The City of Prior Lake will be sending its approval for two parcels of land formerly occupied by the YMCA to be placed in trust with the federal government, based on approval given by the city council on April 14.

The Shakopee Mdewakanton Sioux Community (SMSC) acquired title to 7.44 acres that includes the YMCA structure connected to Shepherd of the Lake Lutheran Church and adjacent property located to its south. The SMSC earlier this year submitted an application to the Bureau of Indian Affairs for the parcels to be placed into trust that will be known as “Zaniya.”

Impact on local government is a criteria the BIA examines before making its decision on the request. Property taxes levied by the city on the land in 2026 totaled close to $30,000. Because both the church and YMCA were classified as nonprofit corporations, neither paid property taxes in earlier years.

It was only after the SMSC purchased the property that the city began benefitting from taxes paid. There will be no taxes assessed on the property once the land is officially placed in trust.

There are no existing assessments on the properties. The city will continue to provide police and fire services, with sewer, water and storm facilities maintained on the site. The SMSC will pay for the city to continue to provide police and fire services, with sewer, water and storm facilities maintained on the site.

Both parcels are zoned for Planned Unit Development and were approved as part of the Shepherd’s Path Addition in 2006. The purpose of the PUD district is to offer an alternative to development as outlined in the residential, commercial and industrial zoning districts within the city, thus offering great flexibility in the development process, according to a staff memo.