2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

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 the redevelopment grant. The district was created in 2018 and was certified to the State of Minnesota in 2019. During the year ended December 31, 2024, the City generated $211,292 of tax increment revenue. 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 $1,228,600 (primarily for land acquisition) with 22.3% 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. During the year ended December 31, 2024, the City generated $420,994 of tax increment revenue and made a payment of $294,401. 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, $39,970,331 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. During the year ended December 31, 2024, the City generated $1,636,552 of tax increment revenue, which was placed in a debt service fund for current and future debt service payments. As of December 31, 2024, the City had bonds outstanding of $16,725,000, an interfund loan of $2,515,611, and developer had certified $11,395,701 of eligible expenses. 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, 2024, the City generated $173,194 of tax increment revenue. As of December 31, 2023 the pay-as-you go balance was paid off and future increment received by the district must be used for qualified affordable housing projects. NOTE 20 – TAX INCREMENT FINANCING (CONTINUED) During the year ended December 31, 2024, the City generated $2,478,382 in tax increment revenue.

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