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03-14-2023 EDC MinutesCHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING MARCH 14, 2023 Chairman Anderson called the meeting to order at 5:30 p.m. MEMBERS PRESENT: Chair Eric Anderson, Commissioners Duke Zurek, Stacy Goff, and Chris Freeman. MEMBERS ABSENT: Commissioner Luke Bame. STAFF PRESENT: Laurie Hokkanen, City Manager; Samantha DiMaggio, Economic Development Manager. PUBLIC PRESENT: Three members of the public. Member Goff moved, Member Freeman seconded to approve the agenda. All voted in favor and the motion carried unanimously with a vote of 4 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED FEBRUARY 14, 2023 Member Freeman moved, Member Goff seconded to approve the Minutes of the Economic Development Commission meeting dated February 14, 2023 as presented. All voted in favor and the motion carried unanimously with a vote of 4 to 0. DISCUSSION/GENERAL BUSINESS: AVIENDA AND CHANHASSEN BLUFFS RECREATIONAL FACILITY— DEVELOPMENT UPDATES City Manager Hokkanen gave a presentation and update on the Avienda project, noting they hope a grocer will be the first business in the development. She showed the location of the recreational facility and noted it would be a public/private partnership, likely owned by the city, with two sheets of ice. She explained funding and that the city is asking the legislature to give permission to go to a referendum to approve a local sales tax. Over 20 years the sales tax is projected to generate $40,000,000 and 45% of that tax would be paid by people who do not live in Chanhassen. The impact of the local sales tax would be about $35/resident each year. Economic Development Commission – March 14, 2023 2 Members inquired about any feedback from retailers regarding the higher tax, and how that could sway consumers, especially on a bigger purchase. Ms. Hokkanen replied she would like the EDC’s help in meeting with businesses and shared about a recent Buy Chanhassen lunch. Economic Development Manager DiMaggio has a map of downtown businesses and suggested a morning session or going door-to-door to talk with businesses. She noted a question she has heard is why the city is not putting the hockey arena downtown and explained the city does not have land control downtown. She clarified that the tax would only be on things that one would already pay tax on now and would not be on clothes, for example. A member of the public stated the city should be notified very early regarding the potential sales tax. They should also talk about the benefit to the community, such as increased property values and other potential positives. Ms. Hokkanen highlighted the projects page of the city website, where information about the project is published. A booth at the July 4 Celebration for project information and questions was suggested. Ms. Hokkanen continued her presentation, noting that within the 16-acre site there is room for a hotel and there has been some interest in the Avienda project. She shared about the City Campus project noting a facility study was done with an estimate of $17-$18 million to complete the deferred maintenance in the current building (built in 1981) as well as to make it more functional. The cost for a new building would be $22-$25 million and the decision was made to pursue that option. She walked the members through the preferred concept for City Hall with a classic downtown feel. They hope to make the site a hub of activity including a splash pad, accessible playground, performance space, and a type of park pavilion or rental space with permanent bathrooms. The members discussed the importance of adequate parking within the project. Ms. Hokkanen shared about keeping a skate park downtown and spoke about a question regarding pickleball courts being moved. She stated whatever the city does at City Center will set the tone for other redevelopment downtown. The library space was brought up in regard to available space. Ms. Hokkanen replied the city does sometimes utilize rooms at the library, however, they are typically very busy and people utilize and reserve the rooms. She noted the city is looking at a heated sidewalk between City Hall and the library to have good access between the two in the winter. DIRECTOR’S REPORT: BUSINESS RETENTION & EXPANSION (BR&E) PROGRAM FOLLOW-UP Economic Development Manager DiMaggio shared that on December 14, 2022 the EDC finalized the survey and expressed the importance of an online form for businesses within the Economic Development Commission – March 14, 2023 3 city. A letter was drafted, signed by the Mayor and Ms. Hokkanen, and sent to 27 businesses within the city which directed them to an online survey. One survey was returned, three businesses were no longer in Chanhassen, and 23 did not respond. Ms. DiMaggio reached out to Greater MSP and the Chamber for help in tracking down emails. She recently sent 13 emails and received one response. She noted she had excellent discussions with the two manufacturers who returned the surveys. The commission is interested to know more about the businesses that left Chanhassen and how the city can adjust before other businesses are driven to the same decision. The next step by Ms. DiMaggio is to send the survey with a handwritten note asking for help and feedback from businesses. The commission likes the personalization from Ms. DiMaggio and expressed the importance of including the online link to the survey. Ms. DiMaggio discussed businesses in town that she has met with recently, shared about a new restaurant called Thaliwala, a retail and shopping center, and that she attended the Legislative Commission. Ms. DiMaggio will be going to the Capitol to meet with Representative Rehm, Senator Coleman, and Senator Pratt. She noted the following month the EDC will do the Oath of Office for new members, approve bylaws, approve the election of officers, and have Open Meeting training. ADJOURNMENT: Member Zurek moved, Member Freeman seconded, to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4 to 0. The Economic Development Commission meeting was adjourned at 7:04 p.m. Submitted by Samantha DiMaggio Community Development Manager Prepared by Amy Weidman Administrative Support Specialist