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F-3. Downtown Vision Market Scan and Schedule • CITY Of CHANHASSEN -3 � w S, Chanhassen is a Community for Life-Providing for Today and Planning for Tomorrow MEMORANDUM TO: Planning Commission FROM: Kate Aanenson AICP, Community Development Director DATE: October 3,2017 ' SUBJ: Downtown Vision The City Council is working with HKgi to update the downtown vison plan that was first prepared in 2002. The first component of the study is a market scan. A summary of the scan was presented to the City Council in the August 28, 2017 work session and the complete draft of the market scan was included in their September 11, 2017 Council Packet. I have included a copy of the Market scan as well as the schedule for the study for your review. I will give a brief overview of the study at the commission meeting. I would encourage you to attend the Public Open House on November 8, 2017 to review the concepts for downtown. Attachments: 1. Downtown Chanhassen Vision Plan Update Project schedule 2. Downtown Chanhassen Market Scan G:\PLAN\Downtown Vision 2017\PC cover memo 10-3-17.docx PH 952.227.1100• www.ci.chanhassen.mn.us• FX 952.227.1110 7700 MARKET BOULEVARD • PO BOX 147 • CHANHASSEN • MINNESOTA 55317 I TASK JUL17 AUG SEP OCT NOV DEC TASK 1: Examine Existing Conditions TASK 2: Understand and Discuss Future Potential and Update Vision TASK 3: Prepare Draft Vision Concept Alternatives TASK 4: Converge on a Preferred Downtown Vision Plan TASK 5: Prepare Final Downtown Vision Plan City Staff City Council x� .4 4 Downtown Property Owners and Tenants Public Open House Potential Meeting Dates: Downtown Property Owners and Tenants- 10/5/17 City Council Concepts Review-10/23/17 Public Open House-11/8/17 xi City Council Review Study Results-11/27/17 tt City Council Formal Approval-12/11/17(staff) 9/12/2017 I MEMORANDUM Hoisington Koegler Group Inc. ©® To: City of Chanhassen From: Britt Palmberg Subject: Market Scan —Downtown Chanhassen Date: 16 August 2017 This memo documents the findings of a market scan focusing on determining the potential for various land uses (including retail,office, and residential)for the Downtown Chanhassen area in Chanhassen, Minnesota.This study area specifically includes the main portion of the area commonly known as Downtown Chanhassen, including the areas to the north and east of Highway 5 and Powers Boulevard, as shown in the map below. o DL O � c C•v q n Santa Vera O ° r 6 ? n ° Oen ci Santa Fe in arcs $`c 6 W 76th St 4,11,1 0 W Village Rd - e a Santa Vera Dr rochan ° c ° W 77th St Chanhassen Chan, W 78th St W 77th St W 78th St s St PichaY `N 19 no 414,her St 40, IC/n y w ew aoen t1 Pond P.nm i 0 0.05 0.1 1 1 1 Miles • 123 North Third Street, Suite 100,Minneapolis,MN 55401-1659 Ph(612)338-0800 Fx(612)338-6838 www.hkgi.com Direct(612)252-7127 Email britt@hkgi.com Downtown Chanhassen Market Scan Memo 16 August 2017 Page 2 The market scan outlines some of the key demographic and market factors impacting the Downtown Chanhassen area and then concludes with some projections for land use for the study area over the next five,ten, and 15 years.The findings of this memo and subsequent conversations with stakeholders will inform the creation of preliminary and final concepts for the Downtown Chanhassen visioning effort. This market scan draws from a review of demographic and market data compiled by ESRI and CoStar. ESRI is a national database service that gathers demographic and economic data, primarily from the U.S. Census,for any geographic area defined by the user. ESRI provides five year projections for the growth of population, households, and a variety of other demographic and economic data based upon an analysis of trends at the national and local levels. CoStar is a national research database that gathers, more specifically, data concerning the performance of real estate in various categories (including retail, office, and multi-family), drawing from information provided by local and regional brokerages and local CoStar staff that contact local property owners and representatives. CoStar gathers a range of real estate information, including data concerning lease rates,vacancies, inventory, and (where available)the names of tenants in various properties.While CoStar does not provide data for every property in a given local market, information provided by CoStar helps in outlining overall current real estate market conditions in a local area.The analysis draws from demographic projections provided by the Metropolitan Council,as well.The market scan also draws from a site visit to Downtown Chanhassen and the surrounding area and phone discussions with local brokers and representatives of property owners in the study area. Demographic Background The following provides an overview of demographic trends in and around the study area that affect the viability of development or redevelopment in the Downtown Chanhassen vicinity. Importantly, in considering the potential market for various land uses,the analysis looks beyond the city limits of Chanhassen. In particular,the current and projected demographic trends in Chanhassen, as well as the neighboring communities of Victoria, Chaska, Eden Prairie, Minnetonka, and Shorewood influence the potential market for various land uses in the Downtown Chanhassen area. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 3 POPULATION (MET COUNCIL PROJECTIONS) 2020(Met 2030(Met 2040(Met Projected 2016(ESRI Council Council Council Change, %Change, 2010 estimate) projection) projection) projection) 2016-2040 2016-2040 Chanhassen 22,952 25,448 26,700 31,700 37,100 11,652 46% Victoria 7,245 8,920 10,000 12,600 15,400 6,480 73% Chaska 23,770 26,439 27,100 32,000 36,600 10,161 38% Eden Prairie 60,797 63,163 67,900 75,200 82,400 19,237 30% Minnetonka 49,734 52,741 53,200 58,000 61,500 _ 8,759 17% Shorewood 7,307 7,496 7,400 7,500 7,600 104 1% • TOTALS 171,805 184,207 192,300 217,000 240,600 56,393 Sources:ESRI,Metropolitan Council Long term projections prepared by the Metropolitan Council indicate that Chanhassen will gain nearly 12,000 residents between 2016 and 2040,and that the six communities (combined)will gain an additional 56,000 residents during this period. Metropolitan Council's projections assume that infill development, as opposed to purely greenfield development (on previously undeveloped lands),will account for at least a portion of the population growth in these six communities over the next 25 years. HOUSEHOLDS(MET COUNCIL PROJECTIONS) 2020(Met 2030(Met 2040(Met Projected 2016(ESRI Council Council Council Change, %Change, 2010 est) projection) projection) projection) 2016-2040 2016-2040 Chanhassen 8,352 9,267 _ 10,000 11,900 14,000 4,733 51% Victoria 2,435 3,005 3,500 4,570 5,700 2,695 90% Chaska 8,816 9,531 10,400 12,300 14,200 4,669 49% Eden Prairie 23,930 24,856 27,400 30,400 33,300 8,444 34% Minnetonka 21,901 23,367 24,200 26,600 28,300 4,933 21% Shorewood 2,658 2,736 2,800 2,910 3,000 264 10% TOTALS 68,092 72,762 78,300 88,680 98,500 25,738 Sources:ESRI, Metropolitan Council Similarly, Metropolitan Council has projected the growth in households in the six communities over the next 25 years.The agency projects that Chanhassen will gain over 4,700 households between 2016 and 2040 and that the six communities combined will add nearly 26,000 households during this time period.The projections from Metropolitan Council assume that the number of people per Downtown Chanhassen Market Scan Memo 16 August 2017 Page 4 household will continue to decline,over time, resulting in a greater increase in the number of households over the next few decades. Population by Age -2017 vs 2022 Change, 2017- Chanhassen 2017 2022 2022 Under 15 5,068 19.7% 4,885 _ 18.1% (183) 15-24 3,501 13.6% 3,142 11.6% (359) 25- 34 2,720 10.6% 3,093 11.5% 373 35-44 3,202 12.4% 3,642 13.5% 440 45- 54 4,385 17.0% 3,770 14.0% (615) 55- 64 4,081 15.8% 4,392 _ 16.3% 311 65- 74 1,899 7.4% 2,738 10.2% 839 75- 84 621 2.4% 957 3.6% 336 85+ 285 1.1% 290 1.1% 5 Source:ESRI Population by Age -2017 vs 2022 Change, 2017- SW Metro Area 2017 2022 2022 Under 15 30,519 20.3%, 30,223 19.3% (296) 15-24 18,622 12.4% 18,052 11.5% (570) 25- 34 16,766 11.2% 18,345 11.7% 1,579 35-44 20,030 13.3% 21,871 13.9% 1,841 45- 54 23,382 15.6% 21,221 13.5% (2,161) 55- 64 22,458 15.0% 22,824 14.6% 366 65- 74 11,836 7.9% 15,843 10.1% 4,007 75- 84 4,402 2.9% 6,218 4.0% 1,816 85+ 2,052 1.4% 2,228 1.4% 176 Source:ESR1 An analysis of demographic projections by age, prepared by ESRI,for the City of Chanhassen as well as a "Southwest Metro Area"that includes the six communities (Chanhassen,Victoria, Chaska, Eden Prairie, Minnetonka, and Shorewood) indicates that the age 65 to 74 segment will gain the largest Downtown Chanhassen Market Scan Memo 16 August 2017 Page 5 number of residents, in both Chanhassen and the larger area, between 2017 and 2022.The 75 to 84 and 85 and older age segments will also experience population increases over the next five years. In line with national trends,the aging of the Baby Boomer population in this part of the metro area will contribute to this trend over the next five years, and beyond. Importantly, however,the 25 to 34 and 35 to 44 age groups will also experience population increases in the local area,as the Millennial generation continues to move into their prime earning years and the prime parenting years.The various demographic trends with regard to aging will impact the choices of local residents with regards to housing, in particular,with the age 65 and older groups continuing to seek out lower maintenance living options, including townhomes, apartments,or condominiums, as well as various senior housing options, as opposed to traditional single family detached housing, in the local area. Chanhassen SW Metro Area Twin Cities MSA 2017 2022 2017 2022 2017 2022 Less than $15,000 2.4% 2.4% 3.7% 3.7% 7.1% 7.0% $15,000 - $24,999 2.8% 2.5% 4.7% 4.4% 7.7% 7.2% $25,000 -$34,999 4.0% 3.2% 5.3% 4.7% 7.5% 6.7% $35,000 - $49,999 6.2% 6.1% 8.0% 7.0% 11.7% 10.4% $50,000 - $74,999 15.1% 9.3% 13.7% 11.8% 17.8% 15.7% $75,000 - $99,999 15.7% 16.3% 12.7% 12.0% 14.2% 13.9% $100,000 - $149,999 19.6% 22.5% 21.0% 22.3% 18.5% 20.9% $150,000 - $199,999 12.6% 15.1% 12.6% 13.8% 8.0% 9.3% $200,000 + 21.6% 22.6% 18.3% 20.4% 7.7% 8.8% Source:ESRI Chanhassen and the southwest metro area continues to represent one of the more affluent portions of the Twin Cities metro area, as outlined in data obtained from ESRI. Over 50 percent of households in Chanhassen reported household incomes in excess of$100,000 in 2017, and these households should account for over 60 percent of all households in the city by 2022.The larger southwest suburban area (including the aforementioned six communities) reports similar trends in affluency. In contrast,fewer than one third of all Twin Cities households reported household incomes in excess of $100,000 in 2017. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 6 EDUCATIONAL ATTAINMENT(2017)-AGE 25 PLUS Eden Twin Cities Chanhassen Victoria Chaska Prairie Minnetonka Shorewood MSA Less than 9th Grade 0.9% 0.9% 2.4% 1.0% 0.8% 0.0% 2.9% 9th-12th Grade,No Diploma 2.2% 0.8% 2.3% 1.6% 1.5% 1.3% 3.6% High School Graduate or GED 11.6% 10.0% 19.6% 9.7% 12.7% 9.7% 21.5% Some College,No Degree 15.3% 15.6% 19.6% 15.9% 17.7% 17.3% 20.5% Associate Degree 7.9% 11.1% 12.1% 9.0% 8.6% 7.5% 10.6% Bachelor's Degree 41.9% 44.2% 31.1% 39.3% 35.6% 41.6% 26.7% Graduate/Professional Degree 20.1% 17.4% 12.9% 23.5% 23.1% 22.5% 14.3% Source:ESRI Chanhassen and the surrounding communities continue to report very high levels of educational achievement,with over 60 percent of residents over the age of 25 holding Bachelor's or masters degrees.The other communities in the area report similar statistics with regard to educational attainment.The overall Twin Cities metro area continues to have one of the most educated adult populations in the country,with over 40 percent of residents over the age of 25 holding a Bachelor's degree or greater. EMPLOYMENT (MET COUNCIL PROJECTIONS) 2020(Met 2030(Met 2040(Met Projected Council Council Council Change, 2010 2016 projection) projection) projection) 2016-2040 %Change Chanhassen 10,905 14,581 15,200 16,500 17,600 3,019 61% Victoria 1,502 1,102 2,100 2,380 2,600 1,498 73% Chaska 11,123 12,949 13,600 16,000 17,600 4,651 58% Eden Prairie 48,775 59,562 57,700 62,100 66,600 7,038 37% Minnetonka 44,228 44,788 54,400 58,900 63,200 18,412 43% Shorewood 1,113 1,437 1,300 1,340 1,400 (37) 26% TOTALS 117,646 134,419 144,300 157,220 169,000 34,581 Source:Metropolitan Council The Metropolitan Council has prepared projections for employment, by community,for the Twin Cities region through 2040. Eden Prairie and Minnetonka,given their locations along the 1-494 corridor, already have significant employment bases, and the agency projects continued growth in employment in the two communities over the next 25 years. Chaska and Chanhassen will also experience continued growth in employment,with Chanhassen projected to gain over 3,000 jobs between 2016 and 2040.Victoria and Shorewood will continue to operate as largely"bedroom communities", in this portion of the metro area. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 7 Overview of Local Real Estate Conditions The following outlines local market conditions in Downtown Chanhassen and the local area, including CoStar data and observations from site visits and discussions with local brokers and real estate representatives. Retail: Data from CoStar indicate that the retail properties in the Downtown study area report fairly healthy metrics compared to surrounding areas.The downtown district (north of Highway 5) includes a total of over 735,000 square feet of retail space.The area experienced an increase of retail square footage over the last three years as a number of quick casual eateries and smaller, in-line retail stores opened along Highway 5 (including Potbelly,Sport Clips, and Smashburger).The reported lease rates in the Downtown area exceed those for the overall Eden Prairie submarket(which, according to CoStar, includes Chanhassen, Eden Prairie, and adjoining parts of the 1-494 corridor in the southwest metro) and the overall Twin Cities metro area.The CoStar data also indicate that the downtown area has relatively limited vacancies that have remained fairly consistent over the last several years. In contrast,the larger Twin Cities market reported higher vacancies for retail spaces during and following the Great Recession. Overall,the Twin Cities is witnessing a good deal of churn and change in the retail landscape.A number of big box retailers have closed at area malls over the last year, and the preferences of consumers for particular retailers continues to shift fairly rapidly.The retail sector is uncertain of how much online sales will continue to impact retail sales at traditional outlets.The retail development sector has learned, however,that focusing on creating enticing experiences for shoppers (whether at a restaurant, or in a traditional store) is key to driving business. Retailers located in trendy or attractive downtown areas,for example, are benefiting from the popularity of the experience of shopping and hanging out in these types of environments.The broader Twin Cities market has reported annual absorption of new retail space of around 500,000 square feet,on average,over the last four to five years.' 1 Minneapolis-St. Paul Research& Forecast Report, 01 2017, Colliers International. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 8 RETAIL METRICS Downtown Chanhassen Study Area Eden Prairie Submarket Minneapolis MSA NNN Rent NNN Rent NNN Rent Total SF Overall Total Vacancy Overall Total Vacancy Overall Total Vacancy 2007 716,054 $16.00 2.5% $16.61 3.8% $15.57 4.6% 2008 716,054 $17.18 2.5% $15.58 3.5% $14.40 5.2% 2009 716,054 $17.45 2.1% $15.40 3.6% $13.57 5.6% 2010 716,054 $17.45 1.5% $15.26 3.6% $13.79 5.6% 2011 716,054 $20.15 0.8% $16.66 4.1% $13.38 5.4% 2012 716,054 $20.15 1.1% $17.24 3.7% $13.34 4.9% 2013 716,054 $16.00 0.4% $15.10 3.6% $13.20 4.5% 2014 716,054 $26.09 1.0% $15.80 3.6% $13.33 4.6% 2015 730,466 $21.39 2.2% $13.69 2.8% $13.27 4.1% 2016 730,466 $26.64 0.6% $13.94 2.3% $13.26 3.2% 2017 735,241 N/A 1.2% $16.35 2.2% $14.31 3.3% Source:CoStar Discussions with local brokers did indicate, however,that average lease rates in the Downtown area may fall, more often, in the mid teens (on a triple net basis), in contrast to the data collected by CoStar. Lease rates in the$12 to$15 per square foot range would still represent typical lease rates for retail in this portion of the metro area. Brokers also indicated that lease rates escalated more quickly during the early 2000s, and have been slower to increase in the years since the Great Recession, in line with larger regional trends in retail. The State of Minnesota collects sales tax(and associated sales information)for various businesses in the state, by jurisdiction. While retail sales data for the downtown portion of Chanhassen, per se, is not available,the data outlined as follows indicates that the community has experienced growth in various retail categories over the last few years. CITY OF CHANHASSEN GROSS SALES BY CATEGORY 2011 2012 2013 2014 2015 Retail:Vehicles, Parts $5,427,998 $5,195,846 $5,000,409 $4,799,602 $4,592,169 Retail:Furniture Stores $2,689,157 $3,363,836 $2,650,020 $3,295,294 $3,604,391 Retail:Electronics $10,622,915 $6,588,930 $11,628,211 $7,431,337 $7,629,882 Retail:Building Material $57,682,867 $84,807,442 $120,955,107 $103,384,263 $78,194,721 Retail:Food/Beverage Stores $90,997,333 $94,126,429 $96,604,536 $99,312,276 $98,861,110 Retail:Health&Personal Care Stores $16,460,389 $17,938,113 $18,139,023 $27,622,447 $28,851,798 Retail:Gasoline Stations $40,737,855 $39,977,162 $35,706,003 $39,050,503 $36,620,998 Retail:Clothing&Accessories $174,616 $214,959 $199,007 $302,258 $452,570 Retail:Leisure Goods $1,249,452 $1,876,999 $1,130,754 $646,318 $438,828 Retail:Miscellaneous Store Retailers $53,507,152 $55,946,893 $58,927,248 $60,886,437 $68,542,070 Food Services and Drinking Places $39,220,955 $40,141,733 $40,713,649 $43,273,960 $46,574,643 Source:Minnesota Department of Revenue Downtown Chanhassen Market Scan Memo 16 August 2017 Page 9 Sales at food and beverage stores (which includes grocery outlets) increased,for example,from around $91 million in 2011 to around $99 million in 2015. Sales at eating and drinking places increased from around $39 million in 2011 to over$46 million in 2015. Health and personal care stores (including pharmacies) increased from sales of$16 million in 2011 to nearly$29 million in 2015. The City of Chanhassen reports relatively limited sales in the motor vehicle,furniture, electronics, clothing, and leisure goods categories,given the lack of a major mall or a major collection of auto dealerships in Chanhassen.The growth in "everyday" retail categories (including grocery and pharmacy) reflects the overall growth in households in the community over the last several years. The retail tenants and uses in the Downtown Chanhassen area primarily serve neighborhood or "everyday" retail demand.While the downtown district includes a few anchors such as the dinner theater that draw from a larger portion of the metro area,the downtown overall includes grocery stores, eateries, and smaller retail outlets serving the nearby neighborhoods and communities. While the Target store tends to draw from a larger trade area than a grocery store, it does not operate as a "Super Target"or draw from a larger trade area,given the presence of other Target and similar big box stores within a fifteen minute drive, in Chaska and in the Eden Prairie Town Center area.A ten minute drive time represents an appropriate overall retail "trade area"for Downtown Chanhassen. While some tenants in the downtown may draw primarily from neighborhoods located closer to Downtown, and others may draw from a larger portion of the southwest metro, a ten minute drive time represents an average trade area for the district. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 10 Ten Minute Drive Time from Downtown Chanhassen: Minn on Aa U nn Deep-haven E. 1 •1 r ' E.1-u PIA I. i.. — I Tnf IGhavha . _t • v..r -f ikN 51R 0 0 ?. 1 .. J ---JP4tlles Source:ESRI As outlined on the map,the area within a ten minute drive of Downtown Chanhassen (designated as the location of the Cub store on Market Boulevard, as a central location for mapping purposes) generally includes areas to the north of Flying Cloud Boulevard and east of the Victoria area.The trade area extends to the southern edges of the Lake Minnetonka area in Excelsior and Shorewood and includes areas in Eden Prairie as far east as the 1-494/US 212 junction area. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 11 Data from SSRI indicate that the area within a ten minute drive of Downtown Chanhassen is "leaking" (or, losing retail spending to outside areas) in nearly all retail categories. Retail Category-10 Minute Drive Time-Retail Leakage or Leakage/ Trade Area Retail Potential Retail Sales Retail Gap Surplus Surplus Factor Motor Vehicle&Parts Dealers $404,805,941 $180,126,375 $224,679,566 Leakage 38.4 Furniture&Home Furnishings Stores $63,802,098 $19,081,827 $44,720,271 Leakage 54.0 Electronics&Appliance Stores $72,817,071 $84,524,830 ($11,707,759) Surplus (7.4) Building Materials,Garden Equipment&Supply Store: $144,585,171 $97,012,943 $47,572,228 Leakage 19.7 Food&Beverage Stores Grocery Stores $247,235,145 $160,767,035 $86,468,110 Leakage 21.2 Specialty Food Stores $15,270,206 $3,379,978 $11,890,228 Leakage 63.8 Beer,Wine&Liquor Stores $38,584,869 $40,791,128 ($2,206,259) Surplus (2.8) Health&Personal Care Stores $132,600,613 $64,883,747 $67,716,866 Leakage 34.3 Gasoline Stations $206,408,658 $104,253,432 $102,155,226 Leakage 32.9 Clothing&Clothing Accessories Stores $106,640,747 $35,881,230 $70,759,517 Leakage 49.6 Sporting Goods,Hobby,Book&Music Stores $60,673,625 $45,113,213 $15,560,412 Leakage 14.7 General Merchandise Stores $341,590,044 $337,696,342 $3,893,702 Leakage 0.6 Miscellaneous Store Retailers Florists $4,582,007 $8,128,574 ($3,546,567) Surplus (27.9) Office Supplies,Stationery&Gift Stores $15,682,196 $15,202,915 $479,281 Leakage 1.6 Used Merchandise Stores $9,669,897 $5,644,164 $4,025,733 Leakage 26.3 Other Miscellaneous Store Retailers $43,991,278 $21,359,599 $22,631,679 Leakage 34.6 Nonstore Retailers $31,572,698 $179,231,236 ($147,658,538) Surplus (70.0) Food Services&Drinking Places Special Food Services $5,530,578 $849,524 $4,681,054 Leakage 73.4 Drinking Places-Alcoholic Beverages $12,960,449 $3,871,815 $9,088,634 Leakage 54 Restaurants/Other Eating Places $197,029,519 $176,063,320 $20,966,199 Leakage 5.6 Source:ESRI The degree of leakage varies by retail category, as indicated by the "leakage/surplus factor".The downtown area, in particular, reports significant leakage of retail demand in terms of Furniture and Home Furnishings, Clothing, and Drinking Places.The area within ten minutes of downtown reported a very small degree of leakage in terms of restaurants and general merchandise stores(such as Walmart or Target).The area within ten minutes of downtown also exhibits some retail leakage (around $86 million in sales on an annual basis) in the grocery store category. For the purposes of calculating future retail demand,the analysis considers a fairly similar, but more regularly shaped, retail trade area, as outlined in the map that follows. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 12 Pdouncl Spring Park vl 9 c,,,f'yv Cook, Fa, `0- Deephaven s lea 77 „- Excelsior x Shot efood 044f 6 t,,„>1. `rF Rd Arboretum fitid Chanhassen ictoria ,1:i M m 8ti fi.1. LartJ xapn * Eden *ramie Arbatetum Millet a J A 6earf:eith 1 outtrr Club a a L.,Le I `6 F;il, t c = c I igen. i. '.1- ! ift EnBfer ftfvd` Engler '- r` Source:ESRI This trade area includes essentially the same areas as the ten minute drive time map, but excludes the shopping area around the Eden Prairie Town Center, as well as the shopping areas to the north of the Highway 41 and US 212 interchange, as these shopping areas represent significant concentrations of retail that would compete with the concentration of retail found in Downtown Chanhassen. Downtown Chanhassen • Market Scan Memo 16 August 2017 Page 13 Retail Category-Local Chanhassen Retail Trade Leakage or Leakage/ Area Retail Potential Retail Sales Retail Gap Surplus Surplus Factor Motor Vehicle&Parts Dealers $404,162,397 $73,298,862 $330,863,535 Leakage 69.3 Furniture&Home Furnishings Stores $63,915,221 $10,087,510 $53,827,711 Leakage 72.7 Electronics&Appliance Stores $72,965,947 $84,475,455 ($11,509,508) Surplus (7.3) Building Materials,Garden Equipment&Supply Store: $145,979,012 $67,155,609 $78,823,403 Leakage 37.0 Food&Beverage Stores Grocery Stores $246,140,803 $136,265,129 $109,875,674 Leakage 28.7 Specialty Food Stores $15,198,158 $2,419,094 $12,779,064 Leakage 72.5 Beer,Wine&Liquor Stores $38,595,844 $37,490,863 $1,104,981 Leakage 1.5 Health&Personal Care Stores $132,670,622 $41,166,724 $91,503,898 Leakage 52.6 Gasoline Stations $205,293,840 $79,575,994 $125,717,846 Leakage 44.1 Clothing&Clothing Accessories Stores $106,594,543 $26,945,371 $79,649,172 Leakage 59.6 Sporting Goods,Hobby,Book&Music Stores $60,668,575 $20,427,551 $40,241,024 Leakage 49.6 General Merchandise Stores $341,012,984 $58,487,260 $282,525,724 Leakage 70.7 Miscellaneous Store Retailers Florists $4,633,815 $828,019 $3,805,796 Leakage 69.7 Office Supplies,Stationery&Gift Stores $15,688,601 $144,498,316 $1,190,285 Leakage 3.9 Used Merchandise Stores $9,631,787 $3,461,789 $6,169,998 Leakage 47.1 Other Miscellaneous Store Retailers $43,800,228 $22,932,667 $20,867,561 Leakage 31.3 Nonstore Retailers $31,625,861 $33,025,914 ($1,400,053) Surplus (2.2) Food Services&Drinking Places Special Food Services $5,532,037 $827,397 $4,704,640 Leakage 74 Drinking Places-Alcoholic Beverages $12,984,749 $3,544,132 $9,440,617 Leakage 57.1 Restaurants/Other Eating Places $196,572,912 $122,346,967 $74,225,945 Leakage 23.3 Source:ESRI ESRI reports similar data with regard to retail leakage versus surplus for this trade area.This trade area surrounding Downtown Chanhassen leaks retail spending in almost every category listed. Office: The Downtown Chanhassen area includes a relatively small quantity of office space,totaling around 70,000 square feet.The district includes a variety of primarily smaller office suites, serving professional office users such as doctors, dentists, insurance agents, and other smaller firms,along Market Boulevard and along West 78th Street.The Market Street station development,to the north and east of Cub, has a number of vacancies as of July 2017.As outlined in the table that follows,the downtown area tends to report higher lease rates to CoStar, as well as an overall higher level of vacancy, compared to the immediate submarket in the southwest metro. However, discussions with a few brokers in the area indicate that lease rates for Class B space in the downtown area typically fall in the$10 to $15 per square foot range, at least for professional services tenants. Projects in the downtown area have not added any office space in the last ten years.Areas along the US 212 corridor in Chaska and Eden Prairie, as well as areas near 1-494, have tended to include larger concentrations of office development.The office properties in Downtown Chanhassen have typically appealed to locally-serving tenants(such as dentists, insurance agents, and other professionals), and Downtown Chanhassen does not appear to have any notable appeal at this time for larger scale office users. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 14 While the overall economy has continued to recover over the last few years,the office market in the Twin Cities has not witnessed tremendous growth. Vacancy rates,overall, have remained in the mid- teens consistently over several years stretching back to 2010,and the market has absorbed no greater than one million square feet on an annual basis during any of the years since the Great Recession. Lease rates have remained in the mid to upper teens on a square foot basis,over several years. In general,while some notable office developments are taking place in the North Loop, downtown, and in some areas along the 494 corridor,the office market remains in a conservative stance.Companies are using open office formats and telecommuting to reduce the square footage required for a typical employee. Companies have continued to conservatively plan for office expansions and upgrades, and activity in the Twin Cities has tended to focus on the core of Minneapolis and St. Paul and the key nodes of office activity along the 494 beltway. OFFICE METRICS Downtown Chanhassen 1-494 Corridor Submarket Minneapolis MSA Gross Rent Gross Rent Gross Rent Total SF Overall Total Vacancy Overall Total Vacancy Overall Total Vacancy 2006 70,925 $19.33 7.7% $12.93 9.2% $14.87 9.5% 2007 70,925 $19.33 4.1% $15.34 9.2% $15.90 9.8% 2008 70,925 $19.33 2.7% $16.69 8.6% $16.14 11.6% 2009 70,925 $17.35 1.1% $19.25 10.2% $18.79 13.4% 2010 70,925 $20.00 5.8% $19.83 9.4% $17.59 14.2% 2011 70,925 N/A 5.8% $19.29 8.5% $17.29 13.4% 2012 70,925 $16.90 N/A $19.00 8.4% $17.78 13.6% 2013 70,925 $16.90 N/A $19.12 9.6% $18.26 13.3% 2014 70,925 $25.00 16.5% $19.50 10.2% $18.68 12.3% 2015 70,925 $25.00 14.5% $18.13 9.0% $18.75 12.4% 2016 70,925 $23.40 N/A $19.70 8.5% $19.67 11.2% 2017 70,925 N/A 11.8% $18.96 8.0% $19.32 11.4% Source:CoStar Overall Conclusions, Office: The area around Downtown Chanhassen is unlikely to develop as a major office or employment area, given the lack of direct connectivity to surrounding freeways.The Interstate 494 corridor has traditionally attracted larger office users, including a variety of corporate style campus buildings. Instead,the area around Downtown Chanhassen is more likely to remain a focal point for smaller scale or neighborhood-oriented office uses. Multi-Family and Residential: The multi-family market in the Twin Cities region has demonstrated considerable strength over the last five years,with developers completing a variety of projects around the region.A significant Downtown Chanhassen Market Scan Memo 16 August 2017 Page 15 number of these projects have focused on the urban core areas in Minneapolis and St. Paul. However, the multi-family boom has expanded to suburban communities over the last few years, as the region has continued to gain employment and population.The metro area added an impressive 28,000 jobs from 2015 to 2016,and continues to benefit from the presence of sixteen Fortune 500 companies in the region.The significant strength of the for-sale residential market in the Twin Cities has led many would-be buyers to rent apartments, instead of purchasing homes. In addition,the tendency of the Millennial generation to delay home purchases or to avoid home purchases altogether has contributed to the multi-family construction boom witnessed in metro areas around the country, including the Twin Cities. Furthermore, homeownership rates for the Baby Boomer generation have continued to decline, as more residents choose the maintenance-free aspects of rental living. From the fourth quarter of 2015 to the fourth quarter of 2016,the metro area added around 5,000 new apartment units, and the region expects the delivery of another 4,000 units in 2017.2 Data from Colliers indicate that the market for tenants among Class A apartment communities has become more competitive,with operators offering concessions over the last few quarters.The rents for Class B and Class C apartments, however, have increased more than those of Class A, as the overall multi-family market has tightened and rising rents across the metro have forced many people to consider Class B and Class C apartment living options. Multi-family development and construction activity continues in the urban core and inner ring suburbs, but activity has also shifted and increased in the outer suburban markets of the Twin Cities. For example,development activity has increased in Downtown Hopkins, in the Ridgedale area of Minnetonka, and along the 494 corridor from Eden Prairie east to Mall of America.The multi-family market will remain strong in the Twin Cities as long as the residential construction market is slow to add additional for-sale options.The lack of supply of single family homes in the metro area is directly impacting the multi-family market in a positive manner.A total of 539 new apartment units should be completed in the Southwest submarket in 2017,on par with the rate of construction in this part of the metro since 2013.The overall vacancy rate for multi-family properties in the Twin Cities should remain in the 3 to 5 percent range, continuing the trend of tight market conditions.The multi-family market remains on solid footing,with four percent year-over-year growth in lease rates expected. Market observers note that property owners have increasingly upgraded Class B or C multi-family properties over the last few years, in order to attract higher rent rates, and as a result the availability of "naturally occurring"affordable housing has decreased over the last few years. In terms of newer units,the average quoted rents in early 2017 in the Southwest Suburbs were as follows: $1,258 for studio units; $1,434 for one bedroom units; $1,893 for two bedroom units; and $2,350 for three bedroom units.3 Observers at the regional level also note that development of apartments has moved from the inner ring suburbs (such as St. Louis Park)to existing commercial districts and downtowns in outer suburbs 2 Minneapolis-St. Paul Research&Forecast Report,Fall 2016,Colliers International 3 "Market Viewpoint:Twin Cities Multifamily Market, 2016—2017), Dougherty Mortgage LLC Downtown Chanhassen Market Scan Memo 16 August 2017 Page 16 for the same four key reasons that attracted developers to older suburbs, initially, including 1)quick access to major roadways and/or public transit; 2)close proximity to a wide variety of retail stores and personal services; 3) proximity to an assortment of restaurants; and 4) close-by entertainment options (such as movie theaters and restaurants) and outdoor recreational amenities.All of these factors help to attract both the younger professional group (Millennials) as well as Empty Nesters. Data from CoStar indicate that the apartments in the Downtown Chanhassen area (located to the north of West 78th Street) have exhibited higher lease rates and generally lower vacancy rates compared to the 1-494 submarket (covering the southwest metro area) and the broader metro area. Although the apartments located in the downtown study area are relatively older(dating to the 70s and 80s)the overall strength of the multi-family market in Chanhassen has supported healthy rent growth over the last several years. Downtown Chanhassen 1-494 Submarket Minneapolis MSA Asking Rent Asking Rent Asking Rent Total Units per SF Total Vacancy per SF Total Vacancy per SF Total Vacancy 2000 119 $1.06 3.0% $0.91 2.7% $0.92 3.4% 2001 119 $1.10 3.9% $0.94 3.6% $0.97 4.1% 2002 119 $1.13 4.9% $0.97 4.4% $0.99 5.2% 2003 119 $1.13 6.5% $0.98 6.0% $0.98 6.7% 2004 119 $1.09 7.3% $0.97 6.6% $0.96 7.4% 2005 119 $1.09 8.2% $0.98 6.8% $0.97 7.6% 2006 119 $1.10 7.6% $1.01 6.1% $1.00 7.0% 2007 119 $1.13 6.5% $1.04 5.9% $1.03 6.7% 2008 119 $1.13 5.9% $1.05 5.7% $1.04 6.3% 2009 119 $1.11 5.9% $1.02 6.2% $1.01 6.6% 2010 119 $1.11 6.1% $1.03 5.2% $1.03 6.0% 2011 119 $1.12 5.0% $1.04 4.9% $1.04 5.6% 2012 119 $1.13 3.7% $1.08 4.7% $1.06 5.0% 2013 119 $1.15 3.2% $1.12 4.7% $1.11 5.3% 2014 119 $1.17 3.2% $1.17 4.9% $1.14 4.9% 2015 119 $1.24 3.9% $1.24 4.4% $1.20 4.9% 2016 119 $1.27 4.5% $1.32 5.5% $1.26 4.4% 2017 119 $1.30 4.0% $1.38 4.1% $1.30 3.9% Source:CoStar The for-sale residential market in the Twin Cities region has largely recovered to pre-Recession levels in terms of sales prices and activity,following four to five years of price appreciation and ongoing increases in single family residential construction.As outlined in the tables that follow,the median home prices in the overall region have increased significantly over the last year.The number of days on market and the months supply of inventory have also improved significantly over the last year. Overall,the housing market in the Twin Cities has remained very tight, in particular for homes in the $200,000 to$300,000 price range, as builders continue to struggle to keep pace with demand. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 17 Local Housing Market Data, March 2017 Twin Cities Region March '16 March '17 YTD YTD % Change Closed Sales 9,556 9,867 3.3% Median Home Price $216,000 $230,000 6.5% Price /Square Foot $126 $136 8.0% Days on Market Until Sale 88 77 -12.5% Months Supply of Inventory 2.6 2.0 -23.1% Source:Minneapolis Area Association of Realtors The graph below from the Minneapolis Area Association of Realtors reveals that the median home sales price in the region has returned to the peaks last experienced in 2006, before the Great Recession. Historical Median Sales Price 525o.000 5225.000 y.= f $200.000 'ate' $175.000 5150.000 $125000 - -22 0 1-2005 1-2006 1-2007 1-2000 1-2000 1.201 -2011 1.2012 1-2073 1-2010 1-2015 1-2016 .__- Source:Minneapolis Area Association of Realtors However, as incomes have increased over the last ten years across the region,the level of affordability has remained above the levels experienced prior to the last recession, as outlined in the following table. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 18 Historical Housing Affordability Index 300 ----__.._ __.-- ------ ---------_ ___ - -_- - 250 260 2;0 1j 220 ..�"{ 200 �f �"aiifff 160 tee _,-.— 1-2005 1-;c": __. ..._ 11 200. 1-2010 1-2011 2{,1- ,Lots 1-2015 1-3016 1-2017 Source:Minneapolis Area Association of Realtors Housing affordability peaked during and following the Great Recession,as home values declined across the Twin Cities (and across many parts of the nation).Affordability has decreased over the last four years as home prices have continued to escalate.The increases in home sales prices have impacted both single-family detached and townhome/condo attached products, across the Twin Cities region. Twin Cities Metro Region Twin Cities Metro Region Median Sales Price: Single Family Median Sales Price:Townhome or Condo Detached Homes Attached Homes Median Price % Increase Median Price % Increase 2012 $184,000 - 2012 $125,000 - 2013 $211,000 14.7% 2013 $147,000 17.6% 2014 $225,000 6.6% 2014 $159,000 8.2% 2015 $238,000 5.8% 2015 $165,000 3.8% 2016 $251,000 5.5% 2016 $173,000 4.8% Source:Minneapolis Area Association of Realtors Like most areas around the country,the Twin Cities region experienced a significant decrease in housing construction activity during and after the Great Recession.The total number of residential building permits issued in the seven-county region decreased from around 21,000 in 2003 and 2004 to around 4,400 in 2009, but returned to a range of 10,000 to 12,000 annual permits from 2012 through 2015. While the region continued to permit 4,000 to 5,000 single family detached residential building permits on average,from 2012 through 2015, multi-family construction has accounted for over half of all residential construction during this period of economic recovery.Townhome permits, which had accounted for over 20 percent of all permit activity prior to the housing crash (from 2003 through 2007), now represent from 4 to 7 percent of all residential permits,over the last four years. The focus on multi-family construction in the Twin Cities region mirrors similar trends in other larger metro areas around the country. Developers in the local region have added a significant pool of multi- Downtown Chanhassen Market Scan Memo 16 August 2017 Page 19 family units to local inventories, particularly in the two major downtown areas and in other urban neighborhoods that feature a variety of amenities and good access to the rest of the city.The supply of single-family detached homes has not caught up with demand over the last few years,contributing to increases in the median home price in the Twin Cities region. Twin Cities Region-Residential Building Permit History Single Family Percentage Percentage Percentage Percentage Detached of Total Townhome of Total Duplex of Total Multi-Family of Total Total 2003 9,034 42.4% 4,619 21.7% 216 1.0% 7,414 34.8% 21,283 2004 8,244 38.6% 5,126 _ 24.0% 579 2.7% 7,401 34.7% 21,350 2005 6,877 39.0% 3,795 21.5% 572 3.2% 6,375 36.2% 17,619 2006 5,252 41.6% 2,961 23.4% 229 1.8% 4,185 33.1% 12,627 2007 3,648 42.9% 1,851 21.7% 84 1.0% 2,929 34.4% 8,512 2008 2,281 44.4% 957 18.6% 27 0.5% 1,867 36.4% 5,132 2009 2,412 54.2% 597 13.4% 26 0.6% 1,412 31.8% 4,447 2010 2,776 47.7% 589 10.1% 36 0.6% 2,420 41.6% 5,821 2011 2,821 44.7% 526 8.3% 21 0.3% 2,938 46.6% 6,306 2012 4,271 39.0% 621 5.7% 28 0.3% 6,032 55.1% 10,952 2013 5,207 41.9% 678 5.5% 19 0.2% 6,520 52.5% 12,424 2014 4,559 42.4% 684 , 6.4% 86 0.8% 5,414 50.4% 10,743 2015 4,746 37.1% 554 I 4.3% 43 0.3% 7,437 58.2% 12,780 Source: Metropolitan Council The following tables provide additional information concerning the breakdown of residential building permits in Chanhassen and nearby communities over the last several years. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 20 Multi-Family Permits Multi-Family as%of Chanhassen Victoria Chaska Eden Prairie Minnetonka Shorewood TOTAL Total 2005 0 0 105 85 39 0' 229 23% 2006 0 5 106 10 0 0' 121 17% 2007 10 0 6 0 52 0' 68 12% 2008 12 0 58 0 0 0" 70 22% 2009 0 0 0 0 0 0' 0 0% 2010 0 0 0 0 150 0' 150 34% 2011 0 0 0 0 0 0' 0 0% 2012 0 0 54 0 64 0' 118 19% 2013 25 0 0 191 0 0' 216 27% 2014 24 0 0 0 100 0' 124 18% 2015 0 0 138 0 511 0` 649 59% 2016 76 0 0 0 154 105" 335 43% TOTAL 147 5 467 286 1,070 105 2,080 27% Townhome or Duplex Permits Townhome/ Duplex as Chanhassen Victoria Chaska Eden Prairie Minnetonka Shorewood TOTAL %of Total 2005 24 63 60 134 0 2 283 28% 2006 90 16 13 35 24 8 186 25% 2007 94 26 14 35 2 0 171 30% 2008 26 6 16 38 0 0 86 27% 2009 14 6 0 32 0 2 54 22% 2010 30 10 0 24 1 0r 65 15% 2011 62 15 0 0 0 2' 79 21% 2012 78 18 4 0 6 8' 114 19% 2013 76 24 18 0 1 2 121 15% 2014 102 0 28 0 0 0 130 19% 2015 24 0 2 2 10 0.1" 38 3% 2016 2 4 47 0 4 0' 57 7% TOTAL 622 188 202 300 48 24 1,384 18% Source: Metropolitan Council As the tables indicate, multi-family permits have increased as a percentage of all residential building activity in Chanhassen and the surrounding communities over the last four to five years. Over the last 12 years, multi-family has accounted for a total of 27 percent of all residential permits, across the six communities.The various communities issued a significant number of permits for townhomes or Downtown Chanhassen Market Scan Memo 16 August 2017 Page 21 duplexes before and during the Great Recession, but this trend has subsided significantly over the last two to three years,with townhomes/condos accounting for only three percent of permits in 2015 and seven percent in 2016.The focus of residential development has clearly shifted to multi-family (apartment) development in the southwest suburbs and across the metro area. The Chanhassen area has experienced a very strong housing market over the last few years.The local area benefits from good quality schools,good access to the rest of the metro area,and proximity to the employment centers located in Eden Prairie and along the 494 corridor in the south and west parts of the Twin Cities metro area. The following table outlines the changes in home prices for Chanhassen and the nearby cities of Victoria, Chaska, Eden Prairie, Minnetonka, and Shorewood. MEDIAN HOME PRICES Chanhassen Victoria Chaska Eden Prairie Minnetonka Shorewood 2008 $295,800 $396,250 $268,019 $382,732 $298,803 N/A 2009 $286,500 $324,900 $179,600 $306,000 $285,000 N/A 2010 $312,000 $374,695 $212,500 $240,250 $290,000 $287,000 2011 $295,000 $352,500 $170,000 $252,000 $235,000 $404,053 2012 $280,000 $341,990 $207,000 $257,000 $225,000 $414,900 2013 $303,500 $371,500 $252,000 $279,294 $279,000 $425,000 2014 $318,000 $369,990 $235,000 $300,000 $270,000 $382,500 2015 $325,000 $403,250 $255,000 $299,900 $300,000 $417,500 2016 $336,950 $423,018 $272,000 $309,000 $307,500 $453,250 Source:Minneapolis Area Association of Realtors The Chanhassen area has exhibited consistent growth in median home prices over the last five years, and the community reports the highest median sales price in this part of the metro,with the exception of Victoria and Shorewood. As illustrated in the following chart,the median sales price for townhomes and condos in Chanhassen has recovered to pricing levels last seen before the Great Recession,following a significant decline from 2008 to 2012. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 22 Median Sales Price me Chanhassen S220K $200K $180K $ 60K $140K 5120K 1 ■ • r - ■ ■ ■ 1-2007 1-2008 1-7009 1-71110 a 7P11 ; .=;?1:> 1_7i V ''01-1 1-2015 1-2016 1-2017 Chanhassen Townhouse-Condo Source:Minneapolis Area Association of Realtors;Northstar MLS The supply of homes, including townhomes and condominiums, has also declined significantly as the market has strengthened over the last five years, as illustrated in the following chart.The very limited supply of homes for sale,for all housing types, is causing significant price appreciation and is dissuading prospective home buyers from making purchases.The limited supply of housing units remains one of the key issues facing the housing industry as of Summer 2017. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 23 Months Supply of Homes for Sale Chanhassen 120 100 P 50 4.0 20 00 „ 1-2007 1-2008 1-2009 1-2010 1-2012 1-2013 1-2014 1-2015 1-2016 1-2017 Chanhassen Townhouse-Condo Source:Minneapolis Area Association of Realtors;Northstar MLS The Chanhassen area should remain highly attractive for both multi-family and for-sale residential products for the foreseeable future,given its orientation in the metro area.While the area may experience a softening in the market with the next downturn,the geographic advantages of Chanhassen relative to the rest of the metro area should continue to drive the viability of residential projects in the Chanhassen vicinity. Anticipated or Potential Developments in the Local Market Plans for potential new developments in the local market will impact the anticipated demand for the various types of land uses in the Downtown Chanhassen study area.The following outlines the components of a number of developments in the local market that may reach fruition over the next few years. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 24 Avienda(Powers Boulevard and US 212) The developers of Avienda have submitted three concepts for the development of a mixed use regional or"lifestyle" center at the northwest quadrant of the interchange between US 212 and Powers Boulevard, in Chanhassen, as part of an AUAR submittal associated with the project.The concepts include a range of approximately 179,000 to 436,500 square feet of retail, 150,000 to 163,000 square feet of office, 75 to 315 apartment homes, 38 to 80 twin homes, and a hotel ranging from 100 to 150 keys. Each of the three concepts include a larger scale retail box of 90,000 square feet.While each concept includes some traditional, in-line retail space, one of the options includes the arrangement of small retail pads into a "Main Street" orientation.The options include various scale of "junior box" retail tenants, as well.The overall scale of development between the three options for Avienda depend on how the developer would address environmental constraints presented by wetlands on the subject property. In any event,the scale of the potential Avienda development, located around 1.5 miles to the south of Downtown Chanhassen, has the potential to impact sales and performance of retail and office space in the Downtown district. Elevate Apartments, Eden Prairie(Highway 212 and Prairie Center Drive) !! !! ! VI !I ,_-!�i F .,_ e i -!!!�-ill-- - j rII-- 11:1 j*i - IDs! ,'i , . h; '1.-illi,-111111--- ..'sal II iii '" fl i II II t_11 111 11 11 I I'III it Il': ' - 4i r : g! in 8' i 19r a 1l II'i t �; i. Ali III,1; 11 II ■ . 1 lit Ili n fi. 0 . ., -. ¢ !! a III ill 11 11 I 111 I E '-',1'.!' ,le `l 111 Iti ,.. i n x s �' I 11 , 1t E II li II r Iii !1�I !1 i ,:° j 1 i .. - �'t , p - ■ %i1 :: 1 f 111 11 i1 I l-II 1II III d°� Ilr, i ''.1.::1. ,. 'I 1tI II i 1 (it II `''- : -'-:: t. '-'4'.,44,..'''' + u+f �; ��0:,''' '1• _ �w I:— rim_ MVP* + ' a. Y ' +. Conceptual Rendering of Elevate Apartments:Source:Finance and Commerce,July 18,2017 Elevate will develop as a 222-unit luxury apartment complex at the southwest quadrant of Prairie Center Drive and Highway 212, adjacent to the future location of a light rail stop on the Southwest light rail line.The project will include retail on the ground floor with apartment units on upper floors. Downtown Chanhassen Market Scan Memo 16 August 2017 Page 25 The project will emerge on the site of a vacant restaurant and vacant bank building in Eden Prairie, and construction is expected to be complete by 2019. Prairie Bluffs Senior Living, Eden Prairie This project will include 138 senior housing units in a complex near the junction of US 169 and Hennepin Town Road. t� y •i° ' rt s'....,- ! • `1``- - ' ,ems} // 4. Source:City of Eden Prairie staff report