If you’re planning a commercial remodel anywhere in the greater Twin Cities area, you’ve probably run into two acronyms that can catch business owners off guard: SAC and WAC fees. These charges can add thousands of dollars to a project budget, and if left unaddressed, they can throw off your timeline and bottom line. At Randahl Construction, we walk clients through SAC and WAC fees on nearly every commercial project, so let’s cover what they are, how they’re calculated, and how we help you navigate the process with your city.
What Are SAC and WAC Fees?
SAC stands for Sewer Availability Charge, and WAC stands for Water Availability Charge. Both are one-time fees charged by local municipalities (and, for SAC, the Metropolitan Council) to fund the regional and local infrastructure that delivers sewer and water service to your property. In short, SAC and WAC fees pay for the reserve capacity built into the pipes, lift stations, and treatment facilities that serve current and future users.
Across the metro, the Metropolitan Council Environmental Services (MCES) sets a regional SAC rate that applies to every community connected to the metro wastewater system. Cities then often add their own local SAC and WAC fees on top of the regional charge to fund local utility infrastructure. Because each city sets its own local rates, SAC and WAC fees can vary significantly depending on where your building is located.
When Do SAC and WAC Fees Apply to a Remodel?
A common misconception is that SAC and WAC fees only apply to new construction. In reality, these fees are frequently triggered by remodels too. If your project changes how a space is used, adds plumbing fixtures, or increases demand on water and sewer systems, your city may reassess your property and issue a new determination.
For example, converting a low-demand office into a restaurant, salon, gym, or medical clinic almost always increases the SAC units assigned to the property, since usage is calculated using factors like sink and toilet counts and estimated water flow. Even projects without added square footage can trigger new SAC and WAC fees if the building’s use changes.
How Are SAC and WAC Fees Calculated?
SAC units are based on estimated water usage compared to a baseline residential connection, and municipalities apply their own local rate schedules to determine the WAC portion. Because SAC and WAC fees rely on formulas tied to fixture counts, square footage, and use type, the final number can be hard to predict without experience navigating city and Metropolitan Council requirements — exactly where a general contractor with local expertise becomes invaluable.
How Randahl Construction Helps Manage SAC and WAC Fees
Every city in the Twin Cities metro, from Minneapolis and St. Paul to the surrounding suburbs, has its own permitting process and fee schedule. Part of our job is identifying potential SAC and WAC fees during pre-construction, before they become a surprise line item. We work directly with city building departments and, when needed, the Metropolitan Council to secure accurate SAC determinations, submit required applications, and confirm whether your project qualifies for any deferral programs some cities offer commercial property owners.
By handling this coordination for you, we help keep your remodel on schedule and your budget accurate from day one.
Planning a Commercial Remodel in the Twin Cities?
SAC and WAC fees are just one piece of a successful commercial remodel. If you’re planning a project anywhere in the greater Twin Cities area, contact Randahl Construction today. We’ll help you understand your city’s SAC and WAC fee requirements and manage the process from permitting to final walkthrough.
