Discussion:
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 district. The EDA 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 the previous three years. A 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 EDA approved the levy and budget at their December 1, 2020 commission meeting.