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02-10-2025 CC WS1 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES February 10, 2025 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember Kimber, Councilmember McDonald, and Councilmember Schubert COUNCIL MEMBERS ABSENT: STAFF PRESENT: Laurie Hokkanen, City Manager, Charlie Howley, Public Works Director/City Engineer; Matt Unmacht, Assistant City Manager, Jerry Ruegemer, Parks Director; Kelly Grinnell, Finance Director; Patrick Gavin, Communications Manager; Eric Maass, Community Development Director; George Bender, Assistant City Engineer PUBLIC PRESENT: Sketch Plan Review: Santa Vera Development Phase II Eric Maass, Community Development Director, introduced Josh McKinney, The Measured Group, and Ryan Sailer, Headwaters Development to discuss the possibility of constructing a second building on an adjacent property located between the current Santa Vera Apartment building and the Chanhassen Elementary School. Prior to preparing more detailed architectural and engineered drawings for the project, the ownership group requested the opportunity to present an initial concept to the City Council to gain more insights into the City Council's thoughts and ideas as it relates to the development of the site, especially as it relates to the nearby civic campus project and City Council's vision for downtown. Mr. Sailer presented new renderings, ideas, and exterior concepts to the council. The site is 3.85 acres and the current zoning designation for the property would allow for up to 62 housing units by right. In the city’s 2040 Comprehensive plan, there is a provision to allow a 25% density bonus for sites that incorporate affordable housing. The proposed plan by Mr. McKinney and Mr. Sailer would build 59 multifamily units that would be in addition to the existing 18 multifamily units. The entrance to the future apartment building will be located on Santa Vera Drive, helping to reduce traffic congestion on Laredo during the busy morning drop-off and pick-up times at the nearby elementary school. The proposed apartment building would also feature a shared amenity space with the existing apartment buildings, offering outdoor recreation areas, grill stations, and an outdoor dining area. Many council members said they appreciated the improvements made to this concept plan since the ownership group last presented a potential development concept to the city. They also expressed their preference that the residents of the current 18 multifamily units not be displaced and that the affordability housing be seamlessly integrated into the design of the new proposed City Council Work Session Minutes – February 10, 2025 2 building. Some council members noted that the reduced number of housing types from the previous plan was a positive change, while others emphasized the importance of architectural sensitivity to ensure the building complements the surrounding neighborhood. They also anticipated hearing from Santa Vera Drive residents regarding the shift in traffic flow and stressed the need to consider safety concerns related to turning onto Kerber. Additionally, they highlighted the role of landscaping in creating a smooth transition between the new development and the nearby single-family homes. Park Priorities Discussion Jerry Ruegemer, Parks Director, presented an overview of parks maintenance funding and upcoming renovation projects. The city plans to allocate $100,000 in 2025 toward park renovations, with a projected $700,000 investment over the next five years. Key projects for 2025 include resurfacing the heavily used pickleball courts at the Recreation Center and replacing the Carver Beach playground. The council also discussed the future of Chan Estates Mini Park and how to best address its aging playground. Mr. Ruegemer said that the higher park priorities from 2026 to 2029 will be: • Lake Ann Playground Replacement (2029) • Bandimere Playground Replacement (2025) The city council agreed to allocate $36,270 to resurface the existing pickleball courts at the Recreation Center but asked Mr. Ruegemer to present alternative ideas at a later date for where those pickleball courts might be relocated, given that the current site struggles with poor drainage and persistent soggy conditions, which contribute to court damage over time. Both Lake Ann and Bandimere Park were cited as potential new locations for the pickleball courts. Ruegemer said he would work with the Park & Recreation Commission to present the council with alternative locations. The Council selected “Option 2” for the Carver Beach playground equipment. Mayor Ryan recessed the work session at 6:55 P.M. Mayor Ryan reconvened the work session at 7:44 P.M. Review Assessment Policy updates Charlie Howley, Public Works Director/City Engineer, and George Bender, Assistant City Engineer, led a discussion on the city’s current assessment policy and suggested changes. The city was tasked in June 2024 with reviewing its policy to provide greater clarification, details and consistency to residents, along with ways to help the cost burden. The discussion focused on how assessments are calculated, potential cost reductions for residents and options for shifting to a flat- rate system. Key topics included clarifying what costs are included in assessments, adjusting interest rates to align with Treasury yields, extending repayment terms for higher assessments and City Council Work Session Minutes – February 10, 2025 3 reviewing the impact of shifting costs to the city. The council also considered the financial implications of flat-rate assessments and the balance between cost predictability for residents and financial risk to the city. The next steps include formal consideration of the revised policy at upcoming City Council meetings. Council members thanked Mr. Howley and Mr. Bender for their work on the revised policy. All council members agreed that they would like more time to review the presented data. City Council Roundtable The quarterly roundtable is time for the City Council to discuss items of interest, propose new items for review and ask general questions of staff/each other. Mayor Elise Ryan emphasized the importance of election integrity during the roundtable discussion, asking if the City Council would like to further discuss election related issues sometime later in the year. She also proposed establishing clear city guidelines for election processes such as the Public Accuracy Test to ensure consistency, eliminate misinterpretation and make enforcement straightforward. Ryan acknowledged confidence in the city's and county's current election procedures but stressed the benefits of proactively addressing concerns to support both residents and staff. Mayor Ryan adjourned the work session at 8:10 P.M. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk