2021 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2021

NOTE 21 – TAX INCREMENT FINANCING (CONTINUED)

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, 2021, the City generated $950,055 of tax increment revenue and made payments of $558,347 to the County and $296,702 to the City. The remaining unpaid pay-as-you go balance at year end was $975,978 for the County and $756,127 for the City. 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, 2021, the City generated $658,876 of tax increment revenue and made payments of $319,555. The remaining unpaid pay-as-you go balance at year end was $66,980. The 2nd half tax payment is currently being held by the City, pending the resolution of a tax appeal. 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, 2021, the City generated $48,731 of tax increment revenue and made payments of $43,858. The remaining unpaid pay-as-you-go balance at year end was $3,097,430. 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, 2021, the City generated $370,994 of tax increment revenue and made payments on the pay-as-you-go note of $333,894. The remaining unpaid pay-as-you go balance at year end was $521,701. 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, 2021, the City generated $173,883 of tax increment revenue and made payments of $156,495. The remaining unpaid pay-as-you go balance at year end was $287,337.

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