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09-09-2024 City Council Work Session Minutes1 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES September 9, 2024 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember Kimber, and Councilmember McDonald, Councilmember Schubert COUNCIL MEMBERS ABSENT: none STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Parks Director; Eric Maass, Planning Director; Matt Unmacht, Assistant City Manager; Kelly Grinnell, Finance Director; Patrick Gavin, Communications Manager; Jenny Potter, City Clerk; Richard Rice, IT Manager PUBLIC PRESENT: many people from the neighborhoods near the Bluff Creek Drive property Presentation of Preliminary 2025 Levy and General Fund Budget Kelly Grinnell, Finance Director, reviewed the levy and general fund budget information from the last work session. A full-time employee was added for a Parks Maintenance position starting on July 1, 2025, at $50,000. A decision will need to be made about budgeting for lifeguards for the 2025 season. Overall, the expenditure budget increased 3.7% from last year and there was a reduction in the increase of the General Fund Levy of $55,000, with the levy increasing $419,000 instead of $474,000. Ms. Grinnell included options that will need further discussion by the City Council. The City Council discussed setting the overall preliminary budget as outlined by Ms. Grinnell and understood that the levy could still be decreased before setting the final levy and budget but could not be increased after the vote at the City Council meeting following the work session. Highway 5 Project Update Charlie Howley, Public Works Director/City Engineer, introduced Dan Lonnes from Bolton & Menk and Eric Johnson from Carver County to give a presentation of the status of the Highway 5 project. Mr. Lonnes, from Bolton and Menk, gave an update on the Highway 5 project. He discussed the timeline of the project, the locations, and updated changes to the plan. The project is largely on schedule with the construction to start in 2026 or early 2027. There was an open house held for the project on August 21, 2024. The people attending asked mostly about noise walls and how long the project will take. Councilmembers asked for the presentation to be added to the work session packet. Mr. Howley said he would provide it to be added. Bluff Creek Drive Development Concept Update Eric Maass, Planning Director, introduced Mario Cocchiarella from Maplewood Development, Clark Wicklund from Alliant Engineering, and John Rask from M/I Homes, Inc. City Council Work Session Minutes – August 26, 2024 2 Mr. Maass reviewed and updated concept plan for the land located near Bluff Creek Drive. The original plan included 163 units for townhomes and single-family homes. The updated plan included 110 units for just single-family homes. The new plan also relocated the access point to the homes. The new plan has 55 feet and 60 feet lot sizes. Mr. Maass said that the updated proposal does not meet the Single Family Residential (RSF) zoning. The RSF zoning would dictate that 70 lots would be created. A planned unit development would need to be utilized in order for the property to have 110 units. Mr. Wicklund from Alliant Engineering stated that the target audience for this development would be empty nesters looking for less maintenance for their homes. Mayor Ryan said that due to the nature of that area of the city being larger lot homes and more open space, she would prefer a plan that was closer to the 70 lots with the current zoning. Councilmember Kimber said that if the development was to be for empty nesters, there should be park space included in the plan that is not currently there. Councilmember Schubert said that she preferred the 70-lot plan to what was proposed. Councilmember McDonald asked what the price point would be for the homes. John Rask, M/I Homes replied that the average price of the homes would be about $750,000. Mr. Rask said that there are many people in Chanhassen looking for lower maintenance homes that have yard care and snow removal provided. Mario Cocchiarella from Maplewood Development stated that the homes are not on slabs but have basements or are lookout basements. He also said that 70 homes concept isn’t viable for them. He also said that the demographic isn’t just empty nesters, but that young people also don’t want to have the large yards that were desirable in the past. Councilmember Schubert asked to hear back from the residents that were in the audience tonight and see what they would like to have in the area. Mr. Maass said that he would work with the developer to see if there were any changes they would like to make and we would wait for feedback from the neighbors that had attended the meeting. Mayor Ryan adjourned the meeting at 6:58 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk