6 things to know about Canterbury Commons

Shakopee Valley News

On Tuesday, the Shakopee City Council votes on a comprehensive plan amendment that would pave the way for Canterbury Commons, an up to $400 million project being proposed for 130 acres near Canterbury Park, the horse racing track in Shakopee.

Here are six things you need to know about the project:

1. The vision for the redevelopment is a place to "live, stay, work, play."

A conceptual site rendering of Canterbury Commons shows a half relocation of the horse barns to make way for redevelopment across 130 acres near Canterbury Park. Canterbury Park officials have been trying to develop the land since 2008.

The live portion is what's motivating the amendment, but it's far from the only part of the plan. Canterbury Park representatives presented the overall project to the council on Nov. 21.

Plans include an extended-stay hotel, boutique hotel, hotel and water park, an office space, new restaurants, specialty options, family entertainment venues and more.

The live part includes a luxury apartment complex, upscale townhomes and a senior housing co-op.

2. The vote on the comprehensive plan amendment isn't a vote on the project itself.

The comprehensive plan amendment would allow for the density that comes with the apartment complex in the current zoning around Canterbury Park.

However, the Canterbury Commons plan would have to come before the council multiple times before work could start.

It's a series of steps — if the comprehensive plan amendment passes, then Canterbury Commons can come before the council for preliminary and final plat approval. If the plat is approved, then staff could come forward with a Tax Increment Financing plan to fund the infrastructure for the project.

These would all be a series of separate votes. If the amendment passes, a preliminary plat would likely come to the council in January and a TIF district in February or March.

If the amendment doesn't pass, however, the future becomes hazy. Canterbury Park Holding Corporation President and CEO Randy Sampson said the project would "not be viable without residential" and is a "key component" of the overall plan.

3. It's the only vote that would require a super-majority of council support.

To amend the comprehensive plan, four out of the five council members must agree. The Shakopee City Council is generally split 3-2 when it comes to issues that can affect the future of Shakopee.

At the moment, Councilor Mike Luce is believed to be the swing vote. Councilors Kathi Mocol, Jay Whiting and Mayor Bill Mars have expressed support for the project.

Councilor Matt Lehman said the density proposed is too high for that area and that the council identified four areas in Shakopee in February 2016 for such dense housing. The area near Canterbury Park was included, but smaller.

Luce wrote an editorial in early December saying it would be "almost impossible to vote in the affirmative on this project." Luce has maintained he needs more information before he can make a decision.

So while it could be a 4-1 vote or 3-2 vote that will make or break the project, anything could happen come Tuesday.

4. A project like Canterbury Commons comes with some serious dollar signs.

We're talking millions and hundreds of millions. Sampson said during his presentation to the council Canterbury Park currently pays about $1 million annually in property taxes but this development could increase that number to $7 million. Although if Tax Increment Financing is approved later, some of that would go toward infrastructure (think roads) in the project area.

He also said the ventures the other planned development would bring in anywhere from $100 million to $400 million alone in private investment.

The project would also take serious cash to build. To help fund this, Canterbury Park officials have considered a Tax Increment Financing district to fund the infrastructure for the project. TIF funds are allocated to projects that create jobs, new investment in specific areas, affordable housing or improvements, according to planning director Michael Kerski.

Those who receive TIF funds (in this case, Canterbury Park Holding Corporation) pay their property taxes but they would be used to pay for roads and utilities near the project. TIF districts range from eight years for economic development to 25 for redevelopment.

If the city were to pay for the road improvements required for Canterbury Commons, about $44 in property taxes would be added to the average single-family home annually, according to the city.

5. Canterbury Park officials have been trying to develop the land for years.

Specifically, since 2008. The arrival of Highway 169 in 1995 changed the entrance of the track to where the horse barns are. The first plan focused on moving the barns to the back and adding some retail and residential.

The stock market crashed and that plan was put on hold. A 2015 plan moved the horse barns and added retail, restaurants, smaller shops and a department store. Officials were also talking with Hy-Vee and Marcus Theatres at the time, which ended up developing elsewhere in Shakopee.

That plan ended up being too expensive with the infrastructure and full relocation of the barns, so it was scrapped.

Due to the past projects, some people believe the redevelopment won't happen, Sampson said.

"One of the concerns that we have to overcome now is we've been talking about this for 10 years and some of these people are like, 'I don't know if that'll ever happen,'" Sampson said. "This is real, and this is going to happen and start filling the rest of the space in."

6. This is the second attempt.

Canterbury Park is currently zoned as a "major recreation zone," which does not allow high-density residential housing.

Staff tried to bypass this zoning definition in July with a text amendment to allow residential use. Text amendments do not require a super-majority vote, and it was approved 3-2 on July 5.

On July 6, a preliminary plat was approved by the Planning Commission. On July 14, City Administrator Bill Reynolds emailed the council to let them know that city staff was taking a step back on the project due to concerns from Councilman Lehman and Southbridge Crossings developer Steve Soltau.

"It is my belief that these rifts have the potential to cause this community issues in the future," Reynolds wrote. "Absent doing so, I believe that all our proposed high density projects ... would be at risk. The risk could include legal action that in of itself would jeopardize at least the funding of the projects in Southbridge and Canterbury."

Reynolds added that he thought the city's actions were legally defensible.

Doran Companies then withdrew the preliminary plat to wait for the comprehensive plan amendment.

Which brings us to today.

The Planning Commission approved the amendment on Dec. 7 and on Tuesday, the council will decide on the amendment and should it fail, the fate of Canterbury Commons.