SanMar Project Gets TIF Approval from the City

At its April 24 meeting, the Shakopee City Council, acting in its capacity as the Economic Development Authority, approved a Tax Increment Financing (TIF) plan and development contract for the SanMar warehouse project. The assistance will allow SanMar to construct a new building on a 46-acre site at the intersection of Fourth Avenue and County Road 83 near . With this new facility, SanMar expects to bring 150 new jobs to the city within two years.

SanMar is a family owned company based in Seattle, WA, that distributes apparel and accessories to screen printers, embroiderers, athletic dealers and more. SanMar has told the city it plans to invest $35 million in the new Shakopee facility, which will have a 580,000 square feet warehouse/distribution center, a 10,000 square foot office area and a 160,000 square foot mezzanine to be used for a piece-picking operation. Groundbreaking is planned for July 1 with an expected opening date in 2013.

Through the TIF plan, the city of Shakopee will provide financial assistance totaling $2 million over the course of eight years. Under what is known as a “pay as you go” TIF district, the city will collect the additional property tax revenue generated by the new development and return it back to the company to cover a portion of the costs incurred to develop the site.

“Approval of the TIF plan and development contact is a win-win for both the City of Shakopee and SanMar,” said Shakopee Mayor Brad Tabke. “SanMar has found an ideal location to meet its warehousing, distribution and employment needs, and the city has found a strong employer that will bring jobs to the area and will ultimately improve the city’s tax base. We are excited that they are coming to Shakopee!”