Both the State Senate and House are considering at legislation that would provide specific properties located in Shakopee associated with and adjacent to Shakopee Gravel, tax increment financing capabilities for the redevelopment of the gravel pit.  The current Scott County Market Value for the properties is $3.89 million.  The total site is about 150 acres. 

Between 1979 and 1988, TIF could be used for gravel pits under standard provisions of the law.  That was changed so that special legislation is now needed. 

The TIF plan would allow a developer to borrow against future increment to finance the recompacting of the existing pit and reclaimed areas along with removal of any materials that are not appropriate for the redevelopment. The financing would allow for the creation of a developable. Very early cost estimates to complete proper site preparation are approximately $8 million, not including infrastructure.

Estimated future market value if the site is redeveloped over time is approximately $225-275 million.  The current city concept plan, which has been shared with a number of companies interested in the redevelopment, creates a lake with a one mile trail surrounding it and creates a major community amenity. 

The design concept anticipates the following:

• 215-235 single family homes
• 125-140 townhomes
• 187,000 square feet of commercial
• 193,000 square feet of first floor commercial
• 579,000 square feet of multifamily housing

Special legislation for gravel reclamation has been used numerous times throughout the state. Current TIF regulations do not allow TIF to be used for mining reclamation.

Burnsville received special legislation for the Minnesota River Quadrant that included the Kraemer Mining and Materials quarry.

The city of Edina created the Centennial Lakes TIF, which became and still is one of the largest economic drivers and recreation spots in Edina. The area is a mixture of commercial and residential and also features a large water feature that the city uses as a park.

Apple Valley used special  legislation in 2003 for Fischer Marketplace that has more than 250,000 square feet of retail. They have also proposed additional legislation for other pit areas. 

Maple Grove is using special legislation for redevelopment of the GMA South Master Plan that includes green space, commercial and mixed use.  Savage  also has special legislation for the Prior Lake Aggregates site.

The Savage and Maple Grove sites have much in common since neither has contaminated soils but each will require significant regrading and infrastructure improvements to become ready for redevelopment.  Maple Grove's estimate for reclamation is $70 to $100 million.