HomeMy WebLinkAboutAgenda ..r 111111111111111 Consent Business 4. F. 7.
SHAKOPEE
TO: Mayor and City Council
Mark McNeill, City Administrator
FROM: Samantha DiMaggio, Economic Development Coordinator
DATE: 10/07/2014
SUBJECT: Consideration of City of Shakopee and Metropolitan(MET) Council Sewer
Availability Charges (SAC) Credits for Badger Hill Brewing, LLC (D)
Action Sought
Consideration of City of Shakopee and Metropolitan (MET) Council Sewer Availability Charges
(SAC) Credits for Badger Hill Brewing, LLC. (D)
Background
As SAC credits have been used—both for economic development and through regular
consumption--the resulting dollars have been placed into the sanitary sewer enterprise fund. The
finance director and other city staff are monitoring the use and balances of these credits as they
are utilized. At some point in the future, a transfer from the sanitary sewer fund(where the funds
for the credits are maintained) to the EDA fund(which may provide the funding for requested
subsidies) will need to take place.
SAC Credits: The City Council and EDA have previously identified SAC credits as one method
of facilitating economic development. Badger Hill Brewing, LLC. is requesting 10 SAC credits
valued at$29,600 (2014 value of City SAC Credits is $4,750 and MET Council is $24,850
totaling $29,600).
Badger Hill Brewing, LLC. is expanding their operations and plan to open a new brewery and tap
room in Shakopee, MN. Badger Hill is currently brewing with Lucid in Minnetonka, MN. They
are currently in the process of doing extensive renovations to an existing building in the industrial
park. These renovations include new electrical, plumbing, new floors, draining system, etc. They
have already started hiring new employees for this facility and plan to add 12-20 employees
within the next two years. Badger Hill expects to begin brewing here in late 2014 and will be the
first brewery to open in the South Metro.
The City and MET Council SAC fees were paid by Badger Hill Brewing, LLC. upon
payment/issuance of their building permit. Staff is requesting these credit be issued and the funds
be returned to the company.
Recommendation
Staff recommends the approval of 10 SAC credits for Badger Hill Brewing, LLC.
Budget Impact
None as SAC credits were obtained from the Met Council once Rahr Malting came off the
Metropolitan Council sewer system. The sewer fund maintains the balance, as a stand alone fund.
Relationship to Vision
This supports Goal D: Maintain, improve and create strong partnerships with other public and
private sector entities.
Requested Action
If the City Council concurs, it should, by motion, approve the recommended 10 SAC Credits
valued at $29,600 for Badger Hill Brewing, LLC.
Attachments: Application
Determination Letter
SEWER AVAILABILITY CHARGE(SAC)
S i-TA �
� ,�, CREDITAPPLICATIDIV
BUSINESS NAME: Baa3eP- } 11 Brew No f Lt- .
BUSINESS ADDRESS: 145.7 5.7! V CA I l t iflcl • B tld . ( ((
LEGAL DESCRIPTION:
pip! z7 O se/J/0J( P4( t e} 6
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AC/Lea ; aori SO SOO/L-/-S /.P 0 _ c(6 0;
NAME AND CONTACT INFORMATION/ (.FO_R AUTHORIZED REPRESENTATIVE:
Name: BYi svj 4 re Kd[10 r
Address: t 1571 \/u(I?t-j had Ij 1id. S,
Phone No.: (."Q 12:
E-mail Address: by-111_ 6e '-4e li T I no rf WI , rt-A
NAME OF AND CONTACT INFORMATION FOR PROPERTY OWNER J 611 W 00
Name: Fl P 1/1 St r?ef Vii 1 tve 5 — JC". t.1 6(411'r-in 11..olf
Address: in I !. ). 11 CC, �e: '� 0 0 i-e ' .()lee
Phone No.: Gj` '3 Cc; cj 0 0 c
E-mail Address: to 01) + F.S
DESCRIPTION OF BUSINESS: (Please include type of business,description of product or services
provided,information regarding estimated monthly or annual water and sanitary sewer required of the
business operation)
gYe+ -Crj aryl tve YOom at-fie tis-, list
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City of Shakopee
Page f1 F,
NUMBER OF JOBS TO BE CREATED OR EXPANDED: - kf-eu one, ,-C)Lj ec . +1-4,1 6
OTHER ECONOMIC IMPACT INFORMATION: 3 f C_(.C `f 1
� (.4) I` ' d is (vs OA cow- to , t2 ..te.Op-e-2.
DESCRIPTION OF IMPROVEMENTS AND ANY ANTICIPATED"CHANGE OF USE"THAT THE
PROPOSED PROJECT WILL RESULT IN:
PXt-(115ivt.• LIp r d e of- -ekeh .,iird.( nd pt ivt0
(5` - ; A ifl ) Tioof2,5
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PROJECT TIMELINE: `'Ta CONA-4- ( f 4 I r1
gLI-1A4 I" 01
NARRATIVE EXPLAINING NATURE OF PROJECT AND AMOUNT OF CREDITS.REQUES'CED:
10 A cL -c u e f U-eke ct log,.}_ ,•r
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City of Shakopee
Page l2
SIGNATU• OF THE AUTHORIZED CONTACT FOR THE BUSINESS:
PRINT NAME: vith i ftki - . G t t/.
DATE: i 2-61 1 L
SIGNATURE OF PROPERTY OWNER:(If different from the business)
PRINT NAME:
DATE:
FOR CITY OF SHAKOPEE USE ONLY
Reviewed by PLANNING:
Reviewed by ECONOMIC DEVELOPMENT:
Determination Letter from METC attached: YES NO
Approved By:
Date:
#of SAC Units:
.NNE 2013
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City of Shakopee
Page j3
Jim Grampre August 20, 2014
Building Official
City of Shakopee
129 Holmes Street S.
Shakopee, MN 55379-1328
Dear Mr. Grampre:
The Metropolitan Council Environmental Services (MCES) Division has determined the SAC to
be charged for the wastewater capacity demand for Badger Hill Brewing, LLC to be located at
4571 Valley Industrial Blvd, Suite 500 in the Valley Green Industrial Park within the City of
Shakopee.
The City will be charged 10 SAC Units for this project, as determined below.
SAC Units
Charges:
Office
797 sq. ft. @ 2400 sq. ft. /SAC 0.33
Warehouse/Production
8430 sq. ft. @ 7000 sq. ft. /SAC 1.20
Tap Room
28 ft @ 1.5 ft/seat @ 23 seats/SAC 0.81
1120 sq. ft. @ 15 sq ft/seat @ 23 seats /SAC 3.25
Outdoor Seating
762 sq. ft. @ 15 sq ft/seat@ 23 seats/SAC x 25% 0.55
Retail
164 sq. ft. @ 3000 sq. ft. /SAC 0.05
Process Discharge
998 gallons @ 274 gallons/SAC 3.64
Shower
1 unit @ 1 unit/SAC 1.00
Total Charge: 10.83
Credits:
Industrial (SAC Paid 12/80 and 7/86)
12,134 sf/85,740 sf= 14.2%
14.2% x (3 SAC Paid 12/80 + 2 SAC Paid 7/86) 0.71
Net Charge: 10.12 or 10
390 Robert Street North I St.Paul,MN 55101-1805 /1\1
Phone 651.602.1000 I Fax 651.602.1550 1 TrY 651.291.0904 I metrocouncil.org METROPOLITAN
C U N C
An Equal Opportunity Employer O 1 L
3
The business information was provided to MCES by the applicant at this time. It is also the
City's responsibility to substantiate the business use and size at the time of the final inspection.
If there is a change in use or size, a redetermination will need to be made. If you have any
questions email me at deborah.bauknight(a�metc.state.mn.us.
Sincerely,
Deborah Bauknight
SAC Program Technical Specialist
DB:fa: 140820C2
Determination expiration: 08/20/2016
cc: Patty Latzke, City of Shakopee (email)
Michael Leek, City of Shakopee (email)
Broc Krekelberg, Badger Hill Brewing (email)
Paul Neubauer, MCES Industrial Waste (email)
File, MCES 1
1
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Page-2 j August 20,2014 I METROPOLITAN COUNCIL
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TENTATIVE AGENDA
Shakopee Economic Development Authority
Regular Session 7:00 p.m. October 7,2014
LOCATION Council Chambers City Hall 129 Holmes Street South
1) Roll Call
2) Approval of the Agenda
3) Consent Business
4) General Business
A) Public Hearing on the consideration of Minnesota Investment Fund Application for Datacard
Corporation-Res.No.2014-5
5) Adjourn toTuesday,October 21,2014 at 7:00 p.m.
Note to EDA Members:
If you have any questions or need additional information on any of the above items,please call Samantha
DiMaggio prior to the meeting at(952)233-9317.