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Agenda and PacketAGENDA  CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION WEDNESDAY, NOVEMBER 13, 2019, 7:00 PM CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD A.CALL TO ORDER B.APPROVAL OF MINUTES 1.Approve Economic Development Commission Minutes dated October 8, 2019 C.OLD BUSINESS D.NEW BUSINESS 1.Review Downtown Vision Plan 2.Review Business Subsidy Guidelines E.ADJOURNMENT ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Wednesday, November 13, 2019 Subject Approve Economic Development Commission Minutes dated October 8, 2019 Section APPROVAL OF MINUTES Item No: B.1. Prepared By Nann Opheim, City Recorder File No:  ATTACHMENTS: Summary Minutes CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING OCTOBER 8, 2019 Greg Sticha called the work session to order at 7:00 p.m. Mayor Ryan welcomed all new members of the first ever Economic Development Commission meeting. Staff members and commission members introduced themselves and provided background information. Greg Sticha and Kate Aanenson reviewed the Economic Development Commission handbook and bylaws. Commission Stamy moved, Commission Ebeling seconded to appoint Jim Sanford as Chairman and Kathy Donovan as Vice Chairman of the Economic Development Commission. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Chairman Sanford called the regular meeting to order at 8:00 p.m. MEMBERS PRESENT: Jim Sanford, Kathy Donovan, James Ebeling, Anne Heinze, and Steve Stamy STAFF PRESENT: Greg Sticha, Jake Foster, and Kate Aanenson REVIEW COMPREHENSIVE PLAN AND ZONING CODE. Kate Aanenson reviewed highlights of the City’s Comprehensive Plan and Zoning Code and suggested commission members review the introductions for each section as a way to familiarize themselves with the Comprehensive Plan. Commissioner Donovan asked for clarification of the map outlining the Bluff Creek Overlay District. Commissioner Ebeling asked about staff’s role of being proactive or reactive for new businesses coming to town. Commissioner Stamy asked for clarification on how staff works with potential developers and associated development fees. Greg Sticha reviewed items planned for future Economic Development Commission meetings. Commissioner Ebeling asked what items the commission should focus on in the Zoning Code. Jake Foster explained that the City set up a group email address for the Economic Development Commission. Donovan moved, Stamy 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 9:00 p.m. Submitted by Greg Sticha Finance Director Prepared by Nann Opheim ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Wednesday, November 13, 2019 Subject Review Downtown Vision Plan Section NEW BUSINESS Item No: D.1. Prepared By Kate Aanenson, AICP, Community Development Director File No:  SUMMARY Commissioners should review and be prepared to discuss the city's Downtown Vision Plan . BACKGROUND Link to Downtown Vision Plan Web Page ATTACHMENTS: Downtown Vision Plan DOWNTOWN CHANHASSEN VISION UPDATE Adopted November 13, 2018 DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 20182TABLE OF CONTENTS / ACKNOWLEDGEMENTSCONTENTS PURPOSE AND HISTORY 3 PLANNING PROCESS 4 Stakeholder Engagement - Key Take Aways 4 MARKET SCAN 6 Demographic Trends 6 Retail 7 Office 7 Multi-Family Housing 7 VISION AND GUIDING PRINCIPLES 8 Foundation for a Plan 8 The Guiding Principles for Downtown 9 PHYSICAL FEATURES ANALYSIS 10 Enhancing Connectivity 10 Connectivity and Proposed Enhancements 11 DISTRICTS (LAND USE AND CHARACTER) 12 Land Use and Sub-Districts 12 IMPLEMENTATION STRATEGIES 14 Next Steps 14 ACKNOWLEDGEMENTS MAYOR -Denny Laufenburger CITY COUNCIL -Dan Campion -Jerry McDonald -Elise Ryan -Bethany Tjornhom PLANNING COMMISSION -Andrew Aller -Nancy Madsen -Michael McGonagill -Mark Randall -John Tietz - Mark Undestad - Steven Weick PARKS AND RECREATION COMMISSION -Jim Boettcher -Rick Echternacht -Cole Kelly -Meredith Petouvis -Joseph Scanlon -Grant Schaeferle - Youth Commissioner -Steve Scharfenberg -Karl Tsuchiya DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 3 PURPOSE AND HISTORYEXISTING DOWNTOWN VISION PLAN In 1993, the citizens of Chanhassen were asked to participate in a planning effort to help determine a vision for growth and development for Downtown Chanhassen. The Chanhassen Vision 2002, was the product of that planning exercise and has helped guide development and redevelopment decisions for the Downtown for over the last twenty five years. Key initiatives then included creating a compact, walkable downtown district, leveraging unique aspects such as the Chanhassen Dinner Theater to expand entertainment options, create a central park for the community and better connect the surrounding neighborhoods to downtown. This study relied on community feedback and input throughout the planning process. At that time, the community comments led to improved visibility and access from Highway 5, an enhanced pedestrian network of sidewalks and trails, noted the desire for increased evening entertainment and dining options, as well as additional housing options and improved public facilities. The outcomes led to significant investments in the downtown including the development of the library and central park, multiple new restaurants, entertainment options including the movie theater, significant commercial and office developments, a senior center and the new Carver County License Center. Fast-forward to today, the City of Chanhassen has conducted a planning process to evaluate the conditions of downtown and update the vision for downtown district. The resulting Downtown Vision Update planning effort included an analysis of downtown’s physical conditions today including the transportation and circulation network, pedestrian and bicycle connectivity, land use and smaller sub-districts, and potential change areas. A high-level scan of market conditions for downtown was also conducted to better understand the future market potential for commercial, residential and office uses. Additionally, this effort evaluated the existing vision statement and guiding principles and sought to prioritize the implementation steps for the community to address in downtown over the next 20+ years. The Downtown Vision Update is expected to provide general guidance to help direct decisions and investments in the area between now and 2040. Cover page from the Chanhassen Vision 2002 newsletter summary DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 20184PLANNING PROCESSPLANNING PROCESSThe planning process involved a range of stakeholders including property owners, community leadership and the general public through various meetings, an open house and on-line engagement. Information on the planning process was provided on the City’s website and notifications were posted on the City of Chanhassen’s Facebook page. The City also promoted the planning process and on-line questionnaire in the Chanhassen Connection quarterly publication. City staff hosted a drop-by booth at the February Festival and attended various commission meetings including the Planning Commission, Environmental Commission, Senior Commission and Parks and Recreation Commission to gather feedback. General themes from these discussions included safer pedestrian crossings in downtown, more dining and entertainment options, additional housing options and enhanced landscaping and streetscapes. The following summarize the comments from the property owner discussions, the community open house and the online questionnaire: PROPERTY OWNER DISCUSSIONS »Provide transportation options for local residents to get them Downtown during daytime hours » Focus on enhancing retail ‘experience’ by attracting entertainment and destination type retail attractions (breweries, outdoor eating and patios, etc.) »Acknowledge retail online shopping trends, focus development away from retail offerings typically satisfied online »The existing Downtown street and pedestrian network isn’t desirable and doesn’t promote high levels of pedestrian activity - Parking lots separate business front doors from sidewalks - Large blocks make walking within Downtown uninviting and less attractive - Lack of street grid makes navigation and wayfinding more difficult »Residential drives Downtown retail, more residential downtown would enhance the overall retail environment »Housing Downtown should incorporate shared amenities »Senior housing needs to be considered Downtown »Future development should include housing at sufficient density to sustain financial viability »Organize and attract more downtown events COMMUNITY OPEN HOUSE »New development (or redevelopment) should enhance the environment Downtown and provide high quality architectural features and amenities »General support for higher density development that includes both residential and commercial/retail in a vertical mixed use format »Downtown need for more ‘destination’ entertainment options, including leveraging what already exists Downtown to draw and support new options. »General desire for more housing options downtown including senior housing and housing with shared amenities »A desire to attract more locally based businesses/tenants rather than national brands/chains »Vehicle and pedestrian circulation enhancements to improve experience and safety are needed STAKEHOLDER ENGAGEMENT - KEY TAKE AWAYS DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 5 PLANNING PROCESSHoisington Koegler Group Inc. DOWNTOWN CHANHASSEN VISION PLAN UPDATE Property Owners & Tenants Meeting October 6th, 2017 Meeting with Property Owners November Community Open House ONLINE QUESTIONNAIRE »Downtown needs to develop/enhance its identity as a vibrant and attractive destination »New development should contribute the Downtown experience and enhance its identity. »Retail focus should be on attracting a diverse range of high quality ‘destination’ tenants (boutiques, speciality retailers, entertainment venues, breweries, etc.) and retailers that are less impacted by trends in online shopping »Creation of a ‘small town atmosphere’ through tenants, architecture, materials, and the pedestrian experience »Desire to enhance access and safety both for cars and pedestrians, general consensus that Downtown will be most successful if it provides an attractive pedestrian experience while also being easily accessible for automobiles. »Build on existing strengths in downtown (public spaces, anchor retailers, civic destinations, entertainment anchor, good highway access) to solidify the pieces into a cohesive and resilient destination that ‘lifts all boats’ »Provide housing options downtown for a range of ‘life stages’ DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 20186MARKET SCANMARKET SCAN A market scan was conducted as a part of the planning effort to better inform the current demographic and economic conditions in Downtown Chanhassen and the surrounding local market area. The market scan helped outline a potential build-out analysis, identifying the various marketable development components for the Downtown district of the next 20 years. The full market scan summary is available as an appendix to this report. DEMOGRAPHIC TRENDS POPULATION AND HOUSEHOLD PROJECTIONS Chanhassen’s population is projected to growth by more than 46 percent over the next 25 years and will add more than 4,700 households. Accommodating this growth creates development opportunities in downtown to provide new housing and services to support the increase in residents. An aging population and shifts in housing demand also enhance demand for a greater variety of housing options near services and amenities. POPULATION PROJECTIONS (METROPOLITAN COUNCIL) Facility Type Projected Change (2016-2040)% Change (2016-2040) Victoria 6,480 73% Chaska 10,161 38% Eden Prairie 19,237 30% Minnetonka 8,759 17% Shorewood 104 1% Chanhassen 11,652 46% HOUSEHOLD PROJECTIONS (METROPOLITAN COUNCIL) Facility Type Projected Change (2016-2040)% Change (2016-2040) Victoria 2,695 90% Chaska 4,669 49% Eden Prairie 8,444 34% Minnetonka 4,933 21% Shorewood 264 10% Chanhassen 4,733 51% EMPLOYMENT PROJECTIONS (METROPOLITAN COUNCIL) Facility Type Projected Change (2016-2040)% Change (2016-2040) Victoria 1,498 136% Chaska 4,651 36% Eden Prairie 7,038 12% Minnetonka 18,412 41% Shorewood -37 -3% Chanhassen 3,019 21% TOTAL 34,581 26% EMPLOYMENT (MET COUNCIL PROJECTIONS) Employment in Chanhassen is projected to growth by more than 21 percent over the next 25 years, adding more than 3,000 new jobs by 2040. A portion of this new employment can be captured by development in downtown, primarily in the retail and office markets. DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 7 MARKET SCANEXISTING MARKET CONDITIONS Chanhassen’s downtown is leaking portion of retail spending to other communities in almost every segment. Key retail segments where the downtown can recapture demand include: »Health / personal care »Sporting goods »Bars, breweries, wine tasting, etc. »Restaurants / other eating places FUTURE DEVELOPMENT POTENTIAL »Potential for sit-down restaurants over 15 year period »Potential for additional health, sporting goods retailers »Potential for additional grocery and general merchandising »Possibilities for entertainment uses (bars, breweries, wine tasting, etc.) »Additional residential developments to the west along Highway 5 may have some impact on downtown’s long term potential EXISTING MARKET CONDITIONS »Relatively small quantity of existing office space »Existing building stock appeals to small companies, medical office, professional services »Downtown is likely to remain primarily a location for smaller scale, neighborhood-oriented office uses EXISTING MARKET CONDITIONS »Relatively small existing inventory of multi-family in Downtown area »Strong market across Twin Cities region with multi-family development now moving to outer suburbs »Competitive for-sale market and job growth are driving strong trend of multi-family development FUTURE DEVELOPMENT POTENTIAL »Potential for several thousand square feet of additional space Downtown »Limited potential relative to other development types »Place making strategies would enhance marketability of office development FUTURE DEVELOPMENT POTENTIAL »Potential for several multi-family projects »Marketability would be enhanced by place making strategies for Downtown »Mixed-use development is likely to have success in the local market RETAIL OFFICE MULTI-FAMILY HOUSING DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 20188VISION AND GUIDING PRINCIPLESFOUNDATIONS FOR A PLAN The community’s vision and guiding principles are rooted in the community feedback and are intended to create an evaluation mechanism for decision makers as new development projects are proposed in the downtown. The planning process evaluated the Vision and Guiding Principles from the Chanhassen Vision 2002 Plan and found there is still strong alignment. Public plaza adjacent to retail provide an attractive venue for annual events and provide outdoor seating and other amenities that support successful retail. High quality architecture, landscaping, and a strong pedestrian realm creates an attractive environment that draw in visitors and establish a downtown identity. THE VISION FOR DOWNTOWN Downtown Chanhassen is the focus for commercial exchange, cultural expression, social interaction and community education, enriching the lives of residents while presenting an appealing and recognizable image to the large and growing Upper Midwest Population it serves. It is a downtown which incorporates and maintains elements of the past, such as it’s historical and natural features, possesses a “small town” atmosphere and entertainment focus, but is planned to be adaptable to change – changes in technology, changes in service deliveries, changes in retailing and entertainment. It is a downtown designed for the future while satisfying the needs of today, one which maintains a strong sense of community focus and orientation, one which fosters convenience, one which maintains a pedestrian scale and emphasizes people movement while providing the full range of transit options. It is a downtown which encourages human interaction, one which mixes uses (retail, cultural, entertainment, housing, education and recreation) to make prudent and efficient use of space, one which meets and is adaptable to current retailing standards and is financially successful. DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 9 VISION AND GUIDING PRINCIPLESTHE GUIDING PRINCIPLES FOR DOWNTOWN BUILD COMMUNITY Chanhassen’s downtown is a focus of the community’s culture. Constructing a downtown provides opportunities to build a commitment to Chanhassen “the place,” to reinforce the traditions of the community and to strengthen the ties between its citizens CREATE A CITY COMMONS A public open space for celebrating community life should be a highlight of the downtown, creating a center of activity and a focus for the downtown. CONNECT TO THE NEIGHBORHOODS Surrounding downtown neighborhoods should be linked, strengthening the relationship between the downtown and the community it serves DEFINE THE PEDESTRIAN NETWORK Some areas within the downtown should be dedicated solely to pedestrian use. They should be clearly defined, safe and provide convenient access to a variety of destinations. Larger outdoor rooms should be linked to the pedestrian network, allowing for planned community gatherings, informal activities or quiet retreat from the more active uses of the downtown. MARK THE DOWNTOWN The downtown’s entry points and edges should be defined, making them distinct and identifiable. The distinguishing features of the larger Chanhassen landscape should be reflected throughout the downtown. MIX USES IN NEW DEVELOPMENT Uses within the downtown should be mixed, encouraging people to visit at different times and for a variety of purposes. ELEVATE THE PEDESTRIAN REALM Users of the downtown should be able to walk conveniently and comfortably between destinations safely, thereby enlivening the public space and reducing automobile traffic. ANTICIPATE THE FUTURE The downtown should keep pace with technological change and readily adapt to the opportunities of the future. DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 201810PHYSICAL FEATURES ANALYSISDowntown Chanhassen’s existing circulation network (seen in the figure to the right) highlights the existing vehicular, bike, and pedestrian circulation network into downtown. Additionally, this graphic articulates targeted enhancements to downtown’s connectivity. Enhanced options for walking and biking downtown helping to: » Alleviate traffic congestion and demand for parking, by reducing trips within the Downtown area; through a park once approach. »Make Downtown a more desirable destination for retailers by making it more comfortable to walk from one part of Downtown to the next » Enhance the vitality of the street by activating it with pedestrians »Improve access to Downtown businesses and resources for nearby residents Continuing to enhance and strengthen these connections is an important component in maintaining the vitality and desirability of Downtown as a retail and housing destination long-term. During the community engagement process the following elements (listed below) were identified as key priorities for improving the overall connectivity of Downtown: »Improved pedestrian crossings at roadways, making them safer and more comfortable for pedestrians and cyclists »Link businesses to the bicycle and pedestrian network, allowing users to walk from one destination to another safely and conveniently »Increase pedestrian lighting to enhance safety and provide a more attractive atmosphere »Strengthen the connections to surrounding neighborhoods »Provide a more attractive streetscape and public realm enhanced through landscaping, tree planting, signage, lighting, streetscape furnishings, and other amenities »Improve navigation by providing wayfinding and directional signage for visitors at key decision points and intersections »Improved Highway 5 crossing to link the uses to the south. Options could include: -Potential underpass -Signals timings -Expanded pedestrian landings -Enhanced night time lighting for safety ENHANCING CONNECTIVITY Enhanced lighting, landscaping, paving, and pedestrian crossings can all contribute to a more attractive safer downtown environment Pedestrian and bicycle amenities contribute to identity and attractiveness, reinforcing the sense of a place and helping to establish an identity Enhanced pedestrian crossings make pedestrian experience safer and more attractive for all Downtown users DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 11 PHYSICAL FEATURES ANALYSISCONNECTIVITY AND PROPOSED ENHANCEMENTS ENHANCED STREETSCAPE / PUBLIC REALM EXISTING HIGHWAY 5 OVERPASS IMPROVED PEDESTRIAN CROSSING OF HIGHWAY 5 POTENTIAL LONG-TERM CROSSING UNDER HIGHWAY 5 ENHANCE CONNECTIONS FROM STREETS TO LOCAL BUSINESSES ENHANCED PEDESTRIAN INTERSECTION CROSSINGS DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 201812DISTRICTS (LAND USE AND CHARACTER)The land use and sub-districts diagram (on the next page) identifies through physical analysis, market analysis, and community feedback where the most appropriate locations for future land uses. It also identifies which areas have the potential to support housing in Downtown. This diagram paired with the opportunity sites map should be used as a framework to guide development into areas where it best fits with the overall vision for Downtown. Downtown can be divided into a series of sub-districts. The west portion is largely characterized be existing anchor retailers (Target / Byerlys) with opportunities for traditional commercial out lots development. Development in this area should have architecture features and amenities that signal arrival into the downtown area and help establish the architectural character of downtown as a whole. The area between the railroad and Highway 5 will likely remain oriented towards the highway commercial uses, capitalizing on good access and views. Development in this areas should focus on providing a mix of retail, restaurants, and services. The north and east areas are likely to remain unchanged, offering important services and attractions that contribute to the character of downtown and drawing a significant number of visitors. These areas, like the anchor retail sites are foundational pieces upon which new development in Downtown should build. At the core of Downtown is a mixed use district which may include entertainment, fine dining, boutique retailers, public plazas, and housing. Long term this area will be the central focus of activity for downtown and should draw from adjacent uses like the Chanhassen Dinner Theater, City Center, Library, and City Hall. This sub-district can be a substantial attraction for downtown and provide visitors the opportunity to conduct all of their activities on a well connected and attractive pedestrian network. This core area of Downtown is the most appropriate district for increased housing density and could provide a range of housing options. LAND USE AND SUB-DISTRICTS Mixed Use (Ground floor retail with upper floor residential) should have attractive architecture, enhance the street edge, and be the appropriate scale for downtown Preferred character for new office /medical services development focuses on attracting small tenants which provide local services New retail development should add to the sense of place and downtown identity and attract a range of retail and dining options DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 13 DISTRICTS (LAND USE AND CHARACTER)LAND USE AND SUB-DISTRICTS DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 201814 NEXT STEPS The following represents a list of targeted initiatives for Downtown Chanhassen over the next five years and beyond. The initiatives highlighted in green have been identified by the city council as higher priorities. The city council , boards and commissions and city staff should focus on these high priority initiatives as first steps in Downtown’s evolution. IMPLEMENTATION - CONNECTIONS »Enhancement of sidewalks, plazas, and other connections between particular developments in Downtown, to encourage walking and biking from destination to destination. »Enhanced private walkways to connect storefronts to the walkways and trails located in the public right-of-way. »Enhance crosswalks and pedestrian landing areas along major streets in the Downtown (Hwy 5, 78th Street, Market Blvd. Great Plains Blvd, etc.). »Implementing a “pedestrian priority phase” for signalized intersections allowing a head start for people walking or bicycling across the street. (Already underway) »Maintain lower traffic speeds in the Downtown area. IMPLEMENTATION - PUBLIC REALM »Consider the creation of a City-led plan for public spaces (including plans for new public streets and enhanced streetscapes, and potential civic plazas or gathering places) that includes conceptual plans, cost estimates, and schedules for completion, as development in the Downtown area proceeds. »Consider the creation of a formal future street and mobility plan for Downtown, which would formally establish the future alignments for internal roads (as well as sidewalks and promenades) that would connect the different districts within downtown. »Encourage additional landscaping, boulevard trees, site furnishings, seasonal decor, unique paving and pedestrian scaled lighting to enhance the pedestrian experience. IMPLEMENTATION - SUB-DISTRICTS »Consider the creation of a formal incentives policy for Downtown, including potentially a formal scoring system in which projects that meet specific criteria tied to the Downtown Vision (in terms of enhancing the aesthetic appeal of Downtown, walkability, and other factors) would achieve better scores and therefore have a better chance of gaining approval of incentives »Further articulation of the sub-districts as identified in the Downtown Vision Plan to help guide expectations for urban design and development aesthetics within the Downtown area. »Consider the refinement of the identified sub-districts to determine desired locations for mixed use projects in the Downtown area.IMPLEMENTATION STRATEGIES DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 15 IMPLEMENTATION - DESIGN »Consider changes in zoning requirements for various sub-districts within Downtown, articulating the desired mix of uses, height and scale for buildings in Downtown. »Consider Design Guidelines on a sub-district basis that articulate the desired height & relationship to the street for buildings, public realm features and overall design aesthetic to help guide the quality and character expected within the different sub-districts of Downtown. »Consider a reduction in parking requirements for mixed use and retail projects in Downtown. »Consider the facilitation of shared parking arrangements between different property owners in Downtown, particularly with mixed use projects combining retail, office and residential. »Consider working with property owners in targeted downtown residential areas to create a “park once” environment, in which visitors could park in one location and traverse from business to business in Downtown Chanhassen without driving, in order to minimize traffic congestion IMPLEMENTATION - OUTREACH »Consider efforts for on-going recruit of entertainment-oriented and unique speciality tenants (i.e. Brewery/distillery or other restaurants/ entertainment) to locate downtown districts -Work with prospective developers to integrate restaurant or entertainment uses within their projects. »Consider recruitment of developers experienced in mixed-use to explore and pursue projects in Downtown Chanhassen. »Ongoing networking with and recruitment of developers to consider project opportunities in the Downtown Chanhassen area -Ongoing interaction at regional development organizations such as Urban Land Institute (ULI) and at national conferences such as the International Council of Shopping Centers.IMPLEMENTATION STRATEGIES DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 201816ISSUES AND OPPORTUNITIESDowntown Chanhassen’s greatest challenge as it relates to the community’s overall vision is rooted in it’s typical suburban development pattern. Existing development prioritize the automobile, resulting in a disconnected patchwork of stores and offices with substantial land area devoted to parking and roadways, land which could otherwise be used to attract new development. Parking lots occupy large areas of street frontage and push buildings to the back of lots creating street edges that are less attractive for pedestrians and ineffective at creating a sense of places or identity. While downtown’s development pattern presents a certain set of challenges, there are also a number of opportunities to build on including: the Chanhassen Dinner Theater; large retail and grocery anchors; new townhome development and existing park, school, and park resources. Leveraging these strengths, identifying where (and how) redevelopment occurs, and understanding how that redevelopment can support the overall vision for downtown will be a critical to the long term success of downtown. Potential redevelopment sites were initially identified based on the analysis work conducted as part of the market research and issues and opportunities analysis done at the start of the project. These findings were presented to groups of developers, business owners, residents and other interested groups during a multi-part community engagement process in order to prioritize the sites (see map on right). Generally, the highest priority areas are centered around the Target and Lunds & Byerlys locations. These areas are highly visible from Highway 5 and Powers Boulevard and the large numbers of shoppers attracted by the retail another present opportunities for redevelopment to build on existing strengths. Generally, the center of downtown is largely viewed as an existing strength which may change in the longer term as opportunities arise. The area south of the railroad tracks was also viewed as a short to medium priority for change as the community looks to transition many of the auto-oriented uses to those more in-line with the downtown vision. In addition to identifying and prioritizing development areas, the community engagement process also identified where certain types of development should occur and what the character of that development should be, this information is discussed in detail in the Districts (Land Use and Character) section. IDENTIFYING AREAS OF OPPORTUNITY New retail development south of downtown may act as a template for siting development to enhance the pedestrian environment without sacrificing automobile accessibility or visibility Caption Caption DOWNTOWN CHANHASSEN - VISION UPDATE NOVEMBER 13, 2018 17 ISSUES AND OPPORTUNITIESOPPORTUNITY SITES FOR REDEVELOPMENT / REINVESTMENT ECONOMIC DEVELOPMENT COMMISSION STAFF REPORT Wednesday, November 13, 2019 Subject Review Business Subsidy Guidelines Section NEW BUSINESS Item No: D.2. Prepared By Greg Sticha, Finance Director File No:  SUMMARY Review the city's Business Subsidy Guidelines. ATTACHMENTS: Business Subsidy Guidelines City of Chanhassen Business Subsidy Guidelines Approved October 11, 1999 Amended April 28, 2003 Amended September 24, 2018 1 CITY OF CHANHASSEN BUSINESS SUBSIDY GUIDELINES GENERAL PURPOSE Economic development incentives are financial tools that enable the City of Chanhassen to provide opportunities and benefits for its businesses and residents. Incentives can take a variety of forms, including, but not limited to: grants, tax increment financing, tax abatement, and sewer access credits. The City of Chanhassen provides economic development incentives in order to achieve its long-range vision of creating a diverse and sustainable economic base. This is achieved in part through the creation and retention of quality, high paying jobs. A diverse and sustainable economy offers opportunity for improved quality of life for the residents of Chanhassen. Economic development projects may also achieve other worthwhile goals. For instance, some projects provide value to the community in the forms of infrastructure improvements, stabilization of business districts or neighborhoods, or concentration of selected industries. The City of Chanhassen reserves the right to approve or reject subsidies for projects on a case-by- case basis, taking into consideration established policies, project criteria, and demand on City services in relation to the potential benefits from the project. Meeting the guidelines in this document does not guarantee the award of business assistance to the project. Approval or denial of one project is not intended to set precedent for approval or denial of another project. The City of Chanhassen can deviate from these guidelines for projects that supersede the objectives identified herein. Any applicant who is not in good standing with the City, in regards to licenses, fees or other specific charges, will not be considered for business subsidies. OBJECTIVES The City of Chanhassen may consider offering a business subsidy or incentive in order for a project to achieve one or more of the following objectives: • To increase the City’s tax base. • To retain local jobs and/or increase the number and diversity of jobs that offer stable employment and/or attractive wages and benefits. Preference will be given to higher paying jobs that also provide benefits such as health care coverage. • To support projects that provide value in the forms of needed transportation and other utility infrastructure improvements that would be completed in conjunction with the project. • To encourage additional unsubsidized private development in the area, either directly or indirectly through “spin off” development. • To facilitate the development process and to achieve development on sites which would not otherwise be developed but for the use of a business subsidy. • To remove blight and/or encourage redevelopment of commercial and industrial areas that will result in high-quality redevelopment and private reinvestment. 2 • To offset increased costs of redevelopment (i.e. contaminated site clean-up) over and above the costs normally incurred in development. • To create opportunities for a diversification of housing stock available within the community. • To support a project that will improve the quality of life in the City by providing a desirable good or service and addressing an unmet demand in the community. • To contribute to the implementation of other public policies, as adopted by the City from time to time, such as the promotion of energy conservation, and decreasing capital and/or operating costs of local government. • To support the retention and/or adaptive re-use of buildings of historical or architectural significance. ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS The application and subsequent use of these programs is at the discretion of the Chanhassen City Council, and may include additional applications, policies, and procedures. 1) Tax Abatement: The City of Chanhassen is granted the power to utilize tax abatement by the State of Minnesota. The fundamental purpose of tax abatement is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through the tax abatement. The City utilizes “Pay-As-You-Go” Tax Abatement, which relies on the developer to pay for the up-front project costs with reimbursement from tax abatement. 2) Tax Increment Financing: The City of Chanhassen is granted the power to utilize tax increment financing (TIF) by the State of Minnesota. The fundamental purpose of TIF is to encourage desirable development or redevelopment that would not otherwise occur but for the assistance provided through TIF. The City utilizes “Pay-As-You-Go” TIF, which relies on the developer to pay for the up-front project costs with reimbursement from tax increment. 3) MN DEED Programs: There are a variety of programs available through the State of Minnesota DEED division. They include the Job Creation Fund and Minnesota Investment Fund, among others. In order for a business to utilize these programs it is typical for MN DEED to ask for support and cooperation from the city. Chanhassen has worked with MN DEED in the past on projects and would consider the use of these programs in the future on a case-by-case basis. APPLICATION PROCESS 1. The City reserves the right to: a) Request additional information. b) Deny any application. c) Select a third party administrator to assist in the management of the process. 3 2. Applicant should retain and be assisted by qualified financial consultants and/or underwriters, and legal counsel. 3. Construction of the project shall not be commenced until the City has given preliminary approval to the application for financing. Any advanced planning or construction completed will be done at the sole risk of the applicant. 4. Applicants should complete the appropriate planning application, and include a plans and/or narratives that outline the following: a) The specific request (program, amount) b) The reasoning and need for assistance c) Description of the company d) A concept plan and description of the project e) The number of jobs created and total compensation (breakdown of wages and benefits) f) Impact to the tax base g) Other impacts to the community h) Traffic demands i) Infrastructure demands and/or needs j) Any additional information that would be helpful to staff and City Council 5. Development must be of the highest quality with high quality building materials and landscaping as agreed between the City and the Developer. 6. If establishing a TIF district, the developer must pay all costs of establishing the district unless the City agrees to allow costs to come out of the district. 7. All projects must be consistent with Chanhassen’s Comprehensive Plan and any other similar plan or guide for development of the community. ADDITIONAL INFORMATION 1. City staff will review the data and make preliminary recommendations to the City Council as to compliance of the application and proposed project with City objectives, and business subsidy criteria, and Comp Plan. 2. After evaluation of the formal recommendation, the City Council will consider approval of the establishment of the Business Subsidy and hold the appropriate hearings. 3. All applications and supporting materials and documents shall become the property of the City. g:\admin\cp\economic development\business subsidy\business subsidy guidelines - 2018 final.docx