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5.2.2 SAC Credits — Commercial Properties 5.2.2.1 Credits for Previous Use All Credits, like the SAC itself,are between MCES and the Community,albeit based on Capacity Demand required for the specific Site.All Commercial Credit Determinations are subject to the review and approval of MCES. The SAC Credit for a property is based on prior payment of SAC for the Site demand, in SAC units, pursuant to Section 5.2.2.4. If SAC should have been paid but was not,no Credit is allowed for that unpaid SAC (except where the Non-Conforming Grandparent Demand or Non-Conforming Long Continuous Demand Credits apply). When a redeveloping property's New Use requires lower wastewater capacity than what was demanded previously,Net Credits will occur where the SAC was paid. If the Credit is from a Non-Conforming Grandparent Demand, any Net Credits will remain Site-Specific for 5 years to allow for the New Use's growth. In other words,a property redeveloping at the same or lesser wastewater demand will not generate a SAC liability. If redeveloping at a higher wastewater demand, a SAC payment will be required but for only the capacity increment above the Maximum Demand.There are no Net Credits from Non-Conforming Long Continuous Demand. If SAC Credits generated on a Site were used off that Site by the Community,those Credits are no longer available to offset the current SAC charges on the original Site. Credits do not occur at the time of Demolition or when a business shuts down. These circumstances only establish a potential for Credits when a New Use occurs on the Site. Any Determination that includes potential Credit for a future demolition,the demolition is required to be submitted on the SAC-D Demolition Declaration form. (See Section 5.5.5.) Phased Developments are allowed Credits pursuant to Section 5.4.3. 5.2.2.2 Reporting Requirements All Demolitions must be reported by January 30 of the year following the calendar year during which the Demolition permit is issued, in order for the prior use to retain eligibility for potential Credit(s) on the property. For example,if a Demolition permit is issued in September 2014,the Demolition must be properly reported to MCES by January 30,2015.Monthly reporting of all Demolitions is recommended.This establishes the potential Credit that may be allowed when a New Use occurs on the Site. 5.2.2.3 No Credit Determination No SAC Credit will be assigned to Commercial Properties or tenant spaces within properties: • that were not previously connected to a central sewer now connected to the MDS; • where a SAC was paid but rebated to the Community as part of the MCES Rebate Program; • where the building(s)are gone and no Demolition report was filed with MCES within the required time period(see Section 5.5.5); • that were not in the SAC program due to the Council's 2000-2003 Inclusionary Housing SAC Waiver Program,or had SAC waived for any other reason; • where SAC Credits were previously taken off the Site by the Community(i.e. Community- Wide Credits generated by this Site were used elsewhere by the Community); • for which a Temporary Capacity Charge was paid in lieu of SAC; or for any other reason • for which SAC should have paid but was not(except where the Non-Conforming Long Continuous Demand Credits apply). Page 21