KEB America has its North American Headquarters in Shakopee.  KEB is a high technology company with its world headquarters in Germany.  They are on the cutting edge of technologies used for braking on items like elevators and light rail lines.  The North American market has been a growing market and this is requiring that they expand their operations.  While they could leave the community and purchase a building that would meet all of their current and future needs, the company and its President would like to remain in Shakopee. 

The only issue that they have encountered since building here is the access Engineers and Machinists.  Staff and the company has met with our training partners and will be working on ways to assist them with developing a pipeline of employees for the expansion and future growth.  While the current plan is only for 18 new jobs in the first two years, KEB is building the parking lot to accommodate as many as 100 new employees so that they will not have to relocate as they have additional growth.

The city's current Incentive Policy is to seek and retain companies where there is an average hourly wage of $19 per hour.  The city hasn't done any Tax Abatements since 2015. 

The proposed abatement would only be the city's portion and only on the new addition value and is capped. In no event shall the City Abatement exceed a cumulative total of $289,263 over the term of the City Abatement which is from 2021 through 2029.  Currently, KEB pays $158,428 in property taxes.  The portion that will be abated is the future city value of the new improvements based on an estimated $7.5 million in construction value.

The agreement retains their existing base of 98 KEB full time employees and 20 staffing agency employees.  KEB's current payroll has an average wage of $72,872.99 or $35.04 per hour.  They currently employ more than 40 engineers.  This is the type of company that staff believes is Shakopee's future that contain an office/headquarters component, research and development, manufacturing and distribution, all under one roof.  Similar companies already in our community include Emerson and Entrust Datacard.