Shakopee City Council Regular Meeting - July 21, 2026

The Shakopee City Council met on Tuesday, July 21, 2026, at 7:00 PM at City Hall. The meeting covered routine consent agenda items, public comments on various community concerns, and two appeals: one regarding a home-based dog daycare and boarding permit, and the other concerning the revocation of the Baymont Hotel's license due to repeated safety and operational failures. Council also received liaison reports and discussed upcoming community events.

Consent Calendar

• Declared surplus equipment in Public Works.
• Authorized final acceptance and payment for the 2025 SCADA System Expansion Project.
• Approved a budget amendment and change order for the Lions Park parking lot improvement project.
• Accepted the Firehouse Subs Public Safety Foundation's quarterly grant award.
• Approved grant applications for the Minnesota Department of Safety's DWI/Traffic Safety Officer Program and the Toward Zero Deaths Enforcement Program.
• Approved a cooperative agreement with Scott County for the Marschall Road (CH 17) Trail Extension Project.
• Approved the July 7, 2026 City Council minutes.
• Approved a scheduled network switch replacement bid.
• Approved temporary liquor licenses for BHB2 LLC dba Badger Hill Brewing.
• Approved an updated Rhythm on the Rails special event permit and temporary liquor license for the Shakopee Chamber of Commerce.
• Approved on-sale and Sunday liquor licenses for Valleyfair LLC dba Valleyfair.

Public Comments & Testimony

• Michelle Gunderson Barr (longtime resident) urged the council to support the LGBTQ+ community, citing that nearly 40% of queer youth contemplate suicide and that community support can halve that rate. She asked leaders to personally and publicly embrace inclusion and noted the formation of Scott County Pride for 2027.
• Jessica (address not given in transcript) requested expedited removal of a fence on a shared driveway easement, stating a judge ruled it an easement and the fence is blocking her home sale.
• Kaylee (Veeling Drive East) raised concerns about a proposed GPU-based AI data center at Dean Lakes Boulevard, citing water usage, noise pollution, power grid strain, and potential contamination of aquifers. She urged a moratorium on data centers.
• Paul Klein (1471 Primrose Lane) complained about low-flying jets from Flying Cloud Airport, noting noise and safety concerns.
• Catherine Collar (906 Ramsey Street) asked the council to thoroughly research data center impacts and noted the area was originally intended as a park. She also expressed frustration with lack of local news coverage.
• Mayor clarified that existing data centers use closed-loop cooling systems and do not draw groundwater. Councilmember Delaney, liaison to the Shakopee Public Utilities Commission, explained the proposed 50-megawatt facility (25 MW phase 1, 25 MW phase 2) is a single building with closed-loop cooling. City Administrator Reynolds noted data centers can only be sited in two industrial zones and the council cannot stop a properly zoned use.

Discussion Items

8A – Appeal of Board of Adjustment and Appeals (BOAA) Decision to Allow Dog Daycare and Boarding at 1424 Primrose Lane

• Staff (Mr. Kerski) presented that the applicant, Alison Newstead, applied to operate "Barks, Bellies, and Rubs and Beyond Pet Sitting" from her residence. Neighbors objected, but the BOAA found the application met all ordinance requirements (residency, animal limits, parking, fencing, indoor housing, annual inspections). The applicant had previously operated without a license without complaints. Council approved the BOAA decision.

8B – Appeal of Revocation of Hotel License for American Group of Properties LLC (Baymont Hotel)

• Staff reported 84 police incidents at the Baymont between 2025-2026 (41 in 2025, 43 in 2026), including assaults, drug overdoses, and a major lock-in event on March 28-29, 2026, that resulted in threats of gang violence, assaults, fire alarms, and 16 calls for service. Two people died of drug overdoses at a prior adult event and were not discovered for days due to inadequate housekeeping. The hotel knowingly permitted the March event despite police warnings.
• Hotel representatives (attorney Megan Rogers and owner Jess Singh) apologized and proposed a 24-month conditional license with stricter oversight, prohibition of promoter events, and an escrow account for city costs. They cited the assassination of the majority partner and difficulty obtaining visas for new management as contributing factors.
• Council debated options. Councilmember Whiting favored a conditional license to avoid a derelict hotel and support the tourism area. Councilmember Contreras and others opposed due to the burden on city resources and the hotel's repeated failures. Councilmember Delaney noted taxpayers should not have to supervise a private business.
• Motion to uphold revocation (with amendments to include findings on videos and correspondence) passed 4-1.

Key Outcomes

• Dog Daycare Appeal: Council voted unanimously to uphold the BOAA decision, allowing the home-based dog daycare and boarding at 1424 Primrose Lane (Resolution R2026-107).
• Baymont Hotel License Revocation: Council voted 4-1 to uphold the revocation of the hotel license, adopting Resolution R2026-016 as amended. The conditionally proposed license from the hotel was not accepted. Council directed staff to incorporate findings from the hearing into the resolution.
• Other: Councilmember Delaney requested a workshop on data centers to educate the community. The council accepted liaison reports and acknowledged awards to city communications staff. The meeting adjourned to August 4, 2026, at 7:00 PM.