4.4 SR 07-17-2023
Request for Action
To Item Number
Mayor and City Council 4.4
Agenda Section Meeting Date Prepared by
Consent Agenda July 17, 2023 Brent O’Neil, Economic Development Director
Item Description Reviewed by
iBackCheck Lease Payment Schedule Cal Portner, City Administrator
Reviewed by
Joe Stremcha, Assistant City Administrator
Action Requested
Approve, by motion, an amendment to the lease agreement between the city and iBackCheck.
Background/Discussion
The city and iBackCheck entered into a lease agreement on May 3, 2022, for iBackCheck’s operations within the
Furniture and Things Community Event Center. The lease contemplated a tenant improvement allowance of 20%
of the tenant’s actual build-out costs, which would be provided as payment credit each month based. The total
allowance was capped at $50,000 and the initial monthly payment schedule was based on that amount. Upon
submission of expenses incurred and reviewed by staff, the amount of the tenant improvement allowance has been
determined to be $43,987.29.
The proposed amendment modifies the lease language regarding the rent credit to reflect the actual allowance and
sets the monthly credit at a fixed amount over the remaining 45 months of the lease.
Financial Impact
The city is due approximately $6,000 in additional rent due to the confirmation of actual tenant improvement
allowance. This amendment spreads the collection of that increase evenly over the remainder of the lease.
Mission/Policy/Goal
Support business investment in Elk River.
Attachments
First Amendment to iBackCheck Lease
The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional
service, and community engagement that encourages and inspires prosperity.
Updated: January 2023
FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT (“Amendment”) dated
___________, 2023, is entered into, by and between the CITY OF ELK RIVER, a Minnesota
municipal corporation, (“Landlord”) and iBACKCHECK, PLLC, a Minnesota professional
limited liability corporation, d/b/a as iBackCheck Sport Therapy (hereinafter referred to as the
“Lessee”).
R E C I T A L S:
WHEREAS, the Landlord and Lessee entered into a Lease Agreement dated May 3, 2022,
(“Lease”) for the lease of certain space within the building located on the property owned by
Landlord at 1000 School Street Elk River, MN 55330 (“Lease”);
WHEREAS, the parties desire to adjust the payment terms related to the rent credit provided
under the Lease.
NOW, THEREFORE, in consideration of the terms, covenants and conditions herein, and
other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged
by the Landlord and the Lessee, the Landlord and the Lessee agree that the Lease is hereby modified
and amended as follows:
1. Amendment to Article 4. Paragraph D of Article 4 of the Lease is amended to read as
follows:
D. Rent Credit. Landlord agrees to provide an allowance for Tenant Improvements, as further
described in Article 5, in the amount of $43,987.29 (“Rent Credit”). Tenant has received $13,157.85
of the Rent Credit through Month 15 of the Lease. The remaining Rent Credit in the amount of
$30,829.44 will be applied as follows: $685.10 each month of the Lease beginning with the rent due
th
for August 2023 through the 60 Month of Lease.
2. Effect of Lease. Except as specifically modified or amended by this Amendment, the
Landlord and Lessee agree that all of the terms and conditions of the Lease are in full force and
effect.
IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the
day and year first above written.
\[The remainder of this page has been intentionally left blank. Signature pages follow.\]
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LANDLORD:
CITY OF ELK RIVER
By:
John J. Dietz, Its Mayor
And:
Tina Allard, Its City Clerk
TENANT:
iBACKCHECK, PLLC
By:
Name: Christi Jo Christian
Its: Chief Manager
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