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HomeMy WebLinkAbout2018-086 CCRMember iDEn Ryan introduced the following resolution and moved its adoption: RESOLUTION NO. 2018-86 RESOLUTION APPROVING THE PAYMENT DEFERRAL AGREEMENT BETWEEN THE CITY OF BROOKLYN CENTER AND JAMBO AFRICA, INC WHEREAS, The Metropolitan Council (Council) owns and operates the metropolitan disposal system. Under Minnesota Statutes section 473.517, subdivision 3, the costs of acquisition, betterment and debt service associated with the "reserve capacity" of the system must be allocated among and paid by the respective local government units in the metropolitan area through a sewer availability charge ("SAC") for each new connection or increase in capacity demand to the metropolitan disposal system within each local government unit; and WHEREAS, Individual property or business owners whose properties are either newly connected or increase capacity demand to the metropolitan disposal system do not pay SAC to the Council. However, local government units that pay SAC to the Council for new connections or increased capacity demands typically pass on those costs to property and business owners by assessing property and business owners a "Local SAC" which sometimes includes local add-on charges; and WHEREAS, Minnesota Statutes section 473.517, subdivision 6 authorizes the Council to provide for the deferment of payment of all or part of the allocated costs which are allocated by the Council to a local government unit in any year pursuant to section 473.517, subdivision 3. The deferments are repayable at such time or times as the Council shall specify, with interest; and WHEREAS, At its November 28, 2012 meeting, the Council adopted changes to its SAC program including a small business SAC deferral program. The changes became effective January 1, 2013. At its January 22, 2014 meeting, the Council adopted changes to the SAC deferral program that became effective immediately upon adoption; and WHEREAS, The Council wants to encourage and help communities promote business development by deferring community SAC payment obligations pursuant to Minnesota Statutes section 473.517, subdivision 6, so participating communities may pass through to businesses the benefits of deferred SAC payments by the communities. The Council's Sewer Availability Charge Procedure Manual (January 2014) states that communities that want to participate in a SAC deferral program must execute a standard master SAC deferral agreement with the Council; and WHEREAS, on April 9, 2018, the Brooklyn Center City Council approved a Master SAC Deferral Agreement with the Council in order to obtain a deferment of a SAC payment obligation and provide assistance to businesses in the community. For the term of the master agreement, Brooklyn Center will have the option to note on their monthly SAC reporting, on forms as provided by the Council, the eligible SAC liabilities for which the City is requesting a RESOLUTION NO. 2018-86 SAC payment deferment from the Council. For each such subject SAC liability the deferment will be effective as of the first day of the subsequent month (e.g., for an April building permit that is reported for SAC in May, the deferment will be effective as of June 1); and WHEREAS, The City of Brooklyn Center wishes to enter into a Payment Deferral Agreement with Jambo Africa, Inc., to pass on the deferment of 80 percent of the owed 14 SAC units, or a deferred amount of $27,832.00, to be paid back over a period of five years at an interest rate of 2.23 percent, to assist this business. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Brooklyn Center, Minnesota, as follows: The City Council hereby approves the Payment Deferral Agreement between the City of Brooklyn Center and Jambo Africa, Inc., and the relevant SAC deferral arrangements, and hereby authorizes the City Manager to negotiate any additional details as may be necessary and appropriate and approved by legal counsel to the City Council. Adopted by the City Council of Brooklyn Center on April 9, 2018. April 9, 2018 Date ATTEST: City Clerk Mayor The motion for the adoption of the foregoing resolution was duly seconded by member AKril Cis and upon vote being taken thereon, the following voted in favor thereof: T m M11 -9m, M)xgnta antler, PpJ1 eaves, L2ln Ryan and the following voted against the same: whereupon said resolution was declared duly passed and adopted.