For several years Shakopee Public Utilities and the City of Shakopee have been struggling to define our relationship. The City, who owns the utility but has no say in its day-to-day management, has a responsibility to see that the utility is ethical and transparent in its dealings with the public, and that it operates within the bounds of the law. However, just as important to both organizations is the need to develop a strong partnership and mutually supportive leadership. This agreement is a big step to those goals.  There is no reason to review the voluminous issues of the past at this point. Suffice it to say, the past was stormy, but the future is bright.

Our organizations have struggled mightily on the issue of a PILOT in the last few years. But this agreement outlines the mutual desire of both to outline a PILOT based upon an easy to understand and transparent formula with an added partnership that will mutually support economic development in the city through 2042.

It should be noted that this agreement was made possible through the new leadership of SPU, both at the Commission and General Manager level. It simply would not have occurred previously.

Staff views this agreement as more than just a mere PILOT. It is the start of a real partnership working toward a true betterment of both organizations, and more importantly for our residents.