Item Coversheet

4.B.


Shakopee Economic Development Authority
October 4, 2022


FROM: Michael Kerski, Planning/Development Director 
TO:President and Board Members
Subject:
Haven Lease in RCC
Policy/Action Requested:
The tenant is requesting a lease transfer (new lease) and an extension for a total of ten years.
Recommendation:
Grant the creation of a new lease in the name of Crescendo Chemical Health LLC BDA as The Haven for a period of five years and that there be a clause that both parties must mutually agree to an extension beyond five years.
Discussion:

Rebecca Haven, the Chief Operating Officer of Haven Chemical Health Systems, LLC, is requesting that the EDA transfer its current lease to a new owner.  The majority owner of the LLC passed away and they would like to sell the company.  The current Haven lease runs until 2/28/2027. They have a current base rent plus 7.29% of the operational costs.

 

The new owner has the financial capacity to run the business, though they do not appear to run a similar business at this time. One of the new owners is a Family Nurse Practitioner. 

 

The EDA would have to enter into a new lease with Crescendo Chemical Health LLC once it closes on the sale of the Haven's business.  Staff has reviewed options and suggests entering into a new five year lease that incorporates building expenses into a new base rent and has a clause that both parties must mutually agree to extend the lease for another five years since staff nor the EDA can predict what the status of River City Centre will be at that time.

 

Budget Impact: