On March 22, 2016 the City of Shakopee, Shakopee Economic Development Authority and Scott County entered into a tax increment cooperative agreement.  The agreement recognized the cost sharing of public improvements of the City and County to be repaid by tax increment revenues.

The amendment would increase the amount of the annual increment that could be used towards city administrative costs from 0.09% to 10.0% and allow the district to pool any available increment towards other eligible development projects.  The use of pooled funds would require prior EDA approval.  The percentages paid to the City and to the County have been adjusted to reflect the changes.  There will be no impact on the annual amount paid to the County, however the City's annual amount would be reduced to account for the adjusted administrative costs.  Current projections show tax increment revenues are more than sufficient to accommodate capturing the additional administrative costs and repayment, in full, of the County/City balances prior to the December 31, 2025 required decertification date.