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SAC Deferral Program
About
The City of Edina participates in the Metropolitan Council’s Sewer Availability Charge (SAC) Deferral Program to support new and emerging businesses as they expand. SAC fees charged by Met Council may be spread out over a five-year term. Local water-related fees are NOT eligible for this program.
Eligible Businesses
Any new building or existing building undergoing a significant renovation for a commercial business, school, hospital, not-for-profit organization or house of worship is eligible provided that the SAC determination is at least 5 units but no more than 25 units before any credits are applied.
Some industrial businesses may also be eligible provided that they do not discharge Industrial Wastewater as defined by the Metropolitan Council.
Disqualifications
Applicants for the Deferral Program will be disqualified if any of the following conditions exist:
- Any portion of the property is used for residential purposes
- Property taxes are delinquent
- Applicant is not in good standing with the State of Minnesota
- Applicant is in violation of Edina City Code
- Applicant fails to meet the definition of eligible commercial property in the Metropolitan Council’s SAC Deferral Program
Conditions and Structure of Deferral Process
The structure of the Deferral Process follows the Metropolitan Council’s Deferral Program. Applicants seeking to defer SAC fees are subject to the following limitations and conditions:
- The maximum SAC determination is 25 units (before application of any available credits). Businesses with more than 25 units are not eligible for the Deferral Program.
- Deferral must be for 5 or more SAC credits.
- The deferral term is 5 years.
- The business owner must complete an application and execute the Deferred Payment Agreement to be eligible for the program.
- If the business is leasing the space, the property owner must also agree to the terms and conditions of the Deferral Agreement, including waiving the right to appeal assessments for unpaid fees.
- A down payment equal to 20% of the total SAC fee (after credits are applied), is due at the time of application – typically at the issuance of a full Building Permit. Prepayment of an amount equal to six monthly payments must be received prior to the issuance of an Occupancy Permit from the Building Department. An occupancy permit will not be issued until the down payment is submitted and Deferral Agreement executed.
- The applicable interest rate is determined by the Met Council. The interest rate is determined upon the execution of the Deferral Agreement and remains fixed for the duration of the deferral.
- The business will be billed on a monthly basis. Payment is expected within 30 calendar days. A late fee will be added to payments received after 30 calendar days.
- There is no penalty for early payment of the outstanding balance.
- In the event of a business closure, the business owner must notify the City’s Finance Department. The City will verify the closure and notify the Metropolitan Council of the closure. Future payments will be waived after verification of the closure. Any outstanding payments due prior to the verification of the business closure will not be waived and will be assessed to the property.
- In the event of a default, any outstanding fees will be assessed to the property and the property owner waives the right to contest the assessment.
- Any SAC credits available as a result of business closure or default are non-transferable. They will be available to future occupants of the property from which they were collected.
The City reserves the right to modify, suspend or terminate the program if the Metropolitan Council amends or terminates the program.