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06-05-2023 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES JUNE 5, 2023 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: Councilwoman Schubert. STAFF PRESENT: Laurie Hokkanen, City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Park & Recreation Director; Kelly Grinnell, Finance Director; Ari Lyksett, Communications Director; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: None. CHANHASSEN BLUFFS SPORTS COMPLEX UPDATE Mayor Ryan reviewed the history of this discussion item and presented some updates. The land required for a sports complex facility was provided by the developers of the Avienda project, including facility design. After meeting with the architects, the facility design was updated to include a high-level indoor soccer field (increased size of turf area), an indoor playground, workout and meeting room spaces, and a restaurant. Staff has been communicating with the local sports associations and school districts for their comments and concerns regarding the facility. Concerning funding, the local option sales tax (LOST) option in the amount of $40 million was approved by the legislature. The city will have two years to move forward with a referendum. The earliest a referendum could be held would be this November. Other dates include February, April, or May of 2024; however, if the city chooses not to hold the referendum this November, a construction season will be lost. Carver County sales tax is currently 7.35%. In addition, the state is going to increase its sales tax by 1% for a total of 7.875%. Mayor Ryan expressed concern about adding another .5% tax burden on Chanhassen residents. Mayor Ryan requested Council feedback on these updates. City Manager Laurie Hokkanen distributed a handout with information from other cities for the council to review. Councilman McDonald thought the tax increases could be devasting to some of the residents, but we have come this far and should allow the residents to vote on it to determine how important this is to the community. Councilman von Oven agreed that the city should move forward with the referendum and let the residents decide. Additionally, the council should show its support for the referendum. Councilman Kimber also agreed and stated that the complex would be a benefit to the community, especially having been involved in the Park & Recreation Referendum Task Force. Mayor Ryan asked for input on the timing of a referendum and if it should be held in November of this year. Councilman McDonald preferred to hold it in November and would expect a better voter turnout at that time. Councilman von Oven agreed that the referendum should be held in November. Ms. Hokkanen interjected that it is possible there may also be a School District 112 referendum on the same ballot; however, no decision has been made. Mayor Ryan also preferred a November referendum but is hesitant about the school district’s plan. Councilman McDonald suggested there should be a broad City Council Work Session Minutes – June 5, 2023 2 outreach to promote a good product. Mayor Ryan asked about next steps. Ms. Hokkanen responded that ballot language needs to be established by late August, and early voting begins September 22. Additionally, a communications plan needs to be developed prior to voting. Mayor Ryan reminded the council that council members could not endorse the referendum, only provide information. Councilman McDonald asked about area high schools’ contracts with other ice facilities. Mayor Ryan discussed that the school district was talking to the area high schools about ice usage. Councilman von Oven asked about the possibility of procuring endorsements from associations. Ms. Hokkanen responded that the city provides information to association leaders and they should communicate with their members about the referendum. Councilman Kimber asked about placing multiple questions on the referendum ballot to also ask for funding for the Lake Ann Park Preserve. Ms. Hokkanen shared that the council allocated $1.3 million last year, and consultants have been engaged to do the permitting and scoping of the project. The city has received $156,000 in grant money for buckthorn removal, applied for a grant from the DNR in the amount of $250,000, and the construction of the parking lots can be funded with existing transportation funds. That would be a separate ballot language question relating to levy dollars, as the LOST could only be used for the sports complex. ARPA funds could be designated toward the Lake Ann Park Preserve, which will be discussed after the auditors close the books on 2022. On behalf of the City Council, Mayor Ryan requested that staff move forward with the next steps to move forward with the project. Ms. Hokkanen reported that staff has received much interest from area associations and will respond to them this week with updated information. Councilman von Oven suggested that the developer provide suggested ballot language from his perspective. PERMITTED, CONDITIONAL, AND INTERIM USES WITHIN THE CENTRAL BUSINESS ZONING DISTRICT Planning Director Eric Maass discussed possible code amendments to the uses within the Central Business District (CBD). Upon review of the existing uses, staff noted that the list of uses was very long and provided recommendations on what uses could be removed in order to update the CBD district along with the design guidelines. Proposed permitted uses, permitted accessory uses, and conditional uses were discussed. The closing of the Chanhassen Movie Theater, making the property available for development, prompted staff to review the existing city code in order to eliminate existing uses that may not an appropriate use within the CBD, such as a gas station or a standalone fast-food restaurant with drive-throughs. Staff is requesting council review the proposed uses in the CBD and provide feedback. Ms. Hokkanen discussed drive-throughs. The city council appreciated the information and directed staff to bring the proposal to the Planning Commission and Economic Development Commission prior to council review and approval. SPORTS COMPLEX FACILITY DESIGN UPDATE Based on the city council’s comments and requests from previous work sessions, City Manager Laurie Hokkanen presented a rough draft of an updated facility drawing, pointing out that the shape of the building has changed, which increases the size of the turf field area and eliminates the possibility of a third sheet of ice. A 5,000-square-foot indoor playground has been added. Observations are that there are not enough restrooms, the elevator should be closer to the walking track, storage areas should be added in the field house, the concession stand could be self-serve, the walking track could be redesigned and increased in size, and the hockey rink locker rooms be rearranged. City Council Work Session Minutes – June 5, 2023 3 FUTURE WORK SESSION SCHEDULE June 26, 2023 • 2024 Preliminary Budget and Levy Discussion • City Council Roundtable July 10, 2023 • Presentation of Audit Results, Redpath • Organizational Study/Staffing Study Presentation, Raftelis July 24, 2023 • The work session adjourned at 6:40 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk