Shutterfly Expansion to Shakopee Continues Forward

The Shakopee City Council agreed to economic incentives for Shutterfly on Wednesday, but not before much discussion.

Councilor Matt Lehman had questions about how the tax abatement would affect Shakopee residents. He wanted to know if residents would end up having to make up the difference for the tax that the company does not pay.

Shutterfly pays its portion of the levy, Councilor Steven Clay explained, but then that portion is returned to them.

With Shutterfly in the city, the tax base would increase, and said Mayor Brad Tabke, “it does not increase individuals' city taxes.”

Tabke added that it will also increase taxes to the school district. 

Economic Development Coordinator Samantha DiMaggio later described some of the factors she examines when a company requests a tax abatement from the city. A company should pay a wage of at least $14.50 and she also looks at the quality and number of jobs that the company will bring to the city. 

The council members agreed 4-1 to grant the economic incentives, which also included sewer credits. Councilor Lehman gave the dissenting vote.

The city will also apply for a Minnesota Investment Fund grant for $1 million, which the city will then grant to Shutterfly as a forgiveable loan.

A representative from Shutterfly, Ray Montalvo, said that the company believed that Shakopee would be a "good home." 

"We are excited for this potenial project," he said.

More on Patch

• Shakopee Considering Economic Incentives for Shutterfly
• Shakopee Schedules Hearing for Shutterfly Expansion
• Shutterfly in Shakopee?

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