10.1. SR 09-08-2020
Request for Action
To Item Number
Mayor and City Council 10.1
Agenda Section Meeting Date Prepared by
Work Session September 8, 2020 Cal Portner, City Administrator
Item Description Reviewed by
Planet Fitness SAC/WAC Bob Ruprecht, Building Official
Reviewed by
Action Requested
Hear from Planet Fitness representatives, discuss and provide staff direction.
Background/Discussion
After being contacted by PF Baseline Fitness Director of Construction Derek Bristlin regarding our Sewer Access
Charge (SAC) calculations, Mayor Dietz asked to add a discussion to Work Session. Scott Bernstein, VP of
Development will also be in attendance.
SAC units for development are determined using Met Council’s formula. The Met Council adjusts their formula
periodically, however the city has not updated to reflect their adjustments. For fitness centers, the SAC is
determined as follows: Base Unit Fee x Number of Residential Equivalent Units (REUs)
In this case REUs are calculated as so:
Total Square Footage (23,437) divided by 700 = 33 Units
33 Units minus 8 Units (from previous tenant) = 25 Units.
25 Units x $5,385 = $134,625.
700 is the old Met Council square foot divisor to find units. The Met Council has changed their divisor to 1600,
reducing the number of REUs by more than half. Other cities do it differently, as an example, Blaine divides by
1700, which would put them at 14 Units. Bloomington divides by 3000, putting them at 7 Units.
Also, the fees in Elk River the fees are higher than the Met Council ($2,485 for 2020), but that is set due to the
costs of our wastewater system, which had to be upgraded due to MPCA permit changes and was expanded for
further growth. The fee is not in question, rather the unit calculation.
Financial Impact
N/A
Mission/Policy/Goal
Elk River Vision, economic development goals
Attachments
None
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: August 2020