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

Within that agreement, there is language allowing 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 that was approved by the State of Minnesota in 2021. Certain of those parcels have already been proposed for development with additional parcels planning to be developed over the next several months. The city and Shakopee Public Utilities (SPU) are spending several million dollars to bringing trunk water and sewer lines to this area, including construction of a lift station, to 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 operation 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.

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. A significant portion 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 development in the near future.

The Planning Commission held a hearing in July on this matter.  Because of some notice issues, we are hearing the case again.  The township residents and businesses spoke against the annexation in July.  However, the city met with the Township Board in March and explained why the city was proposing to annex this area and it is allowed under the Orderly Annexation Agreement.  There has been interest in annexation from properties west of Hwy169 and the city intends to bring sewer under 169 to serve those areas.  OPUS has already received approvals for its project and they are bringing sewer and water to their property line which will allow extension to the western area in the future.  The State and the city do not want to create islands within the city boundaries and this annexation will consolidate the city limits for services.

Township roads in this area will become city streets for maintenance and plowing.  The city police will now provide service to this area.

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 Residential and Business Reserve, C-1 General Commercial and I-1 Rural Residential Districts. Zoning in the city will be comparable to the County with Rural Residential (RR), Highway Business (B-1) and Light Industry (I-1).

This application request would be consistent with the Orderly Annexation Agreement (OAA) approved between Jackson Township and the City. Should this annexation be approved, other conditions identified within this OAA document shall be applied (i.e., municipal reimbursement, etc.).

Budget Impact
Per the Orderly Annexation Agreement, the City must pay Jackson Township seven years of the city portion of the property taxes for this property.