Canterbury lays out $400 million redevelopment plan

Shakopee Valley News

Canterbury Park officials unveiled a preliminary plan for the Canterbury Commons redevelopment project during the council meeting on Tuesday.

The plan is a play on Shakopee’s “live, work, play” theme, except it adds one more verb: “live, stay, work, play.”

The proposal would relocate half the horse barns to make way for development across approximately 130 acres. The barns are an eyesore right at the front gate, Project Architect John Shardlow said.

“They really are an albatross that needs to be dealt with at this point,” Shardlow said.

The "live" portion would be a $100 million luxury apartment complex as well as upscale townhomes and a 55+ housing co-op. The apartments, managed by Doran Companies, would attract other developers, Canterbury Park Holding Corporation President and CEO Randy Sampson said.

“It’s a great catalyst for bringing in the rest of the development,” Sampson said.

The "stay" would be an extended stay hotel, a hotel and water park venture and a full-service boutique hotel. The "work" portion would be office space to attract high-end jobs and businesses to Shakopee.

“This is one of the premiere development sites in the Twin Cities area,” Shardlow said.

The "play" part includes a variety of ventures including new restaurant options, specialty retail, an indoor water park, community gathering spaces, family entertainment venues and more.

Canterbury Park representatives will create the public infrastructure necessary to bring tenants to the area, Shardlow said.

The total private investment in the project would be around $300 million to $400 million, Sampson said.

“To keep our taxes low, we need these kinds of investments in our community,” Councilor Kathi Mocol said.

A number of Canterbury Park staffers showed up to show support for the plan. It’s not the first plan Canterbury Park representatives have worked on. Officials have been trying to develop the area around the racetrack for the last 10 years, and have learned from past plans, Media Relations Manager Jeff Maday has said.

“Every piece of our concept is something that revolves around actual conversations that we’ve had with potential developers,” Maday said. “This is a well-thought out plan.”

In order for residential density of that magnitude to be allowed in the zoning around Canterbury Park, the city's comprehensive plan would have to be amended, which requires the support of a super-majority of the council, or four out of five members. Councilor Matt Lehman has already said he would not support a project with that kind of density in that area. Councilor Mike Luce, who appears to be the swing vote, has not said how he plans to vote.

The plan is contingent on the residential piece, Canterbury Park Holding Corporation President and CEO Randy Sampson has said.

“The development as we currently envision it would not be viable without residential,” Sampson said.

The council is scheduled to vote on the amendment on Dec. 19.

Canterbury Park draws more than 1 million visitors annually for racing, cards and other events. Maday said Canterbury Park officials are confident the plan will be approved. 

The keys to the development are the comprehensive plan amendment, the city infrastructure connections and the barn relocation to attract tenants to the new spaces, Shardlow said.

If the amendment is approved, officials would then need to look at building the public infrastructure, such as roads, needed for the plan.

A Tax Increment Financing district would be proposed for the public infrastructure associated with the project. Lehman said taxpayers shouldn’t have to pay for cosmetic improvements to the roads, such as trees or statues.

“I’m not against trees, I just don’t think it’s a good use of tax dollars,” Lehman said.

Canterbury Park officials would bring a preliminary plat to the council in January and a TIF proposal would be submitted in February or March.

“I think this is a great opportunity for Shakopee and I think it’s a tremendous opportunity for Canterbury,” Mayor Bill Mars said.

At the meeting on Tuesday, the council also:

• Held a workshop on the 2018 proposed budget. The city tax rate will decrease to 37.8 percent from 38.5 percent, including the Economic Development Authority tax levy.

• ”This is really a good news budget,” City Administrator Bill Reynolds said.

• The city portion of property taxes will decrease, barring an increase in home value.

• Approved the consent agenda, which included accepting a donation of $30,000 from the Shakopee Mdewakanton Sioux Community for the Memorial Park bridge replacement project.

• Held a public hearing regarding the assessment roll for the 2017 Street Reconstruction Project.