EDA approves temporary rent rollback for River City Center tenant after reported sales slump
March 03, 2026 | Shakopee City , Scott County , Minnesota
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The Shakopee Economic Development Authority on March 3 approved a temporary modification to a tenant's lease at 155 1st Avenue in River City Center, rolling monthly rent to a $14-per-square-foot baseline through October 2027 to keep the space occupied.
Mr. Kerski, presenting the proposal to the board, said the tenant's business has been "significantly impacted" and that revenues were "down about 30%" in recent months. He added, "I'd say they're down 15% or 20% month over month," and recommended the rollback so the tenant would not close. "I'd rather take $14 a square foot than nothing right now," he said.
The modification is framed as a stopgap tied to the current lease term; Mr. Kerski told the board that if the tenant chooses to renew after October 2027, the EDA would renegotiate terms at that time. He also explained the rent calculation to the board: the monthly payment cited in the discussion is derived from $14 multiplied by the tenant's square footage, divided by 12 to produce the monthly rent.
Board members asked whether offering relief to one tenant would prompt similar requests from others. Miss Gutierrez asked whether the EDA could extend the same terms to other struggling businesses, saying she wanted to "see both sides" of the choice between vacancy and reduced revenue. Mr. Layman raised a similar concern, asking whether the board would be opening a precedent that would lead multiple tenants to request reductions.
In response, Mr. Kerski said the EDA reviewed this tenant's financials "pretty extensively" and characterized the situation as a "substantial loss," not a simple drop below a profit margin. He emphasized that the EDA owns the River City Center building and that keeping a long-term local tenant in place is preferable from an economic-development standpoint to having an empty storefront that generates no revenue.
Mr. Lara moved to approve the modification; the motion was seconded and the board approved the change by a narrow recorded margin (the transcript records the final tally as 3 to 2). The motion directs the tenant's rent to the $14-per-square-foot baseline through Oct. 2027; additional terms for any renewal beyond that date were described as subject to later renegotiation.
The board then reviewed the EDA bill list with no questions and adjourned to its next meeting scheduled for April 7, 2026.
Mr. Kerski, presenting the proposal to the board, said the tenant's business has been "significantly impacted" and that revenues were "down about 30%" in recent months. He added, "I'd say they're down 15% or 20% month over month," and recommended the rollback so the tenant would not close. "I'd rather take $14 a square foot than nothing right now," he said.
The modification is framed as a stopgap tied to the current lease term; Mr. Kerski told the board that if the tenant chooses to renew after October 2027, the EDA would renegotiate terms at that time. He also explained the rent calculation to the board: the monthly payment cited in the discussion is derived from $14 multiplied by the tenant's square footage, divided by 12 to produce the monthly rent.
Board members asked whether offering relief to one tenant would prompt similar requests from others. Miss Gutierrez asked whether the EDA could extend the same terms to other struggling businesses, saying she wanted to "see both sides" of the choice between vacancy and reduced revenue. Mr. Layman raised a similar concern, asking whether the board would be opening a precedent that would lead multiple tenants to request reductions.
In response, Mr. Kerski said the EDA reviewed this tenant's financials "pretty extensively" and characterized the situation as a "substantial loss," not a simple drop below a profit margin. He emphasized that the EDA owns the River City Center building and that keeping a long-term local tenant in place is preferable from an economic-development standpoint to having an empty storefront that generates no revenue.
Mr. Lara moved to approve the modification; the motion was seconded and the board approved the change by a narrow recorded margin (the transcript records the final tally as 3 to 2). The motion directs the tenant's rent to the $14-per-square-foot baseline through Oct. 2027; additional terms for any renewal beyond that date were described as subject to later renegotiation.
The board then reviewed the EDA bill list with no questions and adjourned to its next meeting scheduled for April 7, 2026.
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