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TENTATNE AGENDA
CITY OF SHAKOPEE
ADJ. REGULAR SESSION SHAKOPEE, MINNESOTA APRIL 24, 2012
LOCATION: Council Chambers, City Hall, 129 Holmes Street South
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Mayor Brad Tabke presiding
1] City Council and EDA Convene
2] Roll Call at 7:00 p.m. for Both �
3] Approval of Agenda
4] Joint CounciUEDA Public Hearing on Establishing Tax Increment Financing Dish-ict No.
14 and Adoption of a Tax Increment Financing Plan for the Proposed TIF District—
Council Res.No. 7191;EDA Res.No. 12-2 and 12-3
5] Other Business
6] Adjourn
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OFFICIAL PROCEEDINGS OF THE SHAKOPEE CITY COUNCIL
ADJ. REGULAR SESSION SHAKOPEE,MIl�INESOTA APRIL 24, 2012
1-2. CALL TO ORDER/ROLL CALL
Mayor Tabke called the meeting to order at 7:01 p.m.
Present: Mayor Brad Tabke, Councilmembers Pamela Punt,Matt Lehman, Steve
Clay and Jay Whiting.
Absent: None
Staff Present: Mark McNeill, City Administrator; R. Michael Leek, Community
Development Director; and Julie Linnihan, Finance Director/City Clerk
3. APPROVAL OF THE AGENDA
Motion: Whiting/Clay moved to approve the agenda. Motion carried 5-0.
4. JOINT COUNCIL/EDA PUBLIC HEARING ON ESTABLISHING TAX INCREMENT
FINANCING DISTRICT NO. 14 AND ADOPTION OF A TAX INCREMENT
FINANCING PLAN FOR THE PROPOSED TIF DISTRICT-COUNCIL RES. N0. 7191;
EDA RES.NO. 12-2 AND 12-3.
Motion: Lehman/Clay moved to open the Public Hearing. Motion carried 5-0.
Michael Leek provided background on the SanMar business. The property
is located on the plat of Opus NVW on the south side of 4�'Avenue at
County Road 83. is the proposal consists of 580,000 squaxe feet of
warehouse distribution center, with 10,000 square feet of office, and a
160,000 square foot mezzanine area for a piece-picking operation.
The firm projects the creation of 150 jobs within two years of completion
of the minimum improvements in the Tax Increment Financing district.
117 jobs would be at an average wage of$12.00 an hour,with an absolute
floor of$9.00 an hour. These amounts do not include benefits and
bonuses. Thirty three other jobs would be at an average wage of$16.50 an
hour,with a wage floor of$14.00 an hour.
Tom Denaway, analyst with Springsted, Inc. presented. He provided an
overview of the proposed TIF District No. 14. and provided an overview of
the development scenario.
Denaway talked about the qualifications needed for an economic
development district,and what statutory findings are made to approve a
TIF plan. He said that one of the main findings of the City must be that
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Official Proceedings of the Apri124, 2012
Shakopee City Council Page 2
the proposed development in the opinion of the City would not reasonably
be expected to occur solely through private investment within the
foreseeable future, except for the assistance provided by TIF (the"but/for"
test). Denaway said that after the review of this proposed project,
considering revenue and other key factors,the project does merit the
assistance of TIF.
Denaway also discussed the market value analysis test. This test is that the
increased market value that could reasonably be expected to occur without
the use of TIF would be less than the increase in the market value
estimated to result from the proposed development, after subtracting the
total subsidy provided. The total revenue created over the lift of the TIF
project is $3,086,583
Julie Eddington, attorney with Kennedy&Graven that represents the City,
discussed the Contract for Private Development, and outlined the purpose
of the contract.
Jordan Lott of J.J. DevelopmentJSanMar thanlced City Council and the
EDA for their support in this proj ect.
Motion: Whiting/Punt moved to close the public hearing. Motion carried 5-0.
Leek advised the Council that in their packet are documents from•the
Shakopee School District and Scott County indicating their support of the
project as well as another TIF project that come to City Council on May 1,
2012.
Motion: Clay/Whiting offered Resolution No. 7191, A Resolution Approving Tax
Increment Financing Plan For Tax Increment Financing(Economic
Development)District No. 14 Within The Minnesota River Valley Housing
And Redevelopment Project No. l: And Approving Contract For Private
Development Between The City,The Economic Development Authority
For The City of Shakopee,And J&J Minneapolis LLC, Which Includes A
Business Subsidy Agreement, and moved its adoption. Motion carried 5-0.
5. ADJOURN
Punt/Wluting moved to adjourn to Tuesday, May 1, 2012 at 7:00 p.m. Motion carried 5-0.
Meeting ended at 7.39 p.m.
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Julie Linnihan
Finance Director/City Clerk
Kim Weckman
Recording Secretary