Shakopee Economic Development Authority Regular Meeting - March 4, 2026
Shakopee Economic Development Authority Regular Meeting - March 4, 2026
The Shakopee Economic Development Authority (EDA) met on March 4, 2026, at 7:00 PM at City Hall to consider a modification of a tenant's lease and approve routine business. Key actions included approval of the agenda, consent calendar, and a controversial vote to reduce rent for a struggling local business.
Consent Calendar
- Approval of the March 3, 2026 EDA meeting minutes was approved unanimously.
Discussion Items
- Modification of Lease at 155 1st Ave E (River City Centre): Staff recommended reducing the rent for a tenant whose sales had dropped approximately 30% and had a lease through October 2027. The proposed adjustment rolled rent back to $14 per square foot, the building's baseline rate. Staff noted the tenant was a longtime local business and that the EDA owned the building, making it preferable to keep the space occupied rather than risk vacancy. Some board members expressed concerns about setting a precedent for other businesses, but staff clarified the tenant had demonstrated a substantial loss, not just lower profits, and that other tenants were either offices or carry-out businesses not similarly affected. The market rate was described as competitive, with current vacancies in the area generating little interest.
Key Outcomes
- Lease Modification Approved: The motion to approve the rent reduction passed on a vote of 3 to 2. The reduction will remain in effect through the end of the current lease term (October 2027), with future renewal negotiations to be determined at that time.
- EDA Bill List: The bill list was approved without discussion.
- Adjournment: The meeting adjourned to the next regular EDA meeting scheduled for April 7, 2026.
Meeting Transcript
Let's call to order the Tuesday, March 3rd, 2026 meeting of the Shockabi Economic Development Authority. Please make note of the roll. First item is uh approval of our agenda. Mr. Yep, I'll make a motion to approve our agenda. Is there a second? I'll second. Motion and second. Uh any discussion? All those in favor say aye. Aye. Aye. Any opposed? All right. We do have item number three is our consent business, and that's just uh the approval of the last EDA meeting minutes. Uh Mr. Lehman? President, I'll move the consent agenda. Second. Motion and second. All those in favor say aye. Aye. Any opposed? All right. Uh General Business Item 4A, it's the modification of a lease at 155 First Avenue at River City Center. Mr. Kerskey. Chair, um board members, so this is a modification to one of our tenants' leases. Some of them have been significantly impacted over the past few months for what's been going on. This particular user, we did review their financials and their businesses down about 30 percent. They have until I believe it was October of 2027 left on their lease. So rather than have them close, we recommend rolling their rent back to the original value. Questions of staff? Mr. Lara. Okay. So this is for the uh current lease through 2027. Um if they choose to renew, are we going to be going back to the original rate? Is it going to be a modified rate? Are we going to take it as it happens? President and board members, uh, we'll have to see in 2027 where they are business wise, but I think we would renegotiate going forward. This is just uh stop camp measure to make sure they don't close and we can keep businesses in there. Mr. Thank you. Um I guess my question is um looking into the future. I know things, I mean, we're doing this to help this business, and I'm trying to, you know, see both sides. You know, would we rather have this business close and have that place empty and lose those revenues or go down like we're doing now? But my question is can we do that for other businesses if they start to struggle? Uh President and members, I mean I think it really depends on each situation. Uh real estate is like a lot like an airline, and once it takes off, you can't resell it.
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