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CHANHASSEN CITY COUNCIL
WORK SESSION
DECEMBER 5, 2016
The City Council held an executive session from 5:30 to 6:10 p.m. to discuss the City
Manager’s Performance Evaluation. Mayor Laufenburger called the work session to order
at 6:20 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Laufenburger, Councilman McDonald,
Councilwoman Tjornhom, Councilwoman Ryan, and Councilman Campion
STAFF PRESENT:
Todd Gerhardt, Kate Aanenson, Chelsea Petersen and Greg Sticha
PUBLIC PRESENT:
Clayton Johnson 1808 Hillside Lane, Buffalo
Britta Bloomberg P.O. Box 730, Chanhassen
Meta Bloomberg P.O. Box 730, Chanhassen
Jonathan Adam 7955 Stone Creek Drive
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Rick McKelvey 484 80 Street NW, Buffalo
Keith Ulstad 1602 Woodstone Drive, Victoria
Vernelle Clayton 422 Santa Fe Circle
Michael Brindisi Chanhassen Dinner Theater
DISCUSS POTENTIAL REDEVELOPMENT OF THE FRONTIER BUILDING,
UNITED PROPERTIES.
Todd Gerhardt introduced the development team and asked them to explain their roles and
responsibilities. Clayton Johnson with Bloomberg Companies provided background information
on past development of the Frontier Center and challenges associated with redeveloping the site.
Jonathan Adam with Silverstone Realty discussed working with Clayton Johnson in putting
together a team for the redevelopment. Keith Ulstad and Rick McKelvey discussed how the
relationship between United Properties and Silverstone Real Estate has worked in the past and
how development has changed to mixed uses which will be the model moving into the future.
Todd Gerhardt showed an aerial view of the 4 acre parcel that is being consider for
redevelopment and the challenges with shared easements. Rick McKelvey reviewed the site plan
for a retail grocery store and apartment complex. Councilwoman Tjornhom asked if the number
of parking stalls was adequate to serve the grocery store and apartments. Councilman Campion
asked about the possibility of renegotiating the shared easements to enlarge the building
footprint or the possibility of going further underground to provide additional parking. Keith
Ulstad provided history on the size of the Aldi parent company. Councilwoman Ryan asked for
further clarification on why renegotiation of parking leases wasn’t explored. Todd Gerhardt
discussed the use of a Tax Increment Financing (TIF) district for this project and reviewed the
City Council Work Session – December 5, 2016
spreadsheet prepared by Ehlers and Associates which outlined the timeline for paying the TIF
note. Mayor Laufenburger asked what action staff is looking for from the City Council and the
process associated with creating a TIF district. Councilman Campion explained that he’s seen
quite a bit of negative chatter online for Aldi and apartments and that he is not sure if this is the
best use of the property competing with Avienda. Councilman McDonald stated he would like
more time before making a decision. Todd Gerhardt explained that United Properties is at the
end of their purchase option with Bloomberg Companies. Councilman McDonald reiterated that
he needs more time to consider this item to feel comfortable with the development of retail and
how that relates to the future use of the Dinner Theater. Clayton Johnson explained the position
of Bloomberg Companies who have been trying to redevelop this property since 2009.
Councilwoman Tjornhom expressed her support for having apartments to help keep downtown
vibrant. Mayor Laufenburger asked Vernelle Clayton if Buy Chanhassen is supportive of this
project. Vernelle Clayton stated she was comfortable with bringing people to downtown.
Michael Brindisi stated the Dinner Theater supports bringing more people to downtown and
would support the concept. Councilwoman Ryan explained that everybody supports a viable
downtown, but noted that since this planning has going on since 2009 and tonight is the first time
the council has seen the plans. She stated she could support the apartment concept but not
necessarily just a grocery store. Keith Ulstad explained the current differences between retail
uses. Todd Gerhardt asked council members how much time they need to think about this.
Councilman Campion asked for more renderings showing how this project relates to the Dinner
Theater and Country Inn and Suites. Councilman McDonald asked for a definitive drop dead
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date from the developer. Todd Gerhardt stated staff can bring this item back at the December 12
council meeting. Mayor Laufenburger explained that he believes it’s the council’s job to provide
a mission, vision and strategy for the city and believes the council has the information it needs to
make a decision. Councilwoman Ryan asked for information to explain having a grocery store
versus mixed use and why should the City move forward with approving a TIF district.
Councilman McDonald stated he is also looking for information on why the City should provide
a TIF district. Councilman Campion agreed that he is looking for additional TIF information and
if other properties would have developed if they were offered TIF. It was the consensus of
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council to bring this item back at the December 12 meeting.
Mayor Laufenburger adjourned the work session at 7:40 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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