City seeks new proposals for downtown

Shakopee Valley News

The Shakopee City Council voted Tuesday to solicit proposals from developers for two city-owned properties downtown.

"There are several developers that have already contacted the city that are now interested in proposing," according to the memo to council regarding the request for proposals. "We are offering ample time for the development community to complete their due diligence and to propose on one or both of the sites."

The sites include the old city hall and the current location of Doggie Doos, which is moving to a new location. The second location is on the Minnesota River.

"It's one of the few sites we have where you could build something that would have a pretty good view of the Minnesota River," Planning and Development Director Michael Kerski said during the council meeting on Tuesday.

Councilor Mike Luce said the property on the river would have a great view.

"I would love to see something built there to make use of that view," Luce said. "I think they could really sell the issue of nature down there."

Site tours will be given Oct. 26, with proposals due by Jan. 5.

The proposals will be evaluated based on qualifications, experience and financial capacity of the developer.

The city is looking for new proposals after a deal fell through with a Minneapolis developer, CPM. CPM had planned to turn the former city hall and three other pieces of downtown property into an apartment building and 110-room boutique hotel.

CPM said it couldn't make the numbers work.

"Unfortunately we were not able to structure a project that would meet the city's and CPM's objectives while still being financially viable," CPM said in a statement at the time.

City hall was for sale earlier this year but no developers were interested until CPM, though a dozen developers toured the building, Planning and Development Director Michael Kerski said in a previous Shakopee Valley News article.

City Administrator Bill Reynolds has said "there will be no issues regarding development" since the city assembled property along the Minnesota River.

"It is one of the most scenic properties in the city," Reynolds said. "The issue has always been the city hall property — which has little to no value."

The former city hall property will need to be demolished due to asbestos, a failing roof, mold, bug infestations, failing mechanical systems and a number of other issues.

In other action, the council:

• Heard a presentation from the Shakopee Fire Department regarding a $10,000 donation for equipment from Rahr.

• Held three public hearings regarding delinquent garbage bills, delinquent false alarm and mowing service bills and a vacation of drainage and utility easements. Unpaid garbage, false alarm and mowing bills will be added to 2018 property taxes. Luce agreed to pay the bills around $5 in order to spare those property owners a $50 fee.

• Authorized a water resources and environmental engineer position.

• Approved a sanitary sewer extension for 225 Sommerville St. S.