2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

NOTE 20 – TAX INCREMENT FINANCING (CONTINUED)

TIF District No. 14 was established in 2015 as an economic development TIF. J&J Minneapolis/SanMar is a wholesale apparel and accessories distribution company. This TIF required the creation of 150 new full-time jobs in Shakopee. The first year of disbursement occurred in 2016 and the final year will be in 2024. Under this agreement, up to $2,000,000 of development costs will be reimbursed through tax increment over a 9 year period. During the year ended December 31, 2022, the City generated $382,433 of tax increment revenue and made payments on the pay-as-you-go note of $344,189. The remaining unpaid pay-as-you go balance at year end was $199,621. TIF District No. 15 was established in 2015 for the purpose of establishing a housing unit. Trident/All Saints Senior Living is an 80-unit senior community providing assisted living, memory care, and care suites with 20% of the units being affordable to persons of low and moderate income. Under the agreement, up to $1,000,000 of development costs will be reimbursed through tax increment over a 25 year period. During the year ended December 31, 2022, the City generated $176,898 of tax increment revenue and made a payment of $79,604. The City recorded a payable at year end when the tax petition was settled for $79,604 which was the second half tax increment revenue the city originally held. The remaining unpaid pay-as-you go balance at year end was $140,685. TIF District No.16 was established in 2015 for the construction of a facility. Rahr Malting Company produces and distributes malt and industry related brewing supplies. Under the agreement, up to $1,883,086 of development costs will be reimbursed through tax increment over a 9 year period. The district was decertified on December 31, 2021. During the year ended December 31, 2022, the City paid the remaining pay-as-you-go balance of $66,980 following the resolution of a tax appeal and remitted $252,575 to the County for redistribution. 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, 2022, the City generated $982,022 of tax increment revenue and made payments of $577,134 to the County and $306,686 to the City. The remaining unpaid pay-as-you go balance at year end was $398,843 for the County and $449,441 for the City.

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