CC WS 2020 07 20CHANHASSEN CITY COUNCIL
WORK SESSION
JULY 27, 2020
Mayor Ryan called the work session to order at 5:00 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Tjornhom, Councilman
McDonald, Councilman Campion, and Councilwoman Coleman
STAFF PRESENT: Heather Johnston, Jake Foster, Kate Aanenson, Charlie Howley, Jerry
Ruegemer, Greg Sticha, and Chief Don Johnson
PUBLIC PRESENT:
Todd Simning
Craig Hanson 24707 County Road 75, St. Augusta
DISCUSSION OF AFFORDABLE SENIOR HOUSING – POWERS RIDGE.
Kate Aanenson provided background information on this proposed project noting the developer
is seeking feedback from the City Council to allow density credit for senior housing and if the
council wants to consider TIF. Todd Simning reviewed the proposed site plan rendering and unit
count of 110 units, 56 affordable and 54 market rate. He reviewed the demand assessment which
verifies the need for affordable and market rate senior housing in Chanhassen in the future.
Craig Hanson reviewed Pro forma A for 100 percent affordable housing and Pro forma B for 51
percent affordable and 49 percent market rate housing which shows that Pro forma A does not
cover cash flow requirements for bank debt ratios to work. Mayor Ryan asked staff to provide
history on the Powers Ridge development. Councilman McDonald asked for clarification of how
affordable and market rate rental costs are determined and subsidized, and if this project will be
considered Section 8 housing. Mayor Ryan asked for further clarification on the use of
government vouchers versus Section 8 housing before summarizing the demand for affordable
senior housing in Chanhassen. Councilwoman Tjornhom asked for clarification of the request
for the use of TIF, what the City’s Comprehensive Plan calls for in senior housing numbers, and
the impact additional senior housing puts on the City’s public safety services. Councilman
Campion asked for clarification of the original 88 market rate units versus the proposed number
of 110 units and the breakdown of affordable and market rate rentals with the use of density
transfer. Councilwoman Coleman asked that a cost analysis for TIF be brought back and the
impact on public safety services. After discussions it was the consensus of council members to
move forward with more information on this project.
The City Council took a short recess at this point in the work session.
2020 ROAD FUNDING DISCUSSION.
City Council Work Session – July 27, 2020
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Charlie Howley provided background information on the discussion at the July 13th work session
which directed staff to revise the plans without the use of a property tax levy increase or bonding
and to live within the budgeted money for 2020. He reviewed four options for the council to
consider moving forward to fund road construction projects and provided an update on the
current status of Municipal State Aid funding from the State. Mayor Ryan asked about the
impact of decisions made by Carver County. Councilwoman Coleman asked for clarification of
the one road project included with Option 1. Councilman Campion commented that he’s
between Option 1 and Option 3. Councilwoman Tjornhom expressed concern with assessing
residents for one road project so would favor Option 2. Councilman McDonald stated he was
leaning towards Option 2 because of not wanting to assess anyone due to hardships caused by the
pandemic. He also asked if any roads are deteriorated to a gravel state and the risk associated
with not doing any road projects this year. Mayor Ryan asked about the impact to the budget for
2020 and 2021 going with Option 2. Councilwoman Tjornhom reiterated that she felt strongly
not to assess any residents this year. Councilwoman Coleman agreed with favoring Option 2.
Mayor Ryan concurred with favoring not assessing residents this year due to feedback she has
received and the need to continue with pothole patching and minor maintenance to show
residents the City is continuing to address city roads.
CARES FUNDING UPDATE-SMALL BUSINESS GRANT AWARD.
Greg Sticha discussed that the City received $1,987,000 in CARES federal funding and
explained the eligible expenditures for those funds including a facility audit to address updates
needed for city facilities for COVID safety concerns, that a portion of the money could be used
towards public safety payroll costs, and giving small businesses grants within the community.
Kate Aanenson discussed what other communities are doing with their grant award program for
small businesses with the possibility of working with Carver County CDA or working within the
City with a outside firm. Mayor Ryan asked council members for feedback on what is being
proposed. Council member’s consensus favored using 5 to 10 percent of the funds for a small
business grant program that would be administered by the City and not use the money towards
the sheriff’s contract.
Mayor Ryan outlined the schedule for the regular EDA and City Council meeting before
adjourning the work session at 6:50 p.m.
Submitted by Heather Johnston
Interim City Manager
Prepared by Nann Opheim