Shakopee EDA Regular Meeting – February 4, 2025
Shakopee Economic Development Authority Regular Meeting – February 4, 2025
The Shakopee Economic Development Authority (EDA) held its regular meeting on Tuesday, February 4, 2025, at 7:00 PM at City Hall, 485 Gorman Street. The board approved two leases for spaces in River City Centre, discussed a property disposition opportunity involving a parcel adjacent to the Cherney development, and approved the consent agenda and bill list. The meeting adjourned to March 4, 2025, at 7:00 PM.
Consent Calendar
- Approval of Agenda and Consent Business: The board approved the agenda and consent business, which included the approval of the previous EDA minutes, via a motion by Mr. Lehman and a second. The motion passed unanimously on a voice vote.
Public Comments & Testimony
- Yummy Bites Owners (Ali, Mohammed, and Hamza): The owners, refugees from Iraq who have operated a dessert and coffee shop in Minneapolis, expressed their desire to open a second location in Shakopee. They described their business model—open from 1 PM to midnight (later on weekends), serving sweet treats, milkshakes, flavored lattes, virgin mojitos, and more—and noted they already attract customers from Shakopee and surrounding suburbs. They stated their appreciation for America and the local community. Their presentation included samples for the board.
Discussion Items
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Lease Approvals for River City Centre (Item 4a):
- Z Dress Space (Bill Cree Boutique Fashion LLC): Staff reported that the tenant had already executed the lease, paid the security deposit, and first month’s rent. The lease is for one year at an annual rent of $23,760. The board approved this lease via a motion by Mr. Lehman, seconded, with all in favor.
- Yummy Bites (former Shakopee Market/Yummy Bites): A five-year lease with a five-year renewal option at $18 per square foot starting annual rent of $39,060, with one month of free rent (February or March) while preparing the space. Rent will increase by 50 cents per square foot each year. The tenant must use the EDA’s tenant plumber and mechanical contractor; the EDA will install signage. The owners aim to open after Ramadan (mid-to-late April 2025). The board approved via a motion by Mr. Lehman, seconded, all in favor. No opposition was voiced.
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Property Disposition Discussion (Item 4b) – West End Land Development:
- Staff presented a proposal to subdivide and sell a 4-acre parcel adjacent to the Cherney building (currently owned by Cabot Industries/Cabot Realty, Boston). The EDA would repurchase the land from Cabot at the original sale price (~$3 per square foot, or about $150,000/acre) and immediately sell it to a new developer (Trident, who developed across the street) at market rate (~$175,000/acre). The net proceeds (~$100,000) would go to the EDA’s real estate fund. The developer plans an 81,000-square-foot industrial building for multiple tenants (some already interested). Design would be tilt-up concrete with windows, compatible with the Cherney building. The parcel was originally part of the Cherney abatement agreement but is not needed by Cabot. The board took no action; this was informational only, with a formal contract to be brought later.
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EDA Bill List (Item 5a): No questions; approved via consent.
Key Outcomes
- Lease with Bill Cree Boutique Fashion LLC (Z Dress space): Approved unanimously.
- Lease with Yummy Bites: Approved unanimously; opening anticipated April 2025.
- Property Disposition: Discussion only; staff to prepare formal contract for future board action.
- Adjournment: The board adjourned to March 4, 2025, at 7:00 PM, via motion by Mr. Lara, seconded, all in favor.
Meeting Transcript
Thank you. I'd like to call to order the Tuesday, February 4th meeting of the Shakabi Economic Development Authority meeting. Please make note of the role. Mr. Lehman. Make a motion to approve the agenda. Second. There's a motion and a second to approve the agenda. Without objection, we'll move that forward. All in favor? Aye. Any opposed? No, we had no objection. All right, let's move forward to general business. We're gonna talk about 4A and our lease agreements. Mr. Lehman. Mr. Whiting, I'll make a motion to approve the consent business. Oh, we moved. There we go. Is there a second? Second. All right. Thank you. We have a motion to a second to approve the consent business. Any discussion on that? Discussion, discussion. All in favor. Aye. Aye. Any opposed? All right, it's consent business. Now we're moving on to general business 4A. Mr. Kersky, please. Board members. So uh we're here tonight. We have a lease in place and uh for the Z dress space. Um so we're asking for the approval of that tonight. They've actually um made their security deposit and paid their first month's rent already. And so we're ready to and they have executed their side of the lease. The second uh lease is for what was the Shakopee market Yummy bites. So it's for uh group called Yummy Bites are out of Minneapolis, and uh they're a coffee and treat store. We're proposing a five-year lease with an option for another five years at $18 a square foot with a 50% increase every year thereafter. February and March would be rent-free as we prepare the space. They would need to do architectural plans, use our tenant plumber and mechanical contractor, and then the EDA would install the signage on the front and back. This is uh some of their products, so we think it's gonna be a great addition to downtown, another um kind of more active space than the one that was in there before. Um they have a really great reputation. Uh actually, Tim Zunker from the chamber has been there for meetings.
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