More than 20 years ago,, this site was developed in a very complicated transaction that included multiple agreements.  The EDA owns the land and the entire project reverts to the city.  There was a private operator of the commercial space that had a master lease and the Scott County CDA had the apartments above.

Hellmuth & Johnson, one of the leading commercial real estate transaction law firms,  was retained by the EDA to review all agreements and to negotiate a buyout of the master commercial lease holder to allow the EDA to take over operation of the first floor commercial space and to make substantial reinvestment in the first floor.

Our attorneys are still negotiating the possibility of escrowing a portion of the buyout for six months to a year to ensure that specific tenants honor their leases. The agreement will stand except for some minor technical changes concerning the closing date of August 1, 2022 and the possibility of doing the escrow. 

As downtown Shakopee has grown and improved over the last several years, the commercial portion of River City Centre continues to be detriment to the ongoing revitalization.  Several loan underwriters and developers have noted the service oriented mixture of tenants and aged appearance of the building. 

This action will allow the EDA to take back control of its asset and ensure that it is properly maintained and tenanted for the betterment of the community.