2020 Comprehensive Annual Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020

The tax abatement agreements are as follows: NOTE 20 – TAX ABATEMENT AGREEMENT (CONTINUED)

The City has entered into nine Tax Increment Financing agreements which meet the criteria for disclosure under Governmental Accounting Standards Board Statement No. 77 Tax Abatement Disclosures. The City's authority to enter into these agreements comes from Minnesota Statute 469. The City entered into these agreements for the purpose of economic development. NOTE 21 – TAX INCREMENT FINANCING KEB Abatement was established in 2019. KEB America, LLC is a leading manufacturer or automation products. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2029, which required the creation of 98 full-time equivalent new jobs in Shakopee. The total City abatement awarded was $289,263. The first year of disbursement will occur in 2021. Shutterfly Abatement was established in 2014. Shutterfly, Inc. is an Internet-based social expression and personal publishing service that was founded in December of 1999. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2024, which required the creation of 258 new jobs in Shakopee. The first year of disbursement occurred in 2017. The total City abatement awarded was $758,771 with an annual maximum award of $89,431. The total county abatement awarded was $734,898 with an annual maximum award of $86,615. During the year ended December 31, 2020, the total disbursed was $128,688 with $63,141 from Scott County and $65,547 from the City. Emerson Abatement was established in 2013. Rosemount Emerson Process Management is a leading supplier of process management products and solutions, including control valves, regulators, transmitters, analyzers, and automation systems. The City of Shakopee awarded a nine-year economic development property tax abatement, ending in 2023, which required the creation of 154 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016. The total City abatement awarded was $590,496. The total county abatement awarded was $570,608 with an annual maximum award of $64,401. During the year ended December 31, 2020, the total disbursed was $145,032 with $64,401 from Scott County and $80,631 from the City. Datacard Abatement was established in 2014. Entrust Datacard is the world’s largest issuer of protected, personalized ID cards, credentials, and credit cards. The City of Shakopee awarded an eleven-year economic development property tax abatement, ending in 2024, which required the creation of 100 new full time jobs in Shakopee. The first year of disbursement occurred in 2014. The total City abatement awarded was $334,869 with an annual maximum award of $36,195. The total county abatement awarded was $324,324 with an annual maximum award of $35,055. During the year ended December 31, 2020, the total disbursed was $71,250 with $35,055 from Scott County and $36,195 from the City.

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