SMSC seeks 50 acres for businesses, housing

Prior Lake American

The Shakopee Mdewakanton Sioux Community has submitted an application to the federal government in order to use more than 50 acres of land in Prior Lake for future residential and commercial development.

The land, which is known as Four Corners South, is near County Road 83 and County Road 42 and is owned by the community.

The Shakopee Mdewakanton Sioux Community submitted a fee to trust status application with the U.S. Bureau of Indian Affairs, meaning the land would be governed by the community. On trust land, federal and tribal laws apply but state civil laws do not.

Land in trust is also removed from tax rolls.

According to the request for acquisition, the community wants to use the acreage for high density mixed-use development, including providing leasable office spaces to "tribal and non-tribal businesses."

The land will also include town homes or condos for community members.

When tribal members turn 18, they become eligible for land assignment. One half of enrolled tribe members are currently under the age of 18, according to the request. In 2016, the community had 294 residential lots. By 2030, the tribe will need 250 more housing units.

As part of the consideration for fee to trust, the Bureau of Indian Affairs requests impact information from local governmental bodies. In June 2018, the city of Prior Lake, Scott County and the Minnesota Department of Transportation received a letter from the bureau regarding the application.

The Prior Lake City Council approved a letter response to the bureau during a regular meeting on Tuesday. In 2017, property taxes to the city for Four Corners South totaled more than $22,500.

The response from the city details that the Shakopee Mdewakanton Sioux Community will construct a trail along Wilds Path to County Road 42, that Wilds Path will be jointly maintained by the governmental bodies and that the community would extend Brookmere Boulevard to provide an outlet to County Road 83 for the Meadow View neighborhood.

The city had requested the community change the section of the application pertaining to non-tribal businesses being able to lease a future office space.

"If non-Tribal businesses are allowed to lease office space on these properties, the city will be at a competitive disadvantage as we must comply with state laws with respect to calculations of property value and taxation, but the Tribe does not," according to the council memo regarding the response to the bureau. "The staff had sought a revision in the application that would limit the lease to members of the Tribe since that appeared to be the stated need. The Business Council elected not to make that change..."

In the past, the bureau has rejected fee to trust applications from the Shakopee Mdewakanton Sioux Community but that hasn't happened for at least the last five years, City Attorney Sarah Schwarzhoff said.

Council member Annette Thompson was the sole member to oppose the response to the Bureau of Indian Affairs.

"The SMSC can own and develop as much land as they desire, but does it have to be tax-free land?" Thompson said during the meeting. "This is going to be a setback for us in a quest to provide jobs, services and build up the tax base for our own community. The SMSC is the wealthiest tribe in America. I just don't think they need more tax-free land."

Mayor Kirt Briggs said the letter addressed any concerns the city had regarding the commercial use of that land and that the conversation surrounding the commercial use would continue as a result of the relationship between the community and the city.

"In that informal process (with the community), a good deal of deliberation and discussion was had and what we see before us, this letter, was the fruit of that effort," Briggs said.

The Shakopee Mdewakanton Sioux Community previously submitted separate applications to convert fee land to trust status for 74 acres in Prior Lake in October 2017 and 130 acres in Prior Lake and Shakopee in January 2018.