Assistant Port Authority Administrator Barb Wolf gave commissioners an informational update on two programs designed to soften the blow of the sewer availability charge, a one-time fee businesses pay when they connect to the regional wastewater system or expand in a way that adds demand on it. No vote was taken; the briefing was meant to keep commissioners current on how the programs are working.
Assistant Port Authority Administrator Barb Wolf gave an informational update (no vote taken) on two programs helping businesses cover sewer availability charge fees: a low-interest deferral program (three restaurants have used it since 2022) and a credit/grant program that has distributed about $293,000 since 2022, including a new $75,000 Port Authority-funded SAC credit pool approved in the 2026 budget.
The first is a deferral program that lets qualifying businesses spread SAC payments at a low interest rate rather than paying the full charge upfront. The city's program requires a minimum 20% down payment plus the first monthly installment, and businesses must generate fewer than 10 SAC units to qualify, with those in the 10-to-25 unit range considered case by case. The rate adjusts annually with the Metropolitan Council's average cost of debt and is fixed at 2.27% for 2026. Wolf told commissioners three restaurants have used the deferral program since it launched in 2022.
The second is a credit program that grants up to five SAC units per eligible business each year, effectively cutting startup costs rather than deferring them. To qualify, a business must have fewer than 50 full-time equivalent employees and be locally, independently owned — national chains don't qualify. Wolf said the credit program has distributed money to a number of businesses since it began, part of the same push to keep the SAC fee from becoming a barrier for small operators looking to open or grow in Bloomington.
Property owners who use the deferral program should know the full remaining balance comes due immediately if the property is sold, though future payments are waived if a business closes and that closure is verified.