate about 2,200 SAC units. The AUAR maximum development scenario (at full development) would generate about 3,300 SAC units. Full development could take 10 to 15 years. The SAC credits can only be used on the TCAAP site, and any credits not used will be cancelled. MCES SAC fees are typically paid by new development at the time of issuing building permits. (The City also charges SAC fees and WAC fees which are not affected by the MCES SAC program.) Assuming that the City will continue to require that MCES SAC be paid by new developments in TCAAP, which is a normal cost of development, the City can then use this revenue at its discretion. It is appropriate for the Council to have a conversation on establishing a policy or guidelines on how to and when to use the SAC credits. It sounds like at full development that the City will have a lot of money to work with, but there are a lot of needs and it will go fast so prioritizing the use of the funds is important. 12 Page of