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Record of Proceedings

Shakopee Economic Development Authority Regular Meeting - October 7, 2025

City Council & Commissions — Wednesday, October 8, 2025
BodyShakopee, Minnesota
SessionCity Council & Commissions
DateWednesday, October 8, 2025
StatusFILED
Video Record
0:00 / 16:00

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0:00

We'll call to order the Tuesday, October 7th meeting of the Shock Beconomic Development Authority.

0:08

Please make note of the role first, but I would also like to point out on our agenda that was sent out that it noted our next meeting is November 4th, but due to election day, that's gonna be moved to November 5th.

0:20

So some of you might have updated agendas, but that should be noted.

0:24

Um Mr.

0:28

Laman.

0:29

Mr.

0:29

Chair, I'll make a motion to approve the agenda.

0:32

Second.

0:33

We have a motion and a second to approve the agenda.

0:36

All in favor, say aye.

0:37

Aye.

0:38

Any opposed?

0:39

Uh we'll move on to item number three.

0:45

That is our consent business.

0:46

Mr.

0:47

Lehman?

0:47

I'd like to remove three A.

0:49

Three A.

0:53

All right.

0:54

What are the wishes?

0:56

Mr.

0:57

Laura?

0:57

I'll make a motion to approve the consent agenda as modified.

1:00

Second.

1:01

We have a motion to a second to approve as modified.

1:04

Uh any discussion?

1:06

Discussion, discussion.

1:07

All those in favor say aye.

1:08

Aye.

1:09

Opposed?

1:11

Based unanimously.

1:12

All right.

1:13

We'll move on to that item, it looks like.

1:16

So let's pull that.

1:17

Item 3B.

1:19

3A.

1:20

Three.

1:20

Oh, sorry, 3A.

1:21

Yep.

1:23

Mr.

1:23

Lahman.

1:25

Mr.

1:25

Chair, I just I just have a hard time having the city pay its taxpayers paying for environmental studies on a private property.

1:39

Um, and I have to ask how much is the property owner actually paying for this when they have an interest on making sure their property is sellable and at what level it's sellable at.

1:51

Uh Mr.

1:52

Kersky, you want to address that?

1:54

First off, you want to give a little premise of what we're talking about here.

1:58

Certainly, Mr.

1:59

Chair and board members.

2:00

So Shockabee Public Utilities and we've been working with them and they are in the process of acquiring the adjacent property to this as part of the due diligence of the proposed buyer.

2:14

Um the letter of intent has been shared with both the city attorney and our redevelopment attorney.

2:20

They're in the process of doing a purchase contract.

2:23

Um of the issues raised by SPUC and one of the issues raised actually by our consultants is soil that'll be reused on the property today per the agreement we have is coming off the property.

2:39

So there's, for instance, on the northwest corner, there's 50 feet of organic materials, which currently is gassing off methane.

2:48

So Brian Intertex had a lot of history with this site, and their suggestion was to move forward with this study, identify any soils that could remain on site and be used by the city in the park areas, and how they would necessarily have to be treated since it will be used in city property.

3:04

So that's one of the main goals, and this is to identify those areas, for instance, that are gassing methane right now, take them, figure out a way to reuse them on the property so they don't have to be hauled off.

3:15

We do have a letter of intent that has been signed by a developer and they're in the process of finishing their purchase agreement.

3:22

One of their concerns is they are not going to borrow money from a bank to do this.

3:27

They're putting up about 40 million dollars of their own money.

3:30

This is the last piece necessary for them to move forward.

Discussion Breakdown — Share of Meeting
Environmental Protection█████████████████████████████████████████████53%
Procedural█████████████████████████████34%
Fiscal Sustainability███████████13%
Summary of Proceedings

Shakopee Economic Development Authority Regular Meeting - October 7, 2025

The Shakopee Economic Development Authority (EDA) met on Tuesday, October 7, 2025, at 7:00 PM in City Hall to discuss environmental review contracts, inter-fund loan amendments, and other administrative items. Key topics included funding for environmental studies at the former gravel pit site and the approval of a contract with Braun Intertec for soil and water analysis. Votes were split on both main agenda items.

Consent Calendar

  • Agenda Approval: Approved unanimously after a motion and second. The next meeting date was moved from November 4 to November 5, 2025 due to Election Day.
  • Consent Items: Item 3A (Amend Interfund Loan for TIF#22 Former Gravel Pit Site) was removed for separate discussion. The remaining consent agenda (including approval of meeting minutes) was approved unanimously.

Discussion Items

  • 3A – Amend Interfund Loan for TIF#22 (Former Gravel Pit Site): The EDA considered a resolution (E-2025-004) to increase the inter-fund loan capacity from $100,000 to $300,000 for costs related to environmental review and administration of the TIF district. Staff explained that the study (estimated at $74,000–$100,000) would be funded initially by Shakopee Public Utilities (SPUC) and later reimbursed from future TIF revenue. The resolution also covers other redevelopment costs to allow reimbursement under state law.
    • Positions: Member Layman opposed, arguing the property owner should bear the cost and the city should not use TIF to cover private property expenses. He cited a previous $25,000 environmental study for Somerville that was paid from EDA funds. Other members supported the resolution, noting it protects the city and SPUC and is necessary to move the redevelopment forward. The vote was 4-1, with Layman dissenting.
  • 4A – Contract with Braun for Environmental Review of Gravel Pit Site: The EDA approved a contract with Braun Intertec for environmental soil and water analysis at a cost not to exceed $100,000 (phase II study). The study addresses methane gassing from organic materials, potential contaminants, and PFOS testing, given the planned residential and park uses. Staff noted six or seven firms responded to an RFP; Braun was selected due to its site history. Funding will come from SPUC and be reimbursed through TIF revenues.
    • Positions: Member Layman again expressed concern about city paying for private property, but other members noted due diligence was needed. The vote was 4-1, with Layman dissenting.

Key Outcomes

  • Resolution E-2025-004 adopted (4-1) amending Resolution E-2022-003 to increase the interfund loan from $100,000 to $300,000 for costs related to TIF#22 (gravel pit site).
  • Contract with Braun Intertec approved (4-1) for environmental review up to $100,000.
  • EDA Bill List: Approved with no discussion.
  • Adjournment: The meeting adjourned at approximately 7:30 PM, with the next meeting scheduled for November 5, 2025 at 7:00 PM.

Meeting Transcript

We'll call to order the Tuesday, October 7th meeting of the Shock Beconomic Development Authority. Please make note of the role first, but I would also like to point out on our agenda that was sent out that it noted our next meeting is November 4th, but due to election day, that's gonna be moved to November 5th. So some of you might have updated agendas, but that should be noted. Um Mr. Laman. Mr. Chair, I'll make a motion to approve the agenda. Second. We have a motion and a second to approve the agenda. All in favor, say aye. Aye. Any opposed? Uh we'll move on to item number three. That is our consent business. Mr. Lehman? I'd like to remove three A. Three A. All right. What are the wishes? Mr. Laura? I'll make a motion to approve the consent agenda as modified. Second. We have a motion to a second to approve as modified. Uh any discussion? Discussion, discussion. All those in favor say aye. Aye. Opposed? Based unanimously. All right. We'll move on to that item, it looks like. So let's pull that. Item 3B. 3A. Three. Oh, sorry, 3A. Yep. Mr. Lahman. Mr. Chair, I just I just have a hard time having the city pay its taxpayers paying for environmental studies on a private property. Um, and I have to ask how much is the property owner actually paying for this when they have an interest on making sure their property is sellable and at what level it's sellable at. Uh Mr. Kersky, you want to address that? First off, you want to give a little premise of what we're talking about here. Certainly, Mr. Chair and board members. So Shockabee Public Utilities and we've been working with them and they are in the process of acquiring the adjacent property to this as part of the due diligence of the proposed buyer.

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