5.1. SR 08-04-1997City of
ITEM 5.1.
MEMORANDUM
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FROM:
DATE:
SUBJECT:
Mayor & City Council
Paul T. Steinman, Director of Economic
Development
July 30, 1997
SAC Calculation Formula
Overview
Staff has been working with the owner of the building at the corner of Main
and Jackson where Snyder Drug was located. The owner has examined a
number of options concerning making improvements to this building to
facilitate leasing the main floor which is approximately 6100 square feet.
Recently staff has been in contact with local realtors representing a
restaurant use for this possible location. A primary question has been raised
which, until answered, would preclude this restaurant use from utilizing this
space. The question is what the cost of SAC and WAC charges would be for
this type of use. Staff has calculated that if the restaurant were to be able to
seat between 100 and 150 people, SAC and WAC charges would equal
approximately $25,000-$35,000 under the current formula. This formula is 1
SAC and WAC for each 8 seats. A SAC unit equals $1,300 and a WAC unit
equals $1,200.
In providing this information to the realtors representing the restaurant use,
it is evident that unless this fee is reduced significantly, this user, and
possibly any other restaurant user, would not be able to locate in this
building. Staff feels strongly that there is a need to reduce these fees
significantly in the historic portion of downtown Elk River in order to induce
restaurant uses. Such uses are highly desirable in that they are typically
destination uses and have the ability to attract significant numbers of people.
This type of use in downtown would help to spur secondary retail activity or,
at a minimum, help to stabilize the current level of retail activity in
downtown.
Staff has attached a draft proposal to reduce the SAC unit calculation for
restaurant uses locating in an existing facility within the geographic
boundaries described as follows:
13065 Orono Parkway · P.O. Box 490 · Elk River, MN 55330 · TDD & Phone: (612) 441-7420 · Fax: (612) 441-7425
Main Street (both sides) from the Parrish Avenue bridge to Lowell;
Jackson Avenue (both sides) from Highway 10 to Main Street; and
King Avenue (both sides) from Highway 10 to Main Street.
The current SAC calculation method for a full service type of restaurant is
one SAC unit for every eight restaurant seats. The WAC unit is controlled by
the Municipal Utilities Commission and is calculated in an identical manner.
Bryan Adams, Utilities general manager, will propose to the Utilities
Commission an identical change should the Council proceed with the change
in the SAC calculation formula as recommended in this report.
Staff is proposing that the Council amend the City Code Chapter 13 to allow
full service restaurants locating within the geographic boundary as earlier
described to be calculated as follows:
I SAC unit for every 22 restaurant seats.
This would lower the potential SAC and WAC costs for the proposed
restaurant to between $6,000-$11,000. This is based upon a two unit
SAC/WAC credit and a seating capacity of between 100-150 persons. Staff
feels that this amount would still provide some revenue from SAC/WAC fees,
but also it will make a restaurant use in the downtown area a more feasible
option.
Recommendation
Staff is recommending that the proposed change be made to the SAC
calculation formula to allow restaurants, in the event of reuse of an existing
building, located within a certain geographic boundary as described in this
memo to have their SAC charges calculated based upon 1 unit per 22 seats.
\\elkriver\sys\shrdoc\council\saccalc.doc
1302.10 - SERVICE AVAILABILITY CHARGES (SAC)
The debt service for the wastewater treatment facilities shall be
recovered from new connections by a service availability charge
(SAC) assessed against new building units.
The service availability charge shall be paid at the time at
which a building permit or a sewer connection permit is issued
for all buildings to be constructed or connected to the sewer
system on or after the effective date of this ordinance. No
charge shall be due upon the issuance of a connection permit if a
charge was paid upon issuance of a building permit. The debt
service connection charge for each building or structure shall be
equal to the number of SAC units times the service availability
charge in effect at the time of the application.
The SAC units for a full service restaurant located within that
from the Parrish Avenue bridge to Lowell Avenue; Jackson Avenue
(both sides) from Highway 10 to Main Street; and King Avenue
(both sides) from Hiqhway 10 to Main Street, shall be as follows:
22 seats = 1.0 unit
The SAC units for the various Residential Dwellings shall be
calculated as follows:
Single-family houses, townhouses & duplex units 1.0 unit
Condominium and apartment units
0.8 unit
Public housing units subsidized under any federal
program for iow and moderate income housing 0.8 unit
The SAC units for various Commercial, Public and Institutional
facilities shall be calculated according to the following table.
SERVICE AVAILABILITY CHARGE (SAC) UNITS
FACILITY PARAMETER SAC
ANIMAL CLINIC (humane societies, animal
research, boarding, etc.)
Animal Holding Areas
17 f.u.* 1
Animal Runs
34 f.u.* 1
ARCHERY (6 feet/lane)
6 lanes 1
ARENAS (bleachers 18 inches/person)
110 seats 1
AUDITORIUMS (7 s.f./person)
110 seats 1
AUTOMOBILE SERVICE
Fast Service (less than 4 hrs/car)
Major Service (more than 4 hrs/car)
Car Dealership (charge for office,
retail, etc. at
established rates)
Fast Service
(# service bays x 30%)
Major Service
(# service bays @ 70%
x 1 employee/service bay)
2 bays 1
14 employees 1
2 bays 1
14 employees 1
BALLROOM (exclude dance floor)
Facility without liquor service
Facility with liquor service
825 s.f. 1
590 s.f. 1
BANK (exclude cash vault)
2400 s.f. 1
BANQUET ROOM (15 s.f./person) Food Catered
Food Catered w/Dishwashing
Food Catered w/Liquor
Food Preparation & Dishwashing
Food Catered w/Dishwashing & Liquor
Food Preparation, Dishwashing w/Liquor
2060 s.f. 1
1180 s.f. 1
1028 s.f. 1
825 s.f. 1
750 s.f. 1
590 s.f. 1
BARBER
4 chairs 1
BATTING CAGES ( 6 ft./lane)
6 lanes 1
BEAUTY SALON
4 stations 1
BINGO HALL (used only for bingo)
110 seats 1
BOARDING HOUSE (dorm rooms)
5 beds 1
BODY SHOP (major service-more than 4 hrs
per car, no vehicle washing)
14 employees 1
BOWLING ALLEYS (does not include bar
or dining area)
3 alleys 1
CAMPS ({% gal. x occupant or site}/274)
Children's camps 274 gal
(central toilet and bath; overnight,
primitive cabins)
(% of occupants x 50 gal/occupant/274 gal
Day Camps (no meals) 274 gal
(% of occupants x 10 gal/occupant)/274 gal
Labor/Construction Camps 274 gal
{# of occupants x 50 gal/occupant)/274 gal
Resorts (housekeeping cabins) 274 gal
(# of occupants x 60 gal/occupant)/274 gal
Travel Trailer Parks
with water & sewer hook-up
(% sites x 100 gal/site)/274 gal
274 gal
with central toilet & showers
(% sites x 75 gal/site)/274 gal
274 gal
sanitary dump (sites w/o hook-up)
(% sites x 10 gal/site)/274 gal
274 gal
CARWASH (Self Service)
1 stall
CAR WASH (Service Station - Automatic
Rollover - Brushes)
1 stall
274 gal
CARWASH (Requires specification on
equipment flow rate and cycle
time; tunnel-car pulled through)
CONTACT MWCC FOR DETERMINATION
CHURCHES (for sanctuary, nave, chancel)
(7 s.f./person-seating area)
(remainder use other criteria)
(sacristy, ambulatory - no charge)
275 seats
COCKTAIL LOUNGE (no food service) 23 seats
CORRECTION FACILITY (prison) 2.5 inmates
COURT ROOMS 1650 s.f.
DORM ROOMS
On/Off Campus Students
(charge for additional classrooms)
5 students
DAYCARE (number of children licensed for)
14 children
3000 s.f.
3 people
DRY CLEANERS (retail)
ELDERLY HOUSING (100% of current SAC Rate)
(% of one bdrm units x 1.5 people/unit)
+(% of two bdrm units x 2.0 people/unit)
(total % of people/3 people)
EXERCISE AREA/GYM (Juice bars - no charge) 700 s.f.
(sauna, whirlpool incl.)
6
1
1
1
1
No showers 2060 s.f. 1
FIRE STATION (charge for office, meeting
rooms, etc. at established
rates)
Washing (hose tower, truck)
274 gal
Full time (overnight people
(75 gal/person)/274 gal
274 gal
Volunteer (occasional overnight)
14 people
FIINERAL HOME (charge viewing areas
only-chapel, viewing areas, etc.)
Apartment (1 apartment)
GAME ROOM (billiards, video & pinball games)
With Bar
Without Bar
590 s.f.
2060 s.f.
GOLF COURSE (if showers, use locker room criteria)
18 hole (280 golfers/day
x 2.5 gal/golfer)/274 gal 274 gal
Par 3 (168 golfers/day
x 2.5 gal/golfer)/274 gal
274 gal
Country Club (private)
Dining Room (eves & weekends)
Bar & Grill (bar & grill separate)
Bar
Grill
Bar & Grill (bar & grill combined)
({168 or 280} golfers
x 9 gal/person)/274 gal
15 seats
23 seats
15 seats
274 gal
GREENHOUSE
Area not open to public
Area open to public
General retail sale
15000 s.f.
5000 s.f.
3000 s.f.
GROUP HOME
Secondary Treatment
(residents leaving during the day)
5 beds
Primary Treatment
(residents stay all day)
3 beds
GUEST ROOMS (apartment or condominium)
(charge SAC as apartment)
Washer/Dryer
No Washer/Dryer
No Kitchen
100% (of
80% current
50% SAC Rate)
HANDBALL AND RACQUETBALL COURTS 1 court 2
HOSPITALS (licensed beds or baby cribs)
(does not include out-patient clinic)
1 bed 1
Out-patient clinic (plumbing fixture
units)
17 f.u.* 1
Sterilizers (4 hrs x gpm x
60 mins/274 gal)
274 gal 1
X-Ray Film Processors
(continuous operation 9 hrs)
(intermittent operation 4 hrs)
(operation time (hrs) x gpm
x 60 min/274 gal)
274 gal 1
Vacuum Device (Dental Office)
(9 hrs x gpm x 60 mins/274 gal)
274 gal 1
LAUNDROMAT (requires water volume for
cycle time, 8 cycles/day)
274 gal 1
LIBRARY (subtract out book storage areas,
file areas-charge common plumbing
fixture units)
17 f.u.* 1
(meeting rooms, board rooms,
reception, book checkout,
offices)
2400 s.f. 1
LOADING DOCK
7000 s.f. 1
LOCKER ROOMS (if showers-20 gal/person)
14 lockers 1
MEETING ROOMS (conference rooms) 1650 s.f. 1650 s.f.
MINI-STORAGE (storage area-no charge)
Living Area
Public Restroom (plumbing fixtures)
17 f.u.* 1
MOBILE HOME
MOTELS AND HOTELS (assume 2 persons/room)
(pools, saunas, Jacuzzis, game rooms,
or exercise rooms exclusively used by
guests-no charge)
Breakfast only (complimentary)
45 seats 1
Cocktail Hour (complimentary) 55 seats 1
Kitchenettes (# of kitchenettes x
10 gal/day/274 gal)
274 gal 1
MUSEUM
2400 s.f. 1
N-gRSING HOME
3 beds 1
OFFICE
General Office (deduct mechanical
rooms, elevator shafts, stairwells
restroom and storage areas)
2400 s.f. 1
Dental, Doctors
See Hospital
POLICE STATION (charge as office)
Cells
Overnight (jail)
No Overnight People
(holding area)
3 people 1
14 people 1
~tECOI~DING/FII~4ING STI/DIOS
7000 s.f. 1
PJ~STAUBANT {drive-in)
9 prkg spc 1
I~ESTAUPJ%NT (fast food)
(disposable paper plates,
glasses and silverware)
22 seats 1
RESTAURANT (full service)
washable silverware, glasses & dishes)
*EXCEPTION - HISTORIC DOWNTOWN
8 seats 1
22 seats 1
RETAIL STORES 3000 s.f.
{deduct mechanical rooms, elevator shafts,
stairwells, restrooms and unfinished
storage areas)
RIFLE RANGES (handgun ranges - 6 ft/lane
6 lanes 1
ROLLER RINK (skating area)
825 s.f. 1
ROOMING HOUSES (no food service)
7 beds 1
RV DUMPING STATION (not in association with
campgrounds)
SCHOOLS (Sunday) (30 s.f./student)
55 students 1
SCHOOLS (elementary) (15 gal/student)
(30 s.f./student)
SCHOOLS (college, TVI) (30 s.f./student)
18 students 1
18 students 1
Lecture Halls (15 s.f./student)
Labs (50 s.f./student)
Dorm Rooms (on/off campus students)
SCHOOLS (nursery)
(number of children licensed for)
Church (nursery-during worship
service only) (30 s.f./child)
Nursery (health clubs, bowling
alleys, etc.)
SCHOOLS (secondary)
(30 s.f./student) (20 gal/student)
Labs (50 s.f./student)
SERVICE STATION (with convenience center)
Gas Pumping
Convenience Center
SERVICE STATION (with service center)
(2 service bays)
SERVICE STATION (with service center & car wash)
SWIMMING POOLS (public) (pool area)
(private residential, townhouse,
condominiums, hotels, motels or
apartments-no charge)
TANNING ROOMS
TENNIS COURTS (public, shower
facilities available)
THEATER
THEATER (drive-in) (parking spaces)
VEHICLE GARAGE
Employees stationed in garage
Vehicle Drivers (per day)
18 students 1
18 students 1
5 students 1
14 students 1
55 children 1
2400 s.f. 1
14 students 1
14 students 1
1
3000 s.f. 1
8
900 s.f. 1
3000 s.f. 1
1 court 2
64 seats 1
55 spaces 1
14 emp. 1
28 drivers 1
Vehicle Washing (# of vehicles/day
x gpm x minutes/vehicle)/274 gal
274 gal
WAREHOUSES (assembly areas) 7000 s.f.
Office/Warehouse (speculative)
(must be re-reviewed on finishing permits)
Minimum 30% Office 2400 s.f.
Maximum 70% Warehouse 7000 s.f.
WHIRLPOOL (doctors office/clinic, therapy)
(# gal/fill x 8 fills/day)/274 gal
274 gal
YA/~D STOP~%GE BUILDINGS (ex: lumber storage) 15000 s.f.
(customer pickup, no permanent employees)
*PLUMBING WASTE FIXTURE UNITS
Type of Fixture Fixture Unit Value (f.u.)
Drinking Fountain
Floor Drain 2" waste (only if
3" hose bib
4" included)
Shower Stall, Domestic
Shower (gang) per head
Sinks (lab in exam room, bathroom)
(kitchen and others)
(surgeon)
(janitor)
Urinals (single-wall hung)
(trough-per 6 foot section)
Water Closet
2
2
3
4
3
2
6
*(If not included in list, use plumbing code.)