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03-20-2023 City Council Work Session MinutesCHANHASSEN CITY COUNCIL WORK SESSION MINUTES MARCH 20, 2023 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilman McDonald, Councilwoman Schubert, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Eric Maass, Planning Director; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Park & Recreation Director; Ari Lyksett, Communications Manager; and Kim Meuwissen, City Clerk. PUBLIC PRESENT: Bill Maloney, 7211 Frontier Trail CHANHASSEN BLUFFS SPORTS COMPLEX UPDATE City Manager Laurie Hokkanen presented an update on the Chanhassen Bluffs Sports Complex, starting with sketches of the proposed building layout, location of the amenities, and exterior building renderings. Currently, the seating areas in the two proposed hockey rinks are different sizes and capacities; however, due to various high school interests in participating and potentially providing some capital contribution, the developer has been asked to create equal seating locations and capacity for both rinks. The developer worked with RSP Architects to create the building renderings. The facility will be built into the bluff on the site, which will reduce the number of retaining walls needed. The training facility will be available to a private medical provider to be located adjacent to the facility via a use agreement but would be open for public use at other times. The walking track shown on the layout is currently identified as a concourse walking track above the hockey rinks. A community rental space is also shown in the sketches. In relation to the field house, Ms. Hokkanen proposed the idea of an indoor playground similar to Edinborough in Edina and how much space would be needed. There is also the possibility of a private vendor installing a rock climbing wall in a small portion of the turf area. Council discussed the design of the proposed walking track and possible uses of the community room. Concern was expressed regarding the entry location and reception area to the field house. Possible uses of the field house were discussed in addition to adjunct uses for the hockey rinks. Ms. Hokkanen stated that the field house, as designed, is not large enough for soccer or lacrosse uses. Councilman McDonald expressed concern that the sports facility appeared to be focused specifically on hockey activities and not other sports. There was a discussion that rental revenue could be increased if the field house could accommodate other athletic events, such as soccer and lacrosse. The council discussed the concourse design of the walking track as shown in the sketches and concurred that they were expecting something more robust such as what was discussed in the developer’s previous presentation to the council. Ms. Hokkanen provided an update on the recent legislative activity/committee hearings, and the mayor and herself attended a senate committee hearing last Tuesday regarding the local option sales tax (LOST). The League of Minnesota Cities (LMC) is presenting a bill that would allow the legislature to City Council Work Session Minutes – March 20, 2023 2 create a streamlined LOST application process. The LMC has also submitted a bonding request for the bonding bill. The sales tax construction exemption request has been heard in both the senate and the house. The legislative session ends on May 22. If the LOST is approved, the next official step would be to move forward with the referendum. Ms. Hokkanen presented the Chanhassen Bluffs Sports Complex plan to the Economic Development Commission last week. She received a positive response, specifically regarding adding and increasing business in Chanhassen. Ms. Hokkanen stated that the original ownership and management options of the facility have not yet been worked out, as a successful model could not be found. The general expectation for these types of facilities is that if they are managed well, they can break even and save money for deferred maintenance as long as the initial capital investment is not attempted to be recouped. No decisions have been made, but working with the developer, it was discussed that it would make more sense for the city to be the facility owner. The developer would build the facility, and the city would take ownership after construction. The developer is still interested in pursuing a non-profit or foundation idea, but there currently are no models for this idea. Councilman McDonald expressed concern about the annual facility maintenance and staffing costs and operating budget if the city owned the building. Ms. Hokkanen responded that the idea is that the facility’s operating costs would break even so that annual levy dollars would not be necessary. Councilman Kimber asked about the additional building tenants brought in by the developer. Councilman McDonald expressed concern about being able to sell a hockey facility to the public. He would like the facility to offer other sports and activities to appeal to the entire community. Councilmember Kimber suggested that the facility was more of an entertainment facility than a park and recreation facility. He also liked the idea of a board running the facility with sponsors. Councilwoman Schubert supported incorporating an indoor playground. She also asked if residents could use a punch card at both the existing recreation center and the training center in the new facility. Councilmember von Oven asked if the city owned the rec center and if we broke even. Ms. Hokkanen responded that, historically, the rec center does not break even. Ms. Hokkanen also mentioned that there is still much interest in a swimming pool; however, the building site is not large enough to accommodate one. Ms. Hokkanen indicated she would take the council’s suggestions and comments to the developer. Level 7 Developer representative Mark Nordland will join the City Council at the April 10 work session. CITY COUNCIL ROUNDTABLE Mayor Ryan reviewed the roundtable guidelines. Deer/Wildlife Management: Mayor Ryan relayed concerns residents have expressed regarding deer management in the city and asked Ms. Hokkanen to contact the DNR for information on their wildlife management process. A wildlife management plan would need to be drafted and presented to the DNR, require a public hearing at the planning commission, and then the city council would have to adopt the plan. The city must initiate the process as the DNR is not an action agency. Councilmember McDonald asked what damages are occurring from the deer. Mayor Ryan mentioned that the biggest concern was the deer scat that could harm pets and children if they come in contact with it. Councilmember von Oven is in favor of moving forward with the process. Councilman McDonald asked if we have spoken to the City of Eden Prairie. Ms. Hokkanen responded that Park & Recreation Director Jerry Ruegemer spoke with someone last week. The management process is deer would be lured to a park or wooded area and then reduced and removed by a contractor. Councilwoman Schubert asked if it was possible to obtain plans from other cities to base our plan off of. Councilman Kimber said if we were to move forward, the management plan should also include geese and turkeys. Councilman McDonald supported investigating City Council Work Session Minutes – March 20, 2023 3 a wildlife management plan and determining what it could do for the city. Councilwoman Schubert also asked if neighboring cities could be surveyed to see how many years a plan would need to be implemented. Mayor Ryan suggested that the council move forward with the wildlife management process (including geese and turkeys), and inform the public about the process and the timeline, as well as the next steps. Information should also be available to residents about how to keep deer out of their property. Ms. Hokkanen stated that the soonest the plan and contract could be in place would be September, and the removal process would occur in December. Lodging Tax: Councilman McDonald suggested that the lodging tax discussion be revisited and that the Economic Development Commission explore implementing a lodging tax structure. Ms. Hokkanen responded that on a high level, 90% of lodging tax revenue must go towards tourism promotion through a convention and visitors bureau (CVB). Councilman McDonald suggested we could use the Minneapolis CVB group. Councilman von Oven supports the idea that it would bring more visitors to Chanhassen to contribute to the local option sales tax if approved. Councilwoman Schubert would like clarity on who would handle the revenue. Councilman Kimber agreed and asked if the SouthWest Metro Chamber of Commerce could be involved. Ms. Hokkanen suggested that staff compile an issue paper for council review, and the council agreed. Mayor Ryan expressed concern about the idea of all these new taxes and that the structure isn’t there to support a lodging tax, but she favors an issue paper. Assessment Notification and Communication: Councilman von Oven asked about closing the loop on assessment notifications and communication. Mayor Ryan confirmed that staff is working on making a proactive effort to follow up. Hard Cover Variance Process: Mayor Ryan would like to evaluate and discuss the hardcover variance process and the use of permeable pavers within the shoreland district. The city’s hardcover maximum is 25%, and other communities she surveyed are at 30%. Should the city reevaluate hardcover and the use of permeable pavers? Councilwoman Schubert agreed and relayed a situation where setbacks and hardcover were a problem for a home builder. Mayor Ryan would like to evaluate shoreland districts and get a better understanding of them, as well as general hard cover percentages. Councilman von Oven wanted to clarify that it would be specific to hardcover variances only. Councilman Kimber asked how long the other cities surveyed have been at 30% hardcover, and how PUD developments would change. Councilman McDonald asked if the Planning Department was working on using permeable pavers related to hardcover. Mayor Ryan responded that permeable pavers are prohibited in the shoreland district and count against the hardcover. Councilman Kimber is in favor of reviewing the existing hardcover as well as allowing permeable pavers in the shoreland district. FUTURE WORK SESSION SCHEDULE April 10, 2023 Chanhassen Bluffs Sports Complex Discuss City Code Amendment Concerning Solicitors, Peddlers, and Transient Merchants Discuss Wildlife Management Plans Discuss City Council and Commission Communications April 24, 2023 May 8, 2023 Strategic Plan Check-in City Council Work Session Minutes – March 20, 2023 4 The work session adjourned at 6:55 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Kim Meuwissen City Clerk