This deferral program is in conjunction with the Metropolitan Council.
In order to minimize the impact of the payment of the Water Access Charge (WAC) to new or expanding businesses within the City of Brooklyn Park, the City will provide a deferral option to pay the WAC fees over time versus at the time the building permit is issued. This program will be in conjunction with the Metropolitan Council’s Sewer Availability Charge (SAC) Deferral Program adopted in 2013. The Metropolitan Council’s program allows for the deferment of SAC fees for small businesses that receive a SAC determination of 10 SAC units or less prior to SAC credits being applied. The WAC program will follow the same guidelines as the SAC program established by the Metropolitan Council.
Under the new program, the City of Brooklyn Park will enter into an agreement with eligible business and/or property owner to spread the SAC and/or WAC payments over a five year term. Eligible businesses will be required to pay at least 20 percent down plus the first monthly payment at the time application. Property owners will be billed on a monthly basis with the regular utility bill for a period of five (5) years after the initial down payment. The interest rate applied to the differed balance will be fixed at 3 percent. Businesses and property owners will have the option to defer SAC unit fees, WAC unit fees, or both.
The program is divided into two groups:
Met Council Sewer Availability Charge (SAC) Deferral Program
5 year term; 3% interest; 20% plus the first monthly payment paid up-front; secured by the Deferred Payment Agreement;eligible to businesses with a SAC unit determination at or below ten (10) units. This program is established and regulated by a master deferral agreement executed between the City and Metropolitan Council.
City of Brooklyn Park Water Access Charge (WAC) Deferral Program
5 year term, 3% interest; 20% plus the first monthly payment up front; secured by the Deferred Payment Agreement; eligible to businesses with a WAC unit determination at or below ten (10) units. This program is established by City ordinance and is intended to parallel the Metropolitan program guidelines.
Participants in the program are allowed to defer a maximum of ten (10) SAC and/or ten (10) WAC units. Businesses with SAC and WAC determinations exceeding the program limit will be considered on a case by case basis. The business owner and property owner must agree to participate and fill out an application form with the requested information and execute the Deferred Payment Agreement. The proposed deferral structure is outlined below.
The structure of the deferral includes, but is not limited to the following requirements:
- The SAC determination for the business is ten (10) units or less prior to SAC credits.
- The WAC determination for the business is ten (10) units or less prior to WAC credits.
- The property must be located in Brooklyn Park.
- The deferral term is five (5) years.
- Interest rate will be fixed at 3%.
- A down payment, equal to 20% of the total fee for SAC and WAC after credits are applied, plus the first monthly payment, is due at the time of application
- Property owners and/or business will be billed on a monthly basis.
- Property owner and/or business owner must complete an application and execute the Deferred Payment Agreement to be eligible for the program.
- In the case of a business closure, the business or property owner must notify the City’s Business Development Coordinator. The City will verify the closure and future payment obligations will be waived.
- In the event of a default, any outstanding payments will be assessed to the property and the property owner waives the right to contest the assessment.
- SAC/WAC credits are non-transferable.
- The fee owner’s property taxes are delinquent.
- The business is not in good standing with the State of Minnesota, or is in violation of Brooklyn Park City Code.
- The property is not located within the City of Brooklyn Park.
- The business does not does not meet the definition of eligible commercial properties in the Metropolitan Council’s SAC Deferral Program and the City of Brooklyn Park WAC Deferral Program.
Sample payment schedule
Below is a sample payment schedule for an eligible small business with a determination of 5 SAC and 5 WAC units, before credits. Under the terms of the program, the property owner will pay to the City an initial payment of 20% of the total units, or $4,360, at the time of the building permit. The remaining deferral payment will be repaid at a fixed rate of 3% over a five (5) year term.
|Fee||Calculation||Total amount due||Payable at time of application (20%)||Payable over 5-year term (plus 3% interest)||Estimated monthly payment without interest|
|SAC Fee*||5 SAC units x $2,485 (in 2015)||$12,425||$2,485||$9,940||$166|
|WAC Fee*||5 WAC units x $2,375 (in 2020)||$11,875||$2,375||$9,500||$158|
|Total||10 SAC/WAC combined units||$23,675||$4,735||$18,940||$291|
*SAC and WAC Fees are determined annually and are subject to change.
If you have questions regarding building permits please contact the building division at 763-488-6379.
If you have any questions or would like to receive an application for the Metropolitan Council SAC Deferral Program or City of Brooklyn Park WAC Deferral Program, please contact us.
Apply for the SAC WAC payment deferral program