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4.9 SR 06-03-2024The 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 4.9 Meeting Date June 3, 2024 Prepared By Joe Stremcha, Business Services Director/Assistant City Administrator Item Description Resolution 24-27: Confirming Status of Lease Agreement with iBackCheck Reviewed by Cal Portner Tina Allard Action Requested Adopt, by motion, Resolution 24-27 confirming status of lease agreement with iBackCheck. Background/Discussion The City Council agreed to withdraw the lease termination and reconfirm the lease status after hearing from iBackCheck CEO Dr. Christi Jo Christiansen and The Bank of Elk River Commercial Lender Michelle Thatcher. Financial Impact None Mission/Policy/Goal Work with citizens to achieve goals. Attachments 1. Resolution Confirming Status of Lease Agreement Page 42 of 464 231113v1 City of Elk River City Council Resolution 24-____ A Resolution of the City Council of the City of Elk River Confirming the Status of the Lease Agreement Between the City of Elk River and iBackCheck, PLLC dated May 3, 2022 WHEREAS,the City of Elk River and iBackCheck, PLLC (“iBackCheck”) entered into a 5-year Lease Agreement (the “Lease”) for space in the Furniture and Things Community Event Center dated May 3, 2022; and WHEREAS,in late 2023 and in Spring 2024 the City provided notices to iBackCheck of late fees, insufficient rent payments, and outstanding balances; and WHEREAS,such outstanding balances were not remedied to the satisfaction of the City; and WHEREAS,after review on May 6, 2024, the City Council determined to call the outstanding balance due immediately and, pursuant to Article 20 of the Lease, to terminate the lease effective May 31, 2024; and WHEREAS,The Bank of Elk River and Dr. Christi Jo Christiansen (“Dr. Christiansen”), Chief Manager of iBackCheck, notified the City of bank errors related to the most recent automatic fund transfer; and WHEREAS,as of May 16, 2024, iBackCheck paid all outstanding balances related to its Lease, including late fees; and WHEREAS,Dr. Christiansen appealed the lease termination and appeared before the City Council at its regular meeting on May 20, 2024; and WHEREAS, after hearing from Dr. Christiansen, the City Council agreed to withdraw the termination and reconfirm the status of the Lease. NOW, THEREFORE, BE IT RESOLVED, by the City Council of the City of Elk River as follows: 1. The Lease Termination is hereby withdrawn. 2. The Lease remains in full force and effect pursuant to its terms, and the City retains all rights under the Lease. Page 43 of 464 231113v1 . Passed and adopted this 3rd day of June 2024. John J. Dietz, Mayor ATTEST: Tina Allard, City Clerk Page 44 of 464