Shakopee City Council Regular Meeting - May 19, 2026

The Shakopee City Council met Tuesday, May 19, 2026, at 7:00 p.m. at City Hall, 485 Gorman Street. Councilmembers Delaney, Whiting, Contreras, and Lara and Mayor Lehman were present. The council approved the agenda and a modified consent calendar, heard public comment about the Minnesota state flag, acted on two removed consent items, received the Fire Department 2025 Year in Review, accepted a donation honoring Xavier Gillen, and reviewed the long-term financial plan.

Consent Calendar

• The consent calendar was approved by one motion, as modified by removal of item 5P and item 5R. Approved routine items included the April 2026 monthly financial review; League of Minnesota Cities Insurance Trust tort liability limits; Rhythm on the Rails 2026 special event and temporary liquor licenses; the 2026 Annual Roadway Pavement Markings Project; the Walmart Foundation Spark Good Local Grants Program application and award; a utility facilities easement and pond maintenance agreement with KWS Seed; the Shenandoah Drive and Schenian Street intersection improvements contract; Xcel Energy's Community Benefit Contribution donation; surplus property; the police department boiler replacement bid; a consumption and display permit for Angels LLC dba Taqueria Don Ramon; a gambling premises permit for the Shakopee Rotary; the May 5, 2026 City Council minutes; the Safe Routes to School cooperative agreement amendment with Shakopee Public Schools; the MnDOT Safe Routes to School Infrastructure Grant agreement; 2026-27 liquor license renewals; the Scott County Multi-Hazard Mitigation Plan; and Ordinance O2026-013 amending the Entertainment Overlay Zone to add properties in the Canterbury Park area.

Public Comments & Testimony

• Greg Verling, a Shakopee resident for nearly 70 years and a veteran, said he was impressed with the city's direction, growth, and multicultural history. He urged the council to remove the Minnesota state flag from City Hall and the community center, describing the new flag as a symbol of corruption, division, and a process that left the public out, and suggested the city use its May 23 incorporation anniversary to show leadership and discuss reinstating the previous flag. Mayor Lehman responded that Shakopee is a statutory city required to follow state statute, noted a state funding threat tied to flag compliance, and said the city should avoid becoming political. No formal action was taken on the request.

Removed Consent Items

• 5P - Schroeder House masonry restoration: Councilor Delaney asked about original and revised costs and project phases. Staff said the general contractor approach had been about $2.1 million versus a $1.7 million budget, and the current bid was about $126,000. A motion by Councilor Whiting approved the Building Restoration Corporation contract for $126,314 plus a $10,000 contingency and $35,500 for matching/replacement brick supply. Councilor Delaney voted no, saying the total investment was poor timing and poor use of money for a structure worth about $150,000 and that he would have preferred handing the project to historic preservation specialists. The motion passed 3-2.
• 5R - Railroad crossing elimination grant application: Councilor Whiting asked for more discussion of the proposed application. Staff explained that the city had studied a downtown quiet zone along Second Avenue, and the Federal Railroad Administration grant would pay for closing the Minnesota Street crossing and adding safety improvements at Market Street. A quiet zone would require improvements at all ten crossings; staff estimated at least $750,000 per crossing for basic safety measures. Several council members expressed concern about closing a crossing, shifting traffic onto residential streets, and making downtown less walkable. A motion to adopt Resolution R2026-082 authorizing the FRA application, IIJA discretionary grant assistance, and a proposal from SRF Consulting Inc. for grant preparation was made and seconded. A motion to call the question failed 2-3, and the main motion then failed.

Fire Department 2025 Year in Review

• Fire Chief Simon presented the annual review. The department surpassed 2,000 total incidents for the first time in 2025, a 4% increase over 2024, while covering over 51 square miles and a population exceeding 55,000. Actual fires were about 5% of calls; nearly half of calls were rescue and EMS. The department hired 12 full-time firefighters and began staffing Station 2 24-7 a little over a month earlier, reducing response times on the west side, though Marystown Road construction currently limits measurement. Staff also implemented a battalion chief position in late 2025 and early 2026. Council members thanked the chief for the department's direction and mutual-aid partnerships.

Donation for Sauna and Scholarship Fund in Honor of Xavier Gillen

• Community center staff presented a $12,500 donation from the Gillen family in memory of their son Xavier. Xavier's stepmother, Monique, and father, Nick, described how the Shakopee Community Center was a place where Xavier found connection and love, and said the gift would improve the dry sauna and support the scholarship program so more families can access the center. The council unanimously accepted the donation. Staff said a plaque will be placed outside the sauna with an unveiling ceremony planned.

Workshop: Long-Term Financial Plan

• Finance Director Reinhardt presented the sixth annual long-term financial plan. Key data included: residential parcels grew by 1,808 and total parcels by 2,070 over the past decade; citywide tax capacity grew 106% over 10 years, with residential tax capacity rising from $26 million to $52 million, apartment from $2 million to $6.9 million, and industrial from $7.9 million to $21.7 million. Shakopee was the seventh-largest net contributor to fiscal disparities and the only Scott County city making a net contribution; its fiscal disparities contribution grew from $2.2 million in tax capacity in 2016 to $11.7 million in 2026, about 10.2% of total tax capacity. Net tax capacity from TIF districts grew from $1.2 million in 2017 to $4.9 million in 2026. The city levy rose from $18.93 million in 2017 to $28.76 million in the current year, averaging 4.18% annual growth, while the tax rate dropped to 28.9 for payable 2026. Population increased by about 7,300 in ten years.
• The preliminary taxable market value for taxes payable in 2027 is up $444 million, or 4.4%; about 51% of the total increase is from new construction, and roughly half of the residential increase is from new properties. Under projected 3% annual operating cost growth, 3.5% for public safety, and a 3% revenue growth assumption, the plan indicates roughly a 4% property tax increase would be needed to maintain the 50% fund balance target. Reinhardt also noted the community center and ice arena bond has about $15 million remaining with about eight to nine years left, but current interest rates make refunding unattractive. A council discussion on credit card processing fees followed; staff said the city currently absorbs merchant fees and recently changed processors to lower fees.

Reports and Announcements

• The City Bill List was presented with no questions.
• Council liaison reports covered attendance at the Prairie Point grand opening, Scott County Law Enforcement Memorial dinner, Marystown K9 Agility Park ribbon cutting, a Mekong and Mississippi festival, and a Walmart remodel tour. Councilmember Delaney also noted a coalition website preservation for Scott County Historical Society and highlighted community discussion on youth mental health. Attorney Reynolds reported that the city received $4 million for the hub, election law changes are being reviewed, a health insurance consortium is delayed to 2028 after the Department of Commerce rejected weighted voting, and this week is Public Works Week.
• Announcements included the Miracle Field of Shakopee grand opening on May 27, 6-8 p.m., and the annual Picnic with the Police on June 8, 5-8 p.m. at Hubert Park. Councilmember Contreras said the splash pad is not yet open and should open the following week.

Key Outcomes

• Agenda approved unanimously.
• Consent calendar approved as modified, with 5P and 5R removed for separate action.
• Schroeder House masonry restoration contract awarded to Building Restoration Corporation for $126,314 plus $10,000 contingency and $35,500 brick supply, approved 3-2.
• Resolution R2026-082 for the Railroad Crossing Elimination Grant application failed, so the grant application was not authorized.
• The council accepted the $12,500 Gillen family donation unanimously.
• No formal action was taken on the Fire Department year-in-review or the long-term financial plan; the plan will inform upcoming budget work.
• Meeting adjourned to June 2, 2026, at 7:00 p.m.