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03-24-2025 CC WS1 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES March 24, 2025 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember Kimber, Councilmember McDonald, Councilmember Schubert COUNCIL MEMBERS ABSENT: STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City Engineer; Patrick Gavin, Jerry Ruegemer, Parks Director; Communications Manager; Eric Maass, Community Development Director; George Bender, Assistant City Engineer; Kelly Grinnell, Finance Director; Jenny Potter, City Clerk PUBLIC PRESENT: Avienda Apartment Project: Open House Preview Eric Maass, Community Development Director introduced Tom Shaver, a managing partner at Inland Development Partners, and Jacquel Hajder with Doran Companies. Mr. Shaver and Ms. Hajder provided council members with an update on a proposed large apartment building within the Avienda development. Mr. Shaver and Ms. Hajder showed new renderings of the proposed 412-unit building, including a nearly two-acre internal courtyard/amenity area. Council members spoke positively about the new update and renderings, although some concerns were raised about the exterior appearance of the proposed development, with suggestions to explore ways to incorporate more green space and soften the visual impact. Assessment Policy Updates Charlie Howley, Public Works Director/City Engineer and George Bender, Assistant City Engineer, provided council members with an update to the City Council work session from February 10, 2025. At the February meeting, Mr. Howley led a discussion on potential changes to the city’s assessment policy, focusing on improving clarity, reducing the cost burden for residents, and exploring a shift to a flat-rate system. Mr. Howley’s presentation provided a summary of feedback from the City Council regarding the city’s assessment policy. Mr. Howley discussed maintaining consistency in calculation methodologies, honoring past commitments, adding clarity through example calculations, and addressing long-term impacts, anomalies, and term changes within the capital improvement plan. Mr. Howley outlined several different ways to implement a flat rate assessment policy using three different types of road improvements: Mill and Overlay, Full Depth Reclamation, and Full Reconstruction. The “pros” of a flat rate policy include that it creates predictable costs for residents, is easier to administer, and still falls within the probable special benefit test. Some “cons” of a flat rate policy are that it will result in a short-term impact on the Pavement City Council Work Session Minutes – March 24, 2025 2 Management Program (PMP) fund, and it will shift costs from assessments to the city for reconstruction projects. Alternatives to the flat rate include using different assessment percentages, assessing only certain project elements, conducting special benefit appraisals, or eliminating assessments altogether with alternate funding sources. Council members emphasized the importance of consistency and objectivity in the city’s assessment policy, advocating for a clear, prescriptive process that reduces subjectivity and simplifies decision-making through established engineering standards. The City Council agreed to discuss the topic further at its next work session on April 14. Mayor Ryan recessed the work session at 6:52 P.M. Mayor Ryan reconvened the work session at 8:55 P.M. Accessory Dwelling Unit Discussion Eric Maass, Community Development Director, provided an update on the city's current accessory dwelling unit (ADU) policy. Mr. Maass noted that the legal basis for the current variance process is weak and suggested exploring alternative approval methods. The Planning Commission has discussed potential policy changes, including allowing certain ADUs through the standard building permit process and updating definitions and design standards. A draft ordinance and public input process are expected in the coming months, with possible City Council consideration in late April. Mr. Maass showed the council several different scenarios in which an attached or detached dwelling unit might be proposed, and councilmembers shared their suggestions for how the city’s ADU policy should be shaped in each instance. Some council members expressed concerns about the potential impacts of allowing detached accessory dwelling units, particularly regarding neighborhood character, enforcement challenges and the risk of increased short-term rentals. They felt that attached ADUs, being part of the primary structure, were less disruptive. Detached units, especially those built as entirely separate structures, raised concerns about changing the character of residential properties and the need for clearer parameters around rental terms and usage. Council members stressed the importance of maintaining a high level of control over when and where ADUs would be allowed. The City Council agreed that the conversation provided a strong road map to follow for future conversations and decisions around this topic. Mayor Ryan adjourned the work session at 9:52 P.M. City Council Work Session Minutes – March 24, 2025 3 Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk