2020 Comprehensive Annual Financial Report
CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2020
NOTE 21 – TAX INCREMENT FINANCING (CONTINUED)
TIF District No. 20 was established in 2018 to aid in redeveloping the old downtown city hall location. The developer, Enclave Development, LLC is developing approximately 80 market-rate apartment units, including underground parking, and approximately 1,500 square feet of commercial space including all site improvements. Under the agreement, a redevelopment grant in the amount of $2,132,400 will be issued to the developer. The city will collect 100% of the future increment over the course of the next 25 years to repay $300,000 in city demolition costs, remediation, and administrative costs in addition to the $2.1 million redevelopment grant. The district was created in 2018 and was certified to the State of Minnesota in 2019. As of December 31, 2020, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2021. TIF District No. 19 was established in 2018 to aid in redeveloping property located in the downtown area along the riverfront. The developer, Gaughan Shakopee LLC purchased four properties from the City at an agreed upon amount of $1,000,000 and develop approximately 125 market-rate luxury apartment units including underground parking and 3,500 sq. feet of commercial space. Under the agreement, the developer will reimburse the city’s $1,000,000 land purchase with 20.5% of future tax increment. The remaining increment will be directed towards reimbursement of developer costs up to a principal amount of $2,811,700 over the course of 25 years. The district was created in 2018 and was certified to the State of Minnesota in 2019. As of December 31, 2020, no tax increment had been generated. It is anticipated that the first tax increment will be generated in 2022. TIF District No.17 was established in 2016 to upgrade the roads surrounding the expansion of Amazon.com. The total amount authorized was $5,698,326 with 40.7% ($2,319,076) of these funds going to the City of Shakopee and 59.3% ($3,379,250) going to Scott County. Under the agreement, up to $5,698,326 of development costs will be reimbursed through tax increment over a 9 year period to the City and County. During the year ended December 31, 2020, the City generated $967,320 of tax increment revenue and made payments of $568,458 to the County and $390,156 to the City. The remaining unpaid pay-as-you go balance at year end was $1,534,325 for the County and $1,052,829 for the City. TIF District No. 18 was established in 2018 to aid in redeveloping the horse racetrack area known as Canterbury Commons with new and improved public infrastructure. This is a multi-year, three phase project that will entail eliminating blighted properties and in turn provide a mix of housing and other commercial and industrial redevelopment. Under the agreement, $33,066,500 of public infrastructure costs will be reimbursed through tax increment to a combination of the City of Shakopee and the Developer over the duration of 25 years. The district was created in 2018 and certified to the State of Minnesota in 2019. During the year ended December 31, 2020, the City generated $106,155 of tax increment revenue, which was placed in a debt service fund for future debt service payments. As of December 31, 2020, the City had bonds outstanding of $12,385,000 and developer had certified $9,737,699 of eligible expenses.
101
Made with FlippingBook flipbook maker