In 1995, the Shakopee Housing and Redevelopment Authority (HRA) transferred its authority to the Shakopee EDA via Resolution No. 4206. This action allows the EDA to levy a separate tax or "Special Benefit Levy", which is not part of the city's general property tax levy. This EDA special benefit levy is subject to a limit of 0.0185 percent of the city's estimated market value. The EDA levy cap for 2021 is estimated to be $936,750.

The advantage of the EDA special benefit levy is that the levy is applied to the market value of all taxable properties within the city including properties that are currently part of a tax abatement or TIF plan.  The EDA levy is also identified on property tax statements as a separate local tax outside of the city's general property tax.

Staff is recommending an EDA special benefit levy of $350,000 for 2021, which is the same levy amount as each of the previous three years. The median value home, valued at $266,800 for taxes payable 2021, would pay approximately $18 towards the EDA levy.

State statues require the consent of the City Council, prior to the tax levy becoming effective.  The City Council will need to act on this item in conjunction with the city's levy and budget at the December 15 council meeting.

Attached is the 2021 EDA budget.  The budget includes $178,100 for wages and benefits which includes the Economic Development Specialist plus a portion of the Planning & Development Director's time.  The EDA budget also includes $20,000 for legal services, $20,000 for engineering services, $125,000 in professional services ($100,000 for facade loan requests/$25,000 miscellaneous) and $25,000 for the Main Street Program.