WS 2016 10 24
CHANHASSEN CITY COUNCIL
WORK SESSION
OCTOBER 24, 2016
Mayor Laufenburger called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Laufenburger, Councilman McDonald,
Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion
STAFF PRESENT:
Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Todd
Hoffman, Greg Sticha, and Roger Knutson
PUBLIC PRESENT:
Pat Mazural 9501 Virginia Avenue So, Bloomington
Boulos Toronto, Canada
Jill Radloff 150 South Fifth Street, Ste 2300, Minneapolis
Todd M. Phelps 150 South Fifth Street, Ste 2300, Minneapolis
Matt Pacyna One Carlson Parkway, Ste 150, Plymouth
Shannon Pratt Los Angeles, California
Joel Weinshanker New York City, New York
Deb & Bill Fasen Sartell, Minnesota
Teawanna Burton Minneapolis
Christine Onesky 13759 Zarthan Avenue So, Savage
Jeannie Gilding 29 Broadmead, Neswall, Cheshire, England
Wendy Sue Kelley P.O. Box 145, Brantrock, MA
Scott Jesse 8198 Stone Creek Avenue
Maureen Burns 210 Pond Street, Braintree, MA
S. D. Bloomington
Vernelle Clayton Chanhassen
Letitia Dyer Chanhassen
KEY FINANCIAL STRATEGY: AVIENDA CHANHASSEN RETAIL CONCEPT
CENTER.
Kate Aanenson reviewed background information and how this item will proceed through the
process. The applicants introduced themselves, Darren Lazan with Landform Professional
Services and Jeff Hysjulien with RSP Architecture. Darren Lazan reviewed the change in
ownership and the team that is working on the plans. Mayor Laufenburger asked Mr. Lazan to
clarify the ownership’s control of the entire parcel. Darren Lazan reviewed the project in
relation to surrounding companies, market study, zoning and land use for the existing property
and the overall AUAR and proposed land uses. Jeff Hysjulien reviewed the architectural
component of the retail character and making it a healthy way of life village for retail, office,
City Council Work Session – October 24, 2016
residential and landscaping components. Kate Aanenson explained how the City will work on
the architectural and design components of the project. Darren Lazan reviewed the proposed plan
(concept 3.5), and discussed feedback from the neighborhood meeting that was held at the
library. Councilwoman Tjornhom asked about the difference in feedback from previous
meetings to the current neighborhood meetings. Kate Aanenson discussed wetland impacts that
are being addressed, the planning and approval schedule, and possible challenges with storm
water improvements. Councilwoman Ryan asked about a central gathering area that’s not shown
and the possible need for an additional roundabout for traffic calming purposes. Councilwoman
Tjornhom expressed her concern with the definition of the wetlands. Councilman Campion asked
for clarification of the possible uses portrayed in the different concept plans. Mayor
Laufenburger asked about the marketing study, other competing markets in surrounding areas
and who pays for road improvements that will need to be made to support this development.
Councilwoman Ryan asked that the applicant take care when dealing with environmental issues.
Mayor Laufenburger asked when this project could be completed. Darren Lazan explained if
everything goes well it could open as early as summer, 2018.
UPDATE ON PAISLEY PARK MUSEUM REZONING.
Kate Aanenson provided an update from the sheriff’s office, Southwest Transit, changes to the
zoning ordinance, and traffic study results from monitoring traffic since the last council meeting.
Councilman McDonald asked what would trigger making changes in a year. Councilman
Campion asked for clarification on the change in making the hotel use from a permitted use to a
conditional use. After discussion there was consensus to leave the change regarding the hotel in
the ordinance. Councilwoman Tjornhom asked about the use of a tent. Councilwoman Ryan
asked for clarification on traffic flow and the timeline for landscaping improvements.
Councilwoman Ryan expressed concerns with pedestrian traffic along Audubon Road and the
fencing and clarification of the parking plan. Kate Aanenson reviewed how council’s concerns
are being addressed. Councilman Campion asked about neighborhood feedback with the hours of
operation. Joel Weinshanker discussed how they are addressing the hours of operation and
cutting back on days open to 4 days a week and discussed feedback in general from people
visiting the museum. Councilman McDonald asked about feedback from people having to use
buses. Councilwoman Ryan asked that this item be brought back in 6 months for review at a
work session. Mayor Laufenburger asked if the council wanted to act on the no parking
resolution for McGlynn Road separate from the rezoning. Matt Pacyna reviewed results from
traffic studies conducted during the temporary use. Councilman McDonald asked council
members if they felt their concerns had been addressed prior to going into the regular meeting.
The work session was recessed at 6:55 pm. It was reconvened at 9:05 pm.
REVIEW ANNUAL UTILITY RATE STUDY.
Greg Sticha reviewed changes from the previous year before introducing Nick Hannah with
Ehlers and Associates who reviewed a power presentation showing key findings for the 2016
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City Council Work Session – October 24, 2016
rates, proposed increases to storm water, sanitary sewer, and water funds noting impacts with
slower growth than predicted for 2016 and impacts on cash balances. Councilman Campion
asked how Chanhassen’s rates compare with key financial strategy and surrounding cities. Nick
Hannah reviewed an example of a utility bill moving forward for the average user, reviewed the
rates and hook up fee increases and the impact of the water treatment plant costs on rates.
Council discussed staff’s recommendation of decreasing the water rates from 6 to 5.5 percent
due to the cost of construction for the water treatment plant and asked to see a chart showing that
impact.
KEY FINANCIAL STRATEGY: BUSINESS SUBSIDY EDUCATION.
Nick Hannah with Ehlers and Associates discussed how to use the basic tools of tax increment
funding (TIF), TIF versus abatement, and tax allocation as business subsidies. Councilwoman
Tjornhom suggested council members get a history of how the City of Chanhassen has used TIF
in the past. Mayor Laufenburger asked if the council will be using these tools in the future.
Todd Gerhardt explained that it could be used for redevelopment of the Frontier Building. Greg
Sticha noted he included in the packet a revised Business Subsidy Practice document that would
need to be approved by the council in the future. Mayor Laufenburger clarified that the process
is heavily regulated by state statutes.
Mayor Laufenburger adjourned the work session at 10:50 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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