EDA approves purchase, assigns agreement to Scott County CDA for townhome project

The Shakopee Economic Development Authority voted unanimously June 16 to approve Resolution R2026-004, authorizing the acquisition of property at 1211 4th Avenue East and the assignment of the purchase agreement to the Scott County Community Development Agency (CDA).

City staff described the plan as a step to enable a townhome project at the Corner of 4th. City staff said the EDA has approved using Local Affordable Housing Allocation (LAHA) funds to help underwrite the purchase and that the CDA identified a private developer to partner on construction. Julie Siegert, director of the Scott County CDA, told commissioners the CDA intends to sell the property to Trellis and will apply for state funding to support building the project.

Commissioners asked whether surrounding neighbors had been contacted and who would fund construction. City staff said outreach to neighbors is expected to follow and that the CDA has reserved funds at its board level; staff did not provide complete details on construction financing at the meeting. Concerns raised by commissioners included the layering of multiple taxes and fees used for housing programs and the need for clearer public outreach before development begins.

Councilor/Commissioner Kurt Contreras made the motion to approve Resolution R2026-004 to acquire the property and assign the purchase agreement; the motion was seconded and passed by voice vote.

Next steps described at the meeting: staff and the CDA will conduct outreach to neighbors and Trellis will pursue state funding for the construction phase. No construction funding sources were confirmed at the EDA meeting.