2020 Comprehensive Annual Financial Report

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

NOTE 21 – TAX INCREMENT FINANCING (CONTINUED)

Under each agreement, the City and developer agree on an amount of development costs to be reimbursed to the developer by the City though tax revenues from the additional taxable value of the property generated by the development (tax increment). A "pay-as-you-go" is established for this amount, on which the City makes payments for a fixed period of time with available tax increment revenue after deducting for certain administrative costs. During the year ended December 31, 2020, the City generated $2,317,499 in tax increment revenue and made $2,123,047 in payments to developers. TIF District No. 10 was established in 1996 for the purpose of establishing multifamily rental housing. River City Centre is 52-units of multifamily rental housing owned and operated by the Scott County Community Development Authority (CDA). Under this agreement, up to $2,115,000 in development costs would be reimbursed over twenty-five years with the final year being 2024. During the year ended December 31, 2020, the City generated $55,408 of tax increment revenue and made payments of $49,867. The remaining unpaid pay-as-you-go balance at year end was $3,049,554. 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, 2020, the City generated $351,881 of tax increment revenue and made payments on the pay-as-you-go note of $316,693. The remaining unpaid pay-as-you go balance at year end was $821,821. 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, 2020, the City generated $197,125 of tax increment revenue and made payments of $177,412. The remaining unpaid pay-as-you go balance at year end was $424,307. 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. During the year ended December 31, 2020, the City generated $639,650 of tax increment revenue and made payments of $620,461. The remaining unpaid pay-as-you go balance at year end was $386,535.

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