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<br /> <br />Request for Action <br /> <br /> <br /> <br /> <br /> <br />To Item Number <br />Mayor and City Council 4.4 <br />Agenda Section Meeting Date Prepared by <br />Consent Agenda July 17, 2023 Brent O’Neil, Economic Development Director <br />Item Description Reviewed by <br />iBackCheck Lease Payment Schedule Cal Portner, City Administrator <br />Reviewed by <br />Joe Stremcha, Assistant City Administrator <br /> <br />Action Requested <br />Approve, by motion, an amendment to the lease agreement between the city and iBackCheck. <br /> <br />Background/Discussion <br />The city and iBackCheck entered into a lease agreement on May 3, 2022, for iBackCheck’s operations within the <br />Furniture and Things Community Event Center. The lease contemplated a tenant improvement allowance of 20% <br />of the tenant’s actual build-out costs, which would be provided as payment credit each month based. The total <br />allowance was capped at $50,000 and the initial monthly payment schedule was based on that amount. Upon <br />submission of expenses incurred and reviewed by staff, the amount of the tenant improvement allowance has been <br />determined to be $43,987.29. <br /> <br />The proposed amendment modifies the lease language regarding the rent credit to reflect the actual allowance and <br />sets the monthly credit at a fixed amount over the remaining 45 months of the lease. <br /> <br />Financial Impact <br />The city is due approximately $6,000 in additional rent due to the confirmation of actual tenant improvement <br />allowance. This amendment spreads the collection of that increase evenly over the remainder of the lease. <br /> <br />Mission/Policy/Goal <br />Support business investment in Elk River. <br /> <br />Attachments <br /> First Amendment to iBackCheck Lease <br /> <br /> <br />The Elk River Vision <br />A welcoming community with revolutionary and spirited resourcefulness, exceptional <br /> <br />service, and community engagement that encourages and inspires prosperity. <br />Updated: January 2023 <br /> <br />