Shakopee City Hall 485 Gorman St.

Shakopee City Hall. 

Shakopee City Council unanimously approved a tax abatement for Cherne Industries, a plumbing plug manufacturer currently headquartered in Edina. The company will move its offices, warehousing and distribution to a 130,000-square-foot building in Shakopee.

The office and warehouse site is located between Vierling Drive and County Road 69 and is owned by the Economic Development Authority, but is under contract with Opus, a commercial real estate developer.

The EDA is selling the site to Opus for $1.65 million.

“This is kind of our first major new company in the last six or seven years,” Shakopee Director of Planning and Development Michael Kerski said.

Cherne Industries, a brand under umbrella company Oatey, is a world leader in pipe plug manufacturing, according to the memo. The tax abatement will last nine years, at a value that would be capped at about $460,000.

Under the abatement conditions, Cherne is required to create an additional 50 jobs at its Shakopee facility throughout the next five years, as well as preserve its existing 115 full-time equivalent jobs. The average hourly pay for Cherne employees is in the ballpark of $20 per hour, excluding executive payments and benefits.

In addition to working with Cherne Industries, OPUS plans to build its own speculative office building to the north of the EDA-owned property, which is currently tax-exempt and is not part of the abatement deal, according to the city memo. Separate from this project, OPUS is also working with the Shakopee Planning Commission to seek approval for three commercial buildings in a newly-proposed development at the Shakopee Gravel site. Those buildings would be used for offices, research development, manufacturing and distribution.

Maddie DeBilzan graduated with a journalism degree from Bethel University. She’s interned at Salon Media and the St. Paul Pioneer Press. Outside of work, she sifts through Goodwill clothing racks, listens to Ben Rector's music and goes on long runs.

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