Shakopee City Council & EDA Meetings - February 6, 2025

The Shakopee City Council held a regular meeting and then recessed into the Shakopee Economic Development Authority (EDA). The agenda and transcript identify the meeting date as February 4, 2025, while the provided timestamp for these materials is 2025-02-06 13:00 UTC; this summary follows the supplied date. No official minutes were provided. The council approved an amended consent agenda, heard public comment, received a strategic plan update, discussed pawn shop fees and e-bike/motorized bicycle rules, and adjourned to February 18, 2025.

Consent Calendar

• The agenda was approved, and item 10C, "Amend the Shakopee City Code by adding section 130.23 prohibiting camping on city-owned property and street right-of-way," was moved to the consent agenda.
• The council approved the consent agenda by voice vote, including: declaring property and one vehicle surplus; LED lighting upgrades; a special event permit and temporary liquor license for the Shakopee Chamber & Visitors Bureau; plans/bidding for the Stagecoach Road Improvement Project and 2025 Pavement Rehabilitation Project; Kimley-Horn design services for Old Carriage Court; CTI council chambers broadcast equipment; the FEMA SAFER grant application; the Department of Energy Energy Efficiency & Conservation Block Grant Award; the 2025 SCADA System Expansion; a fee schedule modification; the Scott County roundabout agreement; hiring a Community Outreach Coordinator at grade 160, step 4; gambling permits for the Shakopee Trap Club and AMVETS Post 1; and the camping prohibition amendment.
• No items were removed from the consent agenda.

Public Comments & Testimony

• Kayla Dornfeld and Tiffany Klingenberg, from Eagle Creek Boulevard addresses, described an informal, unfiled homeowners association created to maintain a shared private hill road serving about 10 homes. They said the association has no money, no legal documentation, and the city does not maintain the street or provide streetlights/plowing. They asked whether the city could take over the road or provide options. Staff responded that the road is private, no city utilities exist there, and extending sewer would be very expensive. Council members suggested searching title/county records, seeking legal counsel, and possibly petitioning for an improvement/assessment process.
• Alex Averill, 395 Columbine Lane, asked about tree replanting after tree removals. Staff said removals include emerald ash borer-related safety work and a pruning contract is underway; a staff contact would provide replanting information. No action was taken.

Economic Development Authority (EDA) Recess Meeting

• The EDA approved its agenda and consent business.
• Lease approvals by voice vote:
  • Bill Creek Boutique Fashion LLC (the former Z Dress space): one-year lease at $23,760.
  • Yummy Bites (Minneapolis coffee and treats shop): five-year lease with a starting annual rent of $39,060, one month free rent, an annual rent increase of $0.50 per square foot thereafter, and a five-year renewal option. The staff narrative described the lease as $18 per square foot with February and March rent-free, and also mentioned a "50% increase," while the approved motion specified $0.50 per square foot annually; the transcript contains this discrepancy.
  • Yummy Bites owners, a family originally from Iraq, described their late-night dessert/coffee concept, typical hours of 1 p.m. to midnight, and a planned opening after Ramadan, around mid-to-late April.
• West-end land development/Cherney property disposition: staff presented an informational plan for the EDA to buy back an unused portion of the former Cherney property and resell it to a developer for a new industrial building. Staff estimated the market value at about $175,000 per acre, with roughly $100,000 in proceeds returning to the EDA real estate fund after the buyback. No formal action was taken; staff said it would return with a formal contract.

Discussion Items

2025 City of Shakopee Strategic Plan Report

• The city administrator reviewed the council-developed strategic plan, originally intended to run through 2024 and about 75% complete. COVID and missing baseline data on public events limited full implementation.
• Financial stability: the city met the inflation-matching tax-rate goal every year from 2020 to 2024; adopted a long-term financial plan integrated into the budget since 2022; and increased non-property tax general fund revenue to nearly 50% of the fund.
• Community strengths: average median income increased 18.2% by 2024; the economic assistance wage threshold was raised to at least $28/hour; achieved hourly wage was reported at $41.23; hotel average daily rate reached $104, though overnight stays have not fully recovered; event attendance data remains difficult to measure. Staff also noted 2024 was the city's lowest crime rate ever.
• Effective public services: staff turnover excluding retirees was 6.4%, and under 10% including retirees; 60% of supervisor selections were internal candidates (target 50%); staffing studies were completed in 2022 and 2024; a 15-year infrastructure CIP was developed in 2023; staffing-level reviews continue for parks/recreation and public works. The only plan item not started was developing impact review processes to evaluate program effectiveness.
• Communications: website translation and ADA upgrades, a strategic communications plan, and new branding were implemented. Survey results showed a 5% increase in confidence in city government and a 15% increase in the public's opinion of the city's image. Councilmember Contreras praised the communications work, especially without a local newspaper.
• No formal action was taken; the report was presented for information and discussion.

Pawn Shop Fees Discussion

• Staff reported the fee is $1.50 per pawn transaction and has not changed for at least 20 years. Comparable city fees range from $0.60 to $3.00. In 2024, the city collected $10,942 in transaction fees, while the LeadsOnline monitoring system cost $4,620. Audits of both city pawn shops found no discrepancies. Staff recommended no change at this time. Councilmember Whiting said he was comfortable with the fee as cost recovery rather than a revenue source. No action was taken.

E-bikes, Motorized Bicycles, and Foot Scooters

• Staff explained state definitions: e-bikes have operable pedals, up to 250W motors, are allowed on trails and sidewalks by state statute, do not require a license, and require riders to be 15 or older. Motorized bicycles/mopeds can reach 30 mph, must be registered, cannot use sidewalks/trails, and require a driver's license/permit and helmet for under-18 riders. Motorized foot scooters can go 15 mph, cannot use sidewalks, require riders to be 12 or older and helmets under 18.
• Police have received about six complaints over the summer, mostly about speed, and are conducting school education. Staff have not found other cities with specific ordinances. Council discussed pocket bikes and golf carts; Councilmember Contreras requested more information on golf cart permit rules and age restrictions, and staff agreed to provide it. No ordinance changes were made.

Reports

• Councilmember Delaney reported on a January 27 school board meeting: a proposal to modify learning structures drew a full house, and the school board delayed the vote until February 10. She also reported on transportation coalition activities, a chamber luncheon, Hockey Day Minnesota, and a public works award.
• Councilmember Whiting reported on MVTA: he was elected vice chair; the board discussed a possible 99-year lease/sale of Apple Valley Transit Station property for transit-oriented workforce housing and trolley conversions; and operator awards were presented.
• Mayor Lehman reported attending a police department retirement, the chamber event, and a legislative update with Representative Tabke.
• The city bill list was presented with no questions.

Key Outcomes

• Approved the agenda and the amended consent agenda by voice vote, including moving the camping prohibition to consent.
• EDA approved two lease agreements by voice vote: Bill Creek Boutique Fashion LLC at $23,760, and Yummy Bites at $39,060 with the terms noted above.
• City Council heard the strategic plan report and took no formal action.
• City Council took no action on pawn shop fees and no action on e-bike/scooter ordinances; staff will follow up on golf cart permit information.
• Council adjourned to February 18, 2025, at 7:00 p.m.