2040 Comprehensive Plan: Envision Shakopee

ISSUES » » While new construction seems to be on the rise again, existing policies are ill-equipped to address the community’s current and future needs » » The high cost of new housing in Shakopee is a barrier for the city’s economic growth; many of the jobs that exist in Shakopee today do not pay enough to afford typical housing in the city, which stifles the major employers’ access to labor » » Residents cite housing affordability as one of the biggest challenges facing the city OPPORTUNITIES » » Similar to trends throughout the Twin Cities region, housing is becoming less affordable, indicating the demand for new housing options » » In Shakopee, there is a growing proportion of households that rent. In 2016, 23% of Shakopee residents rent, up from 21% in 2000. Growing demand from Shakopee’s workers to live in the city will likely continue this trend » » Very few new market-rate multifamily options have been constructed in Shakopee since 2000. The Addison Apartments completed its final phase of 88 units in 2015. Two additional projects - Trio and The Sixton - are currently under construction, totaling 233 units, with hundreds more proposed, pointing to a potential trend of increased interest from the residential development community. Meanwhile, vacancy rates of multifamily buildings have declined since 2005 while rents have grown, indicating growing market pressure for new multifamily units. Diversifying the housing stock to include additional multifamily units reduces pressures for for- sale, single-family housing and better matches demand to supply

ISSUES&OPPORTUNITIES

Community goals and input and existing market conditions drove the development of three areas of policy recommendations: Expand and Diversify Housing Types Shakopee’s limited housing diversity is a primary barrier to future growth and economic prosperity. Harnessing existing demand from seniors, workers and new families by promoting the development of diverse housing types should be a priority to ensure Shakopee is ready for population growth and potential market changes. The city should look to financial tools in order to encourage development of new housing to support the existing and future employment base in the city. Preserve Existing Housing Stock The city’s existing housing stock can offer an affordable alternative to young families looking to settle in the region. Ensuring these homes stay marketable will allow Shakopee to be competitive for new talent in the region and preserve Shakopee’s unique residential character. The city should look to policies which incentivize the maintenance of existing homes and avoid the policies and actions which could remove existing affordable options from Shakopee. Support Growth in Targeted Areas Shakopee has not grown its residential supply equally across the city. Shakopee’s historic Downtown is an underutilized and unique asset that could accommodate denser residential product and infill development to fill a market gap for amenity rich urban living found elsewhere in the region. This product type will help to attract young workers to Shakopee and provide additional housing options and price points for existing residents.

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Housing

*To see a full list of potential tools to address stated housing issues and opportunities see figure 3.12 on page 91-94.

85 ENVISION SHAKOPEE | SECTION III: COMMUNITY ENVIRONMENT