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CHANHASSEN CITY COUNCIL
WORK SESSION
AUGUST 28, 2017
Mayor Laufenburger called the work session to order at 5:00 p.m.
COUNCIL MEMBERS PRESENT: Mayor Laufenburger, Councilwoman Ryan, and
Councilman Campion. Councilman McDonald arrived at the end of the downtown vision-
market scan update.
COUNCIL MEMBERS ABSENT: Councilwoman Tjornhom
STAFF PRESENT: Todd Gerhardt, Chelsea Petersen, Kate Aanenson, Paul Oehme, Greg
Sticha, Sharmeen Al-Jaff, and Chief Don Johnson
PUBLIC PRESENT:
Cindy McDonald, Kraus-Anderson 4210 W. Old Shakopee Road, Bloomington
Kim Bretheim, LHB 701 Washington Avenue No., Minneapolis
M. Halama 670 Creekwood Street, Chaska
DOWNTOWN VISION – MARKET SCAN UPDATE.
Todd Gerhardt provided background information on how this process was initiated. Britt
Palmberg and Bryan Harjes with Hoisington-Koegler Group were present. Kate Aanenson
reviewed the projected schedule for completion of the downtown vision study. Councilman
Campion asked why the timeline for completion of this study had gotten longer than initially
projected. He suggested accelerating the process to assist with other projects coming forward.
Mayor Laufenburger asked about impacts to the Comprehensive Plan. Britt Palmberg reviewed
details of mapping the downtown study area north of Highway 5, market scan components,
demographic background for Chanhassen and surrounding communities from 2010 through
2040, retail market conditions for downtown Chanhassen versus the Eden Prairie submarket and
Minneapolis, local retail trade area and conditions, office market conditions in downtown
Chanhassen versus the I-494 corridor submarket and Minneapolis, and local multi-family market
conditions in downtown Chanhassen versus the I-494 corridor submarket and Minneapolis.
Mayor Laufenburger asked to see the range of market conditions versus averages.
Councilwoman Ryan asked for clarification on what was being presented by Britt Palmberg that
was different from what was reported earlier. Mayor Laufenburger asked for clarification on
what draws people to move to the suburbs. Britt Palmberg continued his presentation with
review of future retail, office, and multi-family potential and the upcoming schedule through
December-January with an attempt to accelerate the schedule with city staff. Kate Aanenson
asked Britt Palmberg to explain what they hope to achieve from meeting with downtown
property owners and tenants. Mayor Laufenburger asked if there was a plan to meet with
City Council Work Session – August 28, 2017
developers for downtown and parcels that may be ripe for redevelopment. Councilman Campion
asked for additional comparisons to other key financial strategy downtown areas. Todd Gerhardt
discussed how redevelopment in the downtown area is necessary to keep businesses vibrant.
Councilwoman Ryan discussed her frustration with the schedule for this item and the Venue/Aldi
project being approved prior to the information needed from this study.
VENUE/ALDI UPDATE.
Todd Gerhardt reviewed information pertaining to truck turning movements with Aldi’s front
entry. Kate Aanenson reviewed answers to questions asked by council members regarding the
location of the loading dock, parking, and widening of the alley. The representative from United
Properties described how those items were addressed by showing a 3D model of the proposed
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building site. Mayor Laufenburger asked for clarification of the shared parking along West 78
Street, the variance that was granted for the drive aisle length and proposed pedestrian
circulation in the area. United Properties continued with the height of building, shape and
number of units. Todd Gerhardt asked United Properties to address the limitations associated
with developing this property and cross access agreements associated with this site.
REVIEW OF PRIVATE REDEVELOPMENT AGREEMENT FOR VENUE/ALDI.
Todd Gerhardt reviewed changes made to the Private Redevelopment Agreement for Venue/Aldi
and continued his discussion of tax increment financing districts. Mayor Laufenburger asked if
council members had any questions on the attachments to the Private Redevelopment Agreement
with Chanhassen Frontier, LLC. Councilwoman Ryan asked for clarification of the term
“creative financing”. Mayor Laufenburger asked how the City can be assured that market rate
rents will be enforced into the future and why the Public Improvement and Special Assessment
Agreement is important.
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Todd Gerhardt provided an update of the schedule for the September 11 City Council and EDA
meeting.
Mayor Laufenburger recessed the work session at 6:55 p.m. The work session was
reconvened at 8:40 p.m.
DEPARTMENT HEAD PRESENTATION OF PRELIMINARY DETAILED 2018
BUDGET.
Greg Sticha reviewed details associated with changes in the following funds: Legislative,
Administration, Finance, Legal, Property Assessment, MIS, City Hall, Elections, and the Library
Building. Todd Gerhardt reviewed changes in the Police Administration fund which includes
replacement of the Crime Prevention Specialist position. Chief Don Johnson reviewed changes
in the Fire Department fund explaining changes needed to keep Chanhassen firefighters
competitive with surrounding communities. Greg Sticha discussed code enforcement,
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City Council Work Session – August 28, 2017
community service, engineering, street maintenance, street lighting and signals, fleet department,
Planning Commission, Planning Administration, and Senior Commission. Mayor Laufenburger
asked about the status of printing the park and trail maps.
Mayor Laufenburger adjourned the work session at 9:10 p.m.
Submitted by Todd Gerhardt
City Manager
Prepared by Nann Opheim
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