Shakopee EDA approves temporary rent reduction to keep River City Center tenant

The Shakopee Economic Development Authority voted 3-2 on March 3 to approve a temporary modification to a downtown lease at River City Center aimed at keeping a local business in place. EDA staff told the board the tenant's sales had fallen sharply and recommended reducing the rate to $14 per square foot through October 2027 rather than risk a vacant storefront.

EDA presenter Kerski said the authority reviewed the tenant's financials and that "their business is down about 30%." He argued the measure is a stopgap: "I'd rather take $14 a square foot than nothing right now," he said, adding that the EDA controls the rent for the building and wants to keep local businesses in the space.

Board members questioned precedent and market comparability. One commissioner asked whether offering the reduction to this tenant would "open up Pandora's box" for other businesses that face temporary downturns. Kerski and other staff responded that the EDA's ownership of the building and a documented, substantial decline in sales informed the recommendation, and that other tenants in the building were not similarly affected.

After discussion, a board member moved to approve the modification and another seconded. The chair called the vote; the item passed with a final tally the chair announced as 3 in favor and 2 opposed.

The action preserves the tenant's occupancy through October 2027 under the modified rate. The EDA also reviewed a bill list and adjourned to its April meeting.