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CHANHASSEN CITY COUNCIL
WORK SESSION
DECEMBER 12, 2016
Mayor Laufenburger called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT:
Mayor Laufenburger, Councilman McDonald,
Councilwoman Tjornhom, and Councilwoman Ryan, and Councilman Campion
STAFF PRESENT:
Todd Gerhardt, Chelsea Petersen, Paul Oehme, Kate Aanenson, Todd
Hoffman, Roger Knutson, Greg Sticha, and Rick Rice
PUBLIC PRESENT:
None.
KEY FINANCIAL STRATEGY: SOLICIT STATE FUNDING FOR TH 101 FROM
PIONEER TRAIL TO CR 61.
Todd Gerhardt introduced Tom Pohl and Katie Senn from Messerli & Kramer who provided an
update on the work that’s been done to solicit State funding for TH 101 from Pioneer Trail to CR
61. Paul Oehme provided background information and discussed a grant application that the
City has prepared for submittal in 2017. Katie Senn explained how great it has been working
with City staff before providing a legislative update on the strengths and challenges with moving
forward in 2017. She reviewed the changes in the make up of the State House of Representatives
and State Senate due to the election and how that will impact legislative committees. Tom Pohl
discussed the possibility of a special legislative session before the end of the year looking less
and less likely and discussed transportation bonding bills. Mayor Laufenburger asked for
clarification on the money being spent for maintenance of TH 101. Councilwoman Ryan asked
for clarification on how a phased project would work. Todd Gerhardt asked Katie Senn and Tom
Pohl to discuss their work background prior to working with Messerli & Kramer. Tom Pohl
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invited council members to attend a MLC breakfast meeting being held on Jan 20 in Plymouth.
DISCUSS POTENTIAL REDEVELOPMENT OF THE FRONTIER BUILDING,
UNITED PROPERTIES.
Keith Ulstad introduced Rick McKelvey representing United Properties and Jonathan Adam with
Silverstone Realty. Todd Gerhardt provided highlights of the pros and cons outlined in a power
point presentation on the work that’s taken place with the redevelopment project over the past
year. Councilwoman Tjornhom asked Todd Gerhardt to clarify the term market rate.
Councilman Campion asked about the vacancy data for Chanhassen and the market study that
would support the addition of the proposed residential units. Keith Ulstad explained how the
apartment market has changed in the last few years. Todd Gerhardt stated staff is recommending
that City Council direct staff to prepare a private redevelopment agreement and start the process
to create a Redevelopment Tax Increment Finance District. Councilman McDonald asked what
City Council Work Session – December 12, 2016
design latitude the City has if they create a TIF district and if council can ask for additional retail
space. Keith Ulstad discussed a single retail use versus mixed use. Councilman Campion stated
that after talking with residents he would agree with the site selection. Councilwoman Ryan
clarified that Aldi’s is a permitted use with or without the apartments and her hesitation with
having a fourth grocery store in downtown Chanhassen. Mayor Laufenburger asked council
members if they were in agreement with staff’s recommendation. Councilmembers concurred
that there was a majority that could support staff’s recommendation. Councilman Campion
asked about the possibility of increasing the TIF amount.
Mayor Laufenburger adjourned the work session at 7:00 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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