Consider Provision of Sewer and/or Water Access Charge Assistance for New Brewery in Ramsey 

The purpose of this case is to consider provision/eligibility of Sewer or Water Access Charges (SAC and WAC) Assistance for a Brewery considering opening in Ramsey.  The EDA and City Council have expressed the desire to bring a brewery/brew pub to Ramsey. Staff has been working with an experienced brewery (Rustech) to consider a 3000-4000 SF build out of an existing building in the COR development.  The proposed project will be a brewery/tap-room and will not be a brew pub.  The brewery asked if the City had any programs that would help with the costs of the SAC and WAC charges for the project.  The City currently has a SAC and WAC deferral program (See attached) for sit-down full-service restaurants, but this project does not meet the current program parameters. The City also has 24 un-allocated SAC credits from previous demolitions (See attached) that could be considered to be applied to this project.  Currently, the City does not have a policy for using these un-allocated SAC credits but it could be considered on a case by case basis by the City Council if the Council believes this would be a good use of those credits for a targeted industry.

Rustech has been working with its bank and is in the process of putting together a business assistance application for usage of un-allocated SAC credits.  Staff has been in communication with the leasing agent of the building  and they have committed to building out the space for Rustech.   Staff does want direction by the city council on the willingness to either modify the existing SAC and WAC Deferral program to include breweries / taprooms (without full service) or to recommend that the City support offering some of the 24 un-allocated SAC credits for a future brewery project in the City of Ramsey. Staff anticipates the Met Council to assign 4-7 SAC units for this project based on seating and final square footage.  Based on City Council consensus/direction, Staff would be bringing this back to the EDA and City Council for formal action at later meetings.

None required

Staff is excited at the prospect of bringing a brewery to the City of Ramsey. Staff believes that the provision of assistance, via a reduction of SAC and/or WAC charges, would close the deal in Ramsey.  Currently, there are breweries in Anoka, Blaine, Coon Rapids, Bethel and Elk River. Staff believes that there is a market in Ramsey that is not, pardon the pun, being served in Ramsey.  Staff believe the two options presented above are both viable.  The economics of modifying the SAC and WAC deferral program to allow for brewery/taprooms would place the financial responsibility on the EDA to fund up to 70% of the SAC and WAC fees.  The other alternative to utilize banked SAC credits would come at zero cost to the EDA and still would be beneficial for recruiting a brewery to the City of Ramsey and it would keep intact the current full-time restaurant assistance policy.  Staff understands that having these credits banked could be helpful for the development of RALF Properties along Highway 10 and other desired users as well. Of the 24 banked credits, 14 were obtained from Highway 10 demolitions. Staff feels that using 4-7 credits from the old City Hall site (3) and the leftover credits from the Complete Auto (Former Amoco) project (4) would be a good use.

1) Direct Staff to work with Rustech Brewery on a business assistance application, and to let Rustech know that the City Council is supportive of allocation of SAC credits to the project
2) Direct Staff to work with Rustech Brewery on a business assistance application, and to modify the Restaurant SAC and WAC Deferral Program to allow brewery/brew pubs and taprooms
3) Something else

Based on City Council Consensus.

If the SAC and WAC deferral Program is modified to allow for breweries and tap rooms this would be funding through the EDA (70% of both SAC and WAC charges)

If un-allocated SAC units are utilized the only cost would be the opportunity cost of other projects that could be funded instead. (100% of SAC Charges, City to still receive all WAC Charges)

The EDA met on October 10, 2024 and adopted a motion to direct staff to work with Rustech Brewery, and to recommend to City Council, the allocation of SAC credits to the project.