2023 Annual Comprehensive Financial Report

CITY OF SHAKOPEE NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2023

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED) B. Lease Receivable As of December 31, 2023 the City had the following lease receivable:

Current Year

Other

Issue Date

Discount

Resources Inflow of

Received Payments

Year End Balance at

Description

Rate

Shakopee Cell Towers Ice Arena Dryland Room Ice Arena Room Rental

01/01/22 04/01/22 09/19/23 08/01/22

$

12,408 24,450

$

-

$

243,825

1.80% 1.30% 5.01%

4,311

81,89 3

4,668

-

27,477 1,902,46 2

River City Centre

336,014

18,036

0.44%-1.80%

$

2,255,657

* The River City Centre leases were purchased by the EDA 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 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. Under the Ice Arena Skate School lease, the vendor pays the City $1,160 per month for twelve months in exchange for use of 3 rooms within the Ice Arena building. The monthly rent increases 2.5% per year until the lease ends on January 1, 2026. The lessee makes an additional variable payment equal to hourly ice time based on enrollment ranging from $200 per hour up to $225 per hour. Additionally variable payments ranging from $5,500 to $14,000 per month are received based on enrollment for the use of ice. Under the Shakopee cell tower lease, the vendor pays the city $962 per month for 2 months for operating cell tower leases in the City of Shakopee. Each February lease payments increase 4% until the final payment on January 2040. Each term is 5 years and if cancelled must be cancelled prior to the start of the term. Under the Shakopee Ice Arena Dryland Room lease, the orthopedic vendor pays the city $2,000 per month for twelve months in exchange for operating its business within a 6,100 square foot space in the dryland room of the Ice Arena building. The monthly rent increases 2.5% per year for an additional four years. The lessee makes an additional variable payment equal to 5 percent of gross sales of all unlicensed athletic training services not to exceed $6,000.

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