8.3 SR 05-06-2024The Elk River Vision
A welcoming community with revolutionary and spirited resourcefulness, exceptional service, and community
engagement that encourages and inspires prosperity
Request for Action
To
City Council
Item Number
8.3
Meeting Date
May 6, 2024
Prepared By
Joe Stremcha, Business Services Director/Assistant
City Administrator
Item Description
iBackCheck Lease Payment Default
Reviewed by:
Lori Stich
Joe Stremcha
Cal Portner
Tina Allard
Action Requested
Approve, by motion, all iBackCheck, LLC late fees are called due effective immediately in the amount of
$4,327.79
Approve, by motion, termination of the iBackCheck lease agreement effective May 31.
Background/Discussion
On March 4, 2024, Mr. Stremcha presented the staff report detailing tenant default and late fees owed by
iBackCheck. He noted the contract with iBackCheck was written for 5 years, through May 2, 2027, with an
option to renew for another 5 years.
Dr.Christi Jo Christian was present and gave the Council a public apology for the outstanding payments and
penalties owed to the city. She stated it was not intentional to be late with payments, it was her oversight and
banking errors and noted how challenging it was running a small business.
The Council crafted a repayment plan to give Ms. Christian an extended time to repay the $4,460.71 and add
that to the regular payment each month. If, at any time, the lease payment or outstanding fees are not paid on
time, the entire amount of the outstanding lease payments and penalties will become due.
Ms. Christian was agreeable to that plan. If, for some reason, Ms. Christian was unable to make timely
payments as outlined in the agreement, Mr. Stremcha would report back to the city council.
The tenant has since failed to make timely payments as detailed in the March 12, 2024, repayment schedule.
Additional late fees were accumulated for April and May because of failure to make the correct monthly
payment amount.
Staff recommends that all late fees be called due effective immediately for $4,329.79. Staff further
recommends that the lease agreement be terminated due to tenant default, as detailed in a notice sent by the
Page 160 of 254
City Attorney on February 16, 2024, for failing to remedy the default as agreed by all parties on March 4,
2024.
Financial Impact
Staff can review market rates and advertise the space to prospective tenants.
Mission/Policy/Goal
Responsible for every dollar – good stewards
Attachments
1. iBackCheck Correspondence (March and April 2024)
2. Updated Lease Schedule - March 4, 2024
3. iBackcheck Insufficient Lease Payment Notice (April 24, 2024)
4. DOCS-#229990-v1-NOTICE_OF_DEFAULT_OF_LEASE_-_iBackCheck
5. Lease Agreement - iBackCheck, PLLC
Page 161 of 254
From: Christi Christian <cchristian@ibackcheck.com>
Sent: Friday, April 26, 2024 12:28 PM
To: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>;
mthatcher@thebankofelkriver.com
Subject: Re: Insufficient April Rent Payment
I will call the bank and submit an EFT payment
Christi Jo Christian, DC, ICCSP
Internationally Certified Chiropractic Sport Physician
President iBackCheck Sport Therapy
Phone: 763-400-7438
Fax: 866-881-6769
www.ibackcheck.com
From: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Sent: Friday, April 26, 2024 12:20 PM
To: Christi Christian <cchristian@ibackcheck.com>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>;
mthatcher@thebankofelkriver.com <mthatcher@thebankofelkriver.com>
Subject: RE: Insufficient April Rent Payment
Hi Christi,
We do not submit invoices monthly to collect your rent. The penalties are incorporated into your monthly
rent payment schedule.
Outstanding Balance (as of 4/24/24) = $471.73
You have three options to make a payment in accordance with the payment schedule sent to you on
March 12, April 5, and April 24:
▪ Make an EFT payment by contacting your bank through the same process as your monthly rent
payment.
▪ Place a check within an envelope (Attn: Ryan Vadnais) in the amount owed.
▪ Ryan can return a call to collect payment with a debit/credit card or help you navigate this once
he returns from lunch.
Thanks & have a great weekend,
Joe Stremcha
City of Elk River – Assistant City Administrator/Business Services Director
13065 Orono Parkway, Elk River, MN 55330
763.635.1022 ElkRiverMN.gov
Page 162 of 254
From: Christi Christian <cchristian@ibackcheck.com>
Sent: Friday, April 26, 2024 11:55 AM
To: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>;
mthatcher@thebankofelkriver.com
Subject: Re: Insufficient April Rent Payment
Joe,
I have called the city 2x this morning and I have been unsuccessful at making any
payments as there is no invoice associated with this. I also left a voicemail for Ryan. If
someone could please call me back so I can make the payment I would
appreciate it. 763.354.9974
Christi Jo Christian, DC, ICCSP
Internationally Certified Chiropractic Sport Physician
President iBackCheck Sport Therapy
Phone: 763-400-7438
Fax: 866-881-6769
www.ibackcheck.com
From: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Sent: Wednesday, April 24, 2024 12:05 PM
To: Christi Christian <cchristian@ibackcheck.com>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>;
mthatcher@thebankofelkriver.com <mthatcher@thebankofelkriver.com>
Subject: RE: Insufficient April Rent Payment
Christi,
The correct payment amounts were not received by the city on time. You were provided a revised
payment schedule following the City Council’s direction on March 12, 2024. It is not the responsibility of
FT Center staff to pursue payment for outstanding debt.
You made your iBackCheck base rent payment on April 1, 2024, but failed to include the additional
amount for repayment as expected. As established previously, staff cannot waive the late fees detailed in
our agreement.
Please provide payment for your outstanding balance by 12:00 p.m. on Friday, April 26, 2024. Further,
arrange for future payment of all subsequent months in the correct amount on time as outlined in the
attached schedule.
Outstanding Balance (as of 4/24/24) = $471.73
Page 163 of 254
Per City Council’s direction, failure to pay the full amount on time will result in further action as detailed
in the iBackCheck agreement with the city. The contents of this email will be communicated via certified
mail.
Respectfully,
Joe Stremcha
City of Elk River – Assistant City Administrator/Business Services Director
13065 Orono Parkway, Elk River, MN 55330
763.635.1022 ElkRiverMN.gov
From: Christi Christian <cchristian@ibackcheck.com>
Sent: Tuesday, April 23, 2024 2:38 PM
To: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>;
mthatcher@thebankofelkriver.com
Subject: Re: Insufficient April Rent Payment
Joe,
Once again, the emails from the city went into my junk folder. I just left a message for
Michelle Thatcher today to assist me on changing this.
For future reference, I do have a cell number in case you need to call me, 763.354.9974.
My work 763.400.7438.
I also work in the same building as Tim, who could also reach out to me if something needs
to be addressed, or I am not responding to an email because it went into my junk folder. I
do stop by the front desk daily to grab our mail, and see him frequently. I don't know why or
how to fix the email situation.
The email issue is not something that I have the knowledge on how to fix, so I would
respectfully ask that you take the $100 late fee off of the balance.
Christi Jo Christian, DC, ICCSP
Internationally Certified Chiropractic Sport Physician
President iBackCheck Sport Therapy
Phone: 763-400-7438
Fax: 866-881-6769
www.ibackcheck.com
From: Joe Stremcha <JStremcha@ElkRiverMN.gov>
Sent: Friday, April 5, 2024 4:12 PM
To: Christi Christian <cchristian@ibackcheck.com>
Cc: Vadnais, Ryan <RVadnais@ElkRiverMN.gov>; Cal Portner <CPortner@ElkRiverMN.gov>
Subject: Insufficient April Rent Payment
Page 164 of 254
Hi Christi,
We received your iBackCheck rent payment for the month of April on April 1.
However, it did not include the late fee repayments that were communicated to you on March 12.
The new outstanding balance is as follows:
▪ Outstanding late fees payable as of 4/1/24 = $371.73
▪ Greater of 5% outstanding balance or $100 = $100.00
▪ Total outstanding balance = $471.73
Please make arrangements for this payment promptly and correct the error for next month.
Have a great weekend,
Joe Stremcha
City of Elk River – Assistant City Administrator/Business Services Director
13065 Orono Parkway, Elk River, MN 55330
763.635.1022 ElkRiverMN.gov
Page 165 of 254
iBackCheck, PLLC
Payment Total
Date Payment
4/1/2024 $4,380.34
5/1/2024 $4,521.15
6/1/2024 $4,521.15
7/1/2024 $4,521.15
8/1/2024 $4,521.15
9/1/2024 $4,521.15
10/1/2024 $4,521.15
11/1/2024 $4,521.15
12/1/2024 $4,521.15
1/1/2025 $4,521.15
2/1/2025 $4,521.15
3/1/2025 $4,521.10
4/1/2025 $4,149.42
5/1/2025 $4,294.46
6/1/2025 $4,294.46
7/1/2025 $4,294.46
8/1/2025 $4,294.46
9/1/2025 $4,294.46
10/1/2025 $4,294.46
11/1/2025 $4,294.46
12/1/2025 $4,294.46
1/1/2026 $4,294.46
2/1/2026 $4,294.46
3/1/2026 $4,294.46
4/1/2026 $4,294.46
5/1/2026 $4,443.85
6/1/2026 $4,443.85
7/1/2026 $4,443.85
8/1/2026 $4,443.85
9/1/2026 $4,443.85
10/1/2026 $4,443.85
11/1/2026 $4,443.85
12/1/2026 $4,443.85
1/1/2027 $4,443.85
2/1/2027 $4,443.85
3/1/2027 $4,443.85
4/1/2027 $4,443.85
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