The city supports existing businesses looking to grow in Shakopee, as well as new businesses looking to locate in Shakopee. To do this, the city has several financial incentive programs that may help your business expand, make building and land improvements or find a home in Shakopee.
Façade Improvement Program
The city offers a Façade Improvement Loan Program to businesses interested in improving the exterior appearance of their buildings. Work covered under the program includes:
- Exterior wall lighting
- Exterior painting or surface treatment
- Decorative awnings
- Window and/or door replacements or entrance modifications
- Storefront replacements or enhancements
- Streetscape, outdoor patios and decks
- Restoration of architectural features
- Landscaping expenses, when part of a larger project, may be included but should not exceed more than 10 percent of the total project costs.
- Any other items deemed appropriate by the city's Economic Development Authority
Businesses can apply for a forgivable loan for exterior-building improvements.
- Loan forgiveness takes place over a five-year period with 20 percent of the award forgiven annually.
- A typical award is up to $30,000. The EDA may consider increased awards for renovations to historic commercial properties.
- Awarding of loans depends on the availability of funding in a given year.
Return application to City Hall, Attn: Samantha DiMaggio, 129 Holmes St. S., Shakopee MN 55379.
Property Tax Abatement
The Minnesota State Legislature allows cities, counties and school districts to grant property tax abatements for economic development projects in exchange for creating a certain number of jobs or increasing the tax base.
An abatement allows government entities to refund a portion of a company’s property taxes for a set period of time, typically nine years in Shakopee. It is used when a company makes improvements on vacant land or a building that will result in higher property taxes being paid. The practice in Shakopee has been to abate the difference between the land/building’s original value and its value after the improvements are completed.
To apply for abatement consideration, businesses must submit a business subsidy application with information on number of jobs, average wage and estimated value increases. The Economic Development Advisory Committee reviews each application and makes a recommendation to the Economic Development Authority/City Council, who has the final say.
Tax Increment Financing
The Minnesota Legislature allows certain government entities to create Tax Increment Financing (TIF) districts for the purpose of enticing development or redevelopment. It can also be used for financing public infrastructure related to the project.
Cities, housing development authorities and port authorities front the cost for development or redevelopment projects using bonds, interfund loads or pay-as-you-go financing. Once complete, the government entity (or developer in the case of pay-as-you-go financing) is reimbursed from the difference in property tax values between the original value of the property and the value after the project is completed.
To apply for TIF consideration, businesses must submit a business subsidy application with information on number of jobs, average wage and estimated value increases. The Economic Development Advisory Committee reviews each application and makes a recommendation to the Economic Development Authority/City Council, who has the final say.
Sewer Availability Charge Credits
In certain situations, up-front utility costs may prevent business start-ups, renovations or expansions. In any of these situations, the city may consider assessing, granting or borrowing the funds necessary for sewer and water availability charges. This is determined on a case-by-case basis for each fee and/or a combination of all of these fees. At any time, the city may discontinue the option to provide any assistance for these fees. Learn more about Sewer Availability Charge (SAC) fees.