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AGENDAITEM <br />Item No.: 15 Date: August 28, 2017 <br />Item Description: Consider waiver of building permit fees associated with planned <br />improvements to the Ice Arena. <br />Presenter: Jeremy Barnhart, Community Agenda City Administrator's <br />Development Director Section: Report <br />1. Purpose. The purpose of this action item is to consider a reduction or wavier of the fees associated <br />with the Ice Arena internal improvements. <br />2. Background. The City Council tabled decision on this item at their meeting on August 14 1h . No <br />additional information was requested. The Orono Ice Arena has submitted plans to install a 212' x 18' <br />mezzanine for dry land exercises and seating. The project will include an elevator per code. The Mayor <br />has requested the Council consider waiving the building permit fees. Building permit fees are collected to <br />offset the costs associated with review and inspection of projects. Permit fees are based on the valuation <br />of a project. <br />It was noted during the previous discussion that the ice arena building is not owned by the school district, <br />it is owned and operated by a 3' party non-profit. <br />Permit fees for the proposed Ice Arena project, estimated value of $643,000 are as follows: <br />Permit Fee $7,228.11 <br />State Surcharge $ 321.50 <br />SAC $ (Met Council, not yet determined) <br />3. Options. The Council may reduce or waive fees. It should be noted that the SAC fee is a fee charged <br />to the city by the Met Council to use a portion of the system capacity, the city passes these costs through <br />to the builder/ owner, the number of units is determined by the Met Council. The state surcharge is the <br />State's portion of all building permits. If the Council desires to reduce the fees, the state surcharge and <br />SAC fees should be collected at minimum, as these are costs passed through from other agencies. <br />4. Staff Recommendation. As a general rule, Staff does not recommend waiving of fees. These fees <br />are carefully established to pay city costs associated with development, including review and inspection <br />costs. Waiving the fees shifts these costs to all Orono tax -payers. <br />COUNCIL ACTION REQUESTED <br />Motion to either waive, modify fees for the Ice Arena. The Council could also take no action. <br />Exhibits <br />Exhibit A. Council minutes, August 14, 2017 draft <br />Prepared By: J. Barnhart Reviewed By: J. Barnhart Approved By: =1 <br />