Shakopee EDA Regular Meeting - August 7, 2025
Shakopee Economic Development Authority Regular Meeting - August 7, 2025
The Shakopee Economic Development Authority (EDA) held a regular meeting on August 7, 2025, to discuss a purchase and sale agreement for a blighted downtown property at 124 Sommerville St. S and to approve the bill list. The board deferred a decision on the property purchase pending further environmental and cost assessments.
Discussion Items
- Purchase and Sale Agreement for 124 Sommerville St. S – City staff presented an offer from the owner to sell the property for $150,000. The property, formerly an automotive shop and small engine repair facility, has been long neglected and is considered the last blighted property downtown. The owner, who is ill, wished to sell directly to the city rather than list it on the market.
- Commissioner Lara expressed comfort only with offering the land value if the building is to be demolished, noting the city would also incur demolition costs. He questioned why the owner should receive the full purchase price after neglecting the property.
- Commissioner Delaney raised concerns about potential environmental cleanup costs due to historical chemical use and changing regulations, which could add significant expense beyond the purchase price.
- Commissioner Layman asked about asbestos, soil contamination, and whether borings had been conducted. He also noted an inconsistency: the city had earlier approved a consent agenda item to tear down a private residential home and assess costs to the owner, but was now considering purchasing a commercial property rather than using a similar cost-assessment approach.
- The Chair (or Mayor) responded that the EDA’s purpose is to take on difficult redevelopment projects, referencing a previous successful cleanup of a contaminated gas station site. He stated that this property is in the downtown redevelopment area and represents an opportunity to remove blight.
- Another board member suggested entering into a contract to allow the city to perform environmental testing and due diligence before committing to the purchase, then potentially renegotiating the price based on findings.
- The Chair (or a member with historical knowledge) noted the building’s history (livery stable) and said the roof’s sway is structural, not unsafe. He highlighted potential redevelopment for parking and available brownfield grants from the Minnesota Pollution Control Agency.
- The board reached a consensus to direct staff to gather more information on environmental conditions, demolition costs, and redevelopment potential before returning with a formal recommendation.
Key Outcomes
- No formal vote was taken on the purchase agreement. The board directed staff to conduct further due diligence, including environmental testing and cost estimates, and to return with a more detailed proposal at a future meeting.
- The bill list (Item 4.a) was approved without discussion.
- The meeting adjourned with a motion and second, and no specific date was set for the next meeting (though it will be the regular monthly meeting).
Meeting Transcript
We will call to order the August 6th, 2025 meeting of the Shakabi Economic Development Authority. Please make note of the role. And we will move on to approval of the agenda item two. I'll make a motion to help the agenda. All right. We have a motion by uh member Contreras. Was there a second? Second. Second by Member Delaney. Uh, all in favor. Aye. Aye. Any opposed. We have an agenda. Uh first item of business, night of item three is the purchase and sale agreement for 124 Somerville Street South. Mr. Kursky. Chair and board members. So as the chair mentioned, this is a discussion about purchase of property for redevelopment on Somerville for 150,000. This is the particular building in discussion. If you remember, um, this was an automotive shop and it's been a small engine repair place. Um the current owner, five or six years ago, I think, um, had some issues. Um, and got to know me through that process in the city administrator. He is now not well. Um at that time he had gone through some serious health issues, and now he's kind of on his way out. So he called remembered all of those discussions back five or six years ago and called me and basically said I don't want to put this in the market. Uh just make a reasonable offer, and I just want to get this over with because I don't have the time or the energy, and I'm going to be leaving soon. So he offered to sell this to the city for 150,000. It's probably the last blighted property that's downtown. Um, it's an opportunity we can look to see whether it is or could be rehabbed, or it's also it's a great site next to a parking lot where we've made substantial investment. Questions, Mr. Laura? It's more of a comment um than a question. Um, so after reviewing this, I just the one thing that stood out to me was um long neglected. And I just I understand that the 150,000 is a lot less than what the current um uh tax assessed value is. But I mean, if it's something that we're gonna be acquiring, um, in my opinion, I feel that the what I would move be comfortable with moving forward with is uh just the sale price of the uh land value if we're gonna be tearing this building down. Um, and keep this in mind too we're gonna have to pay to demolish this. Who's gonna pay for that? So that the the difference could be made up in that point. So I I'm only gonna be comfortable with this by offering the the land value if it's a building we're gonna be tearing down anyways. I mean, the it's i I could neglect my home, and then the city says, hey, we need to be um buy my home so you can demolish it. Like it just I I chose to neglect it. I don't know the whole details of this, but it just doesn't sit well that we should just I I get he's gonna get half of what it's worth, but put it on the market and see what happens. I just that's I just where I'm comfortable with. Understood, Mr. Delaware. Similar concerns. My concern is it's a small engine repair shop. Over the years, environmental regulations change for how chemicals can be used and disposed of. And my concern is we're you'll buy this, and there's gonna be some cleanup effort required because of again if it's kind of fallen into disrepair, and again regs change over the years for chemical use.
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