Loading...
HomeMy WebLinkAboutAugust 19, 2025 - Council Packet2 3 4 5 CP 16-27 City of Shakopee County of Scott COOPERATIVE AGREEMENT THISAGREEMENT, by and between the County of Scott, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "County" and the City of Shakopee, a body politic and corporate under the laws of the State of Minnesota, hereinafter referred to as the "City". RECITALS: A. County and City seek to make the following improvements: Construct .53 miles of new roadway extending County Highway (CH) 16 with trails, curb, and median from its current terminus west of CH 15 to west of Zumbro Avenue referred to as the “Project” (Exhibit A). B. The above-described Project lies withinthe corporate limits of the City andwill be constructed in two phases. Phase 1 of the overall extension of CH 16will be from its current terminus west of CH 15 to Zumbro Avene. Phase 2 will be from Zumbro Avenue to 1,870 feet west which is planned for construction in 2026. C. Pulte Homes of Minnesota, LLC and Summergate Companies, LLC, collectively referred to as “Developer”, are two developers jointly working on the construction of the Project. The Developer shall enter into a separate agreement, the “Developer’s Agreement” with the City to define the Developer’s project deliverables that will include the Developer’s cost participation and construction responsibilities. It shall be the City’s sole responsibility to ensure the guarantee of the Developer’s deliverables as outlined hereinafter. D. The City and Developer have prepared an estimate of quantities and unit prices of materials and labor for the above-described Project and an estimate of County’s portion of the total cost for contract work in the sum of seven hundred sixty-seven thousand sixtydollars and nineteen cents ($767,060.19). County shall pay for the oversizing necessary to meet County standard 10-ton roadway requirements (Exhibit B). E. It is contemplated that the Project shall be carried out by the parties under the provisions of Minn. Stat. §162.17, subd. 1 and Minn. Stat. §471.59. NOW, THEREFORE, in consideration of the mutual undertakings and agreement contained within this agreement, the County and City hereby agree as follows: 1. Incorporation The recitals set out above are hereby incorporated into this Agreement as if fully restated herein. 2.Scope of Services a. Developer shallconstruct the project per the Developer Agreement and approved plans and specifications. 1 6 CP 16-27 City of Shakopee County of Scott b. County shall have overall authority to inspect the construction of the contract work for the Project. The construction staking and materials testing services will be provided by the Developer. c. Developer shall provide and dedicate the required right of way and easements and transfer to the County. 3. Payment a. It is specifically agreed that the estimate(s) mentioned in this agreement is only a preliminary estimate of the cost for the work on the Project and that the unit prices set forth in the contract and the final quantities as measured by the County Engineer shall govern in computing the total final construction cost for apportioning the cost of the Project according to the provisions of this section. b. Developer shall pay one hundred percent (100%) of the Roadway Design and Construction Plan and Specifications preparation. c. County shall reimburse the City for one hundred percent (100%) of its share as shown in Exhibit B. Amounts due shall be paid by the County to the City under the following schedule: 1) Ninety percent (90%) of the total contract amount for both Phase 1 and Phase 2 upon execution of this Agreement by all parties. 2) Remaining amount due upon Project completion. d. City will submit invoices to County for the payment due, and County shall pay all amounts due within thirty (30) days. 4. Ongoing Maintenance Items a. Future Modifications. County reserves the right not to issue any permits for a period of five (5) years after completion of the Project for any service cutsin the roadway surfacing of the County Highway included in the Project for any installation of underground utilities which would be considered as new work; service cuts shall be allowed for the maintenance and repair of any existing underground utilities. b. Roadway Snow and Ice Control. Upon completionofthe Project, the County,atits expense,shall performsnowandice control. c. Pavement Striping and Markings. Initial pavement striping and markings shall be included as part of the Project. The County shall be responsible for all subsequent pavement striping and markings on its county roads as required after the initial work and shall be responsible for one hundred percent (100%) of the subsequent related costs. The City shall be responsible for all subsequent striping and markings on its city roads, including pedestrian markings across its City roadway intersection legs, as required after the initial work and shall be responsible for one hundred percent (100%) of the subsequent related costs. d. Trail Maintenance. All future maintenance costs of trail/sidewalk improvements within the City of Shakopee corporate limits constructed under this agreement will be shared equally between County and City regardless of which party performs the maintenance work. Either party can initiate and complete such maintenance work with notice given to the other party. Upon completionofsuch work the initiating party will invoice the other for fifty percent (50%) of theactual total cost. The preventative maintenance on trails constructed with this project, including sealcoating and crack-sealing, will be cost shared equally between 2 7 CP 16-27 City of Shakopee County of Scott County and City with City administering the process. e. Trail Snow and Ice Control. Upon completion of the Project, the City, at its expense,shallperformsnow,ice,anddebrisremovalonall trailsand sidewalks constructed with the Project. f. Streetlights. City shall provide and/or perpetuate an adequate electrical power supply to the streetlightsinstalled as part of this Project and upon completion of said new streetlights installation shall provide and/or continue to provide necessary electrical power for its operations at the sole cost and expense of the City. g. Street Light Maintenance.City shall be responsible for the maintenance and replacement of the aforementioned streetlights including the luminaire and all its components at the sole cost and expense of the City. h. Sanitary Sewer. Upon completion of Project, City, at its sole expense, shall maintain all sanitary sewer appurtenances. i. Storm Sewer and Stormwater Management Basins. Routine maintenance of storm sewer appurtenances within the County right-of-way shall be performed by the County, including repairs to structures, castings, and adjacent curb section repairs along with the removal of sediment, vegetation and ice. Major maintenance will be the responsibility of the County but costs will be split between the City and the County based on the ratio of flow into the stormwater system. Major maintenance includes but is not limited to dredging ponds, repair of non-routine erosion problems, non-routine structure or pipe repair and any other non-routine maintenance activities defined as rehabilitation, replacement, or improvement. Major maintenance of stormwater features that provide regional treatment (treatment for drainage areas beyond the City and County right of ways) will be the responsibility of the City but costs will be split with the County based on the ration of contributing flows into the system. j. Trees and Landscaping. City and Developer are proposing trees along the proposed CH 16. A detailed landscaping plan for the trees planted in the County right of way shall be included in the overall project plansand approved by the County. City shall be responsible for all maintenance of the trees and shall accept full responsibility for all aspects of the tree plantings including repairing the roadway and curb if the root systems create issues, trimming/removing if there are future sight line issues or if the County determines it becomes an issue with roadway safety or maintenance operations, removing for future road widening. k. City shall be responsible for necessary mowing in the right of way. l. A future County Global Maintenance Agreement, upon execution, may supersede maintenance responsibilities stated in this Agreement. 5. Effective Date of Contract This Agreement shall be effective upon execution by all parties to the Agreement. 6. Term of Contract This Agreement will terminate upon Project completion and County’s reimbursement to City, provided that the Ongoing Maintenance section shall survive the Agreement termination. 3 8 CP 16-27 City of Shakopee County of Scott 7. Authorized Agents The Parties shall appoint an authorized agent for the purpose of administration of this agreement. City is notified of the authorized agent of County as follows: Tony Winiecki, or his successor County Engineer Scott County Transportation Services 200 Fourth Avenue West Shakopee, MN 55379 (952) 496-8008 twiniecki@co.scott.mn.us The County is notified the authorized agent for City is as follows: Alex Jordan, or his successor City Engineer City of Shakopee 485 Gorman Street Shakopee, MN 55379 (952) 233-9361 Ajordan@ShakopeeMN.gov 8. County and State Audit Pursuant to Minn. Stat. Sec. 16C.05, subd. 5, the books, records, documents, and accounting procedures and practicesoftheCountyand City pursuant to this Agreement shall be subject toexamination bythe County, City andtheStateAuditor.Complete and accurate records of the work performed pursuant to this Agreement shall be keptby the Countyand City for a minimum of six (6)years followingtermination ofthisAgreement for such auditing purposes. The retention period shall be automatically extended during the course of any administrative or judicial action involving the County or the City regarding matters to which the records are relevant. The retention period shall be automatically extended until the administrative or judicial action is finally completed or until the authorized agent of the County or City notifies each party in writing that the records no longer need to be kept. 9. Liability and Indemnity a. Neither party, its officers, agents or employees, either in their individual or official capacity, shall be responsible or liable in any manner to the other party for any claim, demand, action or cause of action of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of the described maintenance, restoration, repair or replacement work by the other party, or arising out of the negligence of any contractor under any contract let by the other party for the performance of said work; and each party agrees to defend, save, keepand hold harmless the other, its officers, agentsand employeesharmlessfromallclaims,demands,actionsorcausesofactionarisingout of negligent performance by its officers, agents or employees. 4 9 CP 16-27 City of Shakopee County of Scott b. It is further agreed that neither party to this Agreement shall be responsible or liable to the other or to any other person or entity for any claims, damages,actions, or causes of actions of any kind or character arising out of, allegedly arising out of or by reason of the performance, negligent performance or nonperformance of any work or part hereof by the other as providedherein; and each party further agrees to defend at its sole cost and expense and indemnify the other party for any action or proceeding commenced for the purpose of asserting any claim of whatsoever character arising in connection with or by virtue of performance of its own work as provided herein. Each party’s obligation to indemnify the other under this clause shall be limited in accordance with the statutory tort liability limitation as set forth in Minnesota Statutes Chapter 466 to limit each party’s total liability for all claims arising from a single occurrence, include the other party’s claim for indemnification, to the limits prescribed under §466.04. It is further understood and agreed that the Parties’ total liability shall be limited by Minn. Stat. §471.59, Subdivision 1a. as a single governmental unit. c. It is further agreed that any and all employees of each party and all other persons engaged by a party in the performance of any work or services required or provided herein to be performed by the party shall not be considered employees, agents or independent contractors of the other party, and that any and all claims that may or might arise under the Workers’ Compensation Act or the Unemployment Compensation Act of the State of Minnesota on behalf of said employees while so engaged and any and all claims made by any third parties as a consequence of any act or omission on the part of said employees while so engaged shall be the sole responsibility of the employing party and shall not be the obligation or responsibility of the other party. 10. Insurance Since each party is a political subdivision of the State of Minnesota, eachpartyshall maintain a program of self-insurance or insurance covering general liability and automobile liability coverage protecting itself, its officers, agents, employees and duly authorized volunteers against any usual and customary public liability claims to the limits prescribed under Minn. Stat. Sec. 466.04 and Workers’ Compensation in accordance with the Minnesota statutory requirements. Said coverage shall be kept in effect during the entire term of this Agreement. 11. Data Practices All records kept by the City and the County with respect to the Project shall be subject to examination by the representatives of each party. All data collected, created, received, maintained or disseminated for any purpose by the activities of the County or City pursuant to this Agreement shall be governed by Minnesota Statutes Chapter 13, as amended, and the Minnesota Rules implementing such Act now in force or hereafter adopted. 12. Equal Employment and Americans with Disabilities In connection with the work under this agreement, City agrees to comply with the applicable provisions of state and federal equal employment opportunity and 5 : CP 16-27 City of Shakopee County of Scott nondiscrimination statutes and regulations. In addition, upon entering into this agreement, Citycertifies that it has been made fully aware of Scott County's Equal Employment Opportunity and Americans With Disabilities Act Policies, that it supports these policies and that it will conduct its own employment practices in accordance therewith. Failureon the part of City to conduct its own employment practices in accordance with County Policy may result in the withholding of all or part of regular payments by the County due under this agreement unless or until City complies with the County policy, and/or suspension or termination of this agreement. 13. Controlling Law The laws of the State of Minnesota shall govern all questions and interpretations concerning the validity and construction of this Agreement and the legal relations between the parties and performance under it. The appropriate venue and jurisdiction for any litigation hereunder shall be those courts locatedwiththe County of Scott, Stateof Minnesota. Litigation, however, in thefederal courts involving the parties shall be in the appropriate federal court within the State of Minnesota. 14. Changes/Amendments The parties agree that no change or modification to this agreement, or any attachments hereto, shall have any force or effect unless the change is reduced to writing, dated, and made part of this agreement. The execution of the change shall be authorized and signed in the same manner as this agreement, or according to other written policies of the original parties. 15. Severability In the event any provision of this Agreement shall be held invalid and unenforceable, the remaining provisions shall be valid and binding upon the parties unless such invalidity or non-enforceability would cause the Agreement to fail its purpose. One or more waivers by either party of any provision, term, condition or covenant shall not be construed by the other party as a waiver of a subsequent breach of the same by the other party. 16. Entire Agreement It is understood and agreed that the entire agreement of the parties is contained herein and that this agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the County and City relating to the subject matter hereof. 6 21 CP 16-27 City of Shakopee County of Scott IN TESTIMONY WHEREOF, the parties hereto have caused this Agreement to be executed intending to be bound thereby. CITY OF SHAKOPEE By And Matt Lehman, Mayor William H. Reynolds, City Administrator Date Date COUNTY OF SCOTT By Lezlie Vermillion, County Administrator Date Upon proper execution, this agreement RECOMMEND FOR APPROVAL: will be legally valid and binding. By By Jeanne Andersen, Assistant County Attorney Anthony J. Winiecki, County Engineer Date Date 7 22 CP 16-27 Cityof Shakopee County of Scott EXHIBIT A 8 23 CP 16-27 City of Shakopee County of Scott EXHIBIT B – Cost Estimate Phase 1 - Palomino Trail Development City Collector - $333,742.35 County Share - $236,403.05 Total Cost - $570,127.40 Total Length – 970 LF Phase 2 - Bluff View Development City Collector - $540,432.64 County Share - $530,657.14 Total Cost - $1,071,089.78 Total Length – 1873 LF 9 24 25 RESOLUTION R2025-093 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A MINNESOTA DNR CONSERVATION PARTNERS LEGACY GRANT APPLICATION _____________________________________________________________________________________ WHEREAS Conservation Partners Legacy Grant program, and WHEREAS, the application is to obtain funding to conduct long-term invasive shrub maintenance, tree removal, and native plant seeding, and WHEREAS, the City of Shakopee recognizes a 10% match is required and will be provided through the Surface Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the MN DNR, the City of Shakopee agrees to accept the grant award and may enter into an agreement with MN DNR for the above-referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this th 19 day of August 2025. ____________________________________ Matt Lehman, Mayor of the City of Shakopee ATTEST: ______________________________ Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 26 27 RESOLUTION R2025-094 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY _____________________________________________________________________________________ WHEREAS, the City of Shakopee supported the applications made to the rd 2026 Capital Budget via Resolution R2025-068 on the 3 day of June 2025, and WHEREAS, the State of Minnesota requires a project priority list be adopted when multiple projects are submitted for funding, and WHEREAS, the City of Shakopee recognizes the 2026 Capital Budget project priority is given first to the Hub Innovation Center and second to the Downtown Quiet Zone project. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the State of Minnesota, the City of Shakopee agrees to accept the grant award and may enter into an agreement with State of Minnesota for the above-referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this th 19 day of August 2025. ____________________________________ Matt Lehman, Mayor of the City of Shakopee ATTEST: ______________________________ Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 28 29 2: 31 CITY OF SHAKOPEE Monthly Financial Report Di vi YTDJulyJuly YTDBudget July YTD si 2025 20252025Balance Percent 2024 o Budget ActualActualRemainingUsedActual n 01000 - GENERAL FUND REVENUES: * - TAXES23,446,450013,185,19810,261,25256%11,605,457 * - SPECIAL ASSESSMENTS17,000011,8595,14170%10,398 * - LICENSES AND PERMITS3,810,750470,0693,410,412400,33889%2,935,116 * - INTERGOVERNMENTAL5,430,000757,0082,836,4042,593,59652%2,614,768 * - CHARGES FOR SERVICES5,236,8001,138,9874,857,543379,25793%3,475,967 * - FINES AND FORFEITS325,20026,805198,436126,76461%165,735 * - MISCELLANEOUS537,10089,821594,180(57,080)111%444,554 TOTAL REVENUES38,803,3002,482,68925,094,03313,709,26765%21,251,996 EXPENDITURES: 11 - MAYOR & COUNCIL(205,900)(8,530)(131,967)(73,933)64%(77,503) 12 - ADMINISTRATION(2,726,280)(214,648)(1,558,910)(1,167,370)57%(1,431,167) 13 - CITY CLERK(480,700)(32,831)(250,877)(229,823)52%(312,694) 15 - FINANCE(1,166,950)(77,984)(851,342)(315,608)73%(813,979) 17 - PLANNING AND DEVELOPMENT(765,540)(72,750)(435,836)(329,704)57%(524,918) 18 - FACILITIES(694,300)(55,396)(330,494)(363,806)48%(324,084) 31 - POLICE DEPARTMENT(12,973,990)(1,538,377)(7,584,173)(5,389,817)58%(6,336,783) 32 - FIRE(4,448,100)(364,998)(2,331,931)(2,116,169)52%(2,004,686) 33 - INSPECTION-BLDG-PLMBG-HTG(2,132,100)(142,276)(1,511,250)(620,850)71%(1,404,014) 41 - ENGINEERING(1,430,500)(189,820)(830,229)(600,271)58%(748,785) 42 - STREET MAINTENANCE(2,846,050)(203,396)(1,713,526)(1,132,524)60%(1,599,232) 44 - FLEET(607,800)(39,234)(295,187)(312,613)49%(306,086) 46 - PARK MAINTENANCE(3,514,200)(461,731)(2,246,743)(1,267,457)64%(1,926,700) 67 - RECREATION(5,558,990)(628,288)(3,416,799)(2,142,191)61%(2,894,415) 91 - UNALLOCATED(127,900)(3,192)(12,883)(115,017)10%(3,155) TOTAL EXPENDITURES(39,679,300)(4,033,450)(23,502,146)(16,177,154)59%(20,708,201) OTHER FINANCING # * - TRANSFERS IN876,00000876,0000%0 # * - TRANSFERS OUT0000#DIV/0!0 ## OTHER FINANCING TOTAL876,00000876,0000%0 # # FUND TOTAL0(1,550,761)1,591,887(1,591,887)543,795 Key Varies more than 10% than budget positively Varies more than 10% than budget negatively Within 10% of budget 32 33 34 CITY OF SHAKOPEE RESOLUTION NO. R2025-091 RESOLUTION CALLING A PUBLIC HEARING REGARDING THE ISSUANCE OF REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, AND PROVIDING PRELIMINARY APPROVAL TO THE ISSUANCE THEREOF BE IT RESOLVED by the City Council of the City of Shakopee, as follows: Section 1. Recitals. 1.01. the City is authorized to carry out the public purposes described in the Act by providing for the issuance of revenue bonds to provide funds to finance or refinance multifamily housing developments (including nursing and assisted living facilities). 1.02. Benedictine Living Community of Shakopee LLC, a Minnesota limited liability company corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as -exempt or taxable estimated not to exceed $65,000,000 and loan the proceeds thereof to the Borrower. The Borrower intends to apply the proceeds thereof, along with other available funds, to (i) refinance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory Project), Series 2018, and th required reserves, if necessary; and (iii) pay costs of issuance of the Bonds. The Borrower owns and operates the Project. The Refunded Bonds were issued in accordance with the provisions of the Act. 1.03. Pursuant Section 147(f) of the Code, prior to the issuance of the Bonds, the City Council must conduct a public hearing after one publication of notice in a newspaper circulating generally in the City at least seven (7) days before the hearing. 1.04. The Borrower has requested that the City Council conduct a public hearing on Tuesday, September 16, 2025, to approve the issuance of the Bonds pursuant to the requirements of Section 147(f) of the Code, and the regulations promulgated thereunder. Section 2. Preliminary Findings. Based on representations made by the Borrower to the City to date, the City Council of the City hereby makes the following preliminary findings, determinations, and declarations: (a) The proceeds of the Bonds will be loaned to the Borrower and the proceeds thereof, along with available funds, will be used to refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds, fund required reserves, if necessary, and pay 4918-5156-5144.1 35 costs of issuance of the Bonds. The City will enter into one or more loan agreements (or other revenue agreements) with the Borrower requiring loan repayments from the Borrower in amounts sufficient to repay the loan of the proceeds of the Bonds when due and requiring the Borrower to pay all costs of maintaining and insuring the Project, including taxes thereon. (b) In preliminarily authorizing the issuance of the Bondsto further the policies of the Act. (c) The Bonds will be special, limited obligations of the City payable solely from the revenues pledged to the payment thereof, will not be a general or moral obligation of the City, and will not be secured by or payable from revenues derived from any exercise of the taxing powers of the City. (d) The Bonds will refinance the Project, which is a multifamily housing development designed and intended to be used for rental occupancy by elderly persons. Section 3. Public Hearing. 3.01. The City Council shall meet at or after 7:00 p.m. on Tuesday, September 16, 2025, to conduct a public hearing as requested by the Bor be published as required by Section 462C.04, subdivision 2 of the Act and Section 147(f) of the Code. 3.02. The City Clerk is hereby authorized to direct Kutak Rock LLP, Minneapolis, Minnesota, ac to publish the Public Notice, in substantially the form attached hereto as EXHIBIT A, in the New Prague Times, the official newspaper of the City and a newspaper of general circulation in the City. The Public Notice shall be published at least once, at least seven (7) days prior to the date of the public hearing. At the public hearing, reasonable opportunity will be provided for interested individuals to express their views, both orally and in writing, on the proposed issuance of the Bonds for the purposes set forth herein. Section 4. Preliminary Approval. The City Council hereby states its preliminary intention to issue the Bonds in the aggregate principal amount estimated not to exceed $65,000,000 to (i) refinance the Project through the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if necessary; and (iii) pay the costs of issuing the Bonds. Section 5. Official Statement. Other than providing information regarding the City (the he City has not participated in and will not participate in the preparation of a Preliminary Official Statement or an Official Statement (together, the Bonds and the City assumes no responsibility for the sufficiency, accuracy, or completeness of the information contained in the Official Statement, other than the City Information. Subject to the foregoing, the City hereby consents to the distribution and the use by the underwriter in connection with the offer and sale of the Bonds of the Official Statement. Section 6. Costs. The Borrower will pay the administrative fees of the City and pay, or, upon demand, reimburse the City for payment of, any and all costs incurred by the City in connection with the financing of the Project and issuing the Bonds, whether or not the Bonds are issued. Section 7. Commitment Conditional. The adoption of this resolution does not constitute a guaranty or firm commitment that the City will issue the Bonds as requested by the Borrower. The City retains the right in its sole discretion to withdraw from participation and accordingly not to issue the Bonds, or issue the Bonds in an amount less than the amount referred to herein, should the City at any 4918-5156-5144.1 2 36 time prior to issuance thereof determine that it is in the best interest of the City not to issue the Bonds, or to issue the Bonds in an amount less than the amount referred to in Section 4 hereof, or should the parties to the transaction be unable to reach agreement as to the terms and conditions of any of the documents required for the transaction. Section 8. Effective Date. This resolution shall be in full force and effect from and after its passage. th Approved by the City Council of the City of Shakopee this 19 day of August, 2025. Mayor ATTEST: City Clerk 4918-5156-5144.1 3 37 EXHIBIT A NOTICE OF PUBLIC HEARING CITY OF SHAKOPEE, MINNESOTA NOTICE OF PUBLIC HEARING ON THE ISSUANCE OF REVENUE REFUNDING BONDS UNDER MINNESOTA STATUTES, CHAPTER 462C, AS AMENDED, AND THE INTERNAL REVENUE CODE OF 1986, AS AMENDED NOTICE IS HEREBY GIVEN that the City Council of the City of Shakopee, Minnesota (the September 16, 2025, at or after 7:00 p.m. at Council Chambers at City Hall, located at 485 Gorman Street in the City, on a proposal that the City Council approve and authorize the issuance by the City of one or more series of tax-exempt or taxable revenue refunding bonds in an aggregate principal amount estimated not to exceed $65,000,000 under Minnesota Statutes, Chapter 462C, as amended, for the benefit of Benedictine Living Community Benedictine Health System, a Minnesota nonprofit corporation and an organization described in Section 501(c)(3) of the Internal Revenue Code of 1986, as amended. The proceeds of the Bonds, along with other available funds, will be used to (i) refinance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the located at 1705 Windermere Way in the City Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, Shakopee LLC Project), Series 2018; (ii) fund required reserves, if necessary; and (iii) pay costs of issuance of the Bonds. The Borrower owns and operates the Project. Following the public hearing, the City Council will consider adoption of a resolution approving the issuance of the Bonds for the purposes described herein. The Bonds will be issued by the City and will constitute special, limited obligations of the City payable solely from the revenues expressly pledged to the payment thereof, and will not constitute a general or moral obligation of the City and will not be secured by the taxing power of the City or any assets or property of the City except interests in the Project that may be granted to the City in conjunction with the financing. All persons interested may appear and be heard at the time and place set forth above or may file written comments with the City Administrator prior to the date of the hearing set forth above. Dated: \[Date of publication\] BY ORDER OF THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA /s/ William H. Reynolds City Administrator City of Shakopee, Minnesota 4920-7174-3066.2 38 ńȳș"Ņ ǧƕlŅ ŒŒǘ ̂˼ ǿƕȳșé ǿûʋșé ǿșǨșˍ ǿȳûș ˿̀˼˼ˍ Ūûŵŵ"ǙƕœûȀˍ ŪŴ ́́̀˼˾˷̀˼˽̄ ƕÌÌûl ̂˽˾ː˿˿̀ː́˼˼˼ ļȳœû ||ûŵÓșƕŵ ̂˽˾ː˿˿̀ː́˼˽˿ Ľȳœûː||ûŵÓșƕŵ˱Ņȳș"ŅǨƕlŅːlƕū August 13, 2025 Nathan Reinhardt, Finance Director City of Shakopee 485 Gorman Street Shakopee, MN 55379 Re:Resolution calling a public hearing on the issuance of revenue refunding bonds for the benefit of Benedictine Living Community of Shakopee LLC Dear Nate: December21,2018, for the benefit of Benedictine Living Community of Shakopee LLC, a Minnesota Borrower Minnesota nonprofit corporation: (i) the Senior Housing Revenue Bonds (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $52,440,000; and (ii)the Subordinate Senior Housing Revenue Note (Benedictine Living Community of Shakopee LLC Project), Series 2018, in the original aggregate principal amount of $3,000,000. The City loaned the proceeds of the Refunded Bonds to the Borrower to finance the acquisition, construction, and equipping of approximately 116 independent living apartments, 43 assisted living units, and 24 memory care units (the located at 1705 Windermere Way in the City. The Borroweris requesting that the City issue one or more series of tax-exempt or taxable revenue refunding bonds or other obligations estimated aggregateprincipal amount not to exceed$65,000,000 to (i) refinance the Projectthrough the redemption and prepayment of the outstanding Refunded Bonds; (ii) fund required reserves, if any; and (iii)pay costs of issuance of the Bonds. The RefundedBonds wereissued in accordance with Minnesota Statutes, Chapter462C, as amended (the Internal Revenue Code of 1986, as amended, the City Council is required to conduct a public hearing on the issuance of the Bonds. The Borrower has requested that the City Council consider the enclosed resolution at its meeting on August 19, 2025, whichcalls for a public hearing to be held by the City Council on September 16, 2025, and provides preliminary approval to the issuance of the Bonds for the purposes described above. The Bonds may not be issued until the City Council has approved the issuance of the Bonds following the public hearing. If issued, the Bonds will be issued pursuant to the Act and secured solely by the revenues derived from a loan agreement to be executed by the City and the Borrower and from other security provided by the Borrower, including the proceeds of a mortgage and a guaranty. The Bonds will not constitute a general or moral obligation of the City and will not be secured by or payable from any property or assets of the City (other than the interests of the City in the loan agreement) and will not be secured by any taxing power of the City. The Bonds will not be subject to any debt limitation imposed on the City, and the issuance of the 4937-8370-6462.1 39 Bonds will not have any adverse impact on the credit rating of the City, even in the event that the Borrower encounters financial difficulties with respect to the Project to be refinanced with proceeds of theBonds. Each year the City has the ability to designate up to $10,000,000 in tax- tax-- Section265(b)(3) of the Code. In order to issue bank-qualified bonds, anissuer must not expect to issue more than $10,000,000 of bonds (other than private activity bonds that are not qualified 501(c)(3) bonds) in a calendar year. Because the principal amount of the Bonds exceeds $10,000,000, the City will beunable to designate the Bonds or any other bonds to be issued by the City in 2025as bank qualified. The Borrower will pay the out-of-pocket expenses of the City with respect to this transaction as well as the If the City Council decides to proceed with a public hearing next month, my office will handle publishing approval resolution. Please contact me with any questions you may have prior to the City Council meeting. Sincerely, Julie Eddington 4937-8370-6462.1 3: 41 RESOLUTION R2025-092 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA APPROVING THE CITY TO SUBMIT A FM FIRE SERVICE GRANT PROGRAM APPLICATION _____________________________________________________________________________________ WHEREAS, the City of Shakopee supports the application made to the FM Fire Service Grant program, and WHEREAS, the application is to obtain funding to purchase and implement tablets to run existing pre-plan software, and WHEREAS, the City of Shakopee recognizes a 0% match is required and will be provided through the Surface Water Fund. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SHAKOPEE, MINNESOTA AS FOLLOWS: if the City of Shakopee is awarded a grant by the FM Fire Service, the City of Shakopee agrees to accept the grant award and may enter into an agreement with FM Fire Service for the above-referenced project. The City of Shakopee will comply with all applicable laws, requirements, and regulations as stated in the grant agreement. Adopted in the regular session of the City Council of the City of Shakopee, Minnesota, held this th 19 day of August 2025. ____________________________________ Matt Lehman, Mayor of the City of Shakopee ATTEST: ______________________________ Richard Parsons City Clerk Prepared by: City of Shakopee 485 Gorman Street Shakopee, MN 55379 42 43 Qpmjdz!boe!Tuboebse!Pqfsbujoh!Qspdfevsf!Efwfmpqnfou Ovncfs;!21/12/12 Bepqufe;!!UCE Bnfoefe; QPMJDZ!DPOUFOUT J/JttvjohBvuipsjuz///////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2 JJ/Tdpqf/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2 JJJ/Tvnnbsz!pg!Hvjebodf/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2 JW/Efgjojujpot////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////2 W/Dpejgjdbujpo/////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////3 WJ/Joefy!pg!Dibqufst//////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////3 WJJ/Qpmjdz!Tubufnfou////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////////3 WJJJ/Ofx!Qpmjdjft!boe!Tvctuboujbm!Sfwjtjpot/////////////////////////////////////////////////////////////////////////////////////////////////4 J/JTTVJOH!BVUIPSJUZ! Djuz!Dpvodjm!uispvhi!Djuz!Benjojtusbups/! JJ/TDPQF Uijt!qpmjdz!bqqmjft!up!bmm!Djuz!pg!Tiblpqff!tubgg-!sfhbsejohqpmjdz!boe!tuboebse!pqfsbujoh! qspdfevsf!efwfmpqnfou-!sfwjtjpo-!bqqspwbm-!jnqmfnfoubujpo-!dpejgjdbujpo-!boe!sfwjfx/! JJJ/TVNNBSZ!PG!HVJEBODF Uif!Djuz!pg!Tiblpqff!dsfbuft!boe!nbjoubjot!qpmjdjft!up!ftubcmjti!sftqpotjcjmjuz-!bddpvoubcjmjuz! boe!joufhsjuz!boe!jt!dpnnjuufe!up!fotvsjoh!uibu!bmm!djuz!qpmjdjft!bsf!nbobhfe!jo!b!nboofs!uibu! jt!dpnqmjbou!boe!dpotjtufou!xjui!mfhbm!boe!sfhvmbupsz!sfrvjsfnfout!boe!bmjhot!xjui!uif!djuz“t! wbmvft/!Uijt!hvjebodf!jt!joufoefe!up!bttjtu!efqbsunfout!jo!efwfmpqjoh!boe!sfwjtjoh!qpmjdjft! boe!tuboebse!pqfsbujoh!qspdfevsft!uibu!bsf!jttvfe/! JW/EFGJOJUJPOT Qpmjdz;Djuz!Dpvodjm!fobdufe!svmft!ps!sfhvmbujpot!uibu!tfswf!bt!b!hvjef!gps!uif!bdujpot!boe! efdjtjpot!pg!tubgg!jo!uif!benjojtusbujpo!pg!qsphsbnt!boe!tfswjdft/ 44 Tuboebse!Pqfsbujoh!Qspdfevsf!)TPQ*;!Benjojtusbujwf!qspdfttft-!qspdfevsft!boe!hvjebodf!up! tvqqpsu!qpmjdz!ps!psejobodf!fobdufe!cz!Djuz!Dpvodjm!ps!hfofsbm!pqfsbujpot!boe! benjojtusbujpo/! W/DPEJGJDBUJPO! Uif!Efqbsunfou!pg!Benjojtusbujpo!jt!sftqpotjcmf!gps!dpejgzjoh!qpmjdjft!boe!tuboebse! pqfsbujoh!qspdfevsft/!! B/Qpmjdjft! Bmm!qpmjdjft!xjmm!cf!ovncfsfe!boe!dpefe!jo!uif!gpmmpxjoh!nboofs; DibqufsTfdujpo!Wfstjpo!Eftdsjqujpo! \\yyy^!/!\\yyy^!/!\\yyy^!/)jotfsu!eftdsjqujpo*! Fybnqmf;!b!qpmjdz!gps!gjobodf!xpvme!cf!tjnjmbs!up;!45/12/12!Qvsdibtjoh!Qpmjdz Jg!b!qpmjdz!jt!jo!tvqqpsu!pg!bo!fyjtujoh!psejobodf-!uif!dibqufs!boe!tfdujpo!ovncfs!pg!uif! qpmjdz!tipvme!nbudi!uif!dibqufs!boe!tfdujpo!ovncfs!pg!uif!psejobodf/!! C/Tuboebse!Pqfsbujoh!Qspdfevsft! Bmm!tuboebse!pqfsbujoh!qspdfevsft!xjmm!cf!ovncfsfe!boe!pshboj{fe!jo!b!nboofs! bqqspqsjbuf!gps!uif!efqbsunfou)t*!sftqpotjcmf!gps!uif!TPQ/!Jg!bo!TPQ!jt!jo!tvqqpsu!pg!bo! fyjtujoh!qpmjdz!ps!psejobodf-!uif!dibqufs!boe!tfdujpo!ovncfs!pg!uif!qpmjdz!ps!psejobodf! tipvme!cf!opufe!jo!uif!tvnnbsz!boe0ps!jouspevdupsz!tfdujpot!pg!uif!TPQ/! WJ/ JOEFY!PG!DIBQUFST! 21!—!Hfofsbm!Qspwjtjpot! 41!—!Benjojtusbujpo! 61!—!Qvcmjd!Xpslt 81!—!Qvcmjd!Tbgfuz!boe!Xfmmcfjoh! :1!—!Qbslt-!Usbjmt-!boe!Qvcmjd!Bnfojujft 261!—!Mboe!Vtf-!Efwfmpqnfou-!boe!Fdpopnjd!Hspxui! WJJ/ QPMJDZ!TUBUFNFOU Uif!Djuz!pg!Tiblpqff!gpmmpxt!b!dpotjtufou!qpmjdz!efwfmpqnfou-!sfwjfx!boe!bqqspwbm!qspdftt! bt!efubjmfe!jo!uijt!qpmjdz/!Uif!Djuz!Dmfsl!jt!sftqpotjcmf!gps!uif!dpmmfdujpo!boe!qsftfswbujpo!pg!bmm! djuz!qpmjdjft/!Bmm!qpmjdft!nvtu;! Page 2 of 3 45 Dpnnvojdbuf!fggfdujwfmz-!cf!fbtjmz!dpnqsfifoefe!boe!bddfttfe-!boe!joufsobmmz! dpotjtufou<! Esbgufe!vtjoh!uif!Djuz!ufnqmbuf<! Efwfmpqfe!xjui!joqvu!gspn!lfz!tublfipmefst< Bqqspwfe!cz!Djuz!Dpvodjm!)qpmjdz*!ps!uif!Djuz!Benjojtusbups!)qspdfevsf*<! Sfwjfxfe!sfhvmbsmz!boe!lfqu!dvssfou/! WJJJ/ OFX!QPMJDJFT!BOE!TVCTUBOUJBM!SFWJTJPOT! Uif!qspdftt!gps!dsfbujoh!ofx!djuz!qpmjdjft!boe!nbljoh!tvctuboujwf!sfwjtjpot!up!fyjtujoh! qpmjdjft!jodmvef!uif!gpmmpxjoh!tufqt!boe!sftqpotjcjmjujft; B/Qpmjdz!Efwfmpqnfou Uif!Efqbsunfou!Ifbe!sftqpotjcmf!gps!uif!qpmjdz!xjmm;! Esbgu!uif!qpmjdz!jo!dppsejobujpo!xjui!boz!joufsobm!boe!fyufsobm!tublfipmefst-!Djuz! Benjojtusbups-!boe!uif!Djuz!Buupsofz!)jg!ofdfttbsz*! Gpsnbu!uif!qpmjdz!vtjoh!uif!djuz!ufnqmbuf!bt!pvumjofe!bcpwf! Tvcnju!uif!qpmjdz!gps!Djuz!Benjojtusbups!dpotjefsbujpo!! Jg!bqqspwfe!cz!uif!Djuz!Benjojtusbups-!tvcnju!uif!qpmjdz!gps!Djuz!Dpvodjm!dpotjefsbujpo! Sfwjfx!boe!vqebuf!uif!qpmjdz-!bt!ofdfttbsz-!bu!mfbtu!fwfsz!uisff!zfbst-!ps!bt!puifsxjtf! ejsfdufe!cz!uif!Djuz!Benjojtusbups! Botxfs!sfmfwbou!rvftujpot!dpodfsojoh!uif!qpmjdz-!cpui!evsjoh!jut!efwfmpqnfou!boe! bgufs!jut!qvcmjdbujpo! C/Qpmjdz!Jnqmfnfoubujpo!boe!Benjojtusbujpo! Uif!Efqbsunfou!Ifbe!sftqpotjcmf!gps!uif!qpmjdz!xjmm;! Benjojtufs!uif!bqqspwfe!qpmjdz-!dpnnvojdbuf!xjui-!boe!usbjo!bqqmjdbcmf!djuz!tubgg!xjui! bttjtubodf!gspn!Dpnnvojdbujpot!tubgg! Nbjoubjo!qpmjdz!bddvsbdz!! Bdu!bt!qpmjdz!mjbjtpo!up!gbdjmjubuf!gvuvsf!qpmjdz!npejgjdbujpo!boe0ps!efwfmpqnfou! Nbjoubjo!pwfstjhiu!pg!qpmjdz!efwfmpqnfou-!jnqmfnfoubujpo-!fogpsdfnfou-!boe! fggfdujwfoftt!! Page 3 of 3 46 47 49 4: 51 52 53 54 56 57 58 59 5: 61 62 Parks & Recreation Comprehensive Revenue Policy Adopted: TBD Amended: POLICY CONTENTS I.ISSUING AUTHORITY..........................................................................................................................1 II.PURPOSE..................................................................................................................................................1 III.GUIDING PRINCIPLES.........................................................................................................................2 IV.COST RECOVERY MODEL..................................................................................................................3 V.PRICING AND FEE PHILOSOPHY....................................................................................................3 VI.FEE ESTABLISHMENT..........................................................................................................................4 A.Programs and Services ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΓ B.Resident and Nonresident Rates ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΓ C.Community Center Memberships and Daily Admission Fees ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΓ D.Ice Arena Fees ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΔ E.SandVenture Aquatic Park Fees ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΔ F.Scholarship ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΔ G.Sponsorships and Volunteers ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁΕ VII.Revenue diversification.......................................................................................................................6 VIII.ȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁȁ monitoring and evaluation 6 IX.Conclusion...............................................................................................................................................6 I.ISSUING AUTHORITY City Council through City Administrator. II.PURPOSE The purpose of this Comprehensive Revenue Policy is to establish a clear, consistent, and practical framework for managing the financial operations of the Shakopee Parks and Recreation Department. It is intended to support long-term service delivery by 78 guiding decisions related to pricing, cost recovery, and resource allocation using the GreenPlay LLC Cost Recovery Pyramid Model. The Department recognizes the importance of generating revenue from programs and facility use to support the overall budget while maintaining accessibility and value for the community. Since programs vary in the degree of public and individual benefit, fees should be set accordingly, reflecting both the value to the participant and the level of community benefit provided. The GreenPlay Pyramid Model provides a structured approach to classify services and set cost recovery goals. It is widely used in the parks and recreation industry to ensure resources are allocated strategically, and services are priced based on benefit received, rather than a one-size-fits-all model. III. GUIDING PRINCIPLES Vision Statement: Shakopee is a distinctive river town with a variety of business, cultural, and recreational opportunities in a safe, welcoming, and attractive environment. Our vision is for Shakopee to continue being a place where people want to live, work and play! Mission Statement: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost effectively, with integrity and transparency. Purpose Statement: Working together, the Parks and Recreation Department provides fun and engaging recreational programs, activities, and spaces for the betterment of the community. Sustainability: Ensure long-term financial sustainability of the parks and recreation department through balanced revenue and cost recovery strategies. Accountability: Make informed, data-driven decisions regarding service pricing, cost recovery, and the responsible use of alternative funding sources such as sponsorships and scholarship programs. Clarity: Provide a transparent and understandable pricing and cost recovery structure for staff, elected officials, and the public. Consistency: Apply consistent methodology when classifying services, evaluating costs, and setting fees. 0 ¦¤ Α ®¥ Ζ 79 Review and Improvement: Periodically evaluate and update practices based on operational data and community trends. IV. COST RECOVERY MODEL Tier Description Cost Recovery Target Subsidy Level 1 Community Benefit 25%-50% 75%-50% 2 Mixed Benefit 50%-75% 25%-50% 3 Individual Benefit 75%-100% Minimal Subsidy / Full Cost Recovery 4 Profit Centers 125%+ No Subsidy Cost Recovery Target: The percentage of the total cost that is intended to be offset through generated revenue, such as fees, charges, or other revenue sources. It represents the financial goal for recouping expenses associated with delivering the program or service. V. PRICING AND FEE PHILOSOPHY Tier 1: Community Benefit o This tier includes programs and services that enhance community well-being, promote public health, and improve overall quality of life. These offerings provide significant value to the broader community and are primarily funded through the general fund. To support accessibility, participation fees are kept low or eliminated altogether. Additional funding may be supplemented through grants, sponsorships, and partnerships with local businesses and organizations. Tier 2: Mixed Benefit o This tier includes programs and services that provide value to individual participants while also contributing to broader community well-being by promoting public health, safety, and social connection. These offerings balance individual and community benefits, with fees typically set to recover a portion of program costs. Remaining costs may be subsidized through the general fund, grants, or sponsorships to encourage participation and maintain accessibility. Tier 3: Individual Benefit o This tier includes programs and services that provide direct value to individual participants with limited broader community impact. These offerings are typically priced to recover 75% to 100% of the cost of delivery, including both direct and indirect expenses. Tier 4: Profit Centers o This tier includes programs and services that exceed full cost recovery, generating revenue beyond direct and indirect expenses. These offerings operate as profit cente 0 ¦¤ Β ®¥ Ζ 7: generated in this tier helps subsidize programs and services in lower tiers, supporting greater community access and affordability. VI. FEE ESTABLISHMENT A. Programs and Services Department staff are responsible for calculating the full cost of providing each program or service, which includes both direct costs and indirect costs. After determining total costs, staff n the pricing philosophy tiers. As part of the fee-setting process, staff also conduct a market comparison, reviewing fees charged by both nonprofit and for-profit agencies in the region to ensure the City remains competitive and aligned with current pricing trends. Final fees are set to reflect both market conditions and the cost recovery goals established for each program. B. Resident and Nonresident Rates Resident rates are intentionally set lower than nonresident rates to acknowledge the financial support residents provide through local taxes, which help fund Parks and Recreation operations. equitably share the cost of services. For programs, the nonresident rate is calculated by adding 30% to the base program fee established through the cost recovery model. Nonresident fees apply to individuals living outside the city limits of Shakopee. For recreation facilities, including the Community Center, Ice Arena, and SandVenture Aquatic Center, nonresident admission rates, passes and memberships are set at 40% higher than resident rates to account for facility overhead costs. Nonresident fees do not apply to programs, services, or offerings classified as Tier 4. Tier 4 offerings operate as profit centers, with pricing set at market value and designed to generate a minimum of 25% revenue beyond total costs. C. Community Center Memberships and Daily Admission Fees Membership rates are structured to encourage ongoing participation, with pricing set so that four individual daily admissions exceed the cost of a monthly membership. 0 ¦¤ Γ ®¥ Ζ 81 The Adult Monthly Membership serves as the foundational rate, reflecting the average cost of usage and services for one adult, and all other membership rates are calculated from this baseline. The Dual Membership, defined as two adults over the age of 18 residing at the same address, is priced at 1.5 times the adult rate. This reflects shared access while offering a cost savings compared to purchasing two separate memberships and acknowledges the reduced administrative and operational costs of managing a dual account. The Household Membership, defined as two adults over the age of 18 and their tax dependents residing at the same address, is priced at twice the adult rate. This offers the best value for families, maintaining affordability while accounting for higher facility usage. Specialty Memberships, including youth, senior, and military, are priced at 15% below the adult rate to recognize these groups and reduce barriers to participation. Annual Memberships are priced at the equivalent of 11 monthly payments, providing one month free for members who pay in full. D. Ice Arena Fees Ice rental fees are reviewed annually to ensure they remain competitive and align with current regional market trends. Rates are benchmarked against comparable municipalities with similar ice arena facilities. The pricing structure includes regular rates and prime time rates, with prime time rates set higher to reflect increased demand during peak usage hours. E. SandVenture Aquatic Park Fees The individual season pass is priced to equal the cost of 10 daily admissions, providing value for frequent visitors. The family season pass is priced to equal the cost of a family of three visiting the pool 10 times during the season. The senior and military rate is set at 15% below the standard individual rate for memberships. Twilight fees, offered for entry later in the day, are set at a 25% discount from the regular daily pass rate to encourage off-peak attendance. Punch passes are priced to reflect $0.25 off daily admission, these are valid for one season and are transferable. F. Scholarship To support broader community access to programs and services, the Parks and Recreation Department offers a scholarship program that provides financial assistance to eligible residents. 0 ¦¤ Δ ®¥ Ζ 82 Scholarships are available for Tier II and Tier III programs, which carry higher fees due to their more individualized nature. G. Sponsorships and Volunteers In addition, the department actively seeks sponsorships and donations from community partners, businesses, and organizations to help offset program costs and increase access to Tier I offerings that provide broad community benefit. The department also maintains a volunteer program, which plays a key role in supporting cost-effective service delivery by supplementing staff costs during community events and programs VII. REVENUE DIVERSIFICATION The department will pursue a diverse range of revenue sources to enhance financial sustainability: User fees Program fees Memberships and season passes Daily admissions Facility and park rentals Sponsorships and advertising Grants Vending Public/Private partnerships VIII. MONITORING AND EVALUATION Staff will annually assess the cost recovery levels for all programs and facilities as part of the budget process. A program classification should be completed for all new and recurring services to ensure accurate tier placement. The revenue policy will be reviewed annually and revised as needed as part of the budget process to reflect operational, demographic and economic changes. IX. CONCLUSION The City of Shakopee Parks and Recreation Comprehensive Revenue Policy provides a clear and consistent framework for financial decision-making, ensuring that programs and services are priced in alignment with their public and individual benefit. By applying the GreenPlay LLC Cost Recovery Pyramid Model, the department can strategically allocate resources, support long-term 0 ¦¤ Ε ®¥ Ζ 83 financial sustainability, and maintain broad community access to high quality parks and recreation services. This policy supports transparency and accountability by establishing defined roles, cost recovery targets, and procedures for pricing, subsidy, and financial assistance. Through a combination of tax support, user fees, sponsorships, grants, and volunteer contributions, the department is able to offer a diverse portfolio of services that meet community needs while maintaining responsible fiscal stewardship. Ongoing monitoring, evaluation, and updates to this policy will ensure it remains responsive to economic conditions, service demand, and community expectations. As Shakopee continues to grow and evolve, this revenue policy will serve as a foundational tool to balance accessibility, affordability, and sustainability in delivering parks and recreation services to all residents. 0 ¦¤ Ζ ®¥ Ζ 84 85 RESOLUTION R2025-090 A RESOLUTION OF THE CITY OF SHAKOPEE, MINNESOTA, APPROVING A COMPREHENSIVE PLAN AMENDMENT TO FIGURE 4.60 PLANNED METROPOLITAN URBAN SERVICE AREA (MUSA) IN THE 2040 COMPREHENSIVE PLAN WHEREAS, The City of Shakopee, applicant, has made an application for a Comprehensive Plan amendment to Figure 4.60 Planned Metropolitan Urban Service Area (MUSA) in the 2040 Comprehensive Plan (see exhibit A) for property included in the SMSC Healing Center; and WHEREAS, all required public notices regarding the public hearing for the Comprehensive Plan amendment were duly sent and posted, and all persons appearing at the hearing have been given an opportunity to be heard thereon; and WHEREAS, the Planning Commission of the City of Shakopee did review the application on August 7, 2025, and recommended approval; and WHEREAS, the City Council of the City of Shakopee did review the application on August 19. 2025, and adopted the following findings: NOW, THEREFORE BE IT RESOLVED, that the City Council of the City of Shakopee hereby adopts the following findings of facts relative to the Comprehensive Plan Amendment request: Criteria #1 The original zoning ordinance is in error. Finding #1 The original zoning is not in error. Criteria #2 Significant changes in community goals and policies have taken place. Finding #2 Significant changes in community goals and policies have not taken place. This project would be consistent with the 2040 Comp Plan guiding. Criteria #3 Significant changes in development patterns have occurred. Finding #3 Significant changes in development patterns have occurred since this development was not considered because it is on Trust Land. 87 Criteria #4 The Comprehensive Plan requires a different provision. Finding #4 The Comprehensive Plan does not require a different provision. BE IT FURTHER RESOLVED, to incorporate the changes, the city will modify its official land use map; and FURTHER, approval of the comprehensive plan amendment is contingent upon, and subject to, the required review and response by the Metropolitan Council. Adopted in adjourned regular session of the City Council of the City of Shakopee, Minnesota, th held this 19 day of August 2025. __________________________________________ Matt Lehman, Mayor of the City of Shakopee ATTEST: __________________________ Rick Parsons, City Clerk 88 89 8: 91 92 93 94 95 96 97 98 99 9: :1 :2 :3 :4 Compensation Study EDA Residential Market Value Median Value Home Budget Calendar Council Consideration Items 228 229 22: 231 232 233 The Hub: Driving Economic Growth Through Innovation and Opportunity Owned by the City of Shakopee Economic Development Authority The Shakopee Innovation Hub isn’t just a building —it’s a bold step toward revitalizing Minnesota’s entrepreneurial landscape and securing long-term economic growth. Minnesota currently ranks 48th in the nation for entrepreneurism—a startling statistic that highlights the urgent need for bold, forward-thinking initiatives. The Innovation Hub is answering that call. As the first facility of its kind in Minnesota, The Hub will serve as a centralized resource and innovation center, accelerating small business growth and workforce development across Shakopee, Scott County, and six neighboring counties. This state-of-the-art space brings together higher education, high-bay labs, workforce training, entrepreneurial support, and a makerspace—including a commercial kitchen—all under one roof. The Hub is designed to be a launchpad for innovation for Minnesota, helping residents gain in-demand skills, start new ventures, and access meaningful career opportunities. 234 In partnership with more than 35 entrepreneurs from throughout the state, they have created a new organization called FounderyMN to help guide and accelerate the growth of the region’s entrepreneurs and participate in The Hub’s design Shakopee is shaping a facility built by and for the business community. Collaborations with Minnesota State University arealready underway to offer post-secondary education in a region that currently lacks access to these critical resources—making The Hub an essential tool in closing the education gap and aligning talent development with employer needs. The Hub will also play a key role in attracting foreign direct investment to Minnesota. Companies will be ableto establish a presence in the facility to test the U.S. market, explore manufacturing opportunities, and build strategic partnerships. This strengthens The Hub’sposition as a gateway for global businessattraction and development. Project CostsProject Funding Engineering and Design$ 1 millionFederal Funding$ 2.5 million Construction$11millionState of Minnesota$ 4 million Local support$ 5.5 million 235 236 237 238