The city and Jackson Township approved an Orderly Annexation Agreement (OAA) in March 2018 after more than 18 months of discussion and negotiation.

The agreement allows the city to annex up to 250 acres per year of land that meets specific criteria on adjacency and timing.

The city annexed its first 250 acres under the agreement in 2020 and that was approved by the State of Minnesota in 2021. Some of those parcels are currently being proposed for development and several of those parcels will have developments proposed over the next several months.  The city and Shakopee Public Utilities (SPU) are spending several million dollars to bring trunk water and sewer lines to this area, including construction of a lift station that will provide for future sewer and water connections to this entire region.  SPU also constructed a new water tower to the east to provide pressure and storage for the water system for this entire area. The trunk sewer and water facilities should be operational in mid-2023.

The city is now proposing to annex another 250 acres to begin the consolidation of the city limits.  The city and the township held a joint meeting earlier this year to discuss this annexation and there was agreement that it was allowed as part of the 2018 agreement.

The area consists of existing rural residential homes, a mobile home park, Xcel Energy substation, commercial and light industrial uses. The parcels are in areas A, B and D of the OAA, all of which are allowed to be annexed at this time.  All of areas A and B will now be in the city limits along with portions of area D.  Much of area D is not available to be developed since it is in the flood plain.  Scott County is also exploring a possible annexation of another area in D for annexation at a later date.

Township roads in this area will become city streets for maintenance and plowing.

Many residents spoke at the Planning Commission meeting objecting to the annexation, largely because of the increase in taxes. The average home will see an increase of approximately $1,000 per year once the annexation is approved by the state and implemented.  Commercial properties will be impacted.  This annexation begin consolidation of the city's boundaries and eliminates a patchwork pattern and will aid in public safety, future utility deployment, road maintenance and upgrades.

Several of the houses are served by a steep gravel road on to CH69.  Staff has been working with the adjacent development to provide for a future access into that road network that would eliminate the gravel road access on to CH69.

Per the OAA with Jackson Township, the city will be paying the township seven years of the township's taxes for each taxable parcel that is being annexed.

Once the annexations are approved for this area, the city will rezone them to comparable city zoning.  The current zoning in Scott County is Urban Reserve, C-1 and I-1.  Zoning in the city will be comparable to the County with Rural Residential (RR), Highway Business (B-1) and Light Industry (I-1).