Shakopee Economic Development Authority Regular Meeting – September 3, 2025
Shakopee Economic Development Authority Regular Meeting – September 3, 2025
Note: The agenda and transcript indicate the meeting was held on September 2, 2025, but the assigned date for this summary is September 3, 2025. The following summary reflects the proceedings as recorded.
The Shakopee EDA met on September 3, 2025 (as designated), at 7:00 PM at City Hall. The agenda was approved unanimously. The main items were the 2026 EDA levy and budget and a lease renewal with Delicias Ice Cream Cravings, LLC.
Consent Calendar
- Approval of agenda: Motion by Contreras, second by Delaney. Passed unanimously.
- EDA Bill List (Item 4A): No questions, approved without dissent.
Discussion Items
2026 EDA Levy and Budget
- Staff (Mr. Reinhardt) presented a proposed 2026 EDA levy increase of $50,000 to $550,000, which is within the statutory cap of approximately $1.5 million. The levy applies to all taxable properties, including those in tax abatement or TIF districts, and is identified separately on property tax statements.
- Additional revenues include a contribution from the Shakopee Public Utilities Commission (SPUC) of $335,000 (half of 1% of revenues), $20,000 from social district licenses and cup sales, and $24,000 from admissions to the TAP event. For a median-value home, the levy amounts to about $21 per year, $2 more than last year.
- Expenditures include wages/benefits (economic development coordinator and 50% of planning director), legal/professional services, facade loan program, entrepreneurship programming, Main Street sponsorship ($25,000), TAP event ($30,000), and marketing. A new $50,000 annual transfer to the city’s general fund is proposed to reflect administrative support (HR, finance, IT, etc.), similar to other city utilities.
- Discussion: Commissioner Harbart questioned the $50,000 transfer, asking why it could not be absorbed within the existing $500,000 levy. Staff explained it covers overhead costs not previously charged, and the amount is a rough estimate. Commissioner also raised concerns about the TAP event (a beer festival funded by SPUC but netting a $6,000 loss on the EDA budget) and the $25,000 Main Street program, which was originally intended as a limited-time sponsorship. Several commissioners expressed interest in evaluating these programs and obtaining performance reports from Main Street before making cuts.
- Commissioners debated whether to adjust the budget now or wait for more information. Staff noted that the preliminary levy must be set by September 30, but can be lowered later. The vote on the levy and budget would set a maximum.
- Vote on Resolution E2025-002 (adopting the 2026 EDA special benefit levy of $550,000): Motion by Contreras, second by Delaney. Passed 3-2.
- Vote on Resolution E2025-003 (adopting the 2026 EDA budget): Motion by Contreras, second by Delaney. Passed 3-2.
Lease with Delicias Ice Cream Cravings, LLC
- Staff (Mr. Kerski) presented a new five-year lease for the business previously operated under a different owner. The current tenant sold the business, and the new owner (Delicias Ice Cream Cravings, LLC) refinanced through Next Stage, a program of the Scott County CDA. The lease terms are substantially the same as the existing lease, with slight rent increases over the term.
- Commissioner Lehman asked about funding: the CDA/Next Stage provides loans only for capital equipment (freezers, etc.), not for lease payments. No concerns were raised.
- Vote: Motion by Delaney, second by Lehman. Approved unanimously.
Key Outcomes
- 2026 EDA preliminary levy set at $550,000 (Resolution E2025-002) and budget adopted (Resolution E2025-003), both by a 3-2 vote.
- Five-year lease agreement with Delicias Ice Cream Cravings, LLC approved unanimously.
- The EDA will seek a performance report from Main Street before final budget adjustments; the city council will consider final adoption of the levy at its September 16, 2025 meeting.
- Meeting adjourned to October 7, 2025 at 7:00 PM.
No public comments were made during the meeting.
Meeting Transcript
All right. Let's call to order the Tuesday, September 2nd, 2025, meeting of the Shacopee Economic Development Authority. Please make note of the role. Next on the item on the agenda is our approval of the agenda. We get a motion. Make a motion to approve the EDA agenda. Motion by Contreras. Second. Second by Delaney. Any discussion, discussion, discussion. All those in favor say aye. Aye. Any opposed? Motion carries. All right, we have an agenda. We're moving on to item 3A, the 2026 EDA levy. Mr. Reinhardt. Yeah, good evening, President and Commissioners. Tonight we have our tonight we'll be asking for EDA consideration of the proposed 2026 EDA tax levy. If approved tonight, the levy and budget will be forwarded to City Council for their approval on the September 16th City Council meeting. So the EDA levy is subject to a percentage of uh city's estimated market value. Uh that cap for 2026 is a little over 1.5 million. Uh the levy being proposed tonight is well within that cap. Uh the EDA levy levy differs slightly from the general fund levy in that it gets applied to all taxable properties within the city. That would include properties uh within a tax abatement or TIFF plan. Uh the EDA's levy is also identified separately in the property tax statements uh outside uh of the city's general uh property tax. I know that question came up at the last meeting. Um it's in it's not within the city levy, it's actually um at one point it was separated out and uh specifically identified as the EDA levy, uh but in the last couple of years it looks like the county has included it with the other special taxing districts, so it's that included in that line add in there. Uh the EDA levy is specifically designated for economic development activities, uh and then any uh funds unspent from year to year would be carried over uh for that uh purpose. And then for the River River City Center, uh the EDA is responsible for the business tenants on the main level uh and the CDA continues to be the manager of the senior departments on the second level. Uh that activity, uh which includes the lease revenue expenditures, uh, we have that accounted for as a separate subfund of the EDA. So I'll touch base on that as well. Uh so starting with the revenue side, so I'll have one slide on revenues and one slide. Uh staff is proposing an increase in the EDA levy of 50,000 for a total of 550,000. Uh additional funding is provided through uh contribution of half a percent of revenues from the Shockabi Public Utilities Commission. Uh we anticipate that contribution amount to be 335,000 for 2026. Uh 20,000 for the social district licenses and cup sales, and then 24,000 for admissions related to the TAP event. Uh for the medium value home that equals uh out to about 21 dollars a year. Uh so it's about two dollars more uh than last year. Uh on the expenditure side, um so operating expenses include wages and benefits, uh, which includes the economic development coordinator and then 50% of the planning and development director. Uh legal services, planning services, and professional services. Uh within professional services would be the facade loan program, entrepreneurship programming, uh main street, tap event, and and marketing. Uh staff is proposing a new uh annual transfer of 50,000 of the city's general fund. The EDA does receive uh admin support from the general fund um operations, including uh city council of finance, IT communications, uh HR, um, etc. So from a financial standpoint, uh the administration allocation would better reflect that full cost of EDA operations. Uh this is similar to how we handle uh the water in the storm stormwater utilities. They also have an annual transfer, so um to how that that's handled. Uh the EDA budget also includes uh 75,000 for the installation of a level three charger at Quarry Lake. Uh XL Energy would be uh paying for the majority of that installation costs.
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