2024 Annual Comprehensive Financial Report

CITY OF SHAKOPEE

NOTES TO THE FINANCIAL STATEMENTS DECEMBER 31, 2024

NOTE 5 – RECEIVABLES/UNAVAILABLE REVENUE (CONTINUED)

B. Lease Receivable (Continued) Under the River City Center Building lease:

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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. 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 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 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 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 $2,328 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 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.

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