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Shakopee EDA approves private redevelopment contract and $44.6 million TIF note for former gravel site
Summary
The Shakopee Economic Development Authority voted 4–1 to approve a private development contract with Eagle Ventures LLC that includes a $44,575,582 TIF note to be repaid from future tax revenues generated by the project.
The Shakopee Economic Development Authority on July 7 approved a contract for private redevelopment of the former Shakopee gravel site that includes a tax-increment financing (TIF) note of $44,575,582 to be repaid from future tax revenues generated by the project.
City staff and the authority's consultant described the action as the next step after creating a TIF district for the site. "The TIF district was created. Now this is the contract for private development with the developer that sets aside the creation of the necessary items to be completed and, sets a note at $44,575,582," the consultant said.
Motion and vote: Councilor Contreras moved to approve resolution E2026-005 authorizing a contract between the EDA for the City of Shakopee and Eagle Ventures LLC and authorizing the president and executive director to execute related documents; the motion was seconded and the resolution passed on a 4–1 voice vote.
What it means: The TIF note is structured so the project's future tax increments will pay the note once the project starts. The EDA record shows no advance payment will be made on the development contract.
Questions and next steps: Commissioners asked about an advance payment form in the contract; staff confirmed no advance payment is proposed. The authority authorized execution of the agreement and related documents and adjourned to its next regular meeting on Aug. 4.
Dollars and authority: The contract references a TIF note of $44,575,582; the authority approved resolution E2026-005 to permit execution of the contract documents.
