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AGENDA ITEM <br />Item No.: 12 Date: August 14, 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 Planning Department <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 Orono Ice Arena has submitted plans to install a 212' x 18' mezzanine for dry land <br />exercises and seating. The project will include an elevator per code. The Mayor has requested the <br />Council consider waiving the building permit fees. Building permit fees are collected to offset the costs <br />associated with review and inspection of projects. Permit fees are based on the valuation of a project. <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. Staff does not recommend waiving of fees. These fees are carefully <br />established to pay city costs associated with development, including review and inspection costs. When a <br />school is assessed fees, these fees are paid for by all taxpayers in that district, including some non -Orono <br />residents. 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 />Prepared By: J. Barnhart Reviewed By: J. Barnhart Approved By: DSR <br />