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REQUEST FOR COUNCIL ACTION Date: June 20, 2023 Item No.: 7.c Department Approval City Manager Approval Item Description: Consider a request by Par365 for sewer access charge credits Page 1 of 2 BACKGROUND 1 City staff has been working with a small business named Par365 for approximately one year. Par365 2 would be a new business locating at 2655 Patton Road, offering an indoor golf lounge (golf simulation) 3 and event center with food and beverage services. City staff discussions with the owners, Thomas and 4 Mercedes Jackson have focused on assistance with marketing via the Choose Roseville campaign and 5 the City’s small business loan program administered by Open to Business. As Par365 has gotten closer 6 to requesting a building permit, additional assistance in the form of sewer access charge (SAC) credits 7 has been discussed. SAC’s are determined by the Metropolitan Council in units, paid for by the City 8 who collects the fee from the business and passes it through to the Metropolitan Council. Attachment 9 B outlines the Metropolian Council determination that Par365 will be assessed 7 SAC units. Each 10 SAC currently costs $2,485, requiring Par365 to pay $17,395 at the time of building permit. Par365 11 submitted a letter (Attachment A) requesting assistance with SAC fees, noting any assistance would 12 help their small business reallocate funds to urgent business needs leading to their September opening, 13 including the purchase of equipment and inventory. 14 15 In 2011 the Metroplitan Council provided the City with approximately 500 community-wide SAC 16 credits. In an effort to preserve those credits so they could be made available for use at the discretion 17 of the City, those credits were monetized for use at a later date. In recent years, SAC credits have only 18 been offered as a component of formal requests for public finance assistance through the Roseville 19 Economic Development Authority. Three projects were offered SAC credits through this process, 20 including McGough’s new headquarters, Common Bond’s Owasso Gardens apartments, and Edison 21 apartments (phase II). 22 23 Beyond offering SAC credits in conjunction with formal applications for public finance assistance, 24 staff finds there to be value in offering SAC credits to small businesses. Because Par365’s request is 25 valued at less than $25,000, granting such a request would not be considered a business subsidy and 26 would not have to be reviewed and approved by the Roseville Economic Development Authority. In 27 an effort to be more thoughtful regarding administering SAC credits outside a formal request for public 28 finance assisance, staff has prepared a draft SAC Policy (Attachment C) for discussion at a future City 29 Council meeting. However, Par365 is ready for a building permit now and may suffer financially if 30 their request is delayed while the City discussses adoption of a formal policy. Staff is prepared to 31 bring a draft policy discussion forward to the City Council’s July 17th work session, but is requesting 32 Par365’s request be considered at this time so as not to delay their building permit and anticipated 33 opening timeframe of September. Staff would suggest Par365 be offered five (5) SAC credits, which 34 is what is outlined in the draft policy. A maximum of five credits is what staff discovered to be 35