The city is looking to redevelop its former city hall building at 129 Holmes St. S. The aging building was originally constructed as a bank in the 1960s and served at the city hall from 1993 to August 2017, when city staff moved to their new building on Gorman Street.

Enclave Development submitted concept plans to the city. The plans call for 80 market-rate apartments above two levels of parking (one underground, one street level). In addition to the parking, the new building would feature retail and restaurant space along Holmes Street. The current building design calls for five stories with a final design not yet approved.

Timeline

     
Partnership agreement with CPM Cos. City Council  June 20, 2017 
City staff move out of building Staff  August 2017
Building designated as structurally substandard City Council September 2017 
Contract awarded to Frattalone Cos. for abatement, demolition, earthwork City Council  Nov. 7, 2017 
City seeks redevelopment proposals Staff  November-December 
 Demolition of building Frattalone Cos.  Dec. 11-31, 2017 
 Redevelopment plan for 80-plus-unit market-rate apartment complex proposed Enclave Development  July 3, 2018
 Creation of TIF District approved City Council  Aug. 21, 2018 
 Comprehensive Plan amendment to reguide the property denied City Council  Aug. 21, 2018 
 City sells property to Enclave Development Economic Development Authority Sept. 4, 2018 

Funding

At its Aug. 21 meeting, the City Council acting as the Economic Development Authority approved creating a Tax Increment Financing (TIF) district for the site. TIF funding would be used for the excavation and removal of the former city hall foundation, utility relocation and reconstruction of the adjacent alley and sidewalk infrastructure. The city would then recover these costs through the lifetime of the TIF. The maximum estimated costs for reimbursement over 25 years would be $2,382,400.

The remainder of the project would be financed by private parties.

Community Impact

The new development will bring new housing and retail to downtown Shakopee. Downtown Shakopee has been the subject of renewed interest by prospective residents and developers and this project will continue that positive trend. The development will be providing more than 100 parking spaces within the building in addition to bike parking and other amenities. With the main use of the structure being residential, traffic levels will not be as high as what was generated by the former city hall.

Drawings/Renderings