HomeMy WebLinkAboutAugust 06, 2025 - EDA PacketSHAKOPE E
Shakopee Economic Development Authority Regular Meeting
Wednesday, August 6, 2025
7:00 PM
City Hall, 485 Gorman Street
1. Roll Call
2. Approval of Agenda
3. General Business
3.a Purchase and Sale Agreement for 124 Sommerville St. S
4. Reports
4.a EDA Bill List
5. Adjourn
Note to EDA Members: If you have any questions or need additional information on any of
the above items, please call Michael Kerski, prior to the meeting at (952)233-9346.
1
WILLA!
SHAKOPEE
Agenda Item:
Prepared by:
Reviewed by:
Shakopee Economic
Development Authority
August 6, 2025
Purchase and Sale Agreement for 124 Sommerville St. S
Michael Kerski, Planning and Development Director
Michael Kerski
3.a
Action to be considered:
Approve Resolution E2025-001, Authorizing the execution of Purchase and Sale
Agreement with Kim Robson for 124 Sommerville St., S for $150,000.
Motion Type:
Simple Majority
Background:
Staff recommends the acquisition of a long -neglected and blighted property located on
Sommerville Street in Downtown Shakopee for $150,000. The property has been a source
of concern for over two decades and presents a rare opportunity to eliminate a persistent
eyesore and reposition a key parcel within our downtown core. The purchase price is
significantly below the current tax -assessed value of over $350,000, making this a fiscally
responsible and strategically important investment. It is only available to the city now
because of a past interaction with city staff.
The building on Sommerville Street has been in a state of disrepair for approximately 10
years, contributing to safety concerns, reduced property values in the area, and general
disinvestment. Numerous attempts to prompt rehabilitation or redevelopment by private
owners have failed, leaving the property as one of the last major sources of visible blight
in the downtown district. The current owner has had some issues and has not been able
to visit the property for the past two years.
This parcel sits within an area where the City of Shakopee has invested more than $5
million over the past decade in public infrastructure, streetscape improvements, and
business support programs. The City's broader downtown revitalization strategy has been
successful, with new businesses opening, increased foot traffic, and growing property
values —yet this property remains a stubborn gap in the progress.
Strategic Location:
The property occupies a prominent location on Sommerville Street and is adjacent to
successful redevelopment and City -led improvement projects. Its rehabilitation or
2
redevelopment would have immediate visual and economic impact. Its sits directly
across the street from the US Post Office and is highly visible to downtown users.
Blight Elimination:
Removal of this longstanding eyesore would complete the transformation of a key
downtown block and improve the public perception and safety of the area. This location
has been an enforcement issue with the users. Previously, a garage, there were constant
complaints and enforcement issues. Most recently used for lawn mower repair, there
have been issues with sidewalk blocking and noise.
Value Proposition:
The purchase price of $150,000 is less than half of its tax -assessed value, giving the City
immediate equity and flexibility to explore redevelopment, resale, or public -private
partnerships.
Catalyst for Further Investment:
Removing this impediment to progress opens the door for new commercial or mixed -use
opportunities, potentially stimulating new private -sector investments nearby.
Public Interest:
The community has repeatedly identified this property as a nuisance and a barrier to
downtown progress. City action demonstrates a commitment to proactive problem -
solving and continued revitalization.
Next Steps:
If the Council approves the acquisition, staff will initiate environmental due diligence and
structural evaluation. Depending on the results, the City may:
• Explore rehabilitation possibility
• Explore demolition and land banking for future redevelopment
• Solicit proposals from private developers
• Consider expansion of public space - parking etc.
Recommendation:
Approve Resolution
Budget Impact:
Paid for out of available EDA funds
Attachments:
3
Resolution for Sommerville .docx
PropertyReport Sommerville 270011810.pdf
4
RESOLUTION NO. E2025-001
A RESOLUTION AUTHORIZING THE EXECUTIVE DIRECTOR TO EXECUTE A
PURCHASE AGREEMENT AND NECESSARY DOCUMENTS FOR THE ACQUISITION OF
PROPERTY LOCATED AT 124 SOMMERVILLE STREET S., PID 270011810
WHEREAS, the Economic Development Authority of the City of Shakopee ("EDA") is
committed to eliminating blight and promoting reinvestment in Downtown Shakopee; and
WHEREAS, the property located at 124 Sommerville Street in Downtown Shakopee (Scott
County PID # 270011810) has been in a deteriorated condition for approximately ten years,
posing a detriment to the economic vitality and public perception of the area; and
WHEREAS, the City and EDA have invested over $5 million in downtown revitalization
efforts, and the acquisition of this parcel presents a critical opportunity to continue that
momentum while eliminating blight; and
WHEREAS, the current owner has agreed to sell the property to the EDA for a purchase price of
$150,000, significantly below the current tax -assessed value of over $371,000; and
WHEREAS, the EDA finds that the acquisition is in the public interest, supports the goals of
Downtown revitalization, and positions the EDA to remove or rehabilitate a long-standing source
of blight.
NOW, THEREFORE, BE IT RESOLVED by the Economic Development Authority of the
City of Shakopee, Minnesota, as follows:
Authorization to Purchase: The EDA hereby approves the purchase of the property located at 124
Sommerville Street, Shakopee, Minnesota, for a price of $150,000, subject to customary closing
conditions and due diligence.
Execution Authority: The Executive Director of the EDA is hereby authorized and directed to
execute the purchase agreement, along with any and all documents necessary to complete the
acquisition and close on the transaction, including but not limited to closing statements, deeds,
affidavits, and related agreements.
Funding Source: The acquisition shall be funded through the EDA property acquisition account
or other legally available funds as determined by the Executive Director and Finance Director.
The Executive Director is further authorized to take all other actions necessary to carry out the
intent of this resolution.
5
Adopted by the Economic Development Authority of the City of Shakopee, Minnesota, this
day of , 2025.
Jay Whiting, President
William Reynolds, Executive Director
ATTEST:
City Clerk
6
Property Card
Parcel ID Number 270011810
Taxpayer Information
Taxpayer Name
ROBSON KIM
Mailing Address
6232 HUMBOLDT AVE S
RICHFIELD, MN 55423
Property Address
Address
124 SOMMERVILLE ST S
City
Shakopee, MN 55379
Parcel Information
Uses
233 3A COMMERCIAL
PREFERENTIAL
Calculated Acres
0.09
Plat
CITY OF SHAKOPEE
Lot
005
Block
024
Legal Description
CITY OF SHAKOPEE Lot 005 Block 024
Legal Description2
I N 1.5' OF S 79' & N 63' OF
Building Information
Building Style
Year Built
Model Desc
0
AGLA (Sq Ft)
Garage Size (Sq Ft) 0
Basement Size (Sq Ft) 0
0
Bedrooms
Bathrooms
Basement Finish
(Sq Ft)
0
0.00
0
Miscellaneous Information
School District
ISD 0720
SHAKOPEE
Taxing District Code
2204
Homestead Status
N
Green Acres
N
Ag Preserve
N
Assessor Information
Estimated Market Value
Land
Improvement
Total
2024 Values
(Payable 2025)
2023 Values
(Payable 2024)
$93,000.00
$93,000.00
$278,300.00 $278,300.00
$371,300.00 $371,300.00
Last Sale
Date of Sale 03/02/2012
Sale Value $39,369.00
Scott
Disclaimer: This information is to be used for reference purposes only. Scott County does not guarantee accuracy of the material
contained herein and is not responsible for misuse or misinterpretation. The preceding disclaimer is provided pursuant to Minnesota
Statutes 466.03, Subd. 21 (2000), and the user of this service acknowledges that the County shall not be liable for any damages, and
expressly waives all claims, and agrees to defend, indemnify, and hold harmless the County from any and all claims brought by User,
its employees or agents, or third parties which arise out of the user's access or use of data provided.
Friday, August 1, 2025
Scott County, MN Page 1 of 1
7
WILLA!
SHAKOPEE
Agenda Item:
Prepared by:
Reviewed by:
Shakopee Economic
Development Authority
August 6, 2025
EDA Bill List
Becky Smith, Accounting Specialist
4.a
Action to be considered:
Review EDA Bill List
Motion Type:
Informational only
Background:
EDA Bill List provided to EDA Commissioners
Recommendation:
Information Only
Budget Impact:
N/A
Attachments:
8