Shakopee EDA approves three-year lease extension for Z Dress

The Shakopee Economic Development Authority voted on Feb. 4 to approve a three-year lease extension for Boca Ratique Fashion LLC, which does business as Z Dress, extending the tenant’s trial lease through Jan. 31, 2029, authority staff said.

At the meeting, a staff presenter described Z Dress as having succeeded during a one‑year trial and said the company asked to convert to a longer-term arrangement. "They have been, and so this is, they asked for a 3 year addition," the staff member said, adding, "I will say we're very happy with their performance." The presenter also warned that some other tenants have seen business declines, saying some businesses were "down 4050%," and that the authority expects a challenging period while it works with tenants.

Board members asked for details on the rent schedule and whether city programs would subsidize the lease. One commissioner asked whether the three‑year rent increases move from "'18 to 18.25 to 18.50, 18.75" (as read aloud during the meeting) and whether those increases are standard. The staff member replied that the authority has been "trying to phase it in and be more realistic" after raising rates too quickly on older leases; the presenter described a base rate and a phased approach to find a balance.

A commissioner also asked whether the tenant would continue working with the Community Development Agency program and whether that program subsidizes leases. The staff presenter said the CDA "doesn't subsidize leases. They provide business assistance through business planning, marketing," and other supports such as social-media marketing and financial review.

After discussion, a board member moved to approve the three‑year extension for Boca Ratique Fashion LLC doing business as Z Dress at the new rates; the motion was seconded and passed. The staff presenter said the extension would be effective until Jan. 31, 2029.

Votes at a glance: the meeting record shows motions to approve the agenda and the consent agenda were made and approved; the lease extension motion was moved, seconded and passed; a motion to adjourn and set the next EDA meeting for March 3, 2026, at 7 p.m. was also approved. The transcript does not include a roll-call tally with named votes for each motion.

The authority also reviewed the EDA bill list. A commissioner sought clarification about an item described in the meeting as "$6.96 900 to the state of Minnesota" for a potential apartment project on 3rd Avenue; staff clarified that this was developer money handled as a pass-through or reimbursable item rather than EDA operating funds.

The EDA adjourned and scheduled its next meeting for March 3, 2026, at 7 p.m.