The Shakopee Economic Development Authority has previously approved application for funding through the Economic Development Administration (EDA).  

The Federal EDA has completed an initial review of the proposal and has asked for additional materials to be included in the application.  Gensler/Collaborative Architects have added a number of additional drawings and HR&A will be providing them with additional information about the employment market.  Staff has ordered an appraisal of the property owned by the Shakopee EDA and is supplying a full environmental impact statement that includes a Phase 1 and Phase 2 that has been completed. As many are aware, this was formerly a gas station location and the Federal EDA wants to ensure that there are no environmental conditions that could impact the budget. We have explained to the EDA that the site has been remediated and is currently grass and is not in use and that is confirmed in the Phase 1 and Phase 2.

The preliminary feasibility analysis show that the facility would run a negative balance the first four years including its contribution of reserves for replacement. This is based on a worse case scenario and without any participation from other entities.  If the project receives a funding commitment from the Federal EDA, staff will work with potential partners to reduce and eliminate expenses, but it is difficult to project utility and other occupancy costs at this time since we have only developed concept plans and have not finalized any agreements with potential tenants or users.  Those costs are currently projects based on other similar buildings in the area.

The Federal EDA has asked that the city council pass a resolution since the Shakopee EDA is the landowner but the city is the municipal corporation and both bodies need to support the application.

The project application also includes letters of support from other agencies, corporations and government officials.