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OPENPUBLICA · PUBLIC MEETING RECORD

Record of Proceedings

Shakopee Economic Development Authority Regular Meeting - February 5, 2026

City Council & Commissions — Thursday, February 5, 2026

BodyShakopee, Minnesota

SessionCity Council & Commissions

DateThursday, February 5, 2026

StatusFILED

Video Record

0:00 / 6:19

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0:00

Motion passes.

0:01

We are in recess for EDA.

0:03

Vice President Lara.

0:07

I would like to call to order the economic development authority meeting for February 4th, 2026.

0:14

If you could take a note of the roll.

0:18

Second is the approval of the agenda.

0:21

Let me go ahead.

0:22

I make a motion to approve the agenda.

0:24

Second.

0:25

Motion by Delaney and second by Commissioner Contreras.

0:31

Third is do we vote?

0:34

Oh in favor?

0:38

Aye.

0:38

Aye.

0:40

All opposed, none.

0:41

All right, passed.

0:42

Number three, uh consent business.

0:45

Um counselor or commissioner uh layman.

0:50

Vice President Lara, I would move the consent agenda, which includes the approval of the minutes.

0:57

Is there a second?

0:58

Second.

1:00

Motioned by Commissioner Lehman, second by Commissioner Contreras.

1:05

Um next is uh general business for a oh um all in favor.

1:10

Aye opposed, opposed um pass it general business uh number four approval of the three-year lease amendment for uh Z dress.

1:22

Mr.

1:23

Kirski, Mr.

1:26

Vice President and uh board members.

1:29

So this we had uh Z dress on a one-year lease to see whether they'd be successful.

1:33

They have been, and so this is uh they asked for a three-year addition, so that's what's before you tonight.

1:40

I will say we're very happy with their performance.

1:42

We are having struggling with some of the other tenants, some of their businesses down 40 and 50 percent.

1:48

So we're gonna be in for a couple of tough months while we work with our tenants.

1:56

Questions of staff go ahead.

2:02

Commissioner Lemon.

2:04

Vice President Lara, I was I was gonna ask about the increases over the three years.

2:10

Um I'm not reading it very clearly here, so it's is it going from 18 to 1825 to eight eighteen fifty, eighteen seventy-five?

2:23

Is that standard increases or is that lower than anticipated or so uh vice president and board members?

2:31

So typically we uh 14 is kind of our base number down there, and so we brought up some of the tenants over the years on some of the older leases.

2:42

I think they probably went up too quickly, and that's why we're having some issues right now.

2:45

So we're trying to phase it in and be more realistic.

2:48

Find that balance.

2:50

Pardon me looking for that balance, yes, sir.

2:53

Okay, um, and just if I could ask, um, so they they work um currently they were on a what um a trial lease, right?

3:05

And they did really well for that whole year, so now we're um we're gonna do it just for three more three more years, the effect of the first till January 31st of 2029.

3:15

Yeah, so no no issues like you said.

3:19

No, um sounds good.

3:21

No, we're good.

3:23

Uh you know what I do have one more question.

3:26

Commissioner Lehman.

3:27

Mr.

3:28

Vice President, the uh this particular business is working with the CDA next program for the last year.

3:36

Um will they be working with that same program under these three years of this new lease?

3:43

And and will that program be subsidizing these leases?

3:48

Vice President and uh board members.

3:50

So the next program doesn't subsidize leases, they provide business assistance through business planning marketing.

3:57

Marketing, um, we had a business in there, they're actually the lien holder and all the equipment that that business closed, so we're now working doing a workout with them to get their equipment out of there.

4:08

Okay, so it's like a business planning.

4:12

Um it's business support.

4:15

So they um have a new person that does social media marketing.

4:19

Um they have people that review financials and business book at inventory, yeah.

Discussion Breakdown — Share of Meeting

Economic Development█████████████████████████████████████████████56%

Procedural███████████████████████████████████44%

Summary of Proceedings

Shakopee Economic Development Authority Regular Meeting - February 5, 2026

The Shakopee Economic Development Authority (EDA) met on February 5, 2026, to consider a three-year lease amendment for a successful trial tenant, review the EDA bill list, and handle routine consent items. All votes were unanimous.

Consent Calendar

The agenda was approved via motion by Commissioner Delaney, seconded by Commissioner Contreras.
The consent agenda, including approval of prior meeting minutes, was approved via motion by Commissioner Lehman, seconded by Commissioner Contreras.

Discussion Items

Approval of 3-Year Lease Amendment for Z Dress: Staff presented a request from Z Dress (operating as Bokery Boutique Fashion LLC) to extend their trial one-year lease for three additional years, through January 31, 2029. Staff reported the tenant has been successful, while other tenants are struggling with business down 40–50%. Commissioner Lehman inquired about the rent increases over the three years (from $18.00 to $18.25, $18.50, $18.75 per square foot). Staff explained they are phasing in increases more realistically after prior rapid increases caused difficulties. Commissioner Lehman also asked whether the business was working with the CDA Next program and if it subsidizes leases. Staff clarified the program provides business assistance (planning, marketing, financial review) but does not subsidize leases. A commissioner praised the Project Gate program for helping with a business plan. A motion to approve the three-year lease extension at the new rates was made by Commissioner Contreras, seconded by Commissioner Delaney, and passed unanimously.
EDA Bill List: Vice President Lara asked for clarification on a $696,900 line item payable to the State of Minnesota for a potential property on Third Avenue and a department building. Staff confirmed it is a pass-through payment from a developer, not EDA funds, and that reimbursement will occur later. The bill list was approved as part of the consent agenda.

Key Outcomes

Approved a three-year lease amendment for Z Dress (Bokery Boutique Fashion LLC) through January 31, 2029, with phased rent increases.
Approved the EDA bill list as presented.
The meeting was adjourned to March 3, 2026, at 7:00 PM via motion by Commissioner Lehman, seconded by Commissioner Delaney.

Meeting Transcript

Motion passes. We are in recess for EDA. Vice President Lara. I would like to call to order the economic development authority meeting for February 4th, 2026. If you could take a note of the roll. Second is the approval of the agenda. Let me go ahead. I make a motion to approve the agenda. Second. Motion by Delaney and second by Commissioner Contreras. Third is do we vote? Oh in favor? Aye. Aye. All opposed, none. All right, passed. Number three, uh consent business. Um counselor or commissioner uh layman. Vice President Lara, I would move the consent agenda, which includes the approval of the minutes. Is there a second? Second. Motioned by Commissioner Lehman, second by Commissioner Contreras. Um next is uh general business for a oh um all in favor. Aye opposed, opposed um pass it general business uh number four approval of the three-year lease amendment for uh Z dress. Mr. Kirski, Mr. Vice President and uh board members. So this we had uh Z dress on a one-year lease to see whether they'd be successful. They have been, and so this is uh they asked for a three-year addition, so that's what's before you tonight. I will say we're very happy with their performance. We are having struggling with some of the other tenants, some of their businesses down 40 and 50 percent. So we're gonna be in for a couple of tough months while we work with our tenants. Questions of staff go ahead. Commissioner Lemon. Vice President Lara, I was I was gonna ask about the increases over the three years. Um I'm not reading it very clearly here, so it's is it going from 18 to 1825 to eight eighteen fifty, eighteen seventy-five? Is that standard increases or is that lower than anticipated or so uh vice president and board members? So typically we uh 14 is kind of our base number down there, and so we brought up some of the tenants over the years on some of the older leases. I think they probably went up too quickly, and that's why we're having some issues right now. So we're trying to phase it in and be more realistic. Find that balance. Pardon me looking for that balance, yes, sir. Okay, um, and just if I could ask, um, so they they work um currently they were on a what um a trial lease, right? And they did really well for that whole year, so now we're um we're gonna do it just for three more three more years, the effect of the first till January 31st of 2029. Yeah, so no no issues like you said. No, um sounds good. No, we're good. Uh you know what I do have one more question. Commissioner Lehman. Mr.

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