2025 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2025

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED)

B. Lease Receivable (Continued)

Under the River City Center Building lease:

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The medical vendor operates its business within a 1,470 square foot unit. The city is paid $2,328 per month for 24 months. Rent is then increased to $2,389 for the next 24 months and $2,450 for the final 12 months. The lease ends June 2028. The service industry vendor operates its business within a 1,290 square foot unit. The city is paid $2,150 per month for 12 months. Rent is then increased 2.5% per year for a total of 5 years. The lease ends February 2029. The hospitality vendor operates its business within a 1,470 square foot unit. The city is paid $1,600 per month for 12 months. Rent is then increased to $1,650 for the next 24 months and $1,715 for the following 24 months. The lease ends April 2028. The retail vendor operates its business within a 1,732 square foot unit. The city is paid nothing for the first three months while the tenant is getting set up. Rent is then $2,454 per month for eight months. Each July rent is increased 3% per month for 36 months. There is one last 3% increase to finish out the remaining 16 months of the lease. The lease ends October 2027. The retail vendor operates its business within a 1,993 square foot unit. The payment terms vary over the life of the lease. The city is paid $3,322 per month for twelve months increasing 2.5%, 2.44%, 2.38% and 2.33% every twelve months for 48 additional months. The lease ends August 2028. The restaurant vendor operates its business within a 1,608 square foot unit. The city is paid $2,948 per month for the first four months. Every December rent is increased 2-3% based on the lease terms for the remaining 108 months. The lease ends November 2031. The retail space vendor operates its business within a 2,170 square foot unit. The payment terms vary over the life of the lease. The city is paid nothing for the first three months increased to $3,255 per month for 12 months. Rent is increased 50 cents per square feet every 12 months after the initial 12 month period for 48 additional months. The lease ends April 2030. The mortgage vendor operates its business within a 1,855 square foot unit. The payment terms vary over the life of the lease. The city is paid nothing for the first four months increased to $1,314 per month for six months while the tenant is getting set up. After the introductory rate, the city is then paid $2,630 per month for twelve months increasing 3% every twelve months for 36 additional months. The lease ends May 2027. The insurance vendor operates its business within a 1,883 square foot unit. The payment terms vary over the life of the lease. The city is paid $2,197 per month for five months while the tenant is getting set up. After the introductory rate, the city is then paid $2,275 per month for twelve months increasing 3% every twelve months for 60 additional months. The lease ends December 2028.

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