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Home My WebLink AboutFebruary 04, 2025 - EDA PacketSHAKOPE E Shakopee Economic Development Authority Economic Development Authority Regular Meeting Tuesday, February 4, 2025 7:00 PM City Hall, 485 Gorman Street 1. Roll Call 2. Approval of Agenda 3. Consent Business 3.a Approve the EDA Minutes 4. General Business 4.a Lease approvals for River City Centre 4.b Property disposition discussion 5. Reports 5.a EDA Bill List 6. Adjourn to March 4, 2025 at 7:00 p.m. Note to EDA Members: If you have any questions or need additional information on any of the above items, please call Michael Kerski, prior to the meeting at (952)233-9346/ 1 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee Economic Development Authority February 4, 2025 Approve the EDA Minutes Heidi Emerson, Deputy City Clerk 3.a Action to be considered: Approve the EDA meeting minutes from December 3, 2024 and January 7, 2025. Motion Type: Simple Majority Background: N/A Recommendation: Approve the above requested motion Budget Impact: N/A Attachments: EDA Minutes 12/3/24 EDA Minutes 1/7/25 2 Economic Development Authority SHAKOPEE Economic Development Authority City Hall 485 Gorman Street Shakopee, MN, 55379 Tuesday, December 3, 2024 7:00 p.m. Vision: Shakopee is a place where people want to be! A distinctive river town, with a multitude of business, cultural and recreational opportunities in a safe, welcoming, and attractive environment for residents and visitors. Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1 Roll Call PRESENT: President Angelica Contreras, Commissioner Jay Whiting, Commissioner Jesse Lara, Commissioner Matt Lehman, and Commissioner Jim DuLaney ABSENT: None. ALSO PRESENT: None. 2) Approval of Agenda Commissioner Jay Whiting made a motion to approve the Agenda, second by Commissioner Matt Lehman and the motion passed. 5 - 0 3) Reports 3.a) EDA Bill List Commissioner Jay Whiting made a motion to approve the EDA Bill List, second by Commissioner Matt Lehman and the motion passed. 5 - 0 4) Adjourn to January 7, 2025 at 7:00 p.m. https://shakopeemn.granicus.com/MinutesViewer.php?clip_id=61 &doc_id=2d 100095-bc94-11 ef-ab4b-005056a89546 3 Economic Development Authority Commissioner Jay Whiting made a motion to adjourn to January 7, 2025 at 7:00 p.m., second by Commissioner Matt Lehman and the motion passed. 5 - 0 https://shakopeemn.granicus.com/MinutesViewer.php?clip_id=61 &doc_id=2d100095-bc94-11 ef-ab4b-005056a89546 Economic Development Authority SHAKOPEE Economic Development Authority City Hall 485 Gorman Street Shakopee, MN, 55379 Tuesday, January 7, 2025 7:00 a.m. Vision: Shakopee is a place where people want to be! A distinctive river town, with a multitude of business, cultural and recreational opportunities in a safe, welcoming, and attractive environment for residents and visitors. Mission: Our mission is to deliver high quality services essential to maintaining a safe and sustainable community. We commit to doing this cost-effectively, with integrity and transparency. 1) Roll Call PRESENT: President Angelica Contreras, Commissioner Jay Whiting, Commissioner Jim DuLaney, Commissioner Jesse Lara, and Commissioner Matt Lehman ABSENT: None. ALSO PRESENT: None. 2) Approval of Agenda Commissioner Matt Lehman made a motion to approve the agenda, second by Commissioner Jay Whiting and the motion passed. 5 - 0 3) Reports 3.a) EDA Bill List 4) Adjourn to February 4, 2025 at 7:00 p.m. Commissioner Jay Whiting made a motion to adjourn to February 4, 2025 at 7:00 p.m., second by Commissioner Jim DuLaney and the motion passed. 5 - 0 file:///C:/Users/hemerson/OneDrive - City Of Shakopee/Documents/Desktop/EDA Minutes 1-7-25.html 5 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee Economic Development Authority February 4, 2025 Lease approvals for River City Centre Michael Kerski, Planning and Development Director Michael Kerski 4.a Action to be considered: Approve leases Motion Type: Simple Majority Background: Z Dress (formerly operating as Maaz Express, LLC by owner Ziyad Abdi) has been a retail tenant in the River City Centre since July 1, 2022 prior to the EDA's purchase of the leasehold. Mr. Abdi has been the operator of both Z Dress and Shakopee Market Halal businesses in the River City Centre. The businesses occupied Suites 265 and 275. The Shakopee Market Halal space is a state licensed food preparation facility. As of January 31, 2025, Maaz Express (and Shakopee Market Halal) will no longer be a tenant at River City Centre. The proposed plan is to allow Z Dress to continue to operate under a new lease and ownership at its existing location at Suite 265. Z Dress will now operated by Anab Ali and her LLC operating entity is Bilkhery Boutique Fashion, LLC. They have been operating in the space the past several months under an improper sublease. The new owners met with Lee Hall of the Scott County CDA's NEXT program and developed a business plan and cash flow projections. They are selling women's dresses, accessories, rugs and assorted goods catering to their customer base. Sales have increased since their operation of the business. Staff has reviewed the business plan and proposes a one year lease to see if the new business model can succeed. Yummy Bites is currently located in Minneapolis in Northeast. They have a large following on social media and have been very successful. One of the owners will be relocating to Shakopee to run the River City Centre location. They serve a variety of coffee drinks along with pastry, treats, waffles, and assorted desserts. They had been in negotiations for another location in Shakopee but approached the EDA when they 6 learned of the availability in River City Centre. They would like the five year lease with an option which mirrors the lease they have in Minneapolis. Recommendation: Approve a lease with Bilkhery Boutique Fashion, LLC for one year for $23,760 and a lease with Yummy Bites for five years with a starting annual rent of $39,060 with one month free rent and an annual rent increase of .50/per square foot thereafter and an option to renew for five years. Budget Impact: Keeps the property fully leased with a variety of tenants. Attachments: 7 SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee Economic Development Authority February 4, 2025 Property disposition discussion Michael Kerski, Planning and Development Director Michael Kerski 4.b Action to be considered: Feedback only Motion Type: Informational only Background: The EDA purchase the property off of Vierling Drive from MNDOT as part of the 169 expansion. The EDA sold one large parcel to OPUS for construction of the Cherne headquarters which was later sold to Cabot Realty. The other sites were sold to Doggie Doos, the rehabilitation center and to Trinity Development for the townhome development that is currently under construction. Scott O'Brien's development company is proposing to purchase the land that Cherne did not use to the north of its current headquarters. Staff has spoken with Cabot which would sell the land back to the city at the original purchase price since they have no plans to develop the remainder of the site. This would be a phased sale. The EDA would complete a lot split, creating a new parcel of about four acres. It would then purchase the property from Cabot and at the same closing or within a very short period sell the property to the new owner for the development of an approximately 80,000 square foot building. They have been working with a number of local businesses that would locate in the building. Utilities and roads have already been constructed to the site. This would be a similar plan to the original OPUS plan. They would construct a tilt up concrete building similar to Cherne. Since this would require several steps on the EDA's part, if the EDA board choses, we would move forward with a contract and begin the necessary steps to sell based on the timing in the agreement. 8 Recommendation: Provide feedback and direction. Budget Impact: Provides funding to replenish the EDA's acquisition funding. Attachments: 9 WILLA! SHAKOPEE Agenda Item: Prepared by: Reviewed by: Shakopee Economic Development Authority February 4, 2025 EDA Bill List Becky Smith, Accounting Specialist 5.a Action to be considered: Review EDA Bill List Motion Type: Informational only Background: EDA Bill List provided to EDA Commissioners Recommendation: Information Only Budget Impact: N/A Attachments: 10