- Home
- Your Government
- Departments
- Economic Development
- Financial & Business Resources
- Small Business Trunk Fee Deferral Program
Small Business Trunk Fee Deferral Program
The City of Waconia participates in the Metropolitan Council's Sewer Availability Charge (SAC) Deferral Program to support new and expanding businesses in the community. SAC fees charged by the Metropolitan Council and the correlating city fees related to water and storm water charges may be spread out over a ten-year term.
Eligible Businesses
Any new building or existing building undergoing a significant renovation for a commercial business that has a SAC determination of 25 units or less before any credits are applied.
Disqualification
Any portion of the property is used for residential purposes (see Trunk Deferral Program for Affordable Housing)
Property taxes are delinquent
Applicant is not in good standing with the State of Minnesota
Applicant is in violation of Waconia City Code
Applicant fails to meet the definition of eligible commercial property in the Metropolitan Council's SAC Deferral Program
Guidelines
1. New Metropolitan SAC determinations of 25 or fewer SAC units on commercial projects are eligible.
2. Water, sewer, and storm water trunk fees can be financed with up to 80% of the total fees deferred over the program period selected. Deferred balance amounts will carry a financing charge annually determined by the rate set for the Metropolitan Council SAC Deferral Program. This rate is determined by the average interest of the outstanding debt of the Metropolitan Council
3. This plan cannot be used with other City financing or municipal subsidy plans; this includes the City’s revolving loan program or any of the City’s municipal subsidy programs.
4. This plan can be used for commercial building permits only. The building permit maybe for a new or remodel project.
5. Permitting and project plans must be approved by the City’s Building Inspector, Planning Commission, and City Council (whatever body is applicable).
6. Water, sewer and storm trunk fees may be financed at a rate determined annually by the Metropolitan Council SAC Deferral Program and repaid over a maximum 10-year term; this including the year the project takes place. Payments must be made semiannually.
a. An 8-SAC unit business is permitted in February of 2022. Total Fees Due: (2022 Rates) $83,880
b. Pays 20% of the SAC and trunk fee for the site at time of building permit. $83,880 X 20% = $16,776
c. Remainder balance $67,104/Interest rate. Semi-annual payments on a 10-year loan at 3.0% interest rate – estimated: $3,909
7. Each application is subject to City Council approval. After the application is received, City staff will prepare the request for an upcoming City Council meeting where it will be reviewed.
8. If the developer/applicant is not the property owner of the building, a disclosure must be signed by the building owner that acknowledges the improvements to the property and the fees that are being financed.
9. If the established trunk fee payment plan goes into default, all fees that were financed and due in the calendar year of default become payable immediately by the developer/applicant and property owner. Upon default, the City will provide a written letter to the developer/applicant and property owner requesting payment within 10 business days and notice of cancellation of the payment plan. If the fees are not paid to the City after written notice of default, all fees will be certified to the County Assessor for payment with the property taxes of the property that was improved in the City limits. The assessment will be a one-year assessment subject to interest of 6.0%. Credit for trunk and SAC units on the property will only be equal to the amount paid to the date of default.