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City of Shakopee, MN

The City supports existing businesses looking to grow in Shakopee, as well as new businesses looking to locate in Shakopee.

Shakopee, MN, USA

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Description

In 2026, the City of Shakopee, Minnesota, continues to position itself as a major regional hub for industry and innovation within the Southwest Twin Cities metro area. It provides a business-friendly environment supported by robust infrastructure and direct municipal incentives. 
  • Growth & Expansion: Primarily targets established companies looking to relocate or expand existing facilities.
  • Infrastructure Assistance: Support is available for businesses at the development stage where significant public infrastructure (roads, utilities) is required. 
  • Method: Businesses must engage directly with the Shakopee Economic Development Authority (EDA).
  • Requirements: A formal project proposal including job creation estimates, wage projections, and a detailed "but-for" analysis (demonstrating why the project requires assistance to be viable). 


Eligibility

  • Geography: Projects must be located within the city limits of Shakopee, MN.
  • Sectors: Strong preference for Manufacturing, Logistics/Distribution, Data Centers, and Technology (aligned with the 2026 High-Tech/Industrial corridor goals).
  • Economic Impact: Priority is given to projects that create high-paying jobs (above the regional median wage) and increase the local property tax value. 

Process

  1. Consultation: Meet with city staff to discuss project scope and eligibility for local or state incentives.
  2. Financial Review: The EDA and City Council conduct a financial analysis of the project's impact on the local tax base.
  3. Public Hearing: Significant incentives, such as Tax Increment Financing (TIF), require a public hearing.
  4. Approval: The City Council must vote to approve any development agreements or incentive packages.

What an Applicant can Obtain

  1. Tax Increment Financing (TIF): The most common tool used to offset development costs by capturing a portion of the new property taxes generated.
  2. Tax Abatement: Temporary reduction of property taxes to encourage specific developments.
  3. Job Creation Grants: Potential access to the Minnesota Investment Fund (MIF) or Job Creation Fund (JCF) through city sponsorship.
  4. Permitting Support: Access to the city’s streamlined "Fast Track" permitting process for large-scale industrial projects.