2023 Annual Comprehensive Financial Report

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

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

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The service industry vendor operates its business within a 2,421 square foot unit. The city is paid $3,533 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 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 $3,272 per month for nine months while the tenant is getting set up. After the introductory rate, the city is then paid $4,944 per month for twelve months increasing 5% every twelve months for 96 additional months. The lease ends June 2032. The service industry vendor operates its business within a 1,290 square foot unit. The city is paid $1 , 720 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 retail vendor operates its business within a 1,721 square foot unit. The city is paid $2,438 per month for the first five months. Every January rent is increased 3% for the remaining 50 months. The lease ends February 2027. 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 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 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 medical vendor operates its business within a 1,470 square foot unit. The city is paid $2,327 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 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.

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