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05.05.2025 CC MinutesCHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES MAY 5, 2025 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember von Oven, and Councilmember Kimber. COUNCIL MEMBERS ABSENT: Councilmember Schubert STAFF PRESENT: Laurie Hokkanen, City Manager; Eric Maass, Community Development Director; Charlie Howley, Public Works Director/City Engineer; George Bender, Assistant City Engineer; and Jenny Potter, City Clerk. PUBLIC PRESENT: Lindsey Button, 1655 Hemlock Way Erin Wong, 1674 Hemlock Way Matt Wilde, 1685 Hemlock Way Rose Mastricola, 7640 Crimson Bay Road Darlene Hanson, 7750 Crimson Bay Road Rob Olson, 7700 Crimson Bay Road Mary Lehner, 7620 Crimson Bay Road Nancy Gilmore, *didn’t give address* PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Councilmember McDonald moved, Councilmember von Oven seconded that the City Council approve the following consent agenda items 1 through 15 pursuant to the City Manager’s recommendations: 1. Approve City Council Minutes dated April 14, 2025 2. Approve City Council Work Session Minutes dated April 14, 2025 3. Receive Environmental Commission Minutes dated March 12, 2025 4. Approve Claims Paid Dated April 28, 2025 5. Arbor Day Proclamation 6. Award Contract for the Pleasant View Road Improvements Planning Study City Council Minutes – May 5, 2025 2 7. Approve the Annual Renewal of the Laserfische Software Subscription Municipality Site license 8. Award Contract: Commissioning Services for City Hall/Senior Center (Civic Campus Project) 9. Remove No-Parking designations on Kiowa, Iroquois, and Huron Avenues 10. Fire Station Rooftop HVAC Replacement 11. Resolution 2025-XX: Call for the Assessment Hearing for the 2025 City Pavement Rehabilitation Project No. 25-01 12. Resolution 2025-XX: Revisions to Assessment Policy 13. Resolution 2025-XX: Approve Application of Hackamore Brewing Company to Dispense Intoxicating Liquor off premises in Lake Ann Park during the 2025 Chanhassen Summer Concert Series 14. Approve Resolution Rescinding A Resolution No. 2025-24 Adopted on March 24, 2025; and Approving the Authorization for the Issuance and Sale of an Amount Not to Exceed $13,185,000 General Obligation Temporary Sales Tax Revenue Bonds, Series 2025A 15. Resolution 2025-XX: Authorize Vegetation Management Services Contract for 2025 All voted in favor, and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. 1. Resolution 2025-XX: Crimson Bay Rd Improvements Assessment Hearing & Award of Construction Contract George Bender, Assistant City Engineer, reviewed the project scope for Pioneer Ridge Development. He explained the Highway 5 Improvements, including the existing Arb entrance being converted to an EB Exit only, expanding to 4 lanes with a concrete median, the Crimson Bay Road access removal, and the stormwater bond construction. He reviewed the Crimson Bay Road plat, which was platted in 1988. He discussed the public engagement effort, which included multiple property owner meetings, public open houses, assessment notification letters, and the project page on the City’s website. He summarized the public feedback received during the open house on April 23. He discussed the project bids received on April 1 and noted that the low bid was 27 percent below the estimate. He reviewed the project budget and noted that the City Council Minutes – May 5, 2025 3 City received a $710,000 LPP Grant from MnDOT along with the approval to use MSA Funds. He discussed the assessment and noted that the project was not subject to the Flat Rate portion methodology. He explained the fifteen-year term and the rate of 5.14 percent. He explained the assessment for lot five, which was assessed as two units. He reviewed the addressing perspective of the project since Crimson Bay Road and Dogwood Road were connecting mid-block. He requested City Council direction on whether to make the zip code change request on behalf of the residents to the post office. He summarized the next steps for the project, including the preconstruction conference on May 7, starting construction in mid-May with substantial completion in August or September 2025. Mayor Ryan opened the public hearing. Rose Mastricola, 7640 Crimson Bay Road, discussed the zip code problem. She expressed concerns with possible concerns of different zip codes since it would change between two homes. She asked the City Council on behalf of the Crimson Bay Road residents except for one resident to advocate with the United States Postal Service on the residents’ behalf. She said that the City could write a letter on their behalf. She said if the letter was not enough, the residents could have recourse and escalate the request with the Zip Code Boundary Review process. She said that she thought the local post office was not the endpoint, but there were additional district managers. She said that the current postal route would not be convenient, since they would pass other houses to deliver mail to only five houses. She requested that the City Council write a letter to advocate for help with the zip code change request with the United States Postal Service. Darlene Hanson, 7750 Crimson Bay Road, stated that she was not on board with changing the zip code. She said she lived in Shorewood and Greenwood with an Excelsior address, but it did not help with their selling experience. She said that others might think that Excelsior might sound more elite or lead to increased home value. She stated that the United States Post Office would create more work for them to reroute and change drivers. She said she was proud of her Chaska connection since it was previously voted as the best place to live and was the County seat. Rob Olson, 7700 Crimson Bay Road, affirmed the research and information presented by Rose Mastricola. He said that the objectivity of the matter should take precedence over the subjectivity. Mary Lehner, 7620 Crimson Bay Road, voiced support for the decision for the address change. She thought that the practical reality of the mail delivery for five houses did not make sense. This practical matter encouraged their request. Mayor Ryan closed the public hearing. City Council Minutes – May 5, 2025 4 Councilmember von Oven stated that it was fascinating. He stated it was great that individuals were in favor of the road project. He voiced support for the request for the change in the zip code. Councilmember McDonald said he wanted to leave it to the United States Post Office whether the route was efficient. He said it would not hurt to send a letter to request a zip code consolidation. Mayor Ryan clarified that no one objected to changing the road name to Crimson Bay Road. Mr. Bender answered that he received an email from a resident who preferred to change the name to Dogwood Road but had not heard additional information. Mayor Ryan asked if it was an all-or-nothing proposition and if all residents had to change the zip code, or if the City Council could write a request to each resident and they would take it upon themselves to go to the United States Post Office to make the request. She voiced agreement that the City Council did not have oversight authority over the efficiency of the United States Post Office. Mr. Bender responded that there was a letter, which the residents were advocating for, and a form. The City Council could only send them in one form, so the City Staff would request directions to fill out the form. He said that the official way to make the request was a form. Mayor Ryan said that she was supportive of making the change, but she asked if there was an option for the dissenting opinion to not change their zip code. Mr. Bender responded that the individual residents had the option to advocate for their preferences. Mayor Ryan asked for clarification about the form. Mr. Bender answered that the form was an address change. He said they could add to the form and make a request for a zip code change or write a letter. Mayor Ryan asked why they could not request a zip code change for Chanhassen. Mr. Bender responded that they could make that request. Mayor Ryan said if there was an opportunity to make a change, it would make sense to request for the city to match where they reside. Laurie Hokkanen, City Manager, clarified that the United States Post Office was reluctant to change zip codes if it would impact where the mail would be delivered from. She explained that the United States Post Office was allowing addresses to list multiple cities and zip codes and noted that Victoria had made the same request. Mayor Ryan asked if there was an example of this request on a smaller number. Ms. Hokkanen responded that she had not heard of any cities that changed the five number. City Council Minutes – May 5, 2025 5 Mayor Ryan requested that they explore the opportunity to make the change and if they could bring the houses into Chanhassen. Mr. Bender confirmed this request. Mayor Ryan stated that the direction to staff was to explore the Chanhassen zip code, and if not write a letter of support for the Chaska zip code. Councilmember von Oven moved, Councilmember Kimber seconded that the Chanhassen City Council adopt a resolution accepting the bids and awarding a construction contract to Northwest Asphalt, Inc., along with adopting the assessment roll for the Crimson Bay Road Improvement Project, City Project 23-02. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. GENERAL BUSINESS. 1. Consider Preliminary Plat, Site Plan, Rezoning, and Land Disturbance and Tree Removal Contract for Pioneer Ridge Development (Planning Case 25-01) Eric Maass, Community Development Director, reviewed the community engagement for Planning Case 25-01. The community engagement included a neighborhood meaning on January 14, 2025; the Planning Commission Public Hearing on February 18, 2025; and proposed development email notifications on various dates. He reviewed the factors reviewed when the City considered rezoning. He noted the property’s future land use designations and noted that the applicant was using the residential medium-use designation. He reviewed the neighboring zoning designations. He explained the subdivision review. He summarized the proposal for the attached and detached townhomes, the landscaping and tree preservation, and landscaping and buffering. Charlie Howley, Public Works Director/City Engineer, discussed the transportation access points, noting that traffic on Bluff Creek Drive was down 30.6 percent from 2023 due to the opening of Bluff Creek Boulevard to Powers. He discussed the solutions for the sight line issues in both directions. He displayed photos to explain the sight line issues from the south and the north. He noted that the developer would be cutting the hill down to assist with the sight line from the south. He reviewed information about the utilities, noting that the water would be publicly owned and maintained the sanitary sewer would be privately owned and maintained. He discussed stormwater management and commented that the proposed design mimics the existing drainage patterns. He explained the pinched drainage on lot fourteen and commented that the developer needed to provide more detail to ensure that they were not causing upstream drainage conditions. Mr. Howley explained that the details were not explained at this point in the development, but they needed more engineering to ensure that there were no issues. He summarized the conditions of approval for the drainage which would need to be satisfied prior to the approval of a final plat. Mr. Maass presented the finding of facts for the approval of the proposed subdivision site plan. He reviewed the site plan proposal for the 40 attached townhomes and fourteen detached City Council Minutes – May 5, 2025 6 townhomes. He presented updated renderings for the attached townhome architecture. He presented renderings for the detached townhome architecture. He explained that the applicant proposed to have 21 parking spaces for guest parking throughout the unit. He discussed the land disturbance and tree removal associated with the northern long-eared bat protections. John Anderson, representative for Brandl Anderson Homes, voiced excitement for the project and stated they would like to get the final plat submittal completed next week. The final plat submittal will address engineering concerns discussed tonight. He expressed a desire to work on tree removal in May and they were working on the removal of an overhead powerline that would be buried on the site. He stated that the Army Corp had no jurisdiction on the site. He said that the final plat submittal should address structural concerns. Mayor Ryan asked if they had seen anything about the watershed district’s final review. Mr. Anderson said that they have had multiple submittals with the watershed. They continually work with the watershed to review comments, including the watercourse and items along with the ditch. Mr. Howley said that the Water Resource Engineer would handle the matter. He commented that he had not heard about any issues. Mayor Ryan stated that it was concerning to hear about the pinch point with the watercourse. She mentioned concerns with stabilization and asked if they could look again at the necessity of lots thirteen and fourteen to have villas. She said that she understood they needed a certain number of villas for the project to make sense. She asked if they could rearrange the plan with the parking and a villa to help with the drainage and erosion from the existing and new homes. Christopher Contreras, representative for Brandl Anderson, responded that the City Council meeting would determine the next steps for the water course. He noted that they had to figure out how to move the water or eliminate the lot. Mayor Ryan asked that they ensure the pinch point is really analyzed since the location already has drainage issues. She said that traffic was a concern and stated she did not know how it would be taken care of other than cutting down the hill. She said that the hill would now have homes on it, which could impact the site line. She asked if they could have a turn lane on the road to provide safety. Mr. Howley clarified that the hill would not have homes but would be graded and would have grass. He said that there should be little concern about the site line looking south. He expressed concerns with the site line looking north and commented that adding turn lanes would not solve the problem. He commented that they need a different solution that would address an adequate site line, otherwise they cannot have an access point. He suggested lowering the speed limit, which would meet a standard. He commented that they could consider turn lanes, but he did not know if it would be an improvement. City Council Minutes – May 5, 2025 7 Mayor Ryan asked if the concern was when the car turned right. Mr. Howley responded that he was concerned with the turn left and expressed concerns that a car would get rear-ended when it was traveling south. Mayor Ryan stated that she did not feel as if cutting down the hill was sufficient. She asked if the overstory trees were sufficient for the buffer. Mr. Maass said that the proposed buffer was the most sensitive that they could offer. He commented that an arborist would not want to see any additional trees. He stated that the developer added more shrubs. He commented that the number of overstory trees would provide more screening. Mayor Ryan asked if everything would be clear cut except for on the edges. Mr. Maass noted that it was not a clear-cut condition. Mayor Ryan asked about the trees in existence to the east of the stormwater pond on the northern side. Mr. Maass clarified which side of the stormwater pond. Mayor Ryan clarified that she meant to the north. Mr. Maass responded that they could not be removed since they were not a part of the plat. Mayor Ryan clarified the location. The applicant responded that there were no significant trees in the area. He said that there were no significant trees behind property one, two, and three. Mayor Ryan said that the residents would not evaluate trees on the significance. She thanked the applicant for looking up the information. John Anderson, representative for Brandl Anderson Homes, said it would be cheaper to put shrubs in rather than trees. He said they are going above and beyond by installing the trees. Mayor Ryan invited residents to come forward if they wanted to ask a question. She noted that they would limit the time to three minutes. Lindsey Button, 1655 Hemlock Way, thanked the City Council for listening to their concerns. She said she lived behind lots thirteen and fourteen. She stated it was a tight space and there was a drainage issue. She said that the proposed setback meets the minimum requirements, but she asked how they were supposed to build a drainage swale and buffer in such a tight space. She commented that the drainage issues might further exasperate her drainage issues and requested that they consider options for that lot. Erin Wong, 1674 Hemlock Way, agreed with the comments expressed by Lindsey Button. She asked that trees not be removed from the area until the proper drainage was planned. She commented that the non-significant trees created a buffer on the back side of the pond, and she City Council Minutes – May 5, 2025 8 requested that there not be a mass removal of trees. She requested that they consider the people turning into their neighborhood at a smaller speed, which might impact the traffic study. Matt Wilde, 1685 Hemlock Way, asked about a berm and if it was still a part of the plan. He asked if the residents would have any recourse if the drainage issues got worse. He expressed concerns about traffic changing moving forward when Avienda opens. He said that the visibility to the south of the hill was being addressed. He mentioned that when an individual is turning left, the visibility is decreased for the individual behind them. He commented that the hill was steep and created problems during winter months. Nancy Gilmore, _______, asked about the berm and said it was important for residents for a buffer and drainage. She said her lawn is now a rock swale. Mayor Ryan requested more information about the purpose of the berm. Mr. Howley responded that the north property line would not be the same all the way. He commented that the intent was to provide a berm, which would be a gradual two-to-three-foot berm with the intent to keep the water on the other properties. He commented that the berm was done to control drainage but could be utilized for additional screening. He said that there would be trees planted on top of the berm, but he did not know how tall the berm would be since they did not have that level of detail yet. He commented that there would be no berm at the pinch point because it would block the drainage from the neighboring property. She commented that the buffering trees would be in and adjacent to the drainage swale. He commented that the buffering was relying on the trees, not on the berm. Mayor Ryan asked about the resources if the drainage gets worse. Mr. Howley answered that they had an approved design, so they have guarantees to fix things or pay for things to get fixed if they are not built correctly. He commented that they hold the financial securities until the project is built to plan. Councilmember Kimber asked how they can be sure the plans that they are developing have the details discussed. He asked if it was possible to develop plans with the level of detail to ensure that the water was going to the right place. Mr. Howley responded that the pinch point slide discussed a condition that requested an additional level of detail because there was a concern. The City would not accept the completion of the project until they are happy with the final product. He said that the City had the level of approving and accepting and having the financial guarantees. He commented that they could do the walk-throughs after the rain and that they would elevate the concern with a higher level of scrutiny. Mayor Ryan discussed the request coming from the residents to not remove the tree removal contract until the details are more specific. Councilmember von Oven said a big point for him was when the developer said that they needed to address the problem of the pinch point or move the lot. He commented that it was a big shift, City Council Minutes – May 5, 2025 9 so he did not think there was a sense of cutting down the trees until there was a greater level of detail. John Anderson, representative for Brandl Anderson Homes, said that the tree clearing was a big issue since the deadline was June 1st. He said that he did not think the pinch point was a huge issue. He commented that if the trees were not removed by June 1st, that would be an issue for the company. He commented that they were at the preliminary plat and not the final plat, where they would need to provide additional details. Christopher Contreras, representative for Brandl Anderson, agreed with Mr. Anderson. Councilmember von Oven asked about the deadline of June 1st. Mayor Ryan answered that it was the bat deadline. Councilmember McDonald said that the tree clearing held up a lot of things. The contractor was already under contract for replanting trees. He thought that they should move forward with the project so that they could answer questions. He requested for the project to move forward so the project could be built. Councilmember Kimber discussed the other development where they approved tree removal. The other development had water issues, so it did not seem right to hold up this development. He commented he would be hesitant if he thought that the pinch point would be a detriment to the project, he might have another opinion. He stated that they should be allowed to remove trees. Mayor Ryan expressed concerns that there could be a problem. She said that Mr. Howley did not express concerns with Pleasant View Point. She commented that she was concerned about the drainage in the northeastern portion. She stated she did not want to do anything with the trees until she had the certainty. Mr. Maass said the tree removal contract would be only for the trees with the bat habitat. He said that the City Council could look at the specific trees that would be removed with this contract. He said it would be a subset of the plan. He commented that the applicant might be in favor of this option. Councilmember von Oven asked about the percentage of how many trees that were bat habitats. Mr. Anderson answered that he did not know if they had trees on the property as a bat habitat. Mr. Maass said that the City did not have an ordinance related to the bat habitat but noted that it was federal law with the Fish and Wildlife Service. He said that there were competing opinions about the best practices. Andrea McDowell-Poehler, City Attorney, clarified that the agreement did not specify that it was the trees that would be the bat habitat. City Council Minutes – May 5, 2025 10 Mr. Maass said that the plans that would be amended to the contract would show the trees that would be removed based on the bat habitat. Mr. Anderson asked if that was what Pleasant View Point did. He asked if they had no trees that were bat habitat, which meant they could remove no trees. Mr. Maass answered that if they had no trees deemed as bat habitat by their wildlife professional, he understood that the federal regulation did apply to their project. He clarified that it was not up to the City staff to decide if the federal regulation applied. Mr. Anderson said that the agreement did not specify that, so he asked where it would be. Mr. Maass answered that it would be in the plan set. They provided the Pleasant View Point contract and plan set as an example. Councilmember von Oven clarified that if they had no bat trees, the deadline would not apply. Mr. Anderson said he did not know. He assumed that they could remove all the trees on the site. Mayor Ryan suggested bringing the tree removal contract back to the meeting next week. Mr. Contreras commented that trying to get answers from the federal government about tree removal was difficult. Mr. Anderson said that they utilized a tree consultant. He was caught off guard by the City’s requirement of what trees could be removed. Mayor Ryan said that they had the motion. She asked if they needed to make a separate motion to bring it back to the next meeting. Ms. McDowell-Poehler answered that they could make the motion and direct staff to review the issue and bring a recommendation back to the next meeting. Mayor Ryan asked if the conditions outlined were clear with the pinch point lot drainage. Mr. Howley responded that there were multiple conditions, one of which was the pinch point. Ms. McDowell-Poehler said that they should add in to adopt the findings of fact. Councilmember Kimber provided direction to the City staff to look at the land disturbance and tree removal contract. Councilmember Kimber moved, Councilmember von Oven seconded that the Chanhassen City Council approve the rezoning, preliminary plat, and site plan for Pioneer Ridge, a townhome development consisting of 40 attached townhomes and 14 detached townhomes, subject to the conditions outlined in the staff report dated April 23, 2024, and approve the City Council Minutes – May 5, 2025 11 findings of fact and decision. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. 2. Approve Purchase Agreement and Gift Agreement to acquire property for Chanhassen Bluffs Community Center Laurie Hokkanen, City Manager, explained that the local option sales tax was approved in November 2024 for the Chanhassen Bluffs Community Center. She showed a photo of the Avienda PUD which was approved by the City Council on September 12, 2022. She said that there were unknown plans for Outlot E. She commented that market studies for senior housing in Chanhassen did not demonstrate a present or future need for independent or assisted living, so the developer was not pursuing the site for senior housing. She reviewed the Letter of Intent approved by the City Council on February 10, 2025, to purchase ten acres with the option of an additional three acres. She reviewed the proposed preliminary plat and noted that Outlot A was bigger than what was originally shown. She said that Outlot C would be suitable for a medical office or similar available, but the developer was not asking for an amendment to the Planned Unit Development. She said that the City would acquire 13.1 acres, which would allow for the addition of a 30,000-square-foot aquatic center or other future amenities. She presented photos of the Exhibit A-1 Purchase Agreement. She reviewed the terms of the purchase agreement, noting that the acquisition cost is $1 Million per acre, with $300,000 per acre gift returning to the City. She noted that ten acres were funded by the local option sales tax and project balance, while the three acres were funded by the fund balance. She summarized related Community Center updates, including the hiring of BKV Group through a competitive RFQ process. Councilmember Kimber expressed that he was happy with the direction of the community center. He said that the tours they took of other community centers helped affirm the decision to purchase additional land to allow for additional expansion. He said that other community centers had some type of renovation or addition based on the type of demand from the community. Mayor Ryan explained the process to get to thirteen acres. Councilmember Kimber moved, Councilmember McDonald seconded that the Chanhassen City Council authorizes entering into a Purchase Agreement for the Sale of the real property consisting of a portion of Outlot E, Avienda Townhomes, Carver County, Minnesota, located in Chanhassen, MN, and Gift Agreement with Level 7 Development for land to build the Chanhassen Bluffs Community Center. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. COUNCIL PRESENTATIONS. 1. Report on City Manager’s Performance Review City Council Minutes – May 5, 2025 12 Mayor Ryan explained the process for the performance review for Ms. Hokkanen. She read the feedback provided to Ms. Hokkanen during the closed session in March 2025 and noted that it was an exceptional review. ADMINISTRATIVE PRESENTATIONS. Laurie Hokkanen, City Manager, thanked the City Council for their performance review. CORRESPONDENCE DISCUSSION. None. Councilmember von Oven moved, Councilmember Kimber seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 9:30 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk