HomeMy WebLinkAboutVIII-12 (a,b) Assessment Appeal Waivers - 214 2nd Street E.
City Council Memorandum
To: Mayor Fasbender & City Councilmembers
From: Alex Menke, Economic Development Coordinator
Date: October 7, 2024
Item: Authorize Signature: Agreement for MCES SAC & City WAC\SAC Deferral Property Tax
Assessment – 214 2nd St E
Council Action Requested:
1) Authorize signature of the attached agreement between the City and Marathon
Properties of Hastings, LLC to defer payment, by means of property tax assessment, of
the City’s portion of water access charges and sewer access charges (WAC\SAC) over a
ten-year period.
Approval requires a simple majority of the City Council.
2) Authorize signature of the attached agreement between the City and Marathon
Properties of Hastings, LLC to defer payment, by means of property tax assessment, of
the Metropolitan Council’s portion of sewer access charges (SAC) over a ten-year
periods.
Approval requires a simple majority of the City Council.
Background Information:
At the August 19th City Council meeting, Council authorized the signature of a SAC/WAC
deferral agreement between the City and Marathon Properties of Hastings, LLC. An additional
two agreements are needed for the two deferred costs to be assessed to the property.
Marathon Properties of Hastings, LLC owns the property located at 214 2nd Street East. Their
newest tenant, Collateral Coffee dba Awful Gato, is in the process of building out a coffee shop
and café at the site. The construction results in the payment of Metropolitan Council SAC fees
totaling $9,940, and City WAC\SAC fees totaling $15,608 prior to receipt of a building permit.
Upfront payment of WAC\SAC fees prior to operation of the facility has created a burden for
the business owner.
The City of Hastings has established a policy to defer City WAC\SAC fees in order to minimize
the impact of these fees. Please see the attached policy document for further information. The
VIII-12 (a,b)
Hastings program requires a 20% down payment ($3,121.60) due at the time of building permit
issuance, which has been paid.
Additionally, Marathon Properties of Hastings, LLC plans to enter into the Metropolitan
Council’s SAC Deferral Program. The Metropolitan Council’s program requires a 20% down
payment ($1988) due at time of building permit issuance, which has been paid. This program is
regulated by a Master SAC Deferral Agreement executed by the City of Hastings and
Metropolitan Council (attached).
Both deferred amounts will be assessed to the property and collected through semi-annual
property tax payments for a period of up to ten years.
Financial Impact:
The City and Metropolitan Council would not receive full payment of the deferred amounts for
up to ten years. Repayment would include an interest charge of 2.06% annually on the unpaid
balance and a $50 administrative fee. The deferment would allow Collateral Coffee dba Awful
Gato to begin construction to add further value to the property and increase the tax base.
Advisory Commission Discussion:
N\A
Council Committee Discussion:
N\A
Attachments:
• City Assessment Appeal Waiver Agreement
• MCES Assessment Appeal Waiver Agreement
• SAC/WAC Deferral Agreement
• City SAC/WAC Policy
• MetCouncil Master SAC Deferral Agreement
VIII-12 (a,b)
1
CITY OF HASTINGS
ASSESSMENT APPEAL WAIVER AGREEMENT FOR
214 2ND STREET EAST, HASTINGS, MN 55033
FOR WATER AREA CHARGES
THIS AGREEMENT FOR AN ASSESSMENT APPEAL WAIVER (“Agreement”) is
entered into and effective as of the _____ day of , 2024 (“Agreement Date”), by
and between the City of Hastings, a Minnesota municipal corporation (“City”), and Marathon
Properties of Hastings, LLC, a Minnesota limited liability company (“Owners”).
WITNESSETH:
WHEREAS, the Owners are the fee simple owners of property legally described as Mid 1/3
of Lot 2, Block 14, TOWN OF HASTINGS, Dakota County, Minnesota (“Property”) that will be
benefited by certain WAC; and
WHEREAS, the City has a program (“Program”) to assess Hastings Water Area Charges
(“WAC”) for qualifying applicants; and
WHEREAS, the Owners have qualified for the Program and have agreed to the repayment
terms and conditions therein; and
WHEREAS, the City is authorized to assess WAC charges against the Property.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the
other contained in this Agreement and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties hereto do covenant and agree as follows:
VIII-12 (a,b)
2
ARTICLE I
THE AGREEMENT
Section 1.01 Purpose. The purpose of this Agreement is to memorialize the covenants and
agreements between the Owners and the City with regard to the Property and the assessment of WAC
including the Owners’ waiver of assessment appeal rights up to the Assessment Waiver Amount
which constitutes an estimated benefit pursuant to Minnesota Statutes, Chapter 429 in the manner
authorized by Minnesota Statutes § 462.3531 in return for the City’s efforts to facilitate the funding
for the WAC.
Section 1.02 Term. The term of this Agreement shall commence on the Agreement Date and
shall terminate upon the expiration of the Assessment Term (or upon prepayment of the levied
assessment).
ARTICLE II
DEFINITIONS
Section 2.01 Definitions. The following are terms used in this Agreement. Their meanings as
used in this Agreement shall be expressly indicated below, unless the context of this Agreement
requires otherwise:
(a) Agreement: This agreement to memorialize the covenants and agreements between the
Owners and the City with regard to the Property and the WAC including the assessment
appeal waiver provided herein pursuant to Minnesota Statutes, Chapter 429 in the manner
authorized by Minnesota Statutes § 462.3531.
(b) Agreement Date: The date written in the first paragraph of the Agreement.
(c) Assessment Interest Rate: The special assessment levied against the Property shall accrue
interest at a rate of 2.06% per year for the Assessment Term. Interest accrual shall begin on
November 15, 2024.
(d) Assessment Term: The term of the special assessment levied against the Property shall be 10
years.
(e) WAC Assessment Waiver Amount: The charge imposed by the City for the WAC in the
amount of Twelve Thousand Four Hundred Eighty-six dollars and 40/100ths ($12,486.40)
is to be assessed by the City against the Property. The Assessment Amount is commensurate
with the estimated special benefit of the WAC to the Property.
(f) City: The City of Hastings, a Minnesota municipal corporation.
(g) Owners: Marathon Properties of Hastings, LLC, a Minnesota limited liability company.
VIII-12 (a,b)
3
(h) Property: Mid 1/3 of Lot 2, Block 14, TOWN OF HASTINGS, Dakota County, Minnesota.
ARTICLE III
COVENANTS AND AGREEMENTS
Section 3.01 Covenants and Agreements of the Owner. The Owners covenant and agree
with the City that:
(a) Assessment Appeal Waiver: Owner hereby authorizes the City to certify to the Dakota
County Auditor/Property Tax Assessor a special assessment against the Property up to the
Assessment Waiver Amount for the WAC.
The Owners hereby waive all rights to assessment notices, hearings and appeals, and all other
rights pursuant to Minn. Stat. § 429.061, § 429.071 and § 429.081 for the special assessment
against the Property up to the Assessment Waiver Amount. The Owners hereby waive any
and all procedural and substantive objections to the special assessment up to the Assessment
Waiver Amount against the Property, including, but not limited to, notice and hearing
requirements and any claim that any or all of the Assessment Waiver Amount against the
Property exceeds the benefit to the Property for the WAC. The Owners acknowledge and
agree that the benefit of the WAC to the Property does in fact equal or exceed the Assessment
Waiver Amount. The Owners also acknowledge and agree that the Property receives a special
benefit equal to or exceeding the Assessment Waiver Amount.
The City and the Owners acknowledge and agree that the Owners’ waiver of assessment
appeal rights pursuant to Minnesota Statutes, Chapter 429, is capped at the Assessment
Waiver Amount by operation of Minn. Stat. § 462.3531. The City and the Owners
acknowledge and agree that the Owners may appeal any special assessment above the
Assessment Waiver Amount.
(b) Owners’ Covenant Not to Sue the City: Owners hereby covenant with the City not to appeal
or sue the City for a court to set aside, reduce, repeal, or invalidate the levied assessment, or
for other relief from the payment of the City’s levy of a special assessment up to the
Assessment Waiver Amount against the Property.
(c) Owners’ Covenant that Owners are the Property Fee Owners: Owners hereby covenant and
warrant with the City that Owners are seized in fee of the Property and have good right to
enter into this Agreement with the City.
Section 3.02 Covenants and Agreements of the City. The City covenants and agrees with
the Owners that:
(a) Assessment Waiver Amount: The City agrees that the City will certify/levy a special
assessment against the Property only up to the Assessment Waiver Amount for the WAC
pursuant to this Agreement.
VIII-12 (a,b)
4
(b) City Recording of this Agreement: The City will record this Agreement against the Property.
Owners will pay for the cost of recording.
(c) Prepayment of Assessment: The City agrees that the Owners may prepay some or all of the
City’s assessment levy against the Property for the WAC with no penalty and only with
interest accrual pursuant to Minn. Stat. § 429.061.
ARTICLE IV
DEFAULT
Section 4.01 Default. If a party to this Agreement materially defaults in the due and timely
performance of any of its covenants, or agreements hereunder, the other party(s) may give notice of
default of this Agreement. The notice shall specify with particularity the default or defaults on which
the notice is based. The notice shall specify a ten (10) day cure period within which the specified
default or defaults must be cured. If the specified defaults are not cured within the cure period, the
other party(s) may pursue all remedies and sanctions available at law and in equity, including specific
performance.
Section 4.02 Attorneys’ Fees, Costs and Expenses. The Owners agree to pay the City the
amount of the City’s assessment levy up to the Assessment Waiver Amount with accrued interest
together with the City’s attorneys’ fees, costs and expenses to defend the special assessment levy by
the City pursuant to this Agreement. The Owners acknowledge and agree that the Owners would be
unjustly enriched if the City’s assessment levy pursuant to this Agreement was set aside, reduced,
repealed or invalidated by a court with jurisdiction over the Property since the Owners requested the
WAC and this assessment financing for the WAC. The Owners agree that the court with jurisdiction
over the Property shall award the City the assessment levy up to the Assessment Waiver Amount with
accrued interest together with the City’s attorneys’ fees, costs and expenses for breach of the Owners’
covenant not to appeal or sue the City pursuant to Article III, Section 3.01(b).
ARTICLE V
GENERAL PROVISIONS
Section 5.01 Notices. All notices, requests, demands or other communications required or
permitted by this Agreement shall be in writing and delivery shall be deemed to be sufficient if
delivered personally or by registered or certified mail, return receipt accepted, postage prepaid,
addressed as follows:
If to the City: City of Hastings
ATTN: City Administrator
101 4th Street East
Hastings, MN 55033
VIII-12 (a,b)
5
If to the Owners: Marathon Properties of Hastings, LLC
ATTN: Vicki Jung
1241 West 15th Street
Hastings, MN 55033
Section 5.02 Non-Assignability. Neither the City nor the Owners shall assign any interest in
this Agreement nor shall either party transfer any interest in the same without the prior written consent
of the other party.
Section 5.03 Binding Effect. This Agreement and the terms, conditions and covenants
contained herein and the transaction contemplated hereunder shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, heirs, personal representatives, and
permitted assigns. This Agreement shall further be binding on subsequent purchasers of the Property
and shall run with the Property herein described.
Section 5.04 Severability. In the event any provision of this Agreement shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
Section 5.05 Amendments, Changes and Modifications. This Agreement may be amended or
any of its terms modified or changed only by a written amendment authorized and executed by the
City and the Owners.
Section 5.06 Counterparts. This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same
instrument.
Section 5.07 Entire Agreement. This Agreement shall constitute the entire agreement
between the parties and shall supersede all prior oral or written negotiations.
Section 5.08 Notice To Buyers. The Owners agree to notify and provide any buyer of the
Property with an executed copy of this Agreement if the Owners sell any interest in the Property
following the execution of this Agreement by both the Owners and the City, but before the recording
of this Agreement with Dakota County Recorder and/or Registrar of Titles.
IN WITNESS WHEREOF, the City and the Owners have caused this Agreement to be
executed by their duly authorized representatives.
[remainder of page intentionally blank]
VIII-12 (a,b)
6
CITY:
CITY OF HASTINGS
By:
Mary Fasbender
Its Mayor
By:
Kelly Murtaugh
Its City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
On this ___ day of ______________________, 2024, before me a Notary Public within
and for said County, personally appeared Mary Fasbender and Kelly Murtaugh, to me personally
known, who being each by me duly sworn, each did say that they are respectively the Mayor and
City Clerk of the City of Hastings, the municipality named in the foregoing instrument, and that
the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority
of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act
and deed of said municipality.
Notary Public
VIII-12 (a,b)
7
OWNERS:
MARATHON PROPERTIES OF HASTINGS, LLC
By:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF __________________ )
Personally came before me this ___ day of ________, 2024, the above named
____________________, ____________ of Marathon Properties of Hastings, LLC, a Minnesota
limited liability company, to me known to be the person who executed the foregoing instrument
and acknowledged the same on behalf of the limited liability company.
Notary Public
This instrument drafted by
and after recording, please return to:
Korine L. Land (#262432)
LeVander, Gillen & Miller, P.A.
1305 Corporate Center Dr Suite 300
Eagan, MN 55121
VIII-12 (a,b)
1
CITY OF HASTINGS
ASSESSMENT APPEAL WAIVER AGREEMENT FOR
214 2ND STREET EAST, HASTINGS, MN 55033
FOR SEWER ACCESSIBILITY CHARGES
THIS AGREEMENT FOR AN ASSESSMENT APPEAL WAIVER (“Agreement”) is
entered into and effective as of the _____ day of , 2024 (“Agreement Date”), by
and between the City of Hastings, a Minnesota municipal corporation (“City”), and Marathon
Properties of Hastings, LLC, a Minnesota limited liability company (“Owners”).
WITNESSETH:
WHEREAS, the Owners are the fee simple owners of property legally described as Mid 1/3
of Lot 2, Block 14, TOWN OF HASTINGS, Dakota County, Minnesota (“Property”) that will be
benefited by certain SAC; and
WHEREAS, the City has a program (“Program”) to assess Metropolitan Council Sewer
Accessibility Charges (“SAC”) for qualifying applicants; and
WHEREAS, the Owners have qualified for the Program and have agreed to the repayment
terms and conditions therein; and
WHEREAS, the City is authorized to assess SAC charges against the Property.
NOW, THEREFORE, in consideration of the mutual promises and covenants of each to the
other contained in this Agreement and other good and valuable consideration, receipt of which is
hereby acknowledged, the parties hereto do covenant and agree as follows:
VIII-12 (a,b)
2
ARTICLE I
THE AGREEMENT
Section 1.01 Purpose. The purpose of this Agreement is to memorialize the covenants and
agreements between the Owners and the City with regard to the Property and the assessment of SAC
including the Owners’ waiver of assessment appeal rights up to the Assessment Waiver Amount
which constitutes an estimated benefit pursuant to Minnesota Statutes, Chapter 429 in the manner
authorized by Minnesota Statutes § 462.3531 in return for the City’s efforts to facilitate the funding
for the SAC.
Section 1.02 Term. The term of this Agreement shall commence on the Agreement Date and
shall terminate upon the expiration of the Assessment Term (or upon prepayment of the levied
assessment).
ARTICLE II
DEFINITIONS
Section 2.01 Definitions. The following are terms used in this Agreement. Their meanings as
used in this Agreement shall be expressly indicated below, unless the context of this Agreement
requires otherwise:
(a) Agreement: This agreement to memorialize the covenants and agreements between the
Owners and the City with regard to the Property and the SAC including the assessment appeal
waiver provided herein pursuant to Minnesota Statutes, Chapter 429 in the manner authorized
by Minnesota Statutes § 462.3531.
(b) Agreement Date: The date written in the first paragraph of the Agreement.
(c) Assessment Interest Rate: The special assessment levied against the Property shall accrue
interest at a rate of 2.06% per year for the Assessment Term. Interest accrual shall begin on
November 15, 2024.
(d) Assessment Term: The term of the special assessment levied against the Property shall be 10
years.
(e) SAC Assessment Waiver Amount: The charge imposed by the City for the SAC in the
amount of Seven Thousand Nine Hundred Fifty-two dollars and 00/100s ($7,952.00) is to
be assessed by the City against the Property. The Assessment Amount is commensurate
with the estimated special benefit of the SAC to the Property.
(f) City: The City of Hastings, a Minnesota municipal corporation.
(g) Owners: Marathon Properties of Hastings, LLC, a Minnesota limited liability company.
VIII-12 (a,b)
3
(h) Property: Mid 1/3 of Lot 2, Block 14, TOWN OF HASTINGS, Dakota County, Minnesota.
ARTICLE III
COVENANTS AND AGREEMENTS
Section 3.01 Covenants and Agreements of the Owner. The Owners covenant and agree
with the City that:
(a) Assessment Appeal Waiver: Owner hereby authorizes the City to certify to the Dakota
County Auditor/Property Tax Assessor a special assessment against the Property up to the
Assessment Waiver Amount for the SAC.
The Owners hereby waive all rights to assessment notices, hearings and appeals, and all other
rights pursuant to Minn. Stat. § 429.061, § 429.071 and § 429.081 for the special assessment
against the Property up to the Assessment Waiver Amount. The Owners hereby waive any
and all procedural and substantive objections to the special assessment up to the Assessment
Waiver Amount against the Property, including, but not limited to, notice and hearing
requirements and any claim that any or all of the Assessment Waiver Amount against the
Property exceeds the benefit to the Property for the SAC. The Owners acknowledge and agree
that the benefit of the SAC to the Property does in fact equal or exceed the Assessment Waiver
Amount. The Owners also acknowledge and agree that the Property receives a special benefit
equal to or exceeding the Assessment Waiver Amount.
The City and the Owners acknowledge and agree that the Owners’ waiver of assessment
appeal rights pursuant to Minnesota Statutes, Chapter 429, is capped at the Assessment
Waiver Amount by operation of Minn. Stat. § 462.3531. The City and the Owners
acknowledge and agree that the Owners may appeal any special assessment above the
Assessment Waiver Amount.
(b) Owners’ Covenant Not to Sue the City: Owners hereby covenant with the City not to appeal
or sue the City for a court to set aside, reduce, repeal, or invalidate the levied assessment, or
for other relief from the payment of the City’s levy of a special assessment up to the
Assessment Waiver Amount against the Property.
(c) Owners’ Covenant that Owners are the Property Fee Owners: Owners hereby covenant and
warrant with the City that Owners are seized in fee of the Property and have good right to
enter into this Agreement with the City.
Section 3.02 Covenants and Agreements of the City. The City covenants and agrees with
the Owners that:
(a) Assessment Waiver Amount: The City agrees that the City will certify/levy a special
assessment against the Property only up to the Assessment Waiver Amount for the SAC
pursuant to this Agreement.
VIII-12 (a,b)
4
(b) City Recording of this Agreement: The City will record this Agreement against the Property.
Owners will pay for the cost of recording.
(c) Prepayment of Assessment: The City agrees that the Owners may prepay some or all of the
City’s assessment levy against the Property for the SAC with no penalty and only with interest
accrual pursuant to Minn. Stat. § 429.061.
ARTICLE IV
DEFAULT
Section 4.01 Default. If a party to this Agreement materially defaults in the due and timely
performance of any of its covenants, or agreements hereunder, the other party(s) may give notice of
default of this Agreement. The notice shall specify with particularity the default or defaults on which
the notice is based. The notice shall specify a ten (10) day cure period within which the specified
default or defaults must be cured. If the specified defaults are not cured within the cure period, the
other party(s) may pursue all remedies and sanctions available at law and in equity, including specific
performance.
Section 4.02 Attorneys’ Fees, Costs and Expenses. The Owners agree to pay the City the
amount of the City’s assessment levy up to the Assessment Waiver Amount with accrued interest
together with the City’s attorneys’ fees, costs and expenses to defend the special assessment levy by
the City pursuant to this Agreement. The Owners acknowledge and agree that the Owners would be
unjustly enriched if the City’s assessment levy pursuant to this Agreement was set aside, reduced,
repealed or invalidated by a court with jurisdiction over the Property since the Owners requested the
SAC and this assessment financing for the SAC. The Owners agree that the court with jurisdiction
over the Property shall award the City the assessment levy up to the Assessment Waiver Amount with
accrued interest together with the City’s attorneys’ fees, costs and expenses for breach of the Owners’
covenant not to appeal or sue the City pursuant to Article III, Section 3.01(b).
ARTICLE V
GENERAL PROVISIONS
Section 5.01 Notices. All notices, requests, demands or other communications required or
permitted by this Agreement shall be in writing and delivery shall be deemed to be sufficient if
delivered personally or by registered or certified mail, return receipt accepted, postage prepaid,
addressed as follows:
If to the City: City of Hastings
ATTN: City Administrator
101 4th Street East
Hastings, MN 55033
If to the Owners: Marathon Properties of Hastings, LLC
ATTN: Vicki Jung
VIII-12 (a,b)
5
1241 West 15th Street
Hastings, MN 55033
Section 5.02 Non-Assignability. Neither the City nor the Owners shall assign any interest in
this Agreement nor shall either party transfer any interest in the same without the prior written consent
of the other party.
Section 5.03 Binding Effect. This Agreement and the terms, conditions and covenants
contained herein and the transaction contemplated hereunder shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, heirs, personal representatives, and
permitted assigns. This Agreement shall further be binding on subsequent purchasers of the Property
and shall run with the Property herein described.
Section 5.04 Severability. In the event any provision of this Agreement shall be held invalid
or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render
unenforceable any other provision hereof.
Section 5.05 Amendments, Changes and Modifications. This Agreement may be amended or
any of its terms modified or changed only by a written amendment authorized and executed by the
City and the Owners.
Section 5.06 Counterparts. This Agreement may be simultaneously executed in several
counterparts, each of which shall be an original and all of which shall constitute but one and the same
instrument.
Section 5.07 Entire Agreement. This Agreement shall constitute the entire agreement
between the parties and shall supersede all prior oral or written negotiations.
Section 5.08 Notice To Buyers. The Owners agree to notify and provide any buyer of the
Property with an executed copy of this Agreement if the Owners sell any interest in the Property
following the execution of this Agreement by both the Owners and the City, but before the recording
of this Agreement with Dakota County Recorder and/or Registrar of Titles.
IN WITNESS WHEREOF, the City and the Owners have caused this Agreement to be
executed by their duly authorized representatives.
[remainder of page intentionally blank]
VIII-12 (a,b)
6
CITY:
CITY OF HASTINGS
By:
Mary Fasbender
Its Mayor
By:
Kelly Murtaugh
Its City Clerk
STATE OF MINNESOTA )
) ss.
COUNTY OF DAKOTA )
On this ___ day of ______________________, 2024, before me a Notary Public within
and for said County, personally appeared Mary Fasbender and Kelly Murtaugh, to me personally
known, who being each by me duly sworn, each did say that they are respectively the Mayor and
City Clerk of the City of Hastings, the municipality named in the foregoing instrument, and that
the seal affixed to said instrument was signed and sealed on behalf of said municipality by authority
of its City Council and said Mayor and City Clerk acknowledged said instrument to be the free act
and deed of said municipality.
Notary Public
VIII-12 (a,b)
7
OWNERS:
MARATHON PROPERTIES OF HASTINGS, LLC
By:
Its:
STATE OF MINNESOTA )
) ss.
COUNTY OF __________________ )
Personally came before me this ___ day of ________, 2024, the above named
____________________, ____________ of Marathon Properties of Hastings, LLC, a Minnesota
limited liability company, to me known to be the person who executed the foregoing instrument
and acknowledged the same on behalf of the limited liability company.
Notary Public
This instrument drafted by
and after recording, please return to:
Korine L. Land (#262432)
LeVander, Gillen & Miller, P.A.
1305 Corporate Center Dr Suite 300
Eagan, MN 55121
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
SAC & WAC Payment
Deferral
City of Hastings & Metropolitan Council
PROGRAM INFORMATION, GUIDELINES AND APPLICATION INSTRUCTIONS
City of Hastings
101 4th Street East, Hastings, MN 55033-1955
T: 651-480-2350 F: 651-437-7082
www.hastingsmn.gov
VIII-12 (a,b)
CITY OF HASTINGS: SAC & WAC DEFERRAL//UPDATED 06.11.2018 1
CITY OF HASTINGS
SAC & WAC PAYMENT DEFERRAL
PROGRAM INFORMATION, GUIDELINES AND APPLICATION INSTRUCTIONS
In order to minimize the impact of the Sewer Availability Charge (SAC) and Water Availability Charge
(WAC) to businesses within the City of Hastings, the City can provide a deferral option to pay SAC and
WAC fees over time, instead of an upfront payment due at the time of building permit issuance.
This program is in addition to the Metropolitan Council’s SAC Deferral Program, adopted in April
2017. The MetCouncil SAC Deferral Program, which is targeted to small businesses (under 25 SAC
units), is a means of assistance in paying Metropolitan Council SAC charges and allows a portion, up to
80%, of SAC to be paid over a period not to exceed ten years.
Under the updated program, the City of Hastings will enter into an agreement with eligible businesses
and/or property owners to spread SAC and/or WAC payments over a ten year term. Property owners
will be billed annually, on their property tax statement, for a period of ten years. If eligible, businesses
and/or property owners have the option to utilize the Metropolitan Council SAC Deferral Program, the
City of Hastings SAC & WAC Deferral Program, or both.
Metropolitan Council SAC Deferral Program: 10 year term; low interest rate*; 20% down,
plus the first monthly payment; secured by the Deferred Payment Agreement; eligible to
businesses with SAC unit determination of 25 units or less. This program is established and
regulated by a Master SAC Deferral Agreement executed between the City of Hastings and
Metropolitan Council.
City of Hastings SAC & WAC Deferral Program: 10 year term; low interest rate**; secured
by the Deferred Payment Agreement; eligible to businesses with a SAC & WAC unit
determination of 25 units or less. This program is established by City Ordinance and is intended
to parallel the Metropolitan Council Program guidelines.
Participants in the program are allowed to defer a maximum of 25 SAC and/or 25 WAC units.
Businesses with SAC and WAC determinations exceeding the program limits will be considered on a
case by case basis. The business owner and/or property owner must agree to participate and fill out an
application form with the requested information, in addition to executing the Deferred Payment
Agreement.
If you have any questions or would like to submit an application for the City of Hastings SAC & WAC
Deferral Program and/or the Metropolitan Council SAC Deferral Program, please contact John
Hinzman, Community Development Director, at jhinzman@hastingsmn.gov or 651-480-2378.
*Metropolitan Council SAC Deferral Program: principal on the deferred amount will be amortized monthly at a fixed interest rate based on MCES’
average cost of debt (per statute). MCES’ average cost of debt, computed on December 31 each year, will be used as the interest rate for all new deferrals
entered into the following calendar year.
**City of Hastings SAC & WAC Deferral Program: principal on the deferred amount will be amortized monthly at a fixed interest rate based on the 10
year Treasury Rate, locked in after application approval, at time of closing/document signing.
VIII-12 (a,b)
CITY OF HASTINGS: SAC & WAC DEFERRAL//UPDATED 06.11.2018 2
CITY OF HASTINGS
SAC & WAC PAYMENT DEFERRAL APPLICATION
SECTION 1: BUSINESS INFORMATION
Business Name:________________________________________________________________________
Business Address:______________________________________________________________________
Business Contact/Title:__________________________________________________________________
Telephone:____________________________________________________________________________
Email:_______________________________________________________________________________
SECTION 2: PROPERTY OWNER INFORMATION
Property Owner Name:__________________________________________________________________
Address:_____________________________________________________________________________
Property ID Number:___________________________________________________________________
Telephone:____________________________________________________________________________
Email:_______________________________________________________________________________
SECTION 3: SAC UNIT DETERMINATION (Please attach SAC Determination Letter)
Address on SAC Determination Letter:_____________________________________________________
Date on SAC Determination Letter:________________________________________________________
Reference # on SAC Determination Letter:__________________________________________________
SAC Units (must be less than 25 units):_____________________________________________________
SAC Credits:___________________________________________________________________
Net SAC Units:_________________________________________________________________
WAC Units (must be less than 25 units):____________________________________________________
WAC Credits:___________________________________________________________________
Net WAC Units:________________________________________________________________
VIII-12 (a,b)
CITY OF HASTINGS: SAC & WAC DEFERRAL//UPDATED 06.11.2018 3
SECTION 4: ELIGIBILITY
Please confirm by initialing the following to determine eligibility:
_____ The property is located in the City of Hastings, MN.
_____ The SAC Determination for the property is 25 units or less, prior to SAC credits.
_____ The WAC Determination for the property is 25 units or less, prior to WAC credits.
_____ I understand that the deferral term is not to exceed 10 years.
_____ I understand that the maximum deferment amount is 80% and a down payment, equal to 20% of the total
SAC and WAC fees is due at time of application approval.
_____ I understand that the property owner will be billed monthly on their regular utility bill.
_____ I understand that SAC and WAC credits are tied to the property and may not generally be transferred to
another location.
_____ I understand that in the event of a default, any outstanding payments will be assessed to the property and
the property owners waives the right to contest the assessment.
_____ I understand that, in the case of a business closure, the business or property owner must notify the City’s
Economic Development Coordinator. They City will verify the closure and future payment obligations
will be waived. The site will not be credited with the portion of SAC & WAC not paid, but will receive
credit for actual SAC & WAC paid.
I hereby certify that the above information and/or statements are true and correct to the best of my
knowledge. I understand that any false statements may disqualify me, the property, or this business from
the program.
Business Signature:________________________________________________ Date:______________
Property Owner Signature:_________________________________________ Date:______________
Community Development Staff Approval:_____________________________ Date:_______________
VIII-12 (a,b)
CITY OF HASTINGS: SAC & WAC DEFERRAL//UPDATED 06.11.2018 4
For Staff to Complete:
Permit Number:________________________________________________________________________
Permit Issue Date:______________________________________________________________________
Deferral Start Date: ____________________________________________________________________
(1st day of month after MCES report due)
Percentage to be financed: _______________________________________________________________
(maximum of 80%)
SAC Deferral Amount: ___________X (% Financed) = ________ X __________ = ________________
(e.g. 5 SAC x 80% = 4) (# total SAC units) Deferred Units Current SAC Rate Deferral Amount in $
WAC Deferral Amount: ___________X (% Financed) =_________ X ___________= _____________
(e.g. 5 SAC x 80% = 4) (# of total WAC units) Deferred Units Current WAC Rate Deferral Amount in $
Total Down Payment: SAC______________ = __________________
Down payment in units Down Payment Amount in $
(+)
WAC______________ = __________________
Down payment in units Down Payment Amount in $
(+)
First Monthly Payment = _________________
_____________________________________________________________________________________
Total Down Payment: $_________________
Eligibility Conditions:
_____ The fee owner’s property taxes are in good standing.
_____ The business is in good standing with the State of Minnesota and is not in violation of Hastings City Code.
_____ The property is located within the City of Hastings.
_____ The business meets the definition of eligible commercial properties as stated in the City of Hastings SAC
& WAC Deferral Program and/or the Metropolitan Council’s SAC Deferral Program.
Community Development Staff:______________________________ Date:________________
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)
VIII-12 (a,b)