A developer from Fargo, N.D., has proposed a five-story, 82-unit apartment complex on the former Shakopee City Hall site — yet another housing project leaders hope will attract more young professionals to the city’s historic downtown.
Enclave Development’s proposal includes one- and two-bedroom units, studios and “alcove” living spaces, clubhouse amenities and underground parking. Retail and restaurant space with patio seating is also planned for the first level at 129 Holmes Street.
“I like the look of it,” Mayor Bill Mars said during an Economic Development Authority meeting this month. Enclave is requesting tax increment financing (TIF) — which captures new property tax revenue to help pay for development — to fund excavation and removal of the former city hall foundation, curb and gutter reconstruction and other utility repairs. The city would later recover demolition costs as part of the agreement.
“I think it’s a small price to pay for redevelopment that matches our [comprehensive] plan and ... increases the livability, walkability and vitality of downtown,” Mars said of the site, which has sat undeveloped for more than a year.
Last September, CPM Cos. abandoned a $24 million redevelopment project to convert the site into a 70-unit, market-rate apartment complex geared toward young professionals. A few blocks away, the developer also sought to build a 110-room boutique hotel.
Some city leaders blamed turmoil on the divided council for botching the deal, while CPM maintained that the project was not financially viable.
Several city counselors expressed interest in the Enclave proposal, but Matt Lehman struck a more cautious tone. He feared that a housing boom in the growing southwest suburb would put stress on infrastructure without additional revenue for city services.
“I’m afraid we’re going to make our existing affordable housing stock in Shakopee more unaffordable,” said Lehman, who has long opposed most high-density housing.
City Council will hold a public hearing next month on their proposal to establish a TIF district. If approved, construction could begin before year’s end.
The Shakopee City Council recently approved an assortment of projects, including 158 single-family homes, a 60-unit affordable housing development and a gated luxury apartment complex near Canterbury Park. Seniors will soon have more options as well. Benedictine Health System plans to build 277 units for independent living and memory care along Marystown Road.