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Shakopee approves tax break for $60 million Shutterfly plant

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In a 4-1 vote Wednesday night, the Shakopee City Council approved a nine-year tax abatement, with a value of $569,078 to $758,771, for a 217,000-square-foot Shutterfly, Inc. manufacturing plant off of Hwy 169.

The 100 percent tax abatement is just a portion of the $3 million in economic incentives used to lure the California-based digital photo publisher to Minnesota.

Scott County is considering a similar tax break.

The Star Tribune reports the Minnesota Department of Employment and Economic Development has given preliminary approval for Shutterfly to receive a $1 million forgivable loan from the Minnesota Investment Fund and $400,000 in matching grants from the Minnesota Job Skills Partnership program.

The $60 million project that's expected to break ground in the next couple months with Minneapolis-based Ryan Companies would generate more than 300 jobs over the next two to five years.

Shutterfly CEO Jeffrey Housenbold told the Business Journal that the new plant will help provide more next-day delivery service for customers.

Thursday morning it was revealed by Shakopee Mayor Brad Tabke that he and Gov. Mark Dayton flew to California on July 31 to meet with Housenbold, a trip that Dayton wouldn't give up the details about and regarded by local media as "secret."

Shutterfly, founded in 1999, employs 1,000 people and anticipates 2013 revenue of at least $776 million, the Pioneer Press reported.

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