02-13-2024 EDC Agenda PacketA.5:30 P.M. - CALL TO ORDER
B.APPROVAL OF AGENDA
Commissioners may add or delete items at this time.
C.APPROVAL OF MINUTES
C.1 Approve Economic Development Commission Minutes of January 9, 2024.
D.VISITOR PRESENTATIONS
E.DISCUSSION / GENERAL BUSINESS ITEMS
E.1 EDC Approval of a Three-Year Economic Development Plan
F.DIRECTOR'S REPORT
G.ADJOURNMENT
AGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
TUESDAY, FEBRUARY 13, 2024
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
1
Economic Development Commission Item
February 13, 2024
Subject Approve Economic Development Commission Minutes of January 9, 2024.
Section APPROVAL OF MINUTES Item No: C.1
Prepared By Amy Weidman, Admin Support Specialist File No:
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
Staff recommends that the Economic Development Commission approve the January 9, 2024
Commission minutes.
ATTACHMENTS
01-09-2024 EDC Minutes
2
CHANHASSEN ECONOMIC
DEVELOPMENT COMMISSION
REGULAR MEETING
January 9, 2024
Chair Anderson called the meeting to order at 5:39 p.m.
MEMBERS PRESENT: Chair Eric Anderson, Vice Chair Duke Zurek, Stacy Goff, Luke
Bame, Cohen Lee
MEMBERS ABSENT: Chris Freeman
STAFF PRESENT: Samantha DiMaggio, Economic Development Manager; Eric Maass,
Planning Director (remotely)
PUBLIC PRESENT: Nick Anhut, Ehlers, and Nick Asta and Peter Schroeder, Roers.
Commissioner Zurek moved, and Commissioner Goff seconded to approve the agenda. All
voted in favor and the motion carried unanimously with a vote of 5 to 0.
APPROVAL OF MINUTES:
APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED DECEMBER
12, 2023
Commissioner Bame moved, and Commissioner Lee seconded to approve the Minutes of the
Economic Development Commission meeting dated December 12, 2023, as presented. All voted
in favor and the motion carried unanimously with a vote of 5 to 0.
DISCUSSION/GENERAL BUSINESS ITEMS:
1. West 78th Street Renewal and Renovation TIF District Application—Roers
Economic Development Manager, Samantha DiMaggio, reviewed the TIF application from Roers
Companies for a TIF District for the redevelopment of the closed Chanhassen Cinema and the
Country Inn & Suites.
Roers is proposing to construct two new vertical mixed-use buildings. Each building would include
both residential and commercial space as well as underground parking. The total redevelopment is
estimated to cost $134.6 million. The developer is showing a financing gap of $6.2 million which is
why they are requesting TIF assistance. The funds generated from the TIF District will be used to
pay for demolition and site work, including stormwater, utilities, and the extension of Laredo Drive.
State statute establishes these expenses as eligible to be paid for through TIF.
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Economic Development Commission – January 9, 2024
2
This would be a "pay-as-you-go" TIF, which means that the taxes would be paid by the
owner/developer and would be rebated once it is determined that the expenditures are valid, and the
goals of the project are met. Pay-as-you-go financing relies on the private developer or property
owner to initially finance the costs of the TIF improvements. A development agreement between the
authority and the developer then provides the developer will be repaid as tax increments are
collected. This form of TIF structuring removes financial risk to the city.
Commissioner Bame moved, and Commissioner Zurek seconded to recommend that the City
Council, acting as the Economic Development Authority, approve the request to establish a
renewal and renovation TIF district and enter into a development contract for TIF assistance
with the applicant. All voted in favor and the motion carried unanimously with a vote of 5 to 0.
ADJOURNMENT:
Commissioner Bame moved, and Commissioner Goff seconded to adjourn the meeting. All
voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic
Development Commission meeting was adjourned at 6:45 p.m.
Submitted by Samantha DiMaggio
Economic Development Manager
4
Economic Development Commission Item
February 13, 2024
Subject EDC Approval of a Three-Year Economic Development Plan
Section DISCUSSION / GENERAL BUSINESS ITEMS Item No: E.1
Prepared By Sam DiMaggio, Economic Development Manager File No:
SUMMARY
The Economic Development Commission is asked to review and approve the proposed Three-Year
Economic Development Plan.
BACKGROUND
In 2023, the Economic Development Commission (EDC) worked on developing a Three-Year
Economic Development Plan. The plan has now been finalized and the EDC is asked to review it before
being presented to the City Council.
DISCUSSION
RECOMMENDATION
The Economic Development Commission is asked to review and approve the proposed Three-Year
Economic Development Plan.
ATTACHMENTS
2024 Three Year ED Plan
5
Chanhassen Economic Development Strategic Plan
Page | 4
6
Chanhassen Economic Development Strategic Plan
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7
Chanhassen Economic Development Strategic Plan
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TABLE OF CONTENTS
A. PURPOSE ......................................................................................................................................... 4
B. CURRENT ECONOMIC DEVELOPMENT CONDITIONS .................................................................. 5
1. Population Trends ...................................................................................................................... 5
2. Employment ............................................................................................................................... 8
3. Educational Attainment ............................................................................................................. 12
4. Housing………………………………………………………………………………………………......13
5. Cost of Living ........................................................................................................................... 15
C. STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) ANALYSIS ...................... 14
D. STRATEGIC ACTION AND IMPLEMENTATION PLAN .................................................................. 17
Goal 1. Healthy Local Economy ....................................................................................................... 17
Goal 2. Equity and Inclusion ............................................................................................................. 18
Goal 3. Sustainable Infrastructure .................................................................................................... 18
Goal 4. Thoughtful Growth ............................................................................................................... 19
Goal 5. Community Development ..................................................................................................... 20
E. PERFORMANCE EVALUATION FRAMEWORK ............................................................................. 21
F. ECONOMIC RESILIENCE PLAN ..................................................................................................... 22
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A. PURPOSE
In 2023, the city contracted with Raftelis, a consulting group that aids local governments in
assessing current conditions and planning for improvement for the future, to complete an
operational study of all departments across the organization. The goal of this assessment was
to review the operations, processes, procedures, and resource levels of city departments, as
well as identify what opportunities exist to enhance the efficiency and effectiveness of service
delivery and position the city to meet anticipated growth.
The recommendation stated the primary duties of the Economic Development Manager should
include the following.
• Business Outreach - Creating a rotation schedule for when the Manager will meet with
businesses and develop a database of businesses and properties within Chanhassen ,
and;
• Local Networking - Create relationships with commercial real estate brokers, working
with the utility organizations and departments to understand what’s available as far as
locations and communicating this information to stakeholders.
Raftelis also recommended that the city should develop a three-year Economic Development
Plan to give guidance to the Economic Development Manager, whose position was newly
created in 2022, and set a course for success as this role continues to develop. This plan is to
be communicated to the community and city staff and should include the following sections.
• A summary of current economic conditions in the city,
• A regional Strengths, Weaknesses, Opportunities, Threats (SWOT) analysis,
• A strategic action and implementation plan, consistent with other city-wide plans,
• A performance evaluation framework, and
• An Economic Resiliency Plan.
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Chanhassen Economic Development Strategic Plan
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B. CURRENT ECONOMIC DEVELOPMENT CONDITIONS
1. POPULATION TRENDS
Carver County is the 11th largest of the 87 counties in the state. Its population increased over the
past decade, ranking as the fastest growing in the state from 2010 to 2022. Carver Co unty's
population has an older median age than the state average and a lower percentage of people aged
65 years and older. (Table 1 & Figure 1).
Table 1. Population by Age Group, 2022. Figure 1. Population Pyramid, 2000-2022.
The 5-year estimates compiled by the U.S. Census Bureau’s American Community Survey (ACS),
detailed that Chanhassen’s total population increased by approximately 11.2% (+2,574 people)
between the 2011 and 2021. Comparatively, Minnesota’s total population increased by
approximately 7.4% during that period. Chanhassen’s senior populations, especially those
between the ages of 65 and 74 years, witnessed the fastest and most significant growth (Table 2).
Table 2. Chanhassen Population by Age, 2011-2021.
Source: US Census Bureau, American Community Survey, 2017-2021
Source: US Census Bureau, American Community Survey, 2017-2021
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The Metropolitan Council (METC) updates its 30-year forecasts at least once per decade.
Forecasts indicate when, where and how much population, household, and job growth the region
and its communities can expect. Forecasts are used to help plan infrastructure needs and weave
consistent growth expectations throughout your plan. These are Chanhassen’s recently adopted
forecasts. Chanhassen is designated as Emerging Suburban Edge, Emerging Suburban Edge.
Table 3. METC Chanhassen 2040 Forecast
Table 4. METC Carver County 2040 Forecast
The race demographics chart, provided below, offers a visual snapshot of the diverse population
that defines the city’s collective identity. This chart not only illustrates the distribution of racial
groups but also serves as a valuable resource for recognizing the growth of cultural diversity in the
community.
Table 5. Chanhassen Population Demographics, 2000-2020
Source: Metropolitan Council Community Pages,
Chanhassen, 2024.
https://lphonline.metc.state.mn.us/CommPage?ctu=239379
9&applicant=Chanhassen
Source: Metropolitan Council Community Pages, Carver
County, 2024.
https://lphonline.metc.state.mn.us/CommPage?ctu=19&app
licant=Carver%20Co
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Carver County's population is also becoming more racially diverse over time. Since 2011, the
county's white population increased and the number of people of other races increased (see Table
6).
Table 6. Carver County Population Demographics Figure 2. Population by Race, 2021
Source: 2017-2021 American Community Survey,
5-Year Estimates
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Chanhassen Economic Development Strategic Plan
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2. Employment
According to the Department of Employment and Economic Development’s (DEED) Quarterly
Census of Employment and Wages (QCEW), the City of Chanhassen had 800 business
establishments, supplying 15,459 total jobs in 2022. Total payroll for all jobs equaled $1.1 billion,
with the average annual wage equal to $72,592 (see Table 7).
Table 7. Chanhassen Industry Statistics, Annual 2022
Table 3. Chanhassen Industry Statistics, Annual 2022
Industry Number
of Jobs
Share of
Total
Jobs
Number of
Establishment
s
Total Payroll
($1,000s)
Avg.
Annual
Wage
Total, All Industries 15,459 100.0% 800 $1,123,302 $72,592
Manufacturing 4,563 29.5% 47 $378,021 $82,628
Trade, Transportation and Utilities 2,715 17.6% 149 $188,307 $69,368
Professional and Business Services 2,155 13.9% 165 $222,447 $103,272
Health Care and Social Assistance 1,158 7.5% 73 $73,490 $63,440
Accommodation and Food Services 1,068 6.9% 50 $24,471 $22,880
Educational Services 1,042 6.7% 21 $50,007 $47,892
Construction 842 5.4% 54 $74,170 $87,984
Arts, Entertainment, and Recreation 761 4.9% 22 $34,391 $45,240
Other Services 401 2.6% 100 $15,089 $37,648
Finance and Insurance 329 2.1% 55 $31,040 $94,744
Public Administration 212 1.4% 5 $14,522 $68,536
Information 108 0.7% 20 $8,787 $81,068
Real Estate and Rental and Leasing 94 0.6% 36 $8,184 $86,892
Natural Resources and Mining 11 0.1% 3 $376 $37,128
Source: DEED Quarterly Census of Employment and Wages
Table 8. Chanhassen Employment Trends, 2000-2022
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In 2023, the median hourly wage ($25.60) in Region 11 (see Figure 3) was higher than the state
median hourly wage. Overall, Region 11 had the highest median hourly wage level of the 13
economic development regions in the state. Wages were highest for management occupations
($60.18) and lowest for food preparation and serving-related jobs ($15.29) (Table 9).
Table 9. Occupational Employment & Wage Statistics, 2023
Figure 3. MN Economic Development Regions
Source: https://mn.gov/deed/data/lmi-help/area-
maps/
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Chanhassen Economic Development Strategic Plan
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Table 10. Twin Cities Occupations in Demand, 2022
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Coming out of the pandemic, after gaining jobs over the past year, Carver County had the 11th
largest economy of the 87 counties in the state. Carver County was the 5th fastest growing in the
past year and had the 29th fastest growth since 2019. From 2019 to 2022, employment in
Carver County is still down from the pandemic.
Figure 4. Industry Employment Statistics, 2007-2022
In 2020, there were approximately 24,616 total jobs in Chanhassen with only 1,560 residents who
both lived and worked within the city.
• Chanhassen imports 23,050 workers every day to work within the city.
• Approximately 12,040 Chanhassen residents commute out of town daily to work in other
cities.
Figure 5. Commuting Data, 2020
Source: https://onthemap.ces.census.gov/
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3. Educational Attainment
Chanhassen’s population is highly educated. According to ACS 5-year estimates, 98.5% of the
city’s population 25 years of age and older had a high school diploma or more in 2021. This is
compared to 93.9% of Hennepin County and 96.2% of Carver County.
63.9% of Chanhassen’s population who are 25 years and older have a bachelor’s degree or more
in 2021. This is compared to 51.8% of Hennepin County and 49.7% of Carver County (see Figure
6).
Figure 6. Chanhassen Education Attainment, Population 25 Years and Over, 2021
In Carver County, 95.1% of adults 18 years and over have at least a high school diploma. This is
higher than the State Minnesota, at 92.8%. Carver County also has a high percentage of college
educated people with 75.8 % compared to the state at 68% (Figure 7).
Figure 7. Educational Attainment, 2021
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4. Housing
According to ACS 5-year estimates, Chanhassen had a median household income of $123,566 in
2021. The median household incomes for Hennepin County and Carver County were $85,438 and
$107,890, respectively.
For occupied housing units, median monthly housing costs in 2021 were:
• Chanhassen: The median monthly housing costs in Chanhassen were $1,882.
o Owner-occupied housing costs were $2,006/month and renter-occupied housing
costs were $1,519/month.
• Hennepin County: The median monthly housing costs were $1,429.
o Owner-occupied housing costs were $1,600/month and renter-occupied housing
costs were $1,244/month.
• Carver County: The median monthly housing costs were $1,679.
o Owner-occupied housing costs were $1,803/month and renter-occupied housing
costs were $1,242/month.
In total, median housing costs in Chanhassen are 11% higher than the average owner -occupied
home in Carver County. Additionally, renter-occupied housing is 22% higher than the average
renter-occupied housing in Carver County. Strategies to create and retain affordable life cycle
housing will be important for the city to consider ensuring it can maintain its goal of being a
“community for life”.
Figure 8. Median Monthly Housing Costs.
Source: https://data.census.gov/table/ACSST5Y2021.S2503?t=Housing&g=050XX00US27019,27053_160XX00US2710918
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Chanhassen Economic Development Strategic Plan
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Chanhassen had approximately 9,406 occupied housing units in 2021, with 8,262 (87.8%) being
owner-occupied and 1,144 (12.2%) being renter-occupied. Chanhassen had approximately 488
vacant housing units in 2021 (4.9%). In comparison,
• Hennepin County had 523,528 occupied housing units (63.1% owner-occupied and 36.9%
renter-occupied) and approximately 26,726 vacant housing units in 2021 (4.9%).
• Carver County had 38,213 occupied housing units (82.7% owner-occupied and 17.3%
renter-occupied) and approximately 1,602 vacant housing units in 2021 (4.0%).
Carver County had a higher median housing value than the state, having the 1st highest value of
the 87 counties in 2021.
Table 10. Estimated Value of Owner-occupied Housing Units, 2021 Figure 9. Housing Costs as a
Percentage of Income, 2021
.
Source: 2017-2021 American Community Survey,
5-Year Estimates
Source: https://data.census.gov/table/ACSST5Y2021.S2501?t=Housing&g=050XX00US27019,27053_160XX00US2710918
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5. Cost of Living
Carver County had a higher median household income than the state and a lower percentage of
households with incomes below $50,000. Overall, Carver County had the 2nd highest median
household income of the 87 counties in the state.
Figure 10. Carver County Income vs.
State of MN Income, 2017-2021 Figure 11. Household Incomes, 2021
The cost of living has increased over the past 2 years. Carver County had a higher cost of living
than the state, with a minimum hourly wage of $17.77 required for a single person living alone to
meet the basic needs and an hourly wage requirement of $20.94 for a typical family with 2 adults
and 1 child (see Table 11).
Table 11 . Basic Needs Costs of Living Estimates, 2022
Figure 12. Household Income of Owner-Occupied vs. Rental Households in Carver County, 2017-2021
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C. STRENGTHS, WEAKNESSES, OPPORTUNITIES,
THREATS (SWOT) ANALYSIS
This SWOT Analysis was completed as a collaboration between the Community Development
Department and the Economic Development Commission (EDC).
CHARACTERISTICS WITHIN CHANHASSEN’S BORDERS:
Strengths: The strengths of a city are assessed by
looking at characteristics internal to a city, and that
impact how it might be viewed by potential businesses,
developers, or other economic agents.
Weakness: These are also focused on the internal
features of a city that have the potential to impact its
marketability to businesses, developers, or other
economic agents. Can be categorized as real,
perceived, or areas of uncertainty.
• Highly educated community with high-income
levels.
• Full-time Fire Department.
• Close proximately to the major highway system.
• Elevated quality of life with access to natural
amenities (parks, trails, lakes, etc.).
• A high number of major attractions (Paisley
Park, the Arboretum, and Chanhassen Dinner
Theatre) with approximately 350,000 annual
visitors.
• Strong support from the Chamber of Commerce,
Buy Chanhassen, Legion, and two Rotary
groups.
• Perceived as resistant to change and not
business-friendly (high city fees).
• Lack of attainable housing and rentals.
• No cohesive city center and lack of walkability,
bike-ability, and public transportation.
• High land and development costs.
• Lack of developable land and the remaining
parcels will be costly to develop/redevelop.
CAN COME FROM OUTSIDE OF CHANHASSEN:
Opportunities: A city's future opportunities are
approached broadly and strategically. Opportunities are
related to the physical elements of the city, market
conditions, and real or perceived advantages for the city.
Threats: These can be categorized as real, perceived,
or unknown. Understanding the underlying issues and
causes of a threat, as well as minimizing their impacts,
are methods by which their damage to a city can be
mitigated.
• Infill and underutilized properties could be
marketed to developers and other local investors
(i.e., Mixed-Use).
• Underutilized parking ramp downtown.
• Youth and adult education, and incumbent
worker training.
• Location and connectivity to MSP and the
MSP/St. Paul International airport.
• High cost of housing and limited workforce
housing.
• Development, land, and building costs are
high.
• Lack of available workforce, transportation,
and land.
• Increasing interest rates.
• Refinancing interest rates are high therefore
people stay in their homes longer.
• Neighboring cities have available land and
areas for densification.
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Chanhassen Economic Development Strategic Plan
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D. Strategic Action and Implementation Plan
The City of Chanhassen’s 2040 Comprehensive Plan identified the many reasons why people
choose to live and work in the city. These reasons included:
• A neighborly place with low crime rates,
• An attractive and walkable downtown,
• Many community amenities and special attractions,
• A wide housing stock to accommodate all budgets and stages of life, and
• A large commercial base so residents can live and work in the community.
As part of this three-year plan, it is important to build off these positives as well as to identify new
areas where economic development initiatives can be implemented. The incorporation of both
aspects will allow the city to maintain its identity while continuing to grow.
Goal 1. Healthy Local Economy
Every business, job, and institution within the city relies on each other for success. Workers and
jobs create ripple effects as people spend money on homes, local goods, and services.
Businesses support the local economy through jobs and the potential for spin-off businesses. The
city will continue to support businesses with the intention that their economic success will aid in the
success of the overall city.
STRATEGY:
1. Create a business-friendly environment where current and future businesses are aware of
staff, programs, and tools available to assist them through the various stages of business,
from entrepreneurship to succession planning.
2. Attract employers who require employees to have a bachelor’s degree or higher to utilize
the available highly educated local workforce (Figure 4).
OBJECTIVE:
1. Continue the Business Retention and Expansion (BR&E) Program and Survey.
2. Educate the business community on the resources available to them.
3. Market incentives to attract high-wage/front-of-the-house jobs requiring at least a bachelor’s
degree or higher.
TACTIC:
1. Schedule monthly one-on-one meetings with local business owners/operators.
2. Businesses will be encouraged to complete the BR&E Survey and their responses will be
compiled in SourceLink Pro.
3. The “Businesses” section on the website will be built out to include tools and resources for
local businesses.
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Chanhassen Economic Development Strategic Plan
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Goal 2. Equity and Inclusion
The motto for the City of Chanhassen is “A community for life”, therefore the city must work to
ensure the availability of a variety of housing opportunities for residents of all races/ethnicities,
income levels, and stages of life. By growing and maintaining a variety of housing types and styles,
more residents will be able to live and work in Chanhassen.
STRATEGY:
1. Retain Naturally Occurring Affordable Housing (NOAH) for homeowners and renters.
NOAH refers to residential properties that are typically older housing stock which are less
desirable and therefore more affordable for renting or purchasing.
2. Encourage zoning for a diversity of housing types and styles. Diverse housing types such as
apartments, townhouses, and twin homes require less energy to build, heat, and cool, have
a lower impact on the environment, and are generally more affordable.
OBJECTIVE:
1. Maintain the quality of existing naturally occurring affordable housing by providing funding to
property owners to complete updates to their property while keeping it affordable to the
community.
2. Promote density through planning initiatives such as mixed-use developments and/or
increased density for development projects that contain a certain level of affordable units.
TACTIC:
1. Utilize $300,000 in Metropolitan Council (METC) funds to create a program that will aid local
NOAH homeowners and rental property owners to utilize funds to complete updates to the
property.
2. Staff will continue to share vacant or underutilized properties and their future zoning type
with developers.
Goal 3. Sustainable Infrastructure
The purpose of sustainable infrastructure (roads, water, sewers, fiber, etc.) is to support the city’s
current residents, but it will also benefit future generations. The city must be mindful as we
maintain and develop infrastructure to ensure that the current and future needs of the community
are met. A common development/developer dilemma is the high development fees associated with
extending public water and sewer infrastructure.
STRATEGY:
1. Inform businesses and developers on the history of the city’s sewer and water infrastructure
as well as on the current Sewer Availability Charge (SAC) and the Water Availability Charge
(WAC) fee structure.
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Chanhassen Economic Development Strategic Plan
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OBJECTIVE:
1. Educate property owners, developers, leasing agents, and business owners on the purpose
of the SAC/WAC fee and how this could affect them as their business grows or as their
property changes use in a way that creates more demand on the sewer and wastewater
systems.
TACTIC:
1. Create a webpage that provides information on the development fees for new and
expanding businesses in Chanhassen.
2. Work with the Engineering and Finance Departments to propose a policy that pertains to the
SAC/WAC fee so it’s clear to the business community how the units are recorded and/or
reused.
3. Staff will advertise resources available to property owners that can help mitigate the burden
of these fees as their parcels change use or get significantly redeveloped.
Goal 4. Thoughtful Growth
By promoting thoughtful growth, the city can tailor new and infill projects to meet the long-term
goals of the community. Building for the future of Chanhassen will prevent costly redevelopments
in the future and lead to higher levels of resident satisfaction. Priorit y should be placed on
identifying ways to increase density and local connections without compromising quality. A
walkable city, with purposeful development choices, will accommodate the growing population and
attract a younger generation of residents.
STRATEGY:
1. Increase knowledge of available infill sites throughout the city.
2. Promote redevelopment of underutilized or under-performing parcels.
3. Convenience draws people to places, and having neighborhood businesses just a short
walk or a bike ride away is a draw for current and new residents.
OBJECTIVE:
1. Staff will identify and connect with commercial property owners to discuss the possibility of
infill and/or redevelopment.
2. Staff will work to educate property owners on the location of utilities and how that could
affect future development.
3. Increase pedestrian connections and focus on keeping amenities within a walkable
distance.
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Chanhassen Economic Development Strategic Plan
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TACTIC:
1. All commercial/industrial infill lots will be identified, and staff will contact the current owners
of these parcels to discuss their plans for the site.
2. Staff will request that developers add or expand sidewalks and trails with the land use
development or improvements.
Goal 5. Community Development
The League of Minnesota Cities states the following about Community Development:
“Cities must constantly respond to a changing environment. To create vibrant places for residents to
live, work and play, cities regulate the use of land within their boundaries, use tools to assist in ensuring
housing stock for residents, and to attract and support business for economic growth.”
When community development is effective, there is less crime, less disparity between citizens,
better jobs available, a more talented workforce, and fewer overall issues that impact residents.
Community development doesn’t necessarily solve problems in a city; but it will reduce problems
and increase growth opportunities. Without community development, both economic and business
development suffer greatly.
STRATEGY:
1. Increase the sense of community by celebrating local businesses.
OBJECTIVE:
1. Local businesses will work together to build an ecosystem where they feel supported by
each other and the community.
2. Encourage residents to shop locally and support locally owned businesses.
TACTIC:
1. The city will aid in the promotion of a yearly Small Business Saturday event through
business outreach and creating public-facing resources and branded materials.
2. Consider adding additional local business events such as Manufacturing or Restaurant
Week or other programs that increase a positive business-friendly ecosystem.
3. The city will facilitate introductions between business owners and will add quarterly
business meetings/tours.
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E. Performance Evaluation Framework
A. Healthy Local Economy Timeline Tracking/Reporting
1. Schedule monthly one-on-one meetings with local business
owners/operators.
On-Going Annual Report
2. Businesses will be encouraged to complete the BR&E Survey
and their responses will be compiled in SourceLink Pro.
On-Going Annual Report
3. The “Businesses” section on the website will be built out to
include tools and resources for local businesses.
09/2024 This will be presented
to the EDC on or
before October 2024
B. Equity and Inclusion Timeline Tracking/Reporting
1. Utilize $300,000 in Metropolitan Council (METC) funds to
create a program that will aid local NOAH homeowners and
rental property owners to utilize funds to complete updates to the
property.
06/2024 This will be presented
to the EDC on or
before June 2024
2. Staff will continue to share vacant or underutilized properties
and their future zoning type with developers.
On-Going Annual Report
C. Sustainable Infrastructure Timeline Tracking/Reporting
1. Create a website that provides information on the development
fees for new and expanding businesses in Chanhassen.
06/2025 This will be presented
to the EDC on or
before July 2025
2. Work with the Engineering and Finance Departments to
propose a policy that pertains to the SAC/WAC fee so it’s clear to
the business community how the units are recorded and/or
reused.
05/2024 This will be presented
to the EDC and CC on
or before
July 2024
3. Staff will advertise resources available to property owners that
can help mitigate the burden of these fees as their parcels
change use or get significantly redeveloped.
12/2024 This will be presented
to the EDC on or
before January 2025
D. Thoughtful Growth Timeline Tracking/Reporting
1. All commercial/industrial infill lots will be identified, and staff
will connect with the current owners of these parcels to discuss
their plans for the site and potential development.
12/2026 Annual Report
2. Staff will request that developers add or expand sidewalks and
trails with the land use development or improvements.
On-Going Annual Report
E. Community Development Timeline Tracking/Reporting
1. The city will aid in the promotion of a yearly Small Business
Saturday event through business outreach and creating public-
facing resources and branded materials.
On-Going Annual Report
2. Consider adding additional local business events such as
Manufacturing or Restaurant Week or other programs that
increase a positive business-friendly ecosystem.
On-Going Annual Report
3. The city will work to introduce business owners to each other
and will add quarterly business meetings/tours.
On-Going Annual Report
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Chanhassen Economic Development Strategic Plan
Page | 22
F. Economic Resilience Plan
Resilience is an overarching theme that ties an economic development plan together. The
resilience of a community or an economy is defined as “the capability to anticipate risk, limit
impact, and bounce back rapidly through survival, adaptability, evolution, and growth in the face of
turbulent change” (NADO Research Foundation) and the Federal Economic Development
Administration (EDA) also defines economic resiliency as “the ability of an area to prevent,
withstand, and quickly recover from major disturbances to its underlying economic base.”
Staff has identified the following strategies to aid the business community and residents with a
higher level of resiliency:
1. Promote public and private investments in the community to promote and sustain the
creation and retention of local businesses.
2. Create more opportunities for entrepreneurs to start new businesses.
3. Partner with the planning department to develop and implement areas within the 2050
Comprehensive Plan to promote balanced development including affordable housing and
ownership options for young families and seniors to create intergenerational housing
options.
4. Redevelop underutilized buildings, particularly targeting the Central Business District to
create a true downtown.
5. Increase and modernize parking spaces downtown and utilize the existing parking provided
by Southwest Transit.
6. Partner with the planning department to design and install wayfinding street signs that are
more visible for drivers and easy to read that will inform about local tourist attractions and
destinations.
7. Encouraging diversification of industries and sectors to reduce oversaturation of industries
or businesses. This helps spread risks and enhances overall resilience.
8. Promoting innovation and the adoption of new technologies to drive economic growth and
competitiveness.
9. Building partnerships with businesses, communities, and other stakeholders to create a
collaborative and coordinated approach to economic resilience.
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