Shakopee City Council — Transcript

Tuesday, May 19, 2026

Flag Policy and Civic Identity

City Fire Department Operations and Growth

Community Center Enhancements and Scholarship Program

Long-Term Financial Planning

Votes (5)

Contract for Building Restoration Corporation (Consent Item 5P)

3-2 Passed

Dissent: Mayor Lehman

Moved by Mr. Whiting [0:05:07] · Seconded by Councilor Contreras [0:05:13]

The discussion centered on the high cost of a building restoration project, with concerns about the budget exceeding initial estimates. Council members questioned the original and new total costs, as well as the phasing of the project. Staff explained that using an in-house landscape architect for construction management, rather than a general contractor, was expected to reduce costs. A significant point of contention was the overall investment in a structure perceived to be of low inherent value, with some advocating for historic preservation groups to manage it.

Railroad Crossing Elimination Grant Application (Consent Item 5R)

2-3 Failed

Dissent: Mayor Lehman, Councilor Delaney, Councilor Contreras

Moved by Mr. Whiting [0:08:14] · Seconded by Councilor Lara [0:08:23]

The council debated a grant application to the Federal Railroad Administration for a Railroad Crossing Elimination Program, which involved potentially closing the Minnesota Street intersection and improving Market Street to achieve a quiet zone. Concerns were raised about the impact of closing Minnesota Street on downtown traffic, walkability, and businesses, as well as the broader strategy for quiet zone implementation. Staff clarified the grant's specific focus on 'elimination' (either by closing or grade separation) and the high cost of upgrading all crossings. The council ultimately voted against submitting the grant application as structured.

Fire Department 2025 Year in Review (8A)

Informational

Fire Chief Simon presented the department's 2025 annual review, highlighting key achievements and challenges. The report noted a 4% increase in incidents, surpassing 2,000 calls for the first time, and a doubling of call volume since 2018. A major milestone was securing the SAFER grant, enabling the hiring of 12 full-time firefighters and 24/7 staffing at Station 2 to improve response times. Other points included 99% asset preservation, extensive training, community risk reduction efforts with a full-time fire inspector, and strategic equipment acquisitions like Tender Two. Council members asked about call type definitions ('good intent'), the impact of road construction on response times, and the implementation of battalion chief positions.

Donation for Sauna and Scholarship Fund in Honor of Xavier Gillan (8B)

Unanimously Passed

Moved by Mr. Lara [0:19:51] · Seconded by Councilor Contreras [0:19:54]

The council recognized a heartfelt donation from the Gillan family in memory of their son, Xavier, who passed away earlier in the year. Xavier's stepmom and dad shared how the Shakopee Community Center was a vital 'third place' for him, providing friendship and connection, with a particular love for the sauna. The donation will be used to improve the community center's dry sauna and establish a scholarship program to ensure more residents can access the center. The council expressed condolences and gratitude, noting the positive impact of the community center on youth.

Long-Term Financial Plan (9A)

Informational

Finance Director Reinhardt presented the city's long-term financial plan, marking its sixth year. The presentation covered property parcel growth across different types (residential, apartment, industrial), significant increases in tax capacity (106% over 10 years), and Shakopee's role as a net contributor to fiscal disparities. The impact of TIF districts on tax capacity generation and historical trends in city levy, tax rates, and population growth were reviewed. The director also presented preliminary taxable market values for 2027, showing a 4.4% increase, with roughly half attributed to new construction. Projections for general fund operations over 10 years, assuming a 3-3.5% expenditure increase and a 4% property tax increase to maintain fund balance targets, were outlined.

Notable Quotes (14)

So I'll speak in here. Uh what is the original cost? What is the new total cost? And how many phases are we looking at going through?

Councilor Delaney [0:04:15]
Contract for Building Restoration Corporation (Consent Item 5P)

My I I've I've raised my concerns over the years of this. Not only are we going to have 1.7 million into just these built two buildings, but we're going to have We already have a million and a half into buying the property and moving the people and then we had money in tearing down the properties. This is going to be multi-million dollars into a structure that's worth about $150,000.

Mayor Lehman [0:05:14]
Contract for Building Restoration Corporation (Consent Item 5P)

You know, I'm glad to see that Building Restoration Corporation is going to be managing this. This is They're the best at this type of work.

Mr. Whiting [0:05:07]
Contract for Building Restoration Corporation (Consent Item 5P)

So, this request before you tonight is to submit a grant application through the Federal Rail Administration through their Railroad Crossing Elimination Program. Now, the way we're phrasing this application is that we would look at closing the Minnesota Street intersection, uh using that funding then to make the safety improvements at the adjacent Market Street intersection.

Mr. Jordan [0:06:22]
Railroad Crossing Elimination Grant Application (Consent Item 5R)

Yeah, I'm not I don't support that. All right. The traffic study that was done makes a mess out of Spencer Street in downtown. Makes downtown not walkable.

Mayor Lehman [0:07:38]
Railroad Crossing Elimination Grant Application (Consent Item 5R)

I don't want to cuz what we're here for that is the grant, right? To vote on on on on this grant program. I don't want to shut it down right away, cuz I feel like maybe we're missing an opportunity or something that could possibly come up.

Councilor Contreras [0:10:18]
Railroad Crossing Elimination Grant Application (Consent Item 5R)

Mayor and council yes we'll have to put together a grant application that's specific to those improvements because that's how our application would be scored by the FRA.

Mr. Jordan [0:11:00]
Railroad Crossing Elimination Grant Application (Consent Item 5R)

I emphasize that 2025 will be remembered as the year we secured SAFER grant. This is more than a financial achievement. It is a major step forward in safety. It positions us to move toward the full-time professional staffing model a community like ours deserves. Faster response times means less damage and more lives saved.

Chief Simon [0:13:58]
Fire Department 2025 Year in Review (8A)

Since 2018, our call volume has more than doubled. In 7 years, we went from roughly 900 calls to over 2,000. And this trend isn't slowing down. But when a fire does occur, it's important to how to look at how effective we are. This is one of our most important metrics. While we had roughly $1.1 million in fire loss in 2025, we protected over $202 million in property value. That is an asset preservation rate of over 99%.

Chief Simon [0:14:52]
Fire Department 2025 Year in Review (8A)

During his high school years, he found that he was liked by a lot of people, but not necessarily loved and he found so much love at the community center. Um he was there most evenings until close and we had to go and get him. Um he enjoyed the pool and the sauna as well.

Monique Gillan [0:18:27]
Donation for Sauna and Scholarship Fund in Honor of Xavier Gillan (8B)

I'm presently have knee surgery, so I'm not able to sit very well, but my wife echoed the the sentiments perfectly and he just absolutely loved the community center and this is we feel a great way for us to be able to contribute back to the community and to the city and then with the scholarship to kind of support a legacy uh beyond that.

Nick Gillan [0:19:15]
Donation for Sauna and Scholarship Fund in Honor of Xavier Gillan (8B)

We've actually seen significant growth in tax capacity over the the past 10 years. Couple examples here, apartment from 2 million to 6.9 million, industrial from 7.9 million to 21.7 million. And then residential, we've seen that grow from 26 million to 52 million in total. We've seen about Well, we've seen 106% increase in citywide tax capacity over the past 10 years.

Mr. Reinhardt [0:23:44]
Long-Term Financial Plan (9A)

And we are the only city in Scott County that's a net contributor. So, Belle Plaine, Credit River, Jordan, Prior Lake, and Savage are all recipients of of fiscal disparity dollars.

Mr. Reinhardt [0:24:41]
Long-Term Financial Plan (9A)

So, based on all those assumptions, what would we have to increase property taxes at to maintain um kind of the fund balance target that would require about a 4% tax increase.

Mr. Reinhardt [0:29:13]
Long-Term Financial Plan (9A)

Ordinances & Resolutions (20)

Monthly financial review for AprilOther

Approved as consent agenda item 5A.

Monetary limits on tort liability for League of Minnesota Cities Insurance TrustOther

Approved as consent agenda item 5B.

Special event and temporary liquor licenses for Rhythm on the RailsPermit

Approved as consent agenda item 5C.

2026 annual roadway pavement markings projectPlan

Approved as consent agenda item 5D.

Walmart Foundation Spark Good Local Grants Program Application and AwardOther

Approved as consent agenda item 5E.

Utilities facilities easement and pond maintenance agreement with KW SeedOther

Approved as consent agenda item 5F.

Contract for the Shenandoah Drive and Shinnyan Street intersection improvementsOther

Approved as consent agenda item 5G.

Xcel Energy's community benefit contribution donationsOther

Approved as consent agenda item 5H.

Surplus propertyOther

Approved as consent agenda item 5I.

Award of a bid on Police Department boiler replacementOther

Approved as consent agenda item 5J.

Consumption and display permit for Angels LLC doing business as Taqueria Don RamonPermit

Approved as consent agenda item 5K.

Gambling permit premises permit for the Shakopee RotaryPermit

Approved as consent agenda item 5L.

May 5th, 2026 City Council minutesOther

Approved as consent agenda item 5M.

Cooperative agreement amendment with Shakopee Public Schools for the Safe Routes to School Infrastructure ImprovementsOther

Approved as consent agenda item 5N.

Agreement with MnDOT for the Safe Routes to School Infrastructure GrantOther

Approved as consent agenda item 5O.

Liquor license renewals for 2026-27Permit

Approved as consent agenda item 5Q.

Scott County Multi-Hazard Mitigation Plan RenewalPlan

Approved as consent agenda item 5S.

O 2026 TAC 013Ordinance

Amending the entertainment overlay zone to include additional properties in the Canterbury Park area; approved as consent agenda item 5T.

R2026-082Resolution

Approving an application to the Federal Railroad Administration for the Railroad Crossing Elimination Program; discussed as a removed consent item.

Long-Term Financial PlanPlan

Presented by the city's Finance Director, detailing financial projections and trends.

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