WS 2007 06 11
CHANHASSEN CITY COUNCIL
WORK SESSION
JUNE 11, 2007
Mayor Furlong called the work session to order at 5:35 p.m..
COUNCIL MEMBERS PRESENT:
Mayor Furlong, Councilman Litsey, Councilwoman
Ernst, Councilwoman Tjornhom, and Councilman Peterson
STAFF PRESENT:
Todd Gerhardt, Laurie Hokkanen, Kate Aanenson, and Paul Oehme
DISCUSSION OF LODGING TAX.
Linda Walton and Mark Halla were present from the Chamber of Commerce. Linda Walton
reviewed a handout explaining the benefits of the lodging tax and how the money will be used.
There were responses from various businesses in the community on how the tax will affect their
business. Councilman Peterson asked about the demographics of the people staying in
Chanhassen hotels. Linda Walton reviewed the comparison of a local CVB (Chamber of
Commerce and Visitors Bureau) with the projected budget for Chanhassen's CVB. Councilman
Peterson asked how a city such as Eden Prairie has produced revenue without implementing a
lodging tax. Todd Gerhardt talked about the new technology "Explore Minnesota" is using to
promote small towns throughout the state with video clips. He also explained the formula used to
project money generated from visitors to city businesses such as restaurants, transportation and
shopping. Councilman Peterson stated his shock at the number of cities with a tax that don't
have statistics or data on the return of those tax dollars which can be used in determining a
baseline. Councilwoman Ernst asked for clarification on how the process would help market
businesses such as Super Valu. Mark Halla explained how the revenue generated will be used to
upgrade and redesign the Chamber's website. Councilman Litsey thanked Linda Walton for
meeting with him and Councilman Peterson and coming to the work session to share the
information and asked Ms. Walton to explain the rationale of job sharing the coordinator
position. Mayor Furlong asked for feedback from council members regarding the proposal.
Councilwoman Ernst stated she could not support implementing an additional tax. Councilman
Peterson stated he was struggling with what the city gets in return for their investment.
Councilman Litsey stated his support of the lodging tax. Councilwoman Tjornhom agreed with
Councilman Peterson that there isn't a strong plan of what will be implemented. She wondered if
Chanhassen really had a strong regional draw other than the Dinner Theater and suggested that a
task force or committee be formed with community and local business leaders to discuss whether
or not Chanhassen even wants to become a regional draw. Mayor Furlong felt it is the task of the
EDA to strengthen the city's economy and discussed how the EDA can assist in attracting
tourism into the city. Councilman Peterson asked for more time to sort through the available
information. Todd Gerhardt stated staff will provide more information on the marketing
investment return. Councilwoman Tjornhom asked for more community input before making a
decision. Mayor Furlong suggested that meetings with the community be in a more informal
than formal setting. Linda Walton's closing comments noted that the packet of information was
sent out to 425 Chamber contacts with no response, either favorable or not favorable, so the
community is aware of what's being proposed.
City Council Work Session - June 11, 2007
REVIEW ASSESSMENT DEFERRAL POLICY.
Todd Gerhardt presented the rationale for the request to adopt a standard policy for assessment
deferrals. Paul Oehme highlighted state statute relating to persons with disabilities and low
income status and how the process would work. Councilman Peterson asked if the item could be
handled administratively rather than coming before the City Council. Todd Gerhardt stated the
council can set policy to follow state statute. Councilman Litsey asked if consideration had been
given to military personnel who are deployed and facing financial hardship. Mayor Furlong
asked staff to review specific wording and standards to be more uniformed with what other cities
are doing. Todd Gerhardt stated he would work with the city attorney's office in looking at the
military clause.
The work session was recessed at 6:55 p.m.. It was reconvened at 8:35 p.m..
DISCUSSION OF CITIZEN SURVEY.
Laurie Hokkanen gave a power point presentation reviewing the results of the 2007 citizen
survey that was conducted by the National Research Center out of Boulder, Colorado. 1,200
households were randomly selected with 45% responding, which is comparable but slightly
lower than the results of the 2005 citizen survey. She reviewed the overall results, how those
results compared to the 2005 survey, and comparisons from respondents north and south of
Highway 5. Potential problems that were highlighted included taxes, traffic, rate of growth, rate
of retail and job growth, economy, safety, community participation, voter status, service
provided by the city, state and federal government, quality of public service, transportation,
leisure, utility, planning, code enforcement and other services. The 3 opened ended questions
asked about expansion of a regional mall, size of a regional mall and what citizens see as
important issues in the city. The 3 most important concerns were control growth, traffic and
taxes. Todd Gerhardt thanked Laurie Hokkanen for her work on this project and noted that the
results of the survey will be shared with city staff next week. Kate Aanenson noted that Laurie
Hokkanen will be available at the comprehensive plan open house to answer questions regarding
survey results. Mayor Furlong asked to see the list of all the answers to the open ended
questions. Todd Gerhardt ended by saying the city seems to be on the right path and staff will
use the information provided in the comprehensive plan update.
Mayor Furlong adjourned the work session at 9:15 p.m..
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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