The City of Shakopee received special legislation from the State to allow tax increment financing (TIF) to correct soil deficiencies with the goal of redeveloping a gravel pit.  The legislation must be approved by the City Council prior to the commencement of the next legislative session (January 9, 2024). 

Prior to or upon the adoption of a tax increment plan the city must find that at least 70 percent of the acreage in the district require substantial filling, grading, or other physical preparation for use as a result of soil deficiencies.  If the city elects to establish a tax increment financing district the increments may be used only for acquisition of parcels in the district, correcting soil deficiencies and additional cost of installing public improvements caused by the deficiencies and pay administrative costs.  Tax increment plans must be approved to establish the district under this law by December 31, 2026.