CC WS 2020 09 14CHANHASSEN CITY COUNCIL
WORK SESSION
SEPTEMBER 14, 2020
Mayor Ryan called the work session to order at 5:05 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Tjornhom, Councilman
McDonald, Councilman Campion, and Councilwoman Coleman
STAFF PRESENT: Heather Johnston, Greg Sticha, Charlie Howley, Jerry Ruegemer, Kate
Aanenson, and Jake Foster
ECONOMIC DEVELOPMENT COMMISSION MEMBERS: Jim Sanford, Stephen Stamy,
James Ebeling, and Adam Schaefer
JOINT MEETING WITH ECONOMIC DEVELOPMENT COMMISSION – REVIEW
2020 EDC GOALS AND POTENTIAL BUSINESS SUBSIDY PROGRAMS.
Greg Sticha provided background information on the work that has been done since the EDC
was established before introducing Chairman Jim Sanford who reviewed the goals established by
the EDC for 2020 and 2021. He noted the item that percolated to the top was a business subsidy
program, discussed possible funding sources and working with local businesses, city staff,
Southwest Chamber of Commerce and Buy Chanhassen. He discussed that the commission is
supportive of building meeting space, lodging tax, affordable housing, and improving internet
connectivity between businesses and residents. The first item of business is creating a funding
source to establish a business subsidy program and the benefits of the program. Second goal is
improving communications between local businesses and the City, Chamber of Commerce and
Buy Chanhassen, and interacting with other local businesses. In asking for feedback from City
Council members, Councilmember Coleman and Campion stated support for the goals being
proposed but could not support an additional levy at this point in time for a business subsidy
program but would favor discussing it in the future. Councilwoman Tjornhom discussed that she
has not supported the role of this commission and could not support government involvement
with local business subsidy program. Councilman McDonald explained that he agreed with
Councilwoman Tjornhom that he could not support an additional levy for a business subsidy
program but agreed with moving forward with implementing a lodging tax, improving
communications, and showing the need for implementing these goals. Mayor Ryan thanked
Chairman Sanford and the commission for the hard work they’ve done over the last year and
discussed her support for improving communications between local businesses, the Chamber of
Commerce and Buy Chanhassen is important but agreed with Councilwoman Coleman and
Councilman Campion that 2021 is not a good year to be implementing a business subsidy
program and discussed the need to create a 5 to 10 year plan to help with economic growth
within the city. Chairman Sanford explained that a micro loan option would be a viable funding
source in the future. In discussing the creation of a lodging tax Mayor Ryan explained where the
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City Council is in the process and that discussions with Vernelle Clayton with Buy Chanhassen
stopped because of COVID but that would be a good topic to research in the future. Stephen
Stamy discussed his conversations with Vernelle Clayton about implementing a lodging tax.
Greg Sticha explained that the EDC will be meeting with the Southwest Chamber of Commerce
and Buy Chanhassen to discuss improving communications.
FOLLOW UP BUDGET DISCUSSION.
Greg Sticha discussed Scenario 1, 1.5 and 2, the impacts on service levels and changes in
expenses and revenues before explaining that staff will be recommending Scenario 1 for
approval on September 28th. Councilman Campion asked for clarification on the service level
differences between Scenario 1.5 and 2. Mayor Ryan asked about adjustments to travel and
training, if there are any policy shifts happening in 2021, and clarification on elimination of
membership in Southwest Corridor Transportation Coalition. Councilwoman Tjornhom
discussed the need for the council to be cautious in considering the proposed cuts and does not
believe service levels are sustainable. Councilman McDonald asked about the plans to address
possible sustainability in service level cuts between setting the preliminary and final levy.
Heather Johnston addressed the issue of sustainability of service levels and the need for creating
a 5 year financial plan. Councilman McDonald discussed the policy changes being proposed
with Scenarios 1.5 and 2. Councilman Campion discussed changes in service levels which
would have minimal impacts between Scenarios 1.5 and 2. Councilwoman Coleman asked if
certain service levels cut will save money now but will incur additional expenses in the future.
Mayor Ryan asked for clarification on the current policy of plowing for snowfalls under an inch.
Charlie Howley discussed creation of a new snowplow policy which will be presented to the City
Council. Councilwoman Tjornhom asked about the impact on staff with the change in the
snowplow policy. Councilman McDonald asked about the risks associated with policy changes.
Mayor Ryan explained that she believes council members are favoring a scenario other than
Scenario 1.
UPDATE ON SMALL BUSINESS ASSISTANCE PROGRAM.
Kate Aanenson provided an update on the Small Business Assistance program the City is
involved in with the Carver County CDA. Mayor Ryan asked Greg Sticha if there will be
additional funds from the CARES Act funding that can be applied to this program. He explained
he believes there will be another $100,000 to $150,000 available. Council members agreed with
using additional CARES Act funding going to this program.
ROUNDTABLE.
Heather Johnston discussed citywide review associated with speed limits on residential streets
due to complaints from residents. Charlie Howley discussed that staff has formed a Traffic
Safety Committee to review this issue and asked if reducing speed limits should be global across
the city or on a case by case basis. Councilman McDonald questioned enforcement on lowering
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the speed limit city wide and/or on an individual basis. Council members agreed with
Councilman McDonald’s comments. Heather Johnston addressed the repeal of emergency
declaration which is set to expire when the Governor’s emergency declaration ends.
Mayor Ryan adjourned the work session at 7:00 p.m.
Submitted by Heather Johnston
Interim City Manager
Prepared by Nann Opheim