Shakopee City Council talks Luce, levies, land

Shakopee Valley News

Shakopee City Councilor Jay Whiting asked City Councilor Mike Luce to resign Tuesday after Luce recently asked for a police investigation into misuse of funds allegations by Whiting for a truck restoration project.

"If you refuse to immediately resign from council ... I am asking you for a public apology for not only me, but for my wife and the taxpaying citizens of this city," Whiting said during the meeting.

Luce did not comment.

"You continue to bring a black cloud over Shakopee," Mayor Bill Mars said. "You've cost the city money and you're harming the city's reputation. We should expect better than that and demand better than that."

Whiting also said he would "shine a light" if Luce were to "belittle staff, browbeat citizens, badger businesses and harass any council member or their family."

Levies and budgets

The council also approved a preliminary $19 million general tax levy and budget.

Despite the increase in the levy, growth in Shakopee means the tax base has expanded and so the tax rate will remain stable, barring an increase in property value.

According to a presentation made to council, the average home value in Shakopee has increased from about $229,000 to $243,000 now.

The levy could still decrease by final budget approval.

The budget has total revenue of about $26.2 million with expenses of $26.5 million and $250,000 of funds in "other financing," according to the preliminary budget.

Property taxes would increase for the Economic Development Authority special levy, which was approved by the authority and council during the Tuesday meeting.

A home valued at $229,000 would pay approximately $20 for the special levy.

An advantage of the special levy, according to a memo, would be that even properties on abatement or in Tax Increment Financing districts would have to pay it.

"I never like instituting a new tax, because they never go away," Luce said. "I do like that abatement and TIF properties pay into this, so we get something out of them."

The Economic Development Authority has previously been funded by the general levy. Separating it creates transparency so citizens can see what the money is going toward, City Administrator Bill Reynolds said.

Rate increases

Fees for both the renovated Community Center and trash and recycling collection will be increasing.

The Community Center fees are increasing to stay in line with nearby community centers that offer similar amenities, Parks and Recreation Director Jamie Polley said.

The rates — which range from $275 annually for military, youth and senior citizens to $600 for a family — include access to the fitness center, fitness classes, open swim, open skate, open gym, walking track and playground as well as discounted child care, according to the memo.

The new rates will go into effect in January 2018.

Residents will also see an increase in fees of about $2 per month for trash and recycling fees due to Republic Services switching disposal facilities after the previous facility raised its prices from $70 per ton to $115 per ton. Republic Services switched to the Great River Energy Processing Facility, which charges $98 per ton.

Land use work session

The council continues to discuss a land use definition for the entertainment zone near Valleyfair and Canterbury Park.

In the proposed amendment to the 2030 Comprehensive Plan, up to 15 percent of the land could be used for high-density residential.

"This amendment would ... limit it to the 15 percent," Planning and Development Director Michael Kerski said.

The amendment had come to council before on Aug. 28 but several council members expressed concern that the definition of use was too broad and that high-density could expand to take up more of the area than intended.

"This spells out in more detail what we are looking for at this site," Whiting said. "To me, it answers some of the questions that were brought up last time we talked about this."

City Councilor Matt Lehman said he has compromised enough on issues such as land use and will no longer compromise on these issues.

There will be a public hearing on Oct. 5.

Approving plans

Council approved the 2018-2022 Capital Improvement Plan as well as the charter for the 2040 Comprehensive Plan, "Envision Shakopee."

Any project that costs over $25,000 will still come before the council before approval. The CIP identifies what the city will be working on over the next few years, Finance Director Darin Nelson said.

The charter for the comprehensive plan is a compilation of existing documents regarding the future of Shakopee.

The comprehensive plan will continue to be worked on by city staff, with resident and council input to form the plan, City Planner Eric Weiss said.

"I hope residents get involved," Mars said.

In other action, the council: 

• Set a public hearing for Nov. 8 for a possible TIF district in downtown Shakopee.

• Accepted a donation from the Shakopee Mdewakanton Sioux Community of a sculpture of Chief Shakopee and $50,000 for restoration and installation of the sculpture in downtown Shakopee. The city will work with the artist, Denny Haskew, on the restoration and installation. Haskew is renowned for his work honoring Native American culture, according to a memo from the city regarding the project. A statue of Reverend Pond will also be placed downtown.

• Approved advertisement for bids to remove hazardous materials from the floors, stairs, walls and caulk in the former City Hall to not exceed $24,000. Staff is also recommending the building be demolished. Council also designated City Hall as "structurally substandard" in a 3-2 vote. If a TIF were to be implemented, the city could recoup the costs of demolition and removal of hazardous materials.

• Opened and continued a public hearing until Oct. 3 for a vacation of right-of-way near the Minnesota Correctional Facility.

• Approved the consent agenda which included hiring lead lifeguards, approving liquor licenses for Hy-Vee and approving a consumption license for the new Shakopee Brew Hall.