CMBA to Ask City to Phase in $244 Million in Proposed Fees on Developers

(KNSI) – The Central Minnesota Builders Association will ask the St. Cloud City Council to phase in $244 million in fees on developers. The funds would be collected over ten years.

A public hearing on changes to how the city collects sewer and water access charges, along with a new Trunk Access Charge, will take place during Monday’s meeting. The money would be used for infrastructure improvements for new developments hooking into the city’s sewer and water system.

CMBA Government Affairs Director Steve Gottwalt tells KNSI News the two sides have been negotiating with the city since August. “This is this is the largest set of development fee increases the City of St. Cloud has considered in its history. We have not questioned the need for the improvements. But they want to impose these fees on development on a very short timeframe.”

The CMBA represents builders and developers in the region. They are proposing the fees be phased in over four and a half years. Gottwalt says the city countered with a possible two-and-a-half-year phase-in, but he says that still needs to be longer. “It’s going to kill needed housing. It’s going to kill needed commercial and industrial development that we need for creating jobs and boosting tax base here in St. Cloud. So we’ve offered what we think is a very reasonable approach.”

He says the last time the city made major changes to the SAC/WAC fees in 2008, they phased them in over five years. The final decision is up to the city council.

It’s unclear if the council will make a final decision. The proposal has been delayed multiple times in the last few months.

Currently, the SAC and WAC fees are based on water meter size. The proposal would move to the industry standard of charging SAC and WAC based on the estimated wastewater flow potential or maximum demand on the water and sewer systems.

The SAC Procedures Manual will be used to calculate the fee for commercial and industrial projects based on the square footage and the number of plumbing fixtures. All area cities use this method for determining SAC and WAC fees. St. Cloud officials stated this is a more equitable approach to provide an access charge which considers what the maximum demand on the system will be rather than meter size. SAC and WAC fees are paid during a building permit application.

City officials say most fees will be on multifamily, commercial and industrial developments. They will have a minimal effect on single-family homes.

The city council will also hold a public hearing on its latest round of applications for money from its Community Development Block Grants. The city has $669,252 to allocate. There are 17 projects requesting more than $1.6 million in funding. Some of the projects recommended by the St. Cloud Planning Commission include the East Side Blight and Clearance Program, Place of Hope, Central Minnesota Sexual Assault Center, Anna Marie’s Alliance, Pathways 4 Youth, ISD 742 LEAF, and Tri-Cap.

The St. Cloud City Council Meeting gets started at 6:00 p.m. on Monday.

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