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06-26-2023 City Council Regular Meeting MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES JUNE 26, 2023 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: N/A STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Eric Maass, Planning Director; Bob Generous, Senior Planner; Jerry Ruegemer, Parks & Recreation Director; Priya Tandon, Recreation Manager; Rick Rice, IT Manager; Kelly Grinnell, Finance Director; Andrea McDowell Poehler, City Attorney; Kim Meuwissen, City Clerk; Ari Lyksett, Communications Manager; Sarah Thiessen, Communications Specialist; Drew Zoromski, Digital Communications Specialist PUBLIC PRESENT: Tracy Duske and Missy Smutny IWCO Tom Madden 19260 Lake Avenue, Deephaven Akpovi Obakponovwe 7768 Arboretum Village Circle Edgar Cepuritius, Café Zupas 460 West Universal Circle, Sandy, UT PUBLIC ANNOUNCEMENTS: 1. Recognize Northern Lights Awards Mayor Ryan shared that the City Communications Department received the award for the video series to improve recruitment for a fire department position open in the city. The judges’ comments stated that the video was beautiful. The department received first place for this video. The City Communications Department also redesigned its website to improve website accessibility and searchability. The department received first place for this website redesign. Mayor Ryan congratulated the department for their hard work. 2. Recognition of Donation from IWCO for 4th of July Celebration Mayor Ryan read a statement to recognize and thank IWCO for their $3,000 donation towards Family Night at the carnival on July 2nd. Since 1986, IWCO has donated over $40,000 towards Chanhassen special events. Mayor Ryan thanked the organization for their generosity and corporate partnership over the years. City Council Minutes – June 26, 2023 2 3. Invitation to the 40th Annual 4th of July Celebration Mayor Ryan invited community members to attend the 4th of July Celebration. The celebration takes place at City Center Park and Lake Ann Park on July 2nd, 3rd, and 4th. The event is hosted by the City of Chanhassen in partnership with the Southwest Metro Chamber of Commerce and Chanhassen Rotary Club. Nicollet National Bank and IWCO are sponsors. There is a full schedule of events on the website. CONSENT AGENDA: Councilman McDonald motioned, Councilman Kimber seconded that the City Council approve the following consent agenda items 1 through 16 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated June 5, 2023 2. Approve City Council Special Meeting Minutes dated June 2, 2023 3. Receive Environmental Commission Minutes dated April 12, 2023 4. Receive Economic Development Commission Minutes dated May 9, 2023 5. Receive Planning Commission Minutes dated May 16 and June 6, 2023 6. Approve Claims Paid June 26, 2023 7. Authorize Equipment Purchase – Trailer Mounted Vactor 8. Approve Temporary Modification of the Licensed Premises to serve Beer in the Hackamore Brewing Company Parking Lot Area 9. Resolution 2023-51: Approve Professional Services Agreement from AE2S for the upgrade of the City SCADA system 10. Resolution 2023-52: Approve Three-year Cartegraph Asset Management and SeeClickFix renewal agreement for OpenGov 11. Approve Agreements with Corpay for AP Payment Processing and Stampli for AP Process Automation 12. Resolution 2023-53: Approve contract for Minger Construction for work associated with the Minnewashta Parkway Improvement Project 13. Resolution 2023-54: Designating Authority for Investment and Banking Transactions and Authorizing Signers 14. Resolution 2023-55: Authorizing Participating in OSA Performance Measurement Program 15. Resolution 2023-56: Supporting Request for State Funds in the 2024 Capital Bonding Bill City Council Minutes – June 26, 2023 3 16. Ordinance 711: Amending City Code Chapter 16, Collection and Disposal Service – Section 16-33 (e) Operating Requirements All voted in favor and the motion carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS. Tom Madden, 19260 Lake Avenue, Deephaven, addressed the City Council regarding the passage of the cannabis bill and the updates he is making to the store to make it safer and more efficient. If his store receives a license, they plan to use the standard monitoring system to track inventory and products. He thanked the City Council for their time and left a PowerPoint presentation with them to review. Akpovi Obakponovwe, 7768 Arboretum Village Circle, stated he moved to Chanhassen from the United Kingdom. He reviewed the 2040 plan for Chanhassen. He learned to play pickleball in Chanhassen, but the courts are in poor shape. He noted that the Chanhassen courts are a place for community gathering and encouraged the City Council to consider painting pickleball courts on the tennis courts or repairing the pickleball courts since they are cracked. GENERAL BUSINESS. 1. Planning Case #2023-08 Café Zupas and West Village Heights 4th Addition Bob Generous, Senior Planner, provided an overview of the existing site and proposed location for the project. After the project review, the Planning Commission provided a recommendation for the project. Mr. Generous explained the site layout, architecture, building materials, and floor plan. Mayor Ryan shared concerns regarding the downtown city planning and design guidelines. She wanted there to be development downtown and see what is appropriate for Chanhassen long- term. She asked the attorney for clarification on what actions they could take. Andrea McDowell Poehler, City Attorney, stated that a moratorium is authorized by statute and can be adopted at any time if there is prior subdivision approval for a project. It is common to do this based on a previous study related to the issues or concerns that would change current ordinances. Mayor Ryan asked to table this item tonight and then request city staff study the downtown’s conditional uses before moving towards a moratorium ordinance. Mayor Ryan opened up the discussion for feedback. Councilman von Oven shared similar concerns with the project. He asked Planning Director Eric Maass how far they are from adopting the downtown design guidelines. Mr. Maass shared that staff is working with consultant HKGI and should be finalized by year’s end. Staff proposed a City Council Minutes – June 26, 2023 4 vision statement for the central business district apart from the downtown design guidelines. Staff anticipated the uses portion to be ready between 60 and 90 days. Councilman Kimber asked if the moratorium needed to be defined to a specific area. Ms. McDowell Poehler stated it would be for a defined area of downtown in relation to the study or for specific uses in different zoning districts. Councilwoman Schubert asked if a moratorium would dissuade future developers from the downtown area. Mr. Maass shared that the development community is cognizant of the moratoriums and code updates. He stated that a moratorium is a strong action. He does not believe it would dissuade future developers, but it is likely that the developers will desire to mitigate future risks. Mayor Ryan asked Ms. McDowell Poehler for suggestions and recommendations on the timeline to adopt a moratorium. Ms. McDowell Poehler suggested providing additional time on top of 60 to 90 days or clarification that it is terminated once ordinances have been adopted. Councilman McDonald stated that two years ago, City Council considered putting businesses in the parking lot at Target and Byerly’s. He stated he needs to be convinced to do the moratorium and is unsure if it will benefit the city. Mayor Ryan stated that tonight would be a move to table the item and allow time for city staff to put together a study on uses. On July 17, city staff will present their findings to the City Council. She stated her desire is to create a uniform approach downtown prior to major development, such as the city campus and the movie theater. She wants to utilize the provided tools to ensure development is appropriate prior to taking the next steps. Mr. McDonald asked what new information that is not currently provided will be presented on July 17. Ms. McDowell Poehler stated that on July 17, there would be a directive to city staff to complete a study that would be a part of the interim ordinance for downtown usage design. Mr. McDonald asked how this decision will impact the development. Ms. McDowell Poehler stated that this could not pause the 60-day rule or the requirements of the subdivision ordinance on timing. The applicant would have to temporarily withdraw the application or the city would have to adopt findings denying the application based on moratorium ordinance. Mr. von Oven shared he wanted a cityscape that was safe and walkable for children and families. He stated it would be appropriate to pause to ensure the development fits with design developments. Mr. McDonald understood Mr. von Oven’s concerns and agreed the corridor development encompasses the north and south side and there should be a plan in place. Mr. Kimber asked about the previous study discussed during the planning meeting. He asked if there should have been a moratorium proposed at that time. This study came about when discussing the movie theater site. Mayor Ryan looked for options to pause the development during the discussion of design guidelines. City Council Minutes – June 26, 2023 5 Mr. Maass stated the staff would be in contact with the developer regarding steps moving forward. There are a few paths staff will walk the developer through based on the decision moving forward. Edgar Cepuritius from Café Zupas stated he understood the desire for staff to create a downtown walkable area. Chanhassen has Target and Byerly’s to drive consumers to the area. Mr. Cepuritius stated the study considered a two-mile stretch downtown. He stated Café Zupas would love to be a part of the community in Chanhassen. He thinks there is a compromise to develop the downtown area to be walkable, while still providing daily retail needs. He shared the door to the south is a code requirement, but they would prefer it not to be in that location. Mayor Ryan stated she understood where the applicant is coming from and wants the City Council to have time to discuss the design to ensure uniformity. Mr. Cepuritius stated they have worked with Mr. Generous for 10 months to ensure the building and layout is compatible with the requirements. Café Zupas has spent time, money, and effort to move the project forward. Mayor Ryan understood the timing is not desirable for Café Zupas; however, the responsibility is to the community at large for long-term planning. Mr. Cepuritius encouraged the City Council to consider the current reality and how it fits with the vision for the downtown. Mayor Ryan encouraged Mr. Cepuritius to work closely with Mr. Maass moving forward for clarification and communication. Councilman McDonald moved, Councilman Kimber seconded that the Chanhassen City Council table the land use application made by Café Zupas until July 17, 2023, or until an agreed-upon timeframe with the applicant, and direct staff to prepare a moratorium ordinance restricting land use applications for properties zoned as Central Business District, and direct staff to study what uses are allowed as permitted, conditional, or interim uses within the CBD district. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Councilman von Oven moved, Councilwoman Schubert seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The City Council meeting was adjourned at 8:13 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk