HomeMy WebLinkAboutSeptember 02, 2025 - EDA PacketSHAKOPE E
Shakopee Economic Development Authority Regular Meeting
Tuesday, September 2, 2025
7:00 PM
City Hall, 485 Gorman Street
1. Roll Call
2. Approval of Agenda
3. General Business
3.a 2026 EDA Levy and Budget
3.b Lease with Delicias Ice Cream Cravings, LLC
4. Reports
4.a EDA Bill List
5. Adjourn to October 7, 2025, at 7:00 pm
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
WILLA!
SHAKOPEE
Agenda Item:
Prepared by:
Reviewed by:
Shakopee Economic
Development Authority
September 2, 2025
2026 EDA Levy and Budget
Nate Reinhardt, Finance Director
3.a
Action to be considered:
Adopt Resolutions E2025-002 and E2025-003, approving the 2026 EDA special benefit levy
of $550,000 and 2026 budget, respectively.
Motion Type:
Simple Majority
Background:
The Shakopee EDA levies their own separate tax, which is not part of the city's general
property tax levy, and is identified separately on property tax statements. The EDA levy is
subject to to a limit of of 0.0185 percent of the city's estimated market value. The EDA
levy cap for 2026 is $1,532,765. The EDA levy is applied to all taxable properties within
the city including properties that are currently part of a tax abatement or tax increment
plan.
The EDA levy is proposed at $550,000 which is a $50,000 increase from the previous levy.
The EDA levy is specifically designated for economic development activities and any funds
unspent from year to year will remain in this fund for this purpose.
For the median value home value at $361,300, if the proposed levy of $550,000 is
approved the annual property taxes on the median value home would be approximately
$21. This is about $2 more than taxes paid on the 2025 median value home of $350,700.
State statues require the approval of City Council, prior to the tax levy becoming
effective. The EDA levy will be forwarded to Council for approval. A preliminary EDA must
be certified to the County Auditor by the deadline of September 30, 2025. Similar to the
city's levy, the final levy can be reduced, but cannot be increased. However, staff
anticipates asking City Council for final approval of the EDA levy at the City Council's
September 16, 2025 meeting.
2
Attached is the 2026 EDA budget and the 2026 River City Centre budget. River City Centre
operations are accounted for under a separate sub -fund of the EDA.
The EDA budget includes revenues from the property tax levy, $335k from Shakopee
Public Utilities (SPU) based on the payment in lieu of taxes agreement , $20k for Social
District licenses and cup sales, and $24k in general admissions related to EDA's TAP
event.
Operating expenditures include $273k for wages and benefits which includes the
Economic Development Coordinator plus a half of the Planning & Development Director's
time. The EDA budget also includes $25k for legal services, $50k for planning services and
$295k in professional services ($70k for facade loan requests/$100k for entrepreneurship
programming/$25k for Main Street Programming/$30k for the EDA's TAP event/$20k for
marketing/$50k miscellaneous professional consulting services).
The EDA budget also includes the installation of a level 3 charger at the Quarry Lake
parking lot. This would be be a joint effort with Xcel energy, the EDA would be
responsible for about $75k of the $200k estimated cost.
Staff is proposing a new recurring annual transfer beginning in 2026 from the EDA to the
City's General fund in the amount of $50k. Similar to the city utility funds (sewer and
storm water), the EDA receives administration support from general fund operations
including city council, finance, information technology, communications and human
resources. From a financial standpoint, the administration allocation would better reflect
the full cost of EDA operations. A corresponding $50k increase in the EDA levy is being
proposed, resulting in no impact on the EDA operational funding.
The River City Centre budget includes estimated tenant revenues of $400k. Revenue
amounts are best estimates and will be impacted by renewals or tenant turnover.
Building maintenance was increased for potential tenant space improvements for lease
expiring June 2026 (Concrete Mobility space). The budget also includes the replacement
of the original roof. The Scott County CDA will be completing plans and bidding and the
costs will be shared evenly with the EDA and the CDA.
The EDA (including River City Centre) had a cash deficit at the end of 2024, as a result of
the acquisition of the master lease and building improvements to River City Centre. The
deficit will be recouped over time through lease revenue and interfund repayments from
the administration funds of Tax Increment District #18.
3
Recommendation:
Adopt the resolutions as requested.
Budget Impact:
The EDA levy will provide the EDA with operation funding for 2026.
Attachments:
E2025-002 EDA Levy.pdf
E2025-003 EDA Budget.pdf
2026 EDA Budget.pdf
2026 RCC Budget.pdf
EDA Budget Presentation (9-2-2025).pdf
4
ECONOMIC DEVELOPMENT AUTHORITY FOR THE
CITY OF SHAKOPEE, MINNESOTA
RESOLUTION NO. E2025-002
AUTHORIZING THE LEVY OF A SPECIAL BENEFIT LEVY PURSUANT TO
MINNESOTA STATUTES, SECTION 469.033, SUBDIVISION 6
WHEREAS, pursuant to Resolution No. 4206, adopted by the City Council of the City of Shakopee,
Minnesota (the "City"), on April 4, 1995, as amended by Resolution No. 4381, adopted by the City Council
of the City on February 6, 1996, and Minnesota Statutes, Sections 469.090 through 469.1082, the City
created the Economic Development Authority for the City of Shakopee, Minnesota (the "Authority"); and
WHEREAS, the Authority has the ability to exercise all powers and duties of a housing and
redevelopment authority under the provisions of Minnesota Statutes, Sections 469.001 through 469.047 (the
"I -IRA Act"); and
WHEREAS, Section 469.033, subdivision 6 of the HRA Act permits the Authority to levy and
collect a special benefit tax of up to 0.0185% of estimated market value of taxable property within the City,
levied upon all taxable real property within the City; and
WHEREAS, the special benefit tax levy authorized by Section 469.033, subdivision 6 of the HRA
Act is separate and distinct from the City's levy and is not subject to levy limits; and
WHEREAS, the Authority desires to levy a special benefit tax in the amount of $550,000, which is
less than 0.0185% of the estimated market value of taxable property within the City; and
WHEREAS, the Authority has determined to adopt a budget for fiscal year 2026 that provides for
levy of the special benefits tax in amount of $550,000 to be used for the Authority's economic development
and redevelopment activities; and
NOW, THEREFORE, BE IT RESOLVED by the Board of Commissioners (the "Board") of the
Economic Development Authority for the City of Shakopee, Minnesota as follows:
1. The Board hereby approves a budget of $550,000 in proceeds of special benefits tax to be
collected in 2025, subject to the approval of such budget by the City Council of the City (the
"City Council").
2. Staff of the Authority is hereby authorized and directed to file the budget with the City in
accordance with Section 469.033, subdivision 6 of the HRA Act and request that the City
Council consider approval of the special benefits tax levy.
3. There is hereby levied a special benefit tax pursuant to Section 469.033, subdivision 6 of the
HRA Act in the amount equal to the lesser of a levy at a rate of 0.0185% of the estimated
market value of taxable property within City or $550,000 with respect to taxes payable in
calendar year 2026, contingent upon the approval of the City Council.
4. Staff of the Authority is hereby authorized and directed to take such other actions as are
necessary to levy and certify such levy upon approval by the City Council.
5071681/1 JAE SH235-1
5
Sworn and Executed Under My Hand this 2nd day of September 2025.
President
Executive Director
5071681/1 JAE SH235-1
2
6
ECONOMIC DEVELOPMENT AUTHORITY FOR THE
CITY OF SHAKOPEE, MINNESOTA
RESOLUTION NO. E2025-003
A RESOLUTION ADOPTING THE 2026 BUDGET
BE IT RESOLVED BY THE BOARD OF COMMISSIONERS OF THE ECONOMIC DEVELOPMENT
AUTHORITY OF THE CITY OF SHAKOPEE, MINNESOTA that the 2026 Budget with the estimated
revenues and appropriations for the Economic Development Authority Fund as shown below is hereby adopted.
2026 Budget
Economic Development Authority Fund
Revenues
Taxes
Licenses
Intergovernmental
Charges for Services
Miscellaneous
Total Revenues
Expenditures
Economic Development
Other Financing
Transfers
Net Surplus (Deficit)
Sworn and Executed Under My Hand this 2nd day of September 2025.
$ 550,000
20,000
335,000
24,000
2,000
931,000
781,700
50,000
$ 99,300
President
Executive Director
7
2026 Annual Budget
ECONOMIC DEVELOPMENT AUTHORITY DETAIL
Object
Account
Actual
2023
Actual
2024
Budget
2025
Requested
Budget 2026
02190 - ECONOMIC DEVELOPMENT AUTHORITY
REVENUES:
4011 - CURRENT PROPERTY TAX
4013 - MARKET VALUE CREDIT
4015 - FISCAL DISPARITIES
4020 - MOBIL HOME TAX
4025 - PAYMENT IN LIEU OF TAXES
4031 - EXCESS TAX INCREMENT
4040 - OTHER TAXES
(439,707.91)
(41.20)
(53,604.79)
(4.07)
(896.27)
(74,001.42)
(26.74)
(452,011.92)
(37.00)
(46,158.55)
(3.74)
(862.34)
0.00
49.58
(500,000.00)
0.00
0.00
0.00
0.00
0.00
0.00
(550,000.00)
0.00
0.00
0.00
0.00
0.00
0.00
TAXES
4243 - MISC LICENSE
(568,282.40)
0.00
(499,023.97)
0.00
(500,000.00)
0.00
(550,000.00)
(20,000.00)
LICENSES AND PERMITS
4450 - STATE GRANTS & AIDS
4490 - OTHER GRANTS/AIDS
4705 - SPUC REVENUE CONTRIBUTION
0.00
(23,250.00)
0.00
(332,058.59)
0.00
0.00
0.00
(317,529.00)
0.00
0.00
0.00
(330,000.00)
(20,000.00)
0.00
0.00
(335,000.00)
INTERGOVERNMENTAL
4588- BUSINESS SUBSIDY APP FEE
4766 - GENERAL ADMISSIONS
CHARGES FOR SERVICES
4833 - INTEREST
4834 - CHANGE IN FAIR MARKET VALUE
4850 - MISCELLANEOUS
4855 - SALE OF ASSETS
(355,308.59)
0.00
(23,995.90)
(23,995.90)
(42,333.72)
(4,509.66)
0.00
(12,000.00)
(317,529.00)
(12,000.00)
(17,736.95)
(29,736.95)
(73,466.44)
(38,522.57)
23.88
0.00
(330,000.00)
0.00
(28,000.00)
(28,000.00)
(1,000.00)
0.00
0.00
0.00
(335,000.00)
0.00
(24,000.00)
(24,000.00)
(2,000.00)
0.00
0.00
0.00
MISCELLANEOUS
(58,843.38)
(111,965.13)
(1,000.00)
(2,000.00)
REVENUES
EXPENDITURES:
6002 - WAGES
(1,006,430.27)
166,954.24
(958,255.05)
180,937.88
(859,000.00)
206,900.00
(931,000.00)
222,200.00
WAGES
6122 - PERA
6124 - FICA
6135 - HEALTH
6136 - PAID FAMILY LEAVE
6139 - POST EMPLOYMENT HEALTH PLAN
6140 - LIFE/LTD
6145 - DENTAL
6170 - WORKERS COMPENSATION
6180 - COMPENSATED ABSENCES
166,954.24
13,897.74
13,514.16
15,095.03
0.00
810.02
458.38
717.60
1,197.15
2,009.70
180,937.88
14,787.68
14,403.99
18,026.99
0.00
809.97
482.35
717.60
960.49
1,815.75
206,900.00
15,500.00
15,800.00
10,800.00
0.00
500.00
400.00
500.00
800.00
2,200.00
222,200.00
16,700.00
17,000.00
11,900.00
600.00
500.00
400.00
500.00
500.00
2,300.00
BENEFITS
47,699.78
52,004.82
46,500.00
50,400.00
WAGES & BENEFITS
214,654.02
232,942.70
253,400.00
272,600.8')
2026 Annual Budget
ECONOMIC DEVELOPMENT AUTHORITY DETAIL
Object
Account
6202 - SUPPLIES
6213- MEETINGS
6310 - ATTORNEY
6312- ENGINEERING/DESIGN CONSULTANTS
6315 - BUILDING REPAIRS & MAINTENANCE
6327 - PROFESSIONAL SERVICES
6332 - POSTAGE
6334 - TELEPHONE
6336- PRINTING/PUBLISHING
6338 - ADVERTISING
6351 - INSURANCE PREMIUM (IS FUND)
6410 - SOFTWARE
6415 - INFORMATION TECHNOLOGY RENT (IS FUND)
6420 - EQUIPMENT LEASES
6430 - BUILDING RENT (IS FUND)
6435 - OTHER RENT
6472 - CONFERENCE/SCHOOL/TRAINING (ALL EXPENSES)
6476- MILEAGE
6480 - DUES
6490 - SUBSCRIPTIONS/PUBLICATIONS
Actual
2023
3,744.83
10,987.97
3,761.00
0.00
0.00
226,140.04
416.91
510.47
1,213.27
8,288.32
11,300.00
12,328.38
1,800.00
100.98
6,600.00
0.00
670.24
0.00
2,066.00
564.00
Actual
2024
389.46
12,086.14
5,651.00
0.00
0.00
235,636.80
311.09
496.37
1,126.62
17,519.95
8,300.00
1,843.73
2,400.00
0.00
6,200.04
999.50
428.00
390.16
1,921.00
10,784.00
Budget Requested
2025 Budget 2026
3,500.00 14,500.00
3,000.00 3,000.00
25,000.00 25,000.00
50,000.00 50,000.00
0.00 0.00
281,000.00 295,000.00
500.00 500.00
500.00 500.00
500.00 500.00
15,000.00 15,000.00
8,700.00 9,900.00
13,600.00 3,700.00
2,200.00 3,400.00
0.00 0.00
6,000.00 6,000.00
0.00 0.00
3,000.00 3,000.00
500.00 500.00
2,100.00 2,100.00
1,500.00 1,500.00
SUPPLIES AND SERVICES
6620 - PROPERTY TAX/SPECIAL ASSESS
6661 - CASH SHORT
MISCELLANEOUS EXPENSE
6765 - IMPROVEMENTS/INFRASTRUCTURE
290,492.41 306,483.86 416,600.00 434,100.00
0.00 3,192.00 0.00 0.00
(41.00) 0.00 0.00 0.00
(41.00)
13,726.00
3,192.00 0.00 0.00
150,000.00 0.00 75,000.00
CAPITAL OUTLAY
6860 - FISCAL AGENT FEES
13,726.00 150,000.00
525.00
0.00
0.00 75,000.00
0.00 0.00
DEBT SERVICE
525.00
0.00
0.00 0.00
EXPENDITURES
OTHER FINANCING:
519,356.43 692,618.56 670,000.00 781,700.00
TRANSFERS IN
8053 - TRANSFER OUT TO GENERAL FUND
0.00
0.00
0.00 23,250.00
0.00
0.00
0.00
50,000.00
TRANSERS OUT
8101 - PROCEEDS CAPITAL ASSET SALES
0.00 23,250.00
(275,000.00)
0.00
0.00
0.00
50,000.00
0.00
GAIN/LOSS ON DISPOSAL OF ASSET
(275,000.00)
0.00
0.00 0.00
OTHER FINANCING
(275,000.00) 23,250.00
0.00 50,000.00
Total 02190 - ECONOMIC DEVELOPMENT AUTHORITY (762,073.84) (242,386.49) (189,000.00) (99,300.00)
9
2026 Annual Budget
RIVER CITY CENTRE DETAIL
Object
Account
Actual Budget Requested
2023 2024 2025 Budget 2026
02300 - RIVER CITY CENTRE
REVENUES:
4833 - INTEREST
4841,4964- LEASE RENT/REVENUE
4842 - LEASE OPERATING CHARGE
4850 - MISCELLANEOUS
(32,092.43)
(442,941.13)
(17,190.43)
(26,760.51)
(39,906.31)
(439,573.35)
(12,029.00)
(156,995.25)
0.00
(400,000.00)
(16,000.00)
0.00
0.00
(400,000.00)
0.00
0.00
MISCELLANEOUS
(518,984.50)
(648,503.91)
(416,000.00) (400,000.00)
REVENUES
EXPENDITURES:
6202 - SUPPLIES
6240 - EQUIPMENT REPAIR & MAINTENANCE
6310 - ATTORNEY
6312- ENGINEERING/DESIGN CONSULTANTS
6315 - BUILDING REPAIRS & MAINTENANCE
6326 - CLEANING SERVICES
6327 - PROFESSIONAL SERVICES
6352 - LIABILITY
6362 - ELECTRIC
6364 - WATER
6365 - GAS
6366 - SEWER
6367 - REFUSE
6368 - STORM
6472 - CONFERENCE/SCHOOL/TRAINING (ALL EXPENSES)
(518,984.50) (648,503.91) (416,000.00) (400,000.00)
367.51
11,714.79
55,526.00
0.00
23,851.77
2,733.63
99,414.85
5,084.75
184.00
(49.72)
2,194.80
19.20
8,334.89
10.92
552.63
59.61
0.00
8,293.49
0.00
59, 942.78
7,510.39
25,341.70
5,708.75
1,000.00
0.00
1,078.57
0.00
9,388.56
0.00
0.00
200.00
10,000.00
15,000.00
0.00
35,000.00
5,000.00
20,000.00
6,000.00
2,000.00
300.00
3,000.00
300.00
12,000.00
200.00
0.00
200.00
10,000.00
15,000.00
0.00
60,000.00
5,000.00
25,000.00
6,000.00
2,000.00
300.00
3,000.00
300.00
12,000.00
200.00
0.00
SUPPLIES AND SERVICES
6610 - AWARDS & DAMAGES
6620 - PROPERTY TAX/SPECIAL ASSESS
MISCELLANEOUS EXPENSE
6765 - IMPROVEMENTS/INFRASTRUCTURE
209,940.02
0.00
102,328.00
102,328.00
3,454,181.92
118,323.85
0.00
112,736.00
112,736.00
108,498.85
109, 000.00 139, 000.00
0.00
115,000.00
0.00
115,000.00
115, 000.00 115, 000.00
0.00 400,000.00
CAPITAL OUTLAY
3,454,181.92
108,498.85
0.00 400,000.00
EXPENDITURES
OTHER FINANCING:
8019 - TRANSFER IN FROM CAPITAL FUND
TRANSFERS IN
3,766,449.94
339, 558.70
(3,592,076.30) (421,105.70)
(3,592,076.30) (421,105.70)
224,000.00 654,000.00
0.00
0.00
0.00
0.00
OTHER FINANCING
(3,592,076.30) (421,105.70)
0.00
0.00
Total 02300 - RIVER CITY CENTRE (344,610.86) (730,050.91) (192,000.00) 254,000.00
10
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11
2026 EDA Budget and Levy
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2026 EDA Budget and Levy - Revenues
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14
2026 River City Centre
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PI°ILA'
SHAKOPE E
Agenda Item:
Prepared by:
Reviewed by:
Shakopee Economic
Development Authority
September 2, 2025
Lease with Delicias Ice Cream Cravings, LLC
Michael Kerski, Planning and Development Director
Michael Kerski
3.b
Action to be considered:
Staff recommends approval of a new five-year lease agreement with Delicias Ice Cream
Cravings, LLC (d/b/a Delicias Del Viejo), under substantially the same terms as the existing
lease, in order to satisfy financing requirements and ensure continued tenancy at River
City Centre.
Motion Type:
Simple Majority
Background:
Delicias Del Viejo has been a tenant in the River City Centre since January 1, 2022,
occupying a 1,721 sq. ft. suite located on the west side of the building. When the
Shakopee EDA acquired River City Centre in early 2022, the Authority was assigned the
existing lease agreement with Delicias Del Viejo from Shakopee River City Centre
Associates.
For the past three years, the business was owned and operated by Norma Cabadas. Over
the past two years, Miranda Jimenez has served in an advisory and consulting role for the
business. During this period, Delicias Del Viejo also received significant operational
funding through Scott County and Next Stage, with guidance from advisor Lee Hall.
Business Transition
Ms. Cabadas has recently exited the business and sold Delicias Del Viejo to Ms. Jimenez.
To complete the purchase, Ms. Jimenez obtained financing from Next Stage for the
acquisition of the business assets. A condition of the financing requires a new lease with a
minimum five-year term, consistent with the term of the financing.
Lease Proposal
Staff proposes that the EDA enter into a new five-year lease agreement with Ms. Jimenez
under the new ownership entity Delicias Ice Cream Cravings, LLC. The proposed lease will
closely mirror the terms of the current lease in place.
17
Business Name / Signage: The business will continue to operate as Delicias Del Viejo
with no change to exterior signage.
Ownership Entity: The operating LLC will transition to Delicias Ice Cream Cravings, LLC.
Facility Licensing: The tenant remains a state -licensed food retail facility.
Existing Lease - Delicias Del Viejo
Period
01/01/22 -
02/28/22
03/01/22 -
12/31 /22
01/01/23 -
12/31 /23
01/01/24 -
12/31 /24
01/01/25 -
12/31 /25
01/01/26 -
12-31-26
01/01/27 -
02/28/27
Proposed Lease -
Period
09/01/25 -
8/31 /26
09/01/26 -
08/31 /27
09/01/27 -
08/31 /28
Annual Base
rent, per
square foot
$0.00
$17.00
$17.51
$18.04
$18.58
$19.13
Monthly Base Period Gross
Square Feet Rent Rent
1,721
1,721
1,721
1,721
1,721
1,721
$0.00
$2,438.08
$2,511.23
$2,586.56
$2,664.16
$2,744.08
$0.00
$24,380.80
$30,134.76
$31,038.72
$31,969.92
$32,928.96
$19.71 1,721 $2,826.41 $5,652.82
Annual Base
rent, per
square foot
Monthly Base Period Gross
Square Feet Rent Rent
$18.58 1,721
$19.13 1,721
$19.71 1,721
$2,664.16
$2,744.08
$2,826.41
$31,969.92
$32,928.96
$33,916.92
18
09/01/28 -
08/31 /29
09/01/29 -
08/31 /30
$20.25 1,721 $2,904.19 $34,850.28
$20.80 1,721 $2,983.06 $35,796.72
Recommendation:
Approve Lease
Budget Impact:
Longer term lease aid in rent stability and revenue growth
Attachments:
8-22-25 LEASE AGREEMENT Delicias Del Viejo.docx
19
LEASE AGREEMENT
FOR
RIVER CITY CENTRE
BY AND BETWEEN
ECONOMIC DEVELOPMENT AUTHORITY
OF THE CITY OF SHAKOPEE, MINNESOTA
AND
Ms. Miranda Jimenez, owner Delicias Ice Cream Cravings, LLC d/b/a
Delicias Del Viejo
20
1. LEASE OF PREMISES 1
2. DEFINITIONS 1
3. EXHIBITS AND ADDENDA 3
4. DELIVERY OF POSSESSION 4
5. RENT 4
6. PROJECT OPERATING COSTS 5
7. PROJECT TAXES 5
8. PAYMENT OF PROJECT OPERATING COSTS AND TAXES 5
9. INTEREST AND LATE CHARGES 6
10. SECURITY DEPOSIT 6
11. UTILITY SERVICES 6
12. TENANT'S USE OF THE PREMISES 7
13. CONDITION OF THE PREMISES. 9
14. MAINTENANCE AND REPAIRS 9
15. ALTERATIONS AND ADDITIONS 10
16. LEASEHOLD IMPROVEMENT; TENANT'S PROPERTY 11
17. RULES AND REGULATIONS 11
18. CERTAIN RIGHTS RESERVED BY LANDLORD 11
19. ASSIGNMENT AND SUBLETTING 12
20. HOLDING OVER 13
21
21. SURRENDER OF PREMISES 13
22. DESTRUCTION OR DAMAGE 13
23. EMINENT DOMAIN 14
24. INDEMNIFICATION 15
25. TENANT'S INSURANCE 15
26. WAIVER OF SUBROGATION 16
27. SUBORDINATION AND ATTORNMENT 17
28. TENANT ESTOPPEL CERTIFICATES 17
29. TRANSFER OF LANDLORD'S INTEREST 17
30. DEFAULT 17
31. BROKERAGE FEES 21
32. NOTICES 21
33. QUIET ENJOYMENT 21
34. OBSERVANCE OF LAW 21
35. FORCE MAJEURE 21
36. CURING TENANT'S DEFAULTS 22
37. SIGN CONTROL 22
38. HAZARDOUS SUBSTANCES 22
39. RELOCATION OF PREMISES 25
40. PUBLIC ACCOMMODATIONS LAWS 25
41. MISCELLANEOUS 26
22
ADDENDUM #1 - OTHER TERMS AND CONDITIONS
EXHIBIT "A" SITE PLAN AND FLOOR PLAN
EXHIBIT "B" LEGAL DESCRIPTION
EXHIBIT "C" LANDLORD'S WORK/TENANT'S WORK
EXHIBIT "D" GUARANTY AND AGREEMENT
EXHIBIT "E" GENERAL SPECIFICATIONS FOR TENANT'S ALTERATIONS OR
IMPROVEMENTS
EXHIBIT "F" - SIGN CRITERIA
23
SHAKOPEE RIVER CITY CENTRE LEASE
This Lease between the Economic Development Authority of the City of Shakopee,
Minnesota, a public body corporate and politic and a political subdivision of the State of
Minnesota ("Landlord"), and Delicias Ice Cream Cravings, LLC DBA Delicias Del Viejo
("Tenant") is made effective as of September 1, 2025.
1. LEASE OF PREMISES
In consideration of the Rent (as defined in Section 5.01) and the provisions of this
Lease, Landlord leases to Tenant and Tenant leases from Landlord the Premises
as described in Section 2.03 that are a part of Landlord's project described in
Section 2.02 located at the River City Centre, Shakopee, Minnesota.
2. DEFINITIONS
As used in this Lease, the following terms shall have the following meanings:
2.01 River City Centre: The Scott County Housing and Redevelopment Authority, or,
"HRA" (now known as the Scott County Community Development Agency) mixed -
use development in downtown Shakopee, Minnesota along First Avenue and
Lewis Streets consisting of:
(1) two three-story buildings, identified as Building A (west building) and
Building B (east building) [each with retail/commercial space on the first
floor and seniors' housing on the second and third floors; and Building B
with a below -ground parking garage exclusively for the second and third
story housing],
(2) adjacent public sidewalks,
(3) a surface public parking lot, and
(4) a public plaza area between the two buildings;
all on land owned in fee simple by the City of Shakopee that the EDA has leased
from the City of Shakopee, Minnesota until June 30, 2035. Exhibit A is the site
plan for River City Centre. The legal description for River City Centre is set forth
in Exhibit B.
2.02 Project: The retail/commercial space on the first floors of Buildings A and
B of River City Centre as shown on Exhibit A which Landlord has leased from the
EDA through June 30, 2035 (subject to early termination by Landlord after June
30, 2025), to develop for subletting to retail and commercial users.
2.03 Premises: That portion of the Project located in Building A of River City
Centre containing approximately 1,721 square feet of Leasable Area as located on
Exhibit A, with a general mailing address of 175 1st Avenue East, Shakopee, MN,
55379.
2.04 Tenant's Use Clause (Article 12): Retail ice cream, snacks, and retail sale
1
24
of related products/merchandise, and for no other use or purpose.
2.05 ProjectedDeliveryDate: NA -tenant already operating.
2.06 Commencement Date: September 1 , 2025.
2.07 Expiration Date: 60 full calendar months following the Commencement
Date, unless otherwise extended or sooner terminated in accordance with the
provisions of this Lease.
2.08 Term: The period commencing on the Commencement Date and expiring
at midnight of the Expiration Date or as extended by the exercise of an option, if
any, to extend the Term.
2.09 Security Deposit (Section 10): Landlord requires and acknowledges receipt
of a security deposit in the amount of $2,438.08 (the "Security Deposit").
2.10 Intentionally deleted.
2.11 Monthly Installments of Gross Rent:
Period
Annual Per
Square Foot Per
Year
Monthly Gross Rent
Period Gross Rent
9/01/2025-8/31/2026
$18.58
$2,664.16
$31,969.92
9/01/2026-8/31/2027
$19.13
$2,744.08
$32,928.96
9/01/2027 - 8/31/2028
$19.71
$2,826.41
$33,916.92
9/01/2028-8/31/2029
$20.25
$2,904.19
$34,850.28
9/01/2029 - 8/31/2030
$20.80
$2,983.06
$35,796.72
2.12 Tenant's Proportionate Share: Intentionally deleted.
2.13 Leasable Area: The respective measurements of floor area of the Premises
and Project, respectively, as determined by Landlord and applied on a consistent
basis throughout the Project.
2.14 Estimated Monthly Project Operating Cost on Commencement Date:
Included in the Monthly Installments of Gross Rent.
2.15 Estimated Monthly Real Estate Taxes and City Fees on Commencement
Date: Included in the Monthly Installments of Gross Rent.
2.16 Percentage Rent: Intentionally deleted.
2.17 Gross Sales: Intentionally deleted.
2.18 Lease Year: The period ending twelve (12) full consecutive calendar
months after the date specified in section 2.06 and each subsequent period of
twelve (12) full consecutive calendar months that ends within the Term. A part of
2
25
the Term that is less than twelve (12) full calendar months, occurring after the last
full lease year, is a Fractional Lease Year.
2.19 Landlord's Work and Tenant's Work: shall have the meaning set forth on
Exhibit C attached hereto.
2.20 State: The State of Minnesota.
2.21 Broker(s):
Landlord's Broker: None
Tenant's Broker: None
2.22 Landlord: The Economic Development Authority of the City of Shakopee,
Minnesota, a public body corporate and politic and a political subdivision of the
State of Minnesota, or such other person as succeeds, by operation of law or
assignment, to its rights and obligations as landlord under this Lease and all of its
interest in the Project (or such part of that interest) as is necessary to fulfill the
landlord's obligations under this Lease.
2.23 Mailing Addresses for Notices:
Landlord's Mailing Address: Shakopee Economic Development Authority,
Attn: Executive Director, 485 Gorman St., Shakopee, MN 55379 or email to:
BReynolds@shakopeemn.gov
Tenant's Mailing Address: Notices shall be delivered to Tenant at the Premises
or email to: deliciasdelviejoshakopee@gmail.com
3. EXHIBITS AND ADDENDA
The exhibits and addenda listed below (unless lined out) are incorporated by
reference in this Lease:
Addendum #1 - Other Terms and Conditions.
Exhibit A - Premises Location Plan.
Exhibit B - Legal Description of River City Centre.
Exhibit C — Landlord's Work/Tenant's Work.
Exhibit D — Guaranty and Agreement.
Exhibit E - General Specifications for Tenant's Alterations or
Improvements.
Exhibit F - Sign Criteria.
4. DELIVERY OF POSSESSION
4.01 Landlord and tenant anticipate that Landlord will deliver possession of the
Premises to Tenant by the Projected Delivery Date. "Delivery of possession" will
be deemed to occur on the date Landlord completes Landlords Work defined in
Exhibit C 9 if applicable), or if Tenant is taking the space "as is" and "where -is",
Delivery of Possession shall be the date which Landlord gives keys and access to
the Premises. Landlord and Tenant are mutually responsible for communicating
with each other as to the status of Landlord's Work and the potential that the actual
3
26
delivery date will be different than the projected Delivery Date.
4.02 If Landlord does not deliver possession of the premises to Tenant by the
Projected Delivery Date, Landlord shall not be liable for such failure; the
Commencement Date and the Expiration Date shall not change; and the validity of
this Lease shall not be impaired. However, Gross Rent and additional rent for
Project Operating Costs (if applicable) will abate for the number of days between
the Projected Delivery Date and the date on which Landlord delivers possession
of the Premises.
4.03 During and for the period of time after Landlord delivers possession of the
Premises to Tenant and before the Commencement Date, Tenant shall pay all
Rent due under the terms of this Lease except Gross rent and additional rent for
Project Operating Costs and shall procure all required insurance and perform all
other obligations imposed upon Tenant by this Lease in connection with Tenant's
possession of the Premises.
5. RENT
5.01 Definition of Rent. All costs which Tenant agrees to pay to Landlord under
this Lease shall be deemed additional rent (which, together with the Gross Rent is
sometimes referred to as "Rent"). Rent shall be paid to the Landlord or at such
place as Landlord may from time to time designate in writing, without any prior
demand therefor and without deduction or offset, in lawful money of the United
States of America.
5.02 Payment of Rent. The monthly installments of Rent shall be payable in
advance on or before the first day of each calendar month of the Term. If the Term
begins (or ends) on other than the first (or last) day of a calendar month, the Gross
Rent for the partial month shall be prorated on a per diem basis. Tenant shall pay
Landlord the first Monthly Installment of Gross Rent when Tenant executes the
Lease.
5.03 Allocation of Payments. Any payment by Tenant of an amount less than the
Rent provided for in this Lease shall be applied to the earliest due Rent. No
endorsement on any check or acceptance of any payment shall be deemed an
accord and satisfaction, and Landlord may accept such check or payment without
prejudice to Landlord's right to recover the balance of the Rent or pursue any other
remedy provided for in this Lease. In connection with the foregoing, Landlord shall
have the absolute right in its sole discretion to apply any payment received from
Tenant to any obligation of Tenant.
5.04 Percentage Rent. Intentionally deleted.
5.05 Sales Statements and Payments. Intentionally deleted.
5.06 Records. Tenant shall maintain records of all gross sales for two years
following the end of each Lease year, including records of all other data or facts
4
27
necessary to determine or verify gross sales for such Lease year. Tenant shall
retain and preserve for at least one year after the expiration of each preceding
Lease year, all original sales records, or accurate copies of the same. All such
records, including sales tax reports and business and occupation tax reports, shall
be open to the inspection and audit of Landlord at reasonable times during ordinary
business hours. As used in this Article, the term "Lease Year" includes fractional
Lease years.
5.07 Audits by Landlord; Adjustments. Intentionally deleted.
6. PROJECT OPERATING COSTS
Project Operating Costs shall be included in the Gross Rent figure. Project
Operating Costs shall include all costs and expenses incurred by Landlord in
connection with the Project other than costs of leasing to tenants, initial or
expansion capital construction costs, depreciation of initial or expansion capital
construction costs, interest on money borrowed for such construction costs and
base rent due from Landlord to the EDA under Landlord's lease of the Project from
EDA.
7. PROJECT TAXES
Intentionally deleted.
8. PAYMENT OF PROJECT OPERATING COSTS AND TAXES
8.01 Intentionally deleted.
8.02 Intentionally deleted.
8.03 Intentionally deleted.
8.04 Dispute Resolution. If any dispute arises as to the amount of any additional
rent due hereunder, Tenant shall have the right after reasonable notice and at
reasonable times to inspect Landlord's accounting records at Landlord's
accounting office and, if after such inspection Tenant still disputes the amount of
additional rent owed, a certification as to the proper amount shall be made by
Landlord's certified public accountant, which certification shall be final and
conclusive. Tenant agrees to pay the cost of such certification.
8.05 Other Taxes Payable by Tenant. Tenant shall reimburse Landlord upon
demand for all taxes payable by Landlord (other than net Landlord's income taxes)
which are not otherwise reimbursable under this Lease, whether or not now
customary or within the contemplation of the parties, where such taxes are upon,
measured by or reasonably attributable to (a) the cost or value of Tenant's
equipment, furniture, fixtures and other personal property located in the Premises,
or the cost or value of any leasehold improvements made to the Premises,
regardless of whether title to such improvements is held by Tenant or Landlord;
(b) the gross or net Rent payable under this Lease, including, without limitation,
5
28
any rental or gross receipts tax levied by any taxing authority with respect to the
receipt of the Rent hereunder; (c) the possession, leasing, operation,
management, maintenance, alteration, repair, use or occupancy by Tenant of
the Premises or any portion thereof; or (d) this transaction or any document to
which Tenant is a party creating or transferring an interest in the Premises.
9. INTEREST AND LATE CHARGES
If Tenant fails to pay when due any Rent or other charges under the terms of this
Lease, the unpaid amounts shall bear interest at fifteen percent (15%) per annum
or the maximum rate then allowed by law, whichever is lower. Tenant
acknowledges that the late payment of Rent will cause Landlord to lose the use of
that money and incur costs and expenses not contemplated under this Lease,
including without limitation, collection costs and accounting expenses, the exact
amount of which is extremely difficult to ascertain. Therefore, in addition to
interest, if any Rent is not received by Landlord within five (5) days from the date
it is due, Tenant shall pay Landlord a late charge equal to eight percent (8.00%)
of such amount. Landlord and Tenant agree that this late charge represents a
reasonable estimate of such costs and expenses and is fair compensation to
Landlord for the loss suffered from such non-payment by Tenant.
10. SECURITY DEPOSIT
10.01 Tenant has deposited with Landlord the Security Deposit set forth at
Section 2.09, as security for Tenant's performance of its obligations under this
Lease. The Security Deposit may be commingled with other funds of Landlord, and
Landlord shall have no obligation or liability for payment of interest on such deposit.
10.02 If Tenant fails to pay Rent or any other amount when due, or fails to perform
any of the terms hereof, Landlord may use all or any portion of the Security
Deposit for amounts then due and unpaid, for payment of any amount for which
Landlord has become obligated as a result of Tenant's default, and for any loss
sustained by Landlord as a result of Tenant's default. Landlord may use this
deposit without prejudice to any other remedy Landlord may have. If Landlord uses
any of the Security Deposit, Tenant shall, within ten (10) calendar days after written
demand therefor, restore the Security Deposit to the full amount originally
deposited. Tenant's failure to do so shall constitute an event of default hereunder
and Landlord shall have the right to exercise any remedy provided for in Article 30.
Within thirty (30) days after the Term has expired or Tenant has vacated the
Premises, whichever shall last occur, and provided Tenant is not then in default on
any of its obligations hereunder, Landlord shall return the Security Deposit to
Tenant. If Landlord sells its interest in the Premises, Landlord may deliver the
Security Deposit to the purchaser of Landlord's interest and thereupon be relieved
of any further liability or obligation with respect to the Security Deposit.
11. UTILITY SERVICES.
11.01 Electricity, Gas, Water and Sewer. Landlord agrees to provide mains,
conduits and other facilities to supply gas, water, sewer and electricity to the
Premises or to nearby places. Tenant shall pay promptly, when billed, for all
6
29
electricity, gas, water, and other utilities used in the Premises. If water or electricity
or other utility charges are not separately metered and billed to Tenant, Landlord
reserves the right either to estimate such a bill and to charge Tenant accordingly
at rates prevailing in the nearby vicinity for similar service, or to require installation
by Tenant of a meter. Without Landlord's prior written consent, gas shall not be
used by Tenant for water heating. Tenant shall contact all utility companies
(providing gas, electric, water, phone and data services) that provide utility
services to the Premises on the Projected Delivery Date and request that the
invoicing for all utilities servicing the Premises is changed into Tenant's name and
made Tenant's responsibility upon the Projected Delivery Date.
11.02 Heating, Air Conditioning and Ventilating. Tenant agrees to accept and
use such heating, air conditioning and ventilation system as is currently serving
the Premises and to allow Landlord access so as to maintain, repair, and/or
replace the system as necessary.
11.03 Rubbish Removal. Landlord has installed for Tenants' use a central trash
disposal area the cost for which is included in the Gross Rent.
11.04 Discontinuance of Service. Whenever any bills for rent, gas, water,
electricity, air conditioning, rubbish removal, heating, ventilating, antenna service
or any other service, are not promptly paid by Tenant; Landlord reserves the right
to discontinue service, without liability to Tenant. No such action by Landlord, or
notice thereof, shall be construed as an eviction or disturbance of possession or
as an election by Landlord to terminate this Lease.
11.05 Interruption of Service. Landlord shall not be liable in damages or otherwise
if any utility service or other service to the Premises shall be interrupted or impaired
by fire, accident, riot, strike, act of God, the making of necessary repairs or
improvements or by any causes beyond Landlord's control.
11.06 Compliance with Laws. Tenant shall comply with all present and future
laws, ordinances, rules, regulations, or governmental or quasi -governmental
directives (including without limitation those requirements of the Occupational
Safety and Health Administration that relate to the Premises) regarding the indoor
air quality of the Premises and the maintenance of any heating, ventilating, and
air conditioning equipment or system for which the Tenant is responsible pursuant
to this Lease.
12. TENANT'S USE OF THE PREMISES
12.01 Permitted Use. Tenant shall use the Premises solely for the purposes set
forth at Section 2.04. Tenant shall not conduct or permit auctions or sheriffs sales
at the Property. Tenant shall not grant any concession, license or permission to
any third party to sell merchandise or services in the Premises.
12.02 Manner of Use. Tenant shall not use or occupy the Premises in violation of
any law or restriction affecting the Project or the Building in which the Premises is
located and shall immediately discontinue any use of the Premises which is
7
30
declared by any governmental authority to be a violation of law or the certificate of
occupancy. Tenant shall, at Tenant's own cost and expense, comply with all laws,
regulations, or directions of any governmental or quasi -governmental agency or
authority which shall impose any duty upon Tenant or Landlord with respect to the
Premises or their use or occupation. Tenant shall not do or permit to be done
anything which will invalidate or increase the cost of any fire, extended coverage
or other insurance policy covering the Project, and shall comply with all rules,
orders, and recommendations. Tenant shall reimburse Landlord for any additional
premium charged for such policy by reason of Tenant's failure to comply with the
provisions of this Article. Tenant shall not do or permit anything to be done on or
about the Premises which will interfere with the rights of other tenants or occupants
of the Building in which located, or injure or annoy them, or use or allow the
Premises to be used for any unlawful or objectionable purpose, nor shall Tenant
cause, maintain or permit any nuisance in, on or about the Premises. Tenant shall
not commit or suffer to be committed any waste in or upon the Premises.
12.03. Hours of Business. Tenant will make reasonable effort to conduct its
business on days and during hours generally observed in the area in which the
Premises is located.
12.04 Continuous Occupancy. Tenant acknowledges that its continued occupancy
of the Premises and the regular conduct of its business are of utmost importance
to neighboring tenants and to Landlord in the renting of space in the Project, the
efficient supply of services and utilities, and the maintenance of Percentage Rent,
where applicable. Tenant therefore agrees that it will occupy the entire Premises
and comply strictly with the provisions of Section 12.04. Tenant acknowledges that
Landlord is executing this Lease in reliance thereupon and that the same is a
material element inducing Landlord to execute this Lease. Tenant further agrees
that if it vacates or abandons the Premises or fails to so conduct its business
therein or uses the Premises for any purpose not specifically herein authorized
and allowed, then in addition to constituting a default hereunder, all rent reserved
in this Lease shall immediately become due and payable.
12.05. Intentionally deleted.
12.06. Intentionally deleted.
12.07 Display Windows. Tenant shall keep display windows (if any) neatly
dressed. Display windows and lighted signs (if any) shall be kept illuminated by
Tenant after the Property closes for business for a period of time as determined
by Landlord.
12.08 Tenant shall not: 1) place or maintain any merchandise or other objects
outside the perimeter of the Premises without written permission from the Landlord
(which will not be unreasonably withheld) and from the City of Shakopee or other
governing authority; 2) use or permit the use of any loud speakers, flashing,
moving and/or rotating lights, sound amplifiers, musical instruments, or television
or radio broadcasts which are in any manner audible or visible outside the
Premises; 3) permit accumulations of garbage or other refuse within the Premises;
8
31
4) permit odors to emanate from the Premises; 5) permit the parking of delivery
vehicles so as to interfere with the use of any driveway, walk, parking area adjacent
to the Project; o r 6) overload the electrical wiring serving the Premises, and will
install any additional electrical wiring which may be required at its expense, which
installation shall be permitted by Landlord, provided it can obtain EDA approval, if
required.
12.09 Load and Equipment Limits. Tenant shall not place a load upon any floor
of the Premises which exceeds the load per square foot which such floor was
designed to carry, as determined by Landlord or Landlord's structural engineer.
The cost of any such determination made by Landlord's structural engineer shall
be paid for by Tenant upon demand. Tenant shall not install machinery or
mechanical equipment which causes noise or vibration to such a degree as to be
objectionable to Landlord or other Building tenants.
13. CONDITION OF THE PREMISES
Tenant's taking possession of the Premises shall be deemed conclusive evidence
that the Premises are in satisfactory condition, except for such matters as to which
Tenant gives written notice to Landlord on or before the Commencement Date.
No promise of Landlord to alter, remodel, repair or improve the Premises or the
Project and no representation, express or implied, respecting any matter or thing
relating to the Premises, Project or this Lease (including, without limitation, the
condition of the Premises or the Project) have been made to Tenant by Landlord
or its Broker or Sales Agent, other than as may be contained herein or in a
separate exhibit or addendum signed by Landlord and Tenant.
14. MAINTENANCE AND REPAIRS
14.01 Landlord Maintenance of Structural Components, Plaza and Sidewalks. Landlord
shall cause the structural walls, foundation, exterior walls, roofs, plaza, and
sidewalks of, or serving, the Project and Premises to be kept and maintained in
good condition. As between Landlord and Tenant, Landlord shall be responsible
for the costs of such repairs or maintenance (except to the extent repairs,
maintenance or replacement are made necessary by the abuse, misuse or
negligence of Tenant, its employees, agents or contractors, in which case Tenant
shall be responsible for paying for required repairs, maintenance or replacements).
14.02 Landlord Maintenance of Electrical, Plumbing, HVAC, Doors and Windows.
Landlord shall cause, and pay for, the electrical, plumbing, heating, ventilating
and air conditioning systems, doors and windows that are existing within the
Premises as of the Projected Delivery Date to be kept and maintained in good
condition. Tenant shall not be responsible for the cost of the required or eventual
replacement of such systems and items (unless such replacement is made
necessary by the abuse, misuse or negligence of Tenant, its employees, agents,
guests, visitors, or contractors, in which case Tenant shall be responsible for
paying for all required repairs, maintenance or replacements).
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14.03 Limitation of Landlord's Liability. Except as otherwise expressly provided in this
Lease, Landlord shall have no liability to Tenant nor shall Tenant's obligations
under this Lease be reduced or abated by reason of any inconvenience,
annoyance, interruption or injury to business arising from Landlord's making or
causing any repairs or changes which Landlord by this Lease or by any other
tenant's lease or required by law. Landlord shall nevertheless use reasonable
efforts to minimize any interference with Tenant's business in the Premises.
14.04 Tenant Maintenance at Tenant's Expense. Tenant shall, at Tenant's sole
expense, keep any and all components of the Premises not described in Sections
14.01 and 14.02 and all fixtures and equipment in the Premises in good repair and
safe and working condition, and in full compliance with all laws, ordinances and
regulations applicable to Tenant's particular use of the Premises, making whatever
maintenance, repairs and replacement may from time to time be necessary under
the circumstances. If Tenant fails to properly perform its maintenance duties with
respect to the Premises, Landlord may undertake such maintenance and recover
from Tenant as Rent any amounts so paid, together with interest thereon at the
rate of fifteen percent (15%) per annum, or the maximum rate allowed by law,
whichever is lower.
15. ALTERATIONS AND ADDITIONS
15.01 Tenant shall not make any addition or alterations to the Premises without
obtaining the prior written consent of Landlord, which consent may be withheld in
Landlord's sole discretion or may be conditioned on Tenant's removing any such
additions or alterations upon the expiration of the Term and restoring the Premises
to the same condition as on the date Tenant took possession or on other
requirements of Landlord. All work shall be done in a good and workmanlike
manner by licensed personnel approved by Landlord. Tenant shall be responsible
to maintain, repair and/or replace any and all additions or alterations made to or
within the Premises.
15.02 Tenant shall pay the costs of any work done on the Premises pursuant to
Section 14.02 and 14.04, and shall keep the Premises and Project free and clear
of liens of any kind. Tenant shall indemnify, defend against and keep Landlord free
and harmless from all liability, loss, damage, costs, attorneys' fees and any other
expense incurred on account of claims by a person performing work or furnishing
materials or supplies for Tenant or any person claiming under Tenant.
15.03 Tenant shall keep Tenant's leasehold interest free and clear of all
attachment or judgment liens. Before the actual commencement of any work
Tenant shall give Landlord sufficient notice to enable Landlord to post notices of
non -responsibility for the proper protection of Landlord's interest, and Landlord
shall have the right to enter the Premises and post such notices at any reasonable
time.
15.04 Landlord may require, at Landlord's sole option, that Tenant provide, at
Tenant's expense, a payment and performance bond at least one and one-half (1-
1/2) times the total estimated cost of any additions or alterations to protect
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Landlord and its lessor, the EDA and the fee owner, against liens and to insure
timely completion of the work.
15.05 Unless their removal is required by Landlord as provided in Section 15.01,
all additions or alterations shall become the property of Landlord upon the
expiration of the Term; provided, however, Tenant's equipment, machinery and
trade fixtures which can be removed without damage to the Premises shall remain
the property of Tenant and may be removed, subject to the provisions of Section
16.02.
16. LEASEHOLD IMPROVEMENT; TENANT'S PROPERTY
16.01 All fixtures, equipment, and improvements attached to or built into the
Premises, whether or not by or at the expense of Tenant, shall be and remain a
part of the Premises, shall be the property of Landlord and shall not be removed
by Tenant, except as expressly provided in Section 16.02 or required pursuant to
Section 15.01.
16.02 All movable partitions, business and trade fixtures, machinery and
equipment, communications equipment and office equipment located in the
Premises and acquired by or for the account of Tenant, without expense to
Landlord, which can be removed without damage to the Project, and all furniture
and other articles of movable personal property owned by Tenant ("Tenant's
Property") shall be and shall remain the property of Tenant and may be removed
by Tenant at any time during the Term. Tenant shall promptly repair any damage
to the Premises or to the Building resulting from such removal.
16.03 Intentionally deleted.
17. RULES AND REGULATIONS
Tenant agrees to comply with all rules and regulations for the safe, efficient and
lawful operation of the Project as Landlord may from time to time make.
18. CERTAIN RIGHTS RESERVED BY Landlord
18.01 Landlord reserves the following rights, exercisable without liability to Tenant:
a. To name the Project and to change the name or street address of
the Premises or Project;
b. To approve all signs on the exterior of the Premises and Project;
c. To have pass keys to the Premises and all doors within the Premises,
excluding Tenant's vaults and safes;
d. On reasonable prior notice to Tenant, to inspect the Premises, and
to show the Premises to any prospective purchaser or mortgagee of
the Project, or to others having an interest in the Project or Landlord,
and during the last six months of the Term, to show the Premises to
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prospective tenants thereof; and
e. To enter the Premises to make inspections, repairs, alterations, or
additions to the Premises or the Project or the Buildings of which it
is a part, and to take all steps as may be necessary or desirable for
the safety, protection, maintenance or preservation of the Premises
or the Building or Landlord's interest therein, or as may be necessary
for the operation or improvement of the Building or in order to comply
with laws or requirements of governmental or other authority.
Landlord agrees to use its best efforts (except in an emergency) to
minimize interference with Tenant's business in the Premises in the
course of any such entry.
19. ASSIGNMENT AND SUBLETTING
19.01 Tenant shall not assign this Lease or sublet all or any part of the Premises
without the prior written consent of Landlord, which consent may be withheld at
Landlord's sole discretion. If Tenant is a corporation, partnership or limited liability
entity, any cumulative transfer of fifty percent (50%) or greater interest in such
entity shall be considered an assignment and shall require the consent of Landlord
as described herein. Tenant shall pay to Landlord fifty percent (50%) of any sums
or other economic consideration received by Tenant as a result of such assignment
or subletting, however denominated under the assignment or sublease, which
exceed, in the aggregate, the total sums which Tenant is obligated to pay Landlord
for such period under this Lease (prorated to reflect obligations allocable to any
portion of the Premises subleased). If applicable, Tenant will be responsible for
any real estate brokerage commissions or fees payable in connection with such
assignment or subletting this Lease without affecting or reducing any other
obligations of Tenant hereunder.
19.02 Notwithstanding the provisions of Section 19.01, Tenant may assign this
Lease or sublet the Premises or any portion thereof, without Landlord's consent to
any corporation which controls, is controlled by or is under common control with
Tenant, or to any corporation resulting from a merger or consolidation with Tenant,
or to any person or entity which acquires all the assets and obligations of Tenant's
business.
19.03 No subletting or assignment shall relieve Tenant of the obligation to pay Rent and
to perform all other obligations under this Lease. In the event of default by an
assignee or subtenant of Tenant or any successor of Tenant in the performance
of any of the terms hereof, Landlord may proceed directly against Tenant without
the necessity of exhausting remedies against such assignee, subtenant or
successor.
19.04 If Tenant requests the consent of Landlord to any assignment or subletting,
then Tenant shall, upon demand, pay Landlord any attorneys' fees reasonably
incurred by Landlord in considering such act or request.
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20. HOLDING OVER
If after expiration of the Term, Tenant remains in possession of the Premises with
Landlord's permission (express or implied), Tenant shall become a tenant from
month to month only, upon all the provisions of this Lease (except as to term and
Gross Rent), but the "Monthly Installments of Gross Rent" payable by Tenant shall
be increased to one hundred fifty percent (150%) of the Monthly Installments of
Gross Rent payable by Tenant at the expiration of the Term. Such monthly rent
shall be payable in advance on or before the first day of each month. If either party
desires to terminate such month -to -month tenancy, it shall give the other party not
less than thirty (30) days advance written notice of the termination date, which
shall always be the last day of a calendar month.
21. SURRENDER OF PREMISES
21.01 Tenant shall surrender the Premises to Landlord on the Expiration Date or
upon earlier termination of this Lease, in broom -clean condition and in as good
condition as when Tenant took possession, except for reasonable wear and tear,
loss by fire or other casualty, or loss by condemnation. Tenant shall remove
Tenant's Property on or before the Expiration Date and promptly repair all damage
to the Premises or Building caused by such removal or by Tenant's use of the
Premises. On the Expiration Date, Tenant shall surrender all keys to the Premises.
21.02 If Tenant abandons or surrenders the Premises, or is dispossessed by
process of law or otherwise, any of Tenant's Property left on the Premises shall be
deemed to be abandoned, and, at Landlord's option, title shall pass to Landlord
under this Lease as by a bill of sale. If Landlord elects to remove all or any part of
such Tenant's Property, the cost of removal, including repairing any damage to the
Premises or Building caused by such removal, shall be paid by Tenant.
21.03 No act of Landlord, including the acceptance of keys to the Premises, shall
constitute an acceptance of the surrender of the Premises before the expiration of
the Term. Only a written notice from Landlord to Tenant shall constitute
acceptance of the surrender of the Premises and accomplish a termination of the
Lease.
21.04 Tenant shall be responsible for all consequential damages to Landlord as a
result of Tenant's failure to surrender the Premises in accordance with this Lease,
and this clause shall survive the termination of the Lease.
22. DESTRUCTION OR DAMAGE
22.01 If the Premises in whole or in part is damaged by fire, earthquake, act of
God, the elements or other casualty, Landlord may elect to repair such damage by
giving Tenant written notice within one hundred (100) days of the date of such
casualty and this Lease shall remain in full force and effect. If such damage is not
the result of the negligence or willful misconduct of Tenant or Tenant's agents,
employees, contractors, licensees or invitees, the Gross Rent shall be abated to
the extent Tenant's use of the Premises is impaired, commencing with the date of
damage and continuing until completion of the repairs required of Landlord. If
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Landlord does not so elect to make such repairs, this Lease shall terminate as of
the date of such fire or other casualty.
22.02 If the Premises are to be repaired under this Article, Tenant shall be
responsible at its sole cost and expense for the repair, restoration and replacement
of Tenant's Property as described in Section 16.02 and any improvements or
alterations that Tenant is obligated to remove at the end of the Term pursuant to
Section 15.01. As between Landlord and Tenant, Landlord shall be responsible for
the cost of repair, and causing the repair, of the Project and Premises, except as
provided in the preceding sentence, which repair shall restore the Premises to a
condition complying with the current building and fire codes and otherwise suitable
for Tenant's purposes. Landlord shall not be liable for any loss of business
inconvenience or annoyance arising from any repair or restoration of any portion
of the Premises or Project as a result of any damage from fire or other casualty.
23. EMINENT DOMAIN
23.01 If the whole of the Project or Premises is lawfully taken by condemnation or
under threat thereof or in any other manner for any public or quasi -public purpose
this Lease shall terminate as of the date of such taking, and Rent shall be prorated
to such date. If less than the whole of the Project or Premises is so taken, this
Lease shall be unaffected by such taking, provided that: a) Tenant shall have the
right to terminate this Lease by notice to Landlord given within twenty (20) days
after the date of such taking if twenty percent (20%) or more of the Premises is
taken and the remaining area of the Premises is not reasonably sufficient for
Tenant to continue operation of its business, and b) Landlord shall have the right
to terminate this Lease by notice to Tenant given within ninety (90) days after the
date of such taking. If either Landlord or Tenant so elects to terminate this Lease,
the Lease shall terminate on the thirtieth (30th) day after either such notice. The
Rent shall be prorated to the date of termination, if this Lease continues in force
upon such partial taking, the Gross Rent and Tenant's Proportionate Share shall
be equitably adjusted according to the remaining Leasable Area of the Premises
and Project.
23.02 In the event of any taking, partial or whole, as between Landlord and Tenant, all of
the proceeds of any award, judgment or settlement payable by the condemning
authority shall be the exclusive property of Landlord or its lessor. Tenant, however,
shall have the right, to the extent that Landlord's, its lessor's and the fee owner's
awards are not reduced or prejudiced, to claim from the condemning authority (but
not from Landlord) such compensation as may be recoverable by Tenant in its own
right for relocation expenses and damage to Tenant's personal property.
23.03 In the event of a partial taking of the Premises, or transfer under threat
thereof, which does not result in a termination of this Lease as between Landlord
and Tenant, Landlord shall be responsible for the cost of restoring and causing
restoration, of the remaining portion of the Premises as nearly as practicable to its
condition prior to the condemnation taking subject to then current building and fire
codes.
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24. INDEMNIFICATION
24.01 Tenant shall indemnify and hold Landlord and its managing agent harmless
against and from liability and claims of any kind for loss or damage to property of
Tenant or any other person, or for any injury to or death of any person, arising out
of: a) Tenant's use and occupancy of the Premises, or any work, activity or other
things allowed by Tenant to be done in or about the Premises; b) any breach or
default by Tenant of any of Tenant's obligations under this Lease; or c) any
negligent or otherwise tortious act or omission of Tenant, its agents, employees,
invitees or contractors. Tenant shall at Tenant's expense, and by counsel
satisfactory to Landlord, defend Landlord and its managing agent in any action
arising from any such claim and shall indemnify Landlord and its managing agent
against all costs, attorneys' fees, expert witness fees and any other expenses
incurred in such action. As a material part of the consideration for Landlord's
execution of this Lease, Tenant hereby assumes all risk of damage or injury to any
person or property in or about the Premises from any cause other than Landlord's
gross negligence or intentional misconduct, including, without limitation, from
environmental contamination from any source whatsoever.
24.02 Landlord shall not be liable for injury or damage which may be sustained by
the person or property of Tenant, its employees, invitees or customers, or any
other person in or about the Premises, caused by or resulting from fire, steam,
electricity, gas, water or rain which may leak or flow from or into any part of the
Premises, or from the breakage, leakage, obstruction or other defects of pipes,
sprinklers, wires, appliances, plumbing, air conditioning or lighting fixtures,
whether such damage or injury results from conditions arising upon the Premises
or upon other portions of the Project or from other sources. Landlord shall not be
liable for any damages arising from any act or omission of any other tenant of the
Project or Building in which the Premises is located.
25. TENANT'S INSURANCE
25.01 All insurance required to be carried by Tenant hereunder shall be issued by
responsible insurance companies acceptable to Landlord and Landlord's lessor
and lender and qualified to do business in the State. Landlord, Landlord's lessor,
and any mortgagee of Landlord, must be named as additional insureds. Each
policy shall contain: a) a cross -liability endorsement; b) a provision that such policy
shall be primary and non-contributing with respect to any policies carried by
Landlord and that any coverage carried by Landlord shall be excess insurance;
and c) a waiver by the insurer of any right of subrogation against Landlord, its
agents, employees and representatives, which arises under such policy or by
reason of any act or omission of Landlord, its agents, employees or
representatives. A certificate of the insurer evidencing the existence and amount
of each insurance policy required hereunder shall be delivered to Landlord before
the date Tenant is first given the right of possession of the Premises, and thereafter
within ten (10) days after any demand by Landlord therefor. No such policy shall
be cancelable, except after thirty (30) days written notice to Landlord and
Landlord's lender. Tenant shall furnish Landlord with renewals or "binders" of any
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such policy at least ten (10) days prior to the expiration thereof. Tenant agrees that
if Tenant does not take out and maintain such insurance, Landlord may (but shall
not be required to) procure insurance on Tenant's behalf and charge the Tenant
the premiums together with a twenty-five percent (25%) handling charge, payable
upon demand. Tenant shall have the right to provide such insurance coverage
pursuant to blanket policies, provided such blanket policies expressly afford
coverage to the Premises, Landlord, Landlord's lessor and mortgagee and Tenant
as required by this Lease.
25.02 Beginning on the date Tenant is given access to the Premises for any
purpose and continuing until expiration of the Term, Tenant shall maintain in effect
policies of casualty insurance covering: a) fire and extended coverage insurance,
including protection against vandalism and malicious mischief, plus "all-risk"
endorsements insuring Tenant's property as described in Section 16.02 and any
improvements or alterations that Tenant is obligated to remove at the end of the
Term in Section 15.01 and any other personal property within the Premises
whether owned by Tenant, its agents, employees, invitees, customers, contractors
or others.
25.03 Beginning on the date Tenant is given access to the Premises for any
purpose and continuing until expiration of the Term, Tenant shall maintain in effect
workers' compensation insurance as required by law and comprehensive public
liability and property damage insurance with respect to the construction of
improvements on the Premises, the operation of the Premises and the operations
of Tenant in or about the Premises providing personal injury and broad form
property damage coverage for not less than Two Million Dollars ($2,000,000.00)
combined single limit for bodily injury, death and property damage liability (which
dollar amount shall be adjusted every fifth anniversary of October 1, 1997, based
upon changes in the Consumer Price Index for the Minneapolis -St. Paul
Metropolitan Area).
26. WAIVER OF SUBROGATION
Landlord and Tenant each hereby waive all rights of recovery against the other
and against the officers, employees, agents and representatives of the other, on
account of loss by or damage to the waiving party of its property or the property of
others, to the extent that such loss or damage is insured against under any fire and
extended coverage insurance policy which either may have in force at the time of
the loss or damage or would have been covered if Tenant had the insurance
required for this Lease. Tenant shall give notice to its insurance carriers that the
foregoing mutual waiver of subrogation is contained in this Lease.
27. SUBORDINATION AND ATTORNMENT
27.01 Within ten (10) calendar days after written request of Landlord, or any
mortgagee or beneficiary of Landlord, Tenant shall, in writing, subordinate its
rights under this Lease to the lien of any mortgage of Landlord's interest in the
Project, and to all advances made thereunder. However, as long as Tenant is not
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in default hereunder, this Lease shall remain in effect for the full Term.
27.02 In the event of any foreclosure sale, transfer in lieu of foreclosure or
termination of Landlord's lease of the Project from the EDA or any of the lease of
all or part of the Project in which Landlord is lessee, Tenant shall attorn to the
purchaser, transferee or lessor as the case may be, and recognize that party as
Landlord under this Lease.
28. TENANT ESTOPPEL CERTIFICATES
Within ten (10) days after written request from Landlord, Tenant shall execute and
deliver a written statement certifying that this Lease is unmodified and in full force
and effect, or is in full force and effect as modified and stating the modifications;
the amount of Gross Rent and the date to which Gross Rent and additional rent
have been paid in advance; the amount of any security deposited with Landlord;
and that Landlord is not in default hereunder or, if Landlord is claimed to be in
default, stating the nature of any claimed default. Any such statement may be
relied upon by a purchaser, assignee or lender. Tenant's failure to execute and
deliver such statement within the time required shall at Landlord's election be a
default under this Lease and shall also be conclusive upon Tenant that this Lease
is in full force and effect and has not been modified except as represented by
Landlord; that there are no uncured defaults in Landlord's performance and that
Tenant has no right of offset, counterclaim or deduction against Rent.
29. TRANSFER OF LANDLORD'S INTEREST
In the event of any sale or transfer by Landlord of its interest in the Premises or
Project, and assignment of this Lease by Landlord, Landlord shall be and is hereby
entirely freed and relieved of any and all liability and obligations contained in or
derived from this Lease occurring after the consummation of such sale or transfer.
If any security deposit or prepaid Rent has been paid by Tenant, Landlord may
transfer the security deposit or prepaid Rent to Landlord's successor and
Landlord shall be relieved of any and all further liability with respect thereto.
30. DEFAULT
30.01 Events of Default by Tenant. The occurrence of any one or more of the
following matters constitutes a Default by Tenant under this Lease:
a. Failure by Tenant to pay Rent or any other amounts required under
this Lease within three (3) days after such payment is due and
payable;
b. Failure by Tenant to observe or perform any of the covenants with
respect to assignment and subletting set forth in Article 19;
c. Failure by Tenant to comply with Tenant's obligations set forth in
Article 40;
d. Failure by Tenant to cure any hazardous condition which Tenant has
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created in violation of law or of this Lease;
e. Failure by Tenant to observe or perform any other provision of this
Lease, if such failure continues for thirty (30) days after notice
thereof from Landlord to Tenant;
f. The levy upon, under writ of execution or the attachment by legal
process of, the leasehold interest of Tenant, or the creation of a lien
with respect to such leasehold interest;
g.
Tenant vacates or abandons the Premises or fails to take possession
of the Premises when available for occupancy whether or not Tenant
continues to pay Rent due under this Lease;
h. Tenant becomes insolvent or bankrupt or admits in writing its inability
to pay its debts as they mature, or makes an assignment for the
benefit of creditors, or consents to the appointment of a trustee or
receiver for Tenant or for the major part of its property;
i. A trustee or receiver is appointed for Tenant or for the major part of
its property;
J.
Any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceeding, or other proceeding for relief under any
bankruptcy law, or similar law for the relief of debtors, is instituted by
Tenant or against Tenant and is allowed against it, or is consented
to by it or is not dismissed within sixty (60) days after such institution.
30.02 Rights and Remedies of Landlord. If a Default occurs, Landlord shall have
the rights and remedies hereinafter set forth, which shall be distinct, separate and
cumulative and shall not operate to exclude or deprive Landlord of any other right
or remedy allowed it by law:
a. Landlord may terminate this Lease by giving to Tenant notice of
Landlord's election to do so and all right, title and interest of Tenant
hereunder shall expire, on the date stated in such notice;
b. Landlord may terminate the right of Tenant to possession of the
Premises without terminating this Lease by giving notice to Tenant
that Tenant's right to possession shall end on the date stated in such
notice;
c. Landlord may enforce the provisions of this Lease and may enforce
and protect the rights of Landlord hereunder by a suit for the specific
performance of any covenant contained herein, or for the
enforcement of any other appropriate legal remedy, including
recovery of all amounts due or to become due from Tenant under
any of the provisions of this Lease.
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30.03 Right to Re -Enter. If Landlord exercises any of the remedies provided in
Section 30.02, Tenant shall vacate the Premises and immediately deliver
possession thereof to Landlord, and Landlord may reenter and take complete
possession of the Premises, full and complete license to do so being hereby
granted to Landlord, and Landlord may remove all occupants and property
therefrom, without being deemed guilty in any manner of trespass, eviction or
forcible entry and without relinquishing Landlord's right to Rent or any other right
given to Landlord hereunder.
30.04 Current Damages. If Landlord terminates the right of Tenant to possession
of the Premises without terminating this Lease, Landlord shall have the right to
immediate recovery of all amounts then due hereunder. Such termination of
possession shall not release Tenant, in whole or in part, from Tenant's obligation
to pay Rent hereunder for the full Term, and Landlord shall have the right to recover
from Tenant, and Tenant shall remain liable for, all Rent and any other sums
accruing under this Lease during the period from the date of such notice of
termination of possession to the stated end of the Term. Landlord may relet the
Premises or any part thereof for the account of Tenant upon such terms as
Landlord shall determine and may collect the rents from such reletting. Landlord
shall not be required to accept any tenant offered by Tenant or to observe any
instructions given by Tenant relative to such reletting. Landlord may make repairs,
alterations and additions in or to the Premises and redecorate the same to the
extent deemed by Landlord necessary or desirable and change the locks to the
Premises. Tenant upon demand shall pay the cost of all of the foregoing together
with expenses of reletting. The rents from any such reletting shall be applied first
to the payment of the expenses of re-entry, reletting, redecoration, repair and
alterations and second to the payment of Rent to be paid by Tenant. Any excess
shall be credited against the amount of Rent which becomes due and payable
hereunder any such excess shall belong to Landlord solely. No such reentry or
repossession, repairs, alterations and additions, or reletting shall be construed as
an election on Landlord's part to terminate this Lease, unless a written notice of
such intention is given to Tenant, or shall operate to release Tenant in whole or in
part from any of Tenant's obligations hereunder. Landlord may sue and recover
judgment for any deficiencies remaining after the application of the proceeds of
any such reletting.
30.05 Final Damages. If this Lease is terminated by Landlord pursuant to Section
30.02, Landlord shall be entitled to recover from Tenant all Rent accrued and
unpaid for the period up to and including such termination date, as well as all other
additional sums for which Tenant is liable under this Lease, and all costs, including
court costs and attorneys' fees incurred by Landlord in the enforcement of its rights
and remedies hereunder. Landlord shall be entitled to recover as damages a) the
unamortized portion of Landlord's contribution to the cost of tenant improvements
and alterations, if any, installed by either Landlord or Tenant pursuant to this
Lease, b) the aggregate Rents which would have been payable after the
termination date had this Lease not been terminated, and c) any damages in
addition thereto, including reasonable attorneys' fees and court costs, which
Landlord sustains as a result of the breach of any of the covenants of this Lease
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other than for the payment of Rent.
30.06 Removal of Personal Property. All property of Tenant removed from the
Premises by Landlord pursuant to any provision of this Lease or applicable law
maybe handled, removed or stored by Landlord at the cost and expense of Tenant,
and Landlord shall not be responsible for the value, preservation or safekeeping
thereof. Tenant shall pay Landlord for all expenses incurred by Landlord with
respect to such removal and storage. All such property not removed from the
Premises or retaken from storage by Tenant within thirty (30) days after the end of
the Term, however terminated, shall be conclusively deemed to have been
conveyed by Tenant to Landlord as by bill of sale.
30.07 Default by Landlord. Failure by Landlord to observe or perform any of its
obligations under this Lease, if such failure continues for thirty (30) days after
notice thereof from Tenant to Landlord constitutes a default by Landlord under this
Lease. In the event of such Default by Landlord, Tenant shall have no right to
terminate this Lease or withhold Rent; Tenant's sole remedy shall be an action for
specific performance against Landlord to compel performance of the obligation or
obligations that Tenant claims Landlord has failed to observe or perform. Landlord
will be responsible for Tenant's reasonable attorneys' fees incurred in any litigation
by Tenant to enforce Landlord's obligations under this Lease if Tenant is the
prevailing party.
30.08 Attorneys' Fees. Tenant shall pay all of Landlord's costs including court
costs and attorneys' fees, incurred in enforcing Tenant's obligations under this
Lease, incurred by Landlord in any action brought by Tenant in which Landlord is
the prevailing party, or incurred by Landlord in any litigation, negotiation or
transaction in which Tenant causes Landlord, without Landlord's fault, to become
involved.
30.09 No Waiver. No delay or omission in the exercise of any right or remedy of Landlord
or Tenant upon any Default by the other shall impair such right or remedy or be
construed as a waiver of such default. The receipt and acceptance by Landlord of
delinquent Rent shall not constitute a waiver. Any waiver by Landlord or Tenant of
any default by the other must be in writing and shall not be a waiver of any similar
default in the future or any other default concerning any other provision of the
Lease.
31. BROKERAGE FEES
Tenant warrants and represents that it has not dealt with any real estate broker or
agent in connection with this Lease or its negotiation except those noted in Section
2.21. Tenant shall indemnify Landlord from any expense or liability (including costs
of suit and reasonable attorneys' fees) for any compensation, commission or fees
claimed by any other real estate broker or agent in connection with this Lease.
32. NOTICES
All notices, required to be given under this Lease shall be in writing and deemed
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duly served or given if personally delivered, sent by email, or sent by certified or
registered U.S. mail, postage prepaid, and addressed if to Landlord, to Landlord's
Mailing Address (see also Article 2.23 herein); and if to Tenant, to Tenant's Mailing
Address or if delivered or mailed to Tenant at the Premises. Landlord and Tenant
may from time to time by notice to the other designate another place for receipt of
future notices.
33. QUIET ENJOYMENT
Tenant, upon paying the Rent and performing all of its obligations under this Lease,
shall enjoy the Premises, subject to the terms of this Lease and to any mortgage,
lease, or other agreement to which this Lease may be subordinate.
34. OBSERVANCE OF LAW
Tenant shall, at its sole cost and expense, promptly comply with all laws and
governmental regulations or requirements now in force or which may hereafter be
in force, and with the requirements of any board of fire insurance underwriters or
other similar bodies now or hereafter constituted, relating to the occupancy of the
Premises, excluding structural changes not related to Tenant's occupation of the
Premises and the Project.
35. FORCE MAJEURE
Any prevention or delay of work to be performed by Landlord or Tenant which is
due to strikes, labor disputes, inability to obtain labor, materials, equipment or
reasonable substitutes therefor, acts of God, governmental restrictions or
regulations, judicial orders, hostile government actions, civil commotion, fire or
other casualty, or other causes beyond the reasonable control of the party
obligated to perform hereunder, shall excuse performance of the work by that party
for a period equal to the duration of that prevention or delay. Nothing in this Article
shall excuse or delay Tenant's obligation to pay Rent or other charges under this
Lease.
36. CURING TENANT'S DEFAULTS
If Tenant defaults in the performance of any of its obligations under this Lease,
Landlord may (but shall not be obligated to) without waiving such default, perform
the same at the expense of Tenant. Tenant shall pay Landlord all costs of such
performance promptly upon receipt of a bill therefor.
37. SIGN CONTROL
Tenant shall not affix, paint, erect or inscribe any sign, projection, awning, signal
or advertisement of any kind to any part of the Premises, Building or Project,
including without limitation, the inside or outside of windows or doors, without the
written consent of Landlord. Landlord shall have the right to remove any signs or
other matter, installed without Landlord's permission, without being liable to Tenant
for such removal, and to charge the cost of removal to Tenant. See also Exhibit
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38. HAZARDOUS SUBSTANCES
38.01 Defined Terms.
a. "Claim" shall mean and include any demand, cause of action,
proceeding or suit for any one or more of the following: 1) actual or
punitive damages, losses, injuries to person or property, damages
to natural resources, fines, penalties, interest, contribution or
settlement; 2) the costs of site investigations, feasibility studies,
information requests, health or risk assessments, or Response (as
hereinafter defined) actions; and 3) enforcing insurance, contribution
or indemnification agreements.
b. "Environmental Laws" shall mean and include all federal, state and
local statutes, ordinances, regulations and rules relating to
environmental quality, health, safety, contamination and clean-up,
including, without limitation, the Clean Air Act, 42 U.S. C. Section
7401 et seq.; the Clean Water Act, 33 U.S.C. Section 1251 et seq.
and the Water Quality Act of 1987; the Federal Insecticide,
Fungicide, and Rodenticide Act ("FIFRA"), 7 U.S.C. Section 136 et
seq.; the Marine Protection, Research, and Sanctuaries Act, 33
U.S.C., Section 1401 et seq.; the National Environmental Policy Act,
42 U.S.C. Section 4321 et seq.; the Noise Control Act, 42
U.S.C. Section 4901 et seq.; the Occupational Safety and Health
Act, 29 U.S.C. Section 651 et seq.; the Resource Conservation and
Recovery Act ("RCRA"), 42 U.S.C. Section 6901 et seq., as
amended by the Hazardous and Solid Waste Amendments of
1984; the Safe Drinking Water Act, 42 U.S.C. Section 300f et seq.;
the Comprehensive Environmental Response, Compensation and
Liability Act ("CERCLA"), 42 U.S.C. Section 9601 et seq., as
amended by the Superfund Amendments and Reauthorization Act;
the Emergency Planning and Community Right -to -Know Act, and
Radon Gas and Indoor Air Quality Research Act; the Toxic
Substances Control Act ("TSCA"), 15 U.S.C. Section 2601 et seq.;
the Atomic Energy Act, 42 U.S.C. Section 2011 et seq.; the Nuclear
Waste Policy Act of 1982, 42 U.S.C. Section 10101 et seq.; the
Minnesota Environmental Response and Liability Act ("MERLA"),
Minn. Stat. Ch. 115B; and the state superlien and environmental
clean-up statutes, with implementing regulations and guidelines, as
amended from time to time. Environmental Laws shall also include
all state, regional, county, municipal and other local laws,
regulations, and ordinances insofar as they are equivalent or similar
to the federal laws recited above or purport to regulate Hazardous
Materials (as hereinafter defined).
c. "Hazardous Materials" shall mean and include the following,
including mixtures thereof: any hazardous substance, pollutant,
contaminant, waste, by-product or constituent regulated under
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CERCLA; oil and petroleum products and natural gas, natural gas
liquids, liquefied natural gas and synthetic gas usable for fuel;
pesticides regulated under the FIFRA; asbestos and asbestos
containing materials, PCBs, and other substances regulated under
the TSCA; source material, special nuclear material, by-product
material and any other radioactive materials or radioactive wastes,
however produced, regulated under the Atomic Energy Act or the
Nuclear Waste Policy Act; chemicals subject to the OSHA Hazard
Communication Standard, 29 C.F.R. Section 1910.1200 et seq.; and
industrial process and pollution control wastes, whether or not
hazardous within the meaning of RCRA; any substance whose
nature and/or quantity or existence, use, manufacture, disposal or
effect render it subject to federal, state or local regulation,
investigation, remediation, or removal as potentially injurious to
public health or welfare.
d. "Use" means to manage, generate, manufacture, process, treat,
store, use, re -use, refine, recycle, reclaim, blend or burn for energy
recovery, incinerate, accumulate speculatively, transport, transfer,
dispose of, or abandon Hazardous Materials.
e. "Release" or Released" shall mean any actual or threatened spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting,
escaping, leaching, dumping, or disposing of Hazardous Materials
into the environment, as "environment" is defined in CERCLA.
f. "Response" or "Respond" shall mean action taken in compliance with
Environmental Laws to correct, remove, remediate, cleanup,
prevent, mitigate, monitor, evaluate, investigate, assess or abate the
Release of a Hazardous Material.
38.02 Tenant's Obligations with Respect to Environmental Matters. During the term of this
Lease, Tenant shall comply at its own cost with all Environmental Laws. Tenant
shall not Use, or authorize the Use of, any Hazardous Materials on the Premises,
including installation of any underground storage tanks, without prior written
disclosure to and approval by the Landlord. Tenant shall not take any action that
would subject the Premises to permit requirements under RCRA for storage,
treatment or disposal of Hazardous Materials. Tenant shall not dispose of
Hazardous Materials in dumpsters provided for tenant use. Tenant shall not
discharge Hazardous Materials into Project drains or sewers. Tenant shall not
cause or allow the Release of any Hazardous Materials on, to, or from the Project.
Tenant shall arrange at its own cost for the lawful transportation and off -site disposal
of all Hazardous Materials that it generates.
38.03 Copies of Notices. During the term of this Lease, Tenant shall provide
Landlord promptly with copies of all summons, citations, directives, information
inquiries or requests, notices of potential responsibility, notices of violation or
deficiency, orders or decrees, Claims, complaints, investigations, judgments,
letters, notices of environmental liens or Response actions in progress, and other
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communications, written or oral, actual or threatened, from the United States
Environmental Protection Agency, Occupational Safety and Health Administration,
Minnesota Pollution Control Agency, or other federal, state or local agency or
authority, or any other entity or individual, concerning any Release of a Hazardous
Material on, to or from the Premises, the imposition of any lien on the Premises, or
any alleged violation of or responsibility under Environmental Laws. Landlord and
Landlord's beneficiaries, agents and employees shall have the right to enter the
Premises and conduct appropriate inspections or tests in order to determine
Tenant's compliance with Environmental Laws.
38.04 Tests and Reports. Upon written request by Landlord, Tenant shall provide
Landlord with the results of appropriate reports and tests, with transportation and
disposal contracts for Hazardous Materials, with any permits issued under
Environmental Laws, and with any other applicable documents to demonstrate that
Tenant complies with all Environmental Laws relating to the Premises.
38.05 Tenant's Obligation to Respond. If Tenant's Use of Hazardous Materials at
the Premises gives rise to liability or to a Claim under any Environmental Law,
causes a significant public health effect, or creates a nuisance, Tenant shall
promptly take all applicable action in Response.
38.06 Indemnification. Tenant shall indemnify, defend, and hold harmless Landlord, its
beneficiaries, its lenders, any managing agents and leasing agents of the Premises,
and their respective agents, partners, officers, directors and employees and the
EDA and Fee Owner of the Project from and against any and all Claims arising from
or attributable to any breach by Tenant of any of its warranties, representations or
covenants in this Article. Tenant's obligations hereunder shall survive the
termination or expiration of this Lease.
39. RELOCATION OF PREMISES
39.01 Landlord shall have the right to relocate the Premises to another part of the
Project in accordance with the following:
a. The new premises shall be substantially the same in size, decor and
nature as the Premises described in this Lease, and if the relocation occurs
after the Commencement Date, shall be placed in that condition by Landlord
at its cost.
b. Landlord shall give Tenant at least thirty (30) calendar days written
notice of Landlord's intention to relocate the Premises.
c. As nearly as practicable, the physical relocation of the Premises shall
take place on a weekend and shall be completed before the following
Monday. If the physical relocation has not been completed in that time, Rent
shall abate in full from the time the physical relocation commences to the
time it is completed. Upon completion of such relocation, the new premises
shall become the "Premises" under this Lease.
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d. All reasonable costs incurred by Tenant as a result of the relocation
shall be paid by Landlord.
e. If the new premises are smaller than the Premises as it existed before
the relocation, Gross Rent shall be reduced proportionately.
f. The parties hereto shall immediately execute an amendment to this
Lease setting forth the relocation of the Premises and the reduction of Rent,
if any.
40. PUBLIC ACCOMMODATIONS LAWS
Landlord with respect to the common areas of the Project, if any, and Tenant, with
respect the Premises, each covenant and agree to complete any and all
alterations, modifications or improvements specifically required by the Americans
With Disabilities Act, including, but not limited to, remodeling, renovation,
rehabilitation, reconstruction, changes or rearrangements in structure, and
changes or rearrangements to wall configuration or full height partitions which are
or become necessary, in order to comply with all Public Accommodation Laws,
regardless of whether such modifications are the legal responsibility of Landlord,
Tenant or third party. Landlord and Tenant covenant and agree to use their
reasonable efforts to insure that any and all alterations, modifications or
improvements undertaken pursuant hereto are accomplished in a manner which
will not substantially interfere with the others' use or possession of space in the
Project or Building. All costs incurred by Landlord to comply with Public
Accommodations Laws in any common area shall be included in Project Operating
Costs, including the amortization of capital expenditures together with an interest
rate of 12% per annum over a period of five years.
Landlord agrees to permit Tenant, at Tenant's cost, to make any improvements or
modifications to the Premises which are required by Public Accommodation Laws,
and to approve such improvements or modifications, provided that all such
improvements or modifications are made in compliance with applicable Public
Accommodations Laws. Tenant acknowledges and agrees that, while Landlord
may review and approve plans and specifications for Tenant's leasehold
improvements, (and may construct Tenant's leasehold improvements for Tenant),
Landlord assumes no responsibility for compliance of such plans and
specifications, the Premises, or Tenant's leasehold improvements, with Public
Accommodations Laws, and Tenant shall hold Landlord harmless from Tenant's
failure to comply with the requirements thereof.
For the purposes of this Lease, "Public Accommodation Laws" shall mean all
applicable federal, state and local laws, regulations, and building codes, in effect
during the term of this Lease, governing non-discrimination in employment, public
accommodations and commercial facilities, including, without limitation, the
requirements of the Americans With Disabilities Act, 42 USC 12101.
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41. MISCELLANEOUS
41.01 Addenda. If any provision contained in a Rider to this Lease is
inconsistent with any other provision herein, the provision contained in the Rider
shall control, unless otherwise provided in the Rider.
41.02 Administrative Fee. If Tenant fails to provide Landlord with any certificate,
document, report, statement, agreement, letter, information or signature required
by this Lease within ten (10) days after written request by Landlord, then in such
event Tenant shall pay an administrative fee of $200.00 for each additional written
request made by Landlord until such requested item is received.
41.03 Captions, Articles and Section Numbers. The captions appearing within the
body of this Lease have been inserted for reference only and in no way define,
limit or enlarge the scope or meaning of this Lease.
41.04 Changes Requested by Lender. Neither Landlord nor Tenant shall
unreasonably withhold its consent to changes or amendments to this Lease
requested by a lender on Landlord's interest or the EDA, so long as these changes
do not alter the basic business terms of this Lease.
41.05 Choice of Law. This Lease shall be construed and enforced in accordance
with the laws of Minnesota.
41.06 Consent. Notwithstanding anything contained in this Lease to the contrary, Tenant
shall have no claim against Landlord for money damages by reason of any refusal,
withholding or delaying by Landlord of any consent, approval or statement of
satisfaction. Tenant's only remedies therefor shall be an action for specific
performance, or declaratory judgment to enforce any right to such consent.
41.07 Consult Your Attorney. Tenant acknowledges that it has reviewed this
Lease and consulted with its attorney concerning this Lease; that is has negotiated
any and all provisions of this Lease which it has deemed necessary; that it is not
relying on any representations, warranties, or statements of any kind whatsoever
made by Landlord or any other person or entity in connection with this Lease other
than are expressly set forth herein, and that the general rule of construction that a
document will be construed against its draftsman shall not apply with respect to
this Lease.
41.08 Corporate Authority. If Tenant is a corporation, limited liability company,
limited partnership or partnership, each individual signing this Lease on behalf of
Tenant represents and warrants that (s)he is duly authorized to execute and deliver
this Lease on behalf of the corporation, and that this Lease is binding on Tenant
in accordance with its terms. Tenant shall, at Landlord's request, deliver a certified
copy of a resolution of its board of directors or governors authorizing such
execution.
41.09 Execution of Lease; No Option. The submission of this Lease to Tenant
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shall be for examination purposes only, and does not constitute a reservation of or
option for Tenant to lease the Premises. Execution of this Lease by Tenant and its
return to Landlord shall not be binding on Landlord notwithstanding any time
interval, until Landlord has in fact signed and delivered this Lease to Tenant.
41.10 Form of Payment. If Tenant pays its obligations due under this Lease in
the form of a check, and if one or more of said checks is returned to Landlord for
insufficient funds during any Lease Year, then in such event Landlord may require
Tenant to make further payments due under this Lease in the form of a cashier's
check, bank wire transfer, certified funds or other form of secure payment
reasonable satisfactory to Landlord.
41.11 Mortgagee Protection. Tenant agrees to send by certified or registered mail
to any first mortgagee or beneficiary of Landlord whose address has been
furnished to Tenant, a copy of any notice of default served by Tenant on Landlord.
If Landlord fails to cure such default within the time provided for in this Lease, such
mortgagee or beneficiary shall have an additional thirty (30) days to cure such
default; provided that if such default cannot reasonably be cured within that thirty
(30) day period, then such mortgagee or beneficiary shall have such additional
time to cure the default as is reasonably necessary under the circumstances.
41.12 Prior Agreements; Amendments. This Lease contains all of the agreements of the
parties with respect to any matter covered or mentioned in this Lease, and no prior
agreement or understanding pertaining to any such matter shall be effective for
any purpose, except the Lease Agreement dated March 28, 2018, as amended
and assigned, shall remain in effect until its expiration date of August 31, 2023. No
provisions of this Lease may be amended or added to except by an agreement in
writing signed by the parties or their respective successors in interest.
41.13 Recording. Tenant shall not record this Lease without the prior written
consent of Landlord.
41.14 Severability. A final determination by a court that any provision of this
Lease is invalid shall not affect the validity of any other provision.
41.15 Successors and Assigns. This Lease shall apply to and bind the heirs,
personal representatives, and permitted successors and assigns of the parties.
41.16 Time of the Essence. Time is of the essence of this Lease.
41.17 Waiver. Landlord's consent to or approval of any act by Tenant requiring
Landlord's consent or approval shall not be deemed to waive or render
unnecessary Landlord's consent to or approval of any subsequent act by Tenant.
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The parties hereto have executed this Lease as of the dates set forth below.
Landlord:
Economic Development Authority of the City
of Shakopee, Minnesota
By: Jay Whiting
Its: President
Date:
, 2025
By: William Reynolds
Its: Executive Director
Date:
, 2025
Tenant:
Delicias Ice Cream Cravings, LLC
d/b/a Delicias Del Viejo
By: Miranda Jimenez
Its: Owner
Date:
, 2025
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ADDENDUM #1 - OTHER TERMS AND CONDITIONS
1. Signage. See also Article 37, Exhibit C and Exhibit F, Sign Criteria, attached
herein.
2. Tenant Improvement Allowance. Landlord is not providing Tenant a Tenant
Improvement Allowance. Tenant is accepting the Premises in as -is where -is
condition and shall coordinate and pay for their own improvements to the
Premises, subject to necessary approvals and conditions stated elsewhere
herein the Lease.
3. Parking. Tenant shall have a non-exclusive right to use the parking lot on the
north side of River City Centre, subject to applicable Rules and Regulations.
4. Conversion to Condominium. In the event that River City Centre is
converted to the condominium form of ownership, Landlord and Tenant agree
to replace this Lease with a new lease with substantially similar terms, subject
to the condominium governing documents.
52
EXHIBIT "A"
PREMISES LOCATION PLAN
Note: this plan is not to scale. Tenant is responsible to field verify all measurements.
53
EXHIBIT "B"
LEGAL DESCRIPTION
That part of Block 3 and 4, vacated Lewis Street, vacated Sommerville Street and
vacated alley, all contained within SHAKOPEE CITY according to the plat thereof on file
and of record in the office of the County Recorder, Scott County, Minnesota, described
as follows:
Commencing at the Southeasterly Corner of Block 3, SHAKOPEE CITY; thence North 80
degrees 06 minutes 40 seconds East assumed bearing along the easterly extension of
the southerly line of said Block 3 a distance of 46.34 feet to the point of beginning; thence
South 80 degrees 06 minutes 40 seconds West along the southerly line of said Block 3 a
distance of 668.40 feet; thence North 09 degrees 53 minutes 19 seconds West a distance
of 58.43 feet; thence along a tangential curve concave to the east having a radius of 85.00
feet, a central angle of 80 degrees 04 minutes 12 seconds and an arc length of 118.79
feet; thence along a compound curve concave to the south having a radius of 557.15 feet,
a central angle of 9 degrees 55 minutes 49 seconds, and an arc length of 96.56 feet;
thence North 80 degrees 06 minutes 40 seconds East tangent to said curve a distance of
289.31 feet; thence along a tangential curve concave to the south having a radius of
272.84 feet, a central angle of 24 degrees 12 minutes 29 seconds and an arc length of
115.28 feet; thence South 75 degrees 40 minutes 50 seconds East tangent to said curve
a distance of 62.00 feet; thence along a tangential curve concave to the southwest having
a radius of 75.00 feet, a central angle of 65 degrees 47 minutes 30 seconds and an arc
length of 86.12 feet; thence South 09 degrees 53 minutes 19 seconds East tangent to
said curve a distance of 32.68 feet to the point of beginning.
54
EXHIBIT "C"
LANDLORD'S WORK/TENANT'S WORK
In all respects Tenant shall accept the Premises in its current "as -is, where -is"
condition.
Landlord installed a front lit sign and a rear internally lit sign at Landlords
expense and in conjunction and accordance with the Sign regulations herein.
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EXHIBIT "D"
GUARANTY AND AGREEMENT
1. In consideration of the making, execution and delivery of the Lease dated effective
as of September 1, 2025, by and between the Economic Development Authority of the City
of Shakopee, Minnesota, a public body corporate and politic and a political subdivision of the
State of Minnesota, as Landlord, and Delicias Ice Cream Cravings, LLC, as Tenant, covering
Premises in the Shakopee River City Centre located at 175 1st Avenue East, Shakopee, MN
55379, and for value received, the undersigned Miranda Jimenez (the "Guarantor"), does
hereby unconditionally guarantee unto said Landlord, its successors and assigns, the full and
prompt payment by said Tenant of the rentals and all other sums reserved in said Lease and
the full performance by Tenant of all the terms, covenants and conditions therein contained.
2. This guaranty shall not be affected by any deviation from or alteration of the terms,
covenants or conditions of said Lease or by any permitted assignment or subletting of all or
any part of the interest of Tenant therein. This guaranty shall not be released, extinguished,
modified or in any way affected by failure on the part of Landlord to enforce any or all of the
rights or remedies of Landlord, whether pursuant to the terms of said Lease or at law or in
equity.
3. This guaranty is a continuing one and shall terminate only upon payment by Tenant
of all the rental and other sums in said Lease reserved and upon performance by Tenant of all
duties and obligations therein contained.
4. The undersigned waives notice (a) of any default by Tenant (i) in payment by
Tenant of any of the rental or other sums hereby guaranteed and (ii) in performance by Tenant
of the terms, covenants and conditions of said Lease, and (b) of acceptance by Landlord of
this guaranty.
5. The undersigned consents that Landlord may from time to time extend the time for
performance or otherwise modify, amend, alter or change said Lease and any or all provisions
thereof and may extend the time for payment of the rental and all other sums hereby
guaranteed and may receive and accept notes, checks and other instruments for the payment
of money made by Tenant and extensions and renewals thereof without in any way releasing
or discharging the undersigned from the undersigned's obligations hereunder. Notice of
presentment of any such note or notes and/or notice of default in the payment thereof at
maturity and/or protest thereof is expressly waived.
6. The undersigned further consents that it shall not be necessary for Landlord, in
order to enforce this guaranty, to institute suit or exhaust its legal remedies against Tenant.
7. This guaranty may be immediately enforced upon any default by Tenant and the
insolvency of Tenant shall be deemed a default.
8. In the event any action should be commenced by Landlord against the undersigned
to enforce any of the terms or conditions of this guaranty, Landlord shall be entitled to recover
from the undersigned hereunder in any such action in which Landlord shall prevail, reasonable
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attorney's fees which shall be fixed as part of the costs by the court or judge thereof in which
such action shall be pending.
9. This guaranty shall inure to the benefit of Landlord and its successors and assigns
and shall bind the undersigned and the heirs, executors, administrators, successors and
assigns of the undersigned.
10. Should the undersigned consist of more than one person, then the obligations
imposed under this guaranty shall be joint and several.
This guaranty shall be binding upon the undersigned, its successors, heirs, executors and
administrators and shall inure to the benefit of Landlord, its successors and assigns.
IN WITNESS WHEREOF, the undersigned Guarantor(s) has (have) executed this
Guaranty this day of , 2025.
GUARANTOR:
Printed Name: _Miranda Jimenez
Residence:_ 409 Shakopee Ave E.
Shakopee, MN 55379
Email: deliciasdelviejoshakopee@gmail.com
57
STATE OF MINNESOTA, COUNTY OF , ss.:
On this day, personally appeared before me, , to me
known to be the person(s) described in and who executed the within and foregoing
instrument, and acknowledged that he/she signed the same as his/her voluntary act and
deed, for the uses and purposes therein mentioned.
Witness my hand and official seal hereto affixed
this day of , 2025.
Notary Public in and for the State of
My commission expires
58
EXHIBIT "E"
GENERAL SPECIFICATIONS FOR TENANT'S
ALTERATIONS OR IMPROVEMENTS
1. Landlord's Approvals of Plans
1.1 All plans for improvements or alterations are subject to Landlord approval;
however, such approval does not signify code approval. Tenant shall have
sole responsibility for compliance with all applicable statutes, codes,
ordinances and other regulations for all work. In instances where several
sets of requirements must be met, Landlord's requirements shall govern
unless prohibited by code. All conditions and measurements should be
field -verified by the Tenant.
1.2 Tenant must provide Landlord with Floor Plans and Working Drawings for
the Premises. Upon receipt of Tenant's drawings, Landlord shall review and
return to Tenant one copy marked either "Approved", "Approved with
Changes" or "Revise and Resubmit". Tenant shall resubmit revised
drawings within ten working days and the same procedure will be repeated
until Landlord initials the drawings "Approved" or "Approved with Changes".
1.3 Specific written approval of Landlord is required for the following:
a) Drilling, cutting, coring or construction of any openings, penetrations
or other alterations or improvements to the demising walls of the
Premises, the exterior of the Premises or Building, or floors, columns
or roof of the Premises or Building.
b) Installation or testing of any alarm or signal system, or any
interruption of or connection to the Building fire or life -safety systems.
c) Installation or connection to any vents or ductwork, or to any water,
sewer, gas, or electrical lines.
d) Construction of any mezzanine.
e) Installation of any odor -producing equipment.
f) Installation of any sign visible from the exterior of the Premises.
g) Modifications to Floor Plans or Working Drawings previously
approved under Section 1.2 above.
2. Codes, Permits and Insurance
2.1 Tenant has full and complete responsibility to comply with all applicable
codes, ordinances, statutes and regulations of any governing authority in
the design and operation of the Premises, and to obtain all necessary
licenses and permits required for construction, occupancy and operation.
2.2 Tenant shall obtain a building permit and shall provide Landlord with one
set of plans approved by the City of Shakopee and a copy of the permit
before commencement of any demolition or construction.
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2.3 Prior to commencement of any work, Tenant shall provide Landlord with
Certificates of Insurance evidencing coverage of Tenant's contractor and
subcontractors for Worker's Compensation and Employer's Liability
Insurance; Comprehensive General Liability Insurance; and
Comprehensive Automobile Liability Insurance. All such certificates shall
name Landlord and Landlord's Agent as additional insureds.
2.4 Tenant shall provide Landlord with a copy of the Certificate of Occupancy
issued by the City of Shakopee upon completion of the work.
3. Construction Rules and Procedures
3.1 Tenant or Tenant's contractor shall contact Landlord at least three business
days prior to the start of construction and shall provide Landlord with a list
of names, addresses and telephone numbers of all contractors and
subcontractors that will be involved in the work.
3.2 Tenant is responsible for securing the Premises. All property in the
Premises shall be there at the risk of Tenant and Landlord shall not liable
for damage or theft.
3.3 Tenant shall arrange for all utility services to be placed in Tenant's name
prior to the start of construction. Tenant nor Tenant's contractor shall not
use any common area outlets for utility services. Tenant is responsible for
the cost of all temporary utility services during construction.
3.4 All trash and construction debris will be contained and disposed of in the
manner stated in the Lease.
3.5 No contractor parking will be provided.
4. Costs Billed Back to Tenant by Landlord
4.1 At Landlord's option, certain portions of Tenant's Work may be performed
by Landlord's Contractor and billed back to Tenant. Portions of the work
subject to this procedure may include, but are not specifically limited to:
a) Final connection to Building power source, water supply line, sewer
line, common ductwork or vents, gas lines, sprinkler systems, or fire
alarm systems.
b) Structural alterations such as core drilling, roof penetrations, cutting
or patching of any floors, walls, columns or beams.
c) Installation of any fireproofing.
d) Reviews of Tenant's plans by Landlord's consultants, as necessary.
e) Any alterations, additions or modifications to the Premises' facade,
storefront or entryways.
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EXHIBIT "F"
SIGN CRITERIA
A. General Criteria The Signage Specification for River City Centre is intended to
control the size, type, location, and attachment of signs on the building. Signage
should serve to identify the tenants without overpowering the character of the
building. It is encouraged that signage be developed in an imaginative and varied
manner. All signs shall conform to the criteria set forth hereafter.
B. City Code, Ordinance, and Zoning It is the responsibility of the Tenant to verify
that proposed signage design complies with applicable city code, ordinance, and
zoning requirements. Any signage not in compliance with the requirements of the
City of Shakopee is not allowed.
C. Signage Location River City Centre has signage integral to the identity and
operations of the property. This signage is located around the building and at Tenant
spaces are as follows:
1. Overall Building Signage
a. Signage spelling "River City Centre" is located at the north and south side of
the skyway that connects the east and west buildings.
b. Address numbers on the south side of the east building.
c. Signage spelling "River City Apartments" located over the leasing office main entry.
d. Address numbers at the leasing office main entry door.
e. Operational signage including, but not limited to, height clearance, stair, and
handicap parking signs.
f. Plaque signs located under the skyway on the west building.
2. Tenant Signage
a. Within the 32" high signage band on the south elevation and within the 32" high
signage band on the north elevation.
b. Lettering on tenant main entry doors as identified herein, or approved by Landlord.
c. Locations at the east and west building elevations as approved by Landlord.
D. Sign Types and Parameters Allowed Tenants are required to identify the Premises
with a sign. All signs are subject to the requirements and limitations as outlined
herein. The following types and amounts of sign(s) will be permitted:
1. General
a. Tenant's sign shall be identity sign only.
b. On the south building elevation signage shall be non -illuminated white painted
aluminum cut lettering mounted on painted aluminum rails.
c. On the north, east, and west building elevations signage shall be individual
illuminated letters mounted on an opaque background.
d. All sign illumination shall be white.
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e. Logos, trademarks, corporate crests, and/or other company insignias will be
permitted in the signage band upon Landlord approval. Methods of construction,
colors, and installation shall conform to the requirements herein.
f. Logos will be allowed on Tenant storefronts only when reviewed and approved
by Landlord.
g. Tag lines shall be allowed on an individual basis only and are subject to Landlord
approval. Any allowable tag lines shall be individual Illuminated, or non -
illuminated, letters (no box signs) and shall not exceed 10" high. The width of the
tag line shall not exceed the width established for the primary signage.
h. Lettering on all store signs shall be limited to business or trade name of the
premises as it appears on the lease. No sign manufacturer's name, union labels,
or other lettering shall be visible. Logo signs will be reviewed on an individual
basis.
i. Double stack lettering shall be allowed on an individual basis only and are subject
to Landlord approval.
j. Manufacturers' label, clips, brackets, or any other form of extraneous
advertising attachment or lighting devices shall be fully concealed from
public view.
k. All illuminated signs from dusk must be turned on until 1:00 A.M. The use of timers
and/or photocell for sign and show window lighting is required. Signage control
times are subject to change and will need to be coordinated with the Landlord.
I. All Tenants will be allowed one 4'-0"x8'-0" temporary construction sign prior to
any opening of any Project tenants. Coordinate location with Landlord's
representative.
m. All raceways, mounting rails, conduits and attachment components are to be
painted to match the brick. Paint color to be Matthews Paint Sedona Red Chip
122, MP15967.
n. All signage is subject to the approval of the local authorities and Landlord.
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WILLA!
SHAKOPEE
Agenda Item:
Prepared by:
Reviewed by:
Shakopee Economic
Development Authority
September 2, 2025
EDA Bill List
Becky Smith, Accounting Specialist
4.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:
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