2022 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2022

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Lease Receivable (Continued)

* The River City Centre leases were purchased by the city as of August 2022. All current tenants became tenants of the city at that time. There are a total of 13 units in the space. Rent is paid by all tenants to operate their business within their designated unit of the River City Centre building. The space is the retail/commercial space on the first floors of building A and B of River City Centre. Under the River City Center Building lease: 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 $1,313.96 per month for six months while the tenant is getting set up. After the introductory rate, the city is then paid $2,629.92 per month for twelve months increasing 3% every twelve months for 36 additional months. The lease ends May 2027. The retail vendor operates its business within a 1,993 square foot unit. The city is paid $3,238.63 per month for 13 months. The lease ends August 2023. The retail vendor operates its business within a 1,721 square foot unit. The city is paid $2,438.08 per month for the first five months. Every January rent is increased 3% for the remaining 50 months. The lease ends February 2027. The service industry vendor operates its business within a 1,290 square foot unit. The city is paid $1720 per month for 19 months. The lease ends February 2024. The lessee makes additional variable payments monthly to cover the operating cost of its space. The service industry vendor operates its business within a 2,421 square foot unit. The city is paid $3,532.64 per month for eight months increasing 3% for the next twelve months and 3% again until the end of the lease. The lease ends May 2024. The health care vendor operates its business within a 2,006 square foot unit. The city is paid $2,970.55 per month for seven months increasing 3% for the next 24 months and 3% one additional time until the end of the lease. The lease ends February 2027. The lessee makes an additional variable payment to cover the operating cost of its space. The retail space vendor operates its business within a 3,490 square foot unit. The payment terms vary over the life of the lease. The city is paid nothing for the first two months increased to $3,271.88 per month for nine months while the tenant is getting set up. After the introductory rate, the city is then paid $4,944.17 per month for twelve months increasing 5% every twelve months for 96 additional months. The lease ends June 2032. 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 $2,196.83 per month for five months while the tenant is getting set up. After the introductory rate, the city is then paid $2,275.29 per month for twelve months increasing 3% every twelve months for 60 additional months. The lease ends December 2028. * * * * * * *

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