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2021 05 11CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING MAY 11, 2021 Chairman Sanford called the meeting to order at 7:00 p.m. MEMBERS PRESENT: Jim Sanford, Kathleen Donovan, James Ebeling, Eric Anderson, and David Kressler MEMBERS ABSENT: None. STAFF PRESENT: Jake Foster, Assistant City Manager and Bob Generous, Senior Planner PUBLIC PRESENT: Jessica Pettingill Cafe Thyme Matt Rosati Chanhassen Brewery James Gordon Dog Park Gourmet Hot Dogs Michele Harvet Resident Steve Zumbusch The Garden By The Woods Joor Schultz Soup du Joor Senior Planner Generous stated the discussion on the Strategic Plan would be postponed to the June meeting. A discussion on a feedback survey for businesses was added to the agenda. Member Anderson moved, Member Donovan seconded to approve the agenda as amended. All voted in favor and the motion carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED MARCH 9, 2021 AND APRIL 13, 2021 Member Donovan moved, Member Kressler seconded to approve the Minutes of the Economic Development Commission meetings dated March 9, 2021 and April 13, 2021 as presented. All voted in favor and the motion carried unanimously with a vote of 5 to 0. ORGANIZATIONAL ITEMS. ELECTION OF CHAIR AND VICE-CHAIR Chair Sanford explained to new Economic Development Commission members, Eric Anderson and David Kressler, that their terms would be one year longer than the current Commission Economic Development Commission – May 11 , 2021 2 Members. The Economic Development Commission bylaws must be approved each year and a Chair and Vice-Chair elected. Member Donovan moved, Chair Sanford seconded to appoint Eric Anderson as Chair of the Economic Development Commission. All voted in favor and the motion carried unanimously with a vote of 5 to 0. Member Kressler moved, Member Donovan seconded to appoint James Ebeling as Vice- Chair of the Economic Development Commission. All voted in favor and the motion carried unanimously with a vote of 5 to 0. OLD BUSINESS. None. NEW BUSINESS. REVIEW FOOD TRUCK ORDINANCE Senior Planner Generous stated that the City had distributed flyers to local restaurants in Chanhassen asking for input on a proposed food truck ordinance amendment but had not received any response. Currently, the food truck ordinance does not allow food trucks on any public streets and they are only allowed as part of a temporary or special event. The proposed change would allow food trucks on any property, provided the owner has given permission, and the truck must be parked on an “improved surface”. The ordinance amendment was requested by Chanhassen Brewery. The ordinance was assembled from various other city ordinances pertaining to food trucks. Chair Anderson asked what the City is looking for from the Economic Development Commission. Mr. Generous asked the Commission to take a look at the ordinance and take comments from the public. The ordinance will go to the Planning Commission as part of a Public Hearing process where public comment will also be reviewed before it goes to the Council to approve or deny. Assistant City Manager Foster directed those who wanted to speak via Zoom. Jessica Pettingill, owner of Cafe Thyme, stated her business is two years old; however, they are recovering from loss of business due to COVID-19. She would like the City to wait 1-2 years before changing the food truck regulations until local Chanhassen businesses have been able to recover. Member Donovan asked Ms. Pettingill if the Chanhassen Brewery has discussed food sales with Cafe Thyme. Economic Development Commission – May 11 , 2021 3 Ms. Pettingill explained that they do not have a contract but have been providing delivery service to Chanhassen Brewery. Member Donovan asked Mr. Generous if other businesses have expressed a desire to have fewer regulations on food trucks. Mr. Generous stated that there have been calls from food trucks asking for Chanhassen licensing requirements but food trucks are currently only allowed as part of an event. Member Kressler asked Ms. Pettingill if she was concerned that she would experience a loss in business if food trucks were allowed more often. Ms. Pettingill felt that people would come to Chanhassen only for a particular food truck but not to eat at other local restaurants. She suggested that perhaps it should be limited to only Chanhassen-based food trucks and not food trucks from outside the community. Matt Rosati, owner of Chanhassen Brewery, stated that under the current ordinance, his business can apply for 15 temporary event permits and 4 special events per year. He hopes to bring food trucks and bands to the brewery which would quickly go through the allowed permits. He would like to change the ordinance to allow food trucks outside of special events. Under the current model, the brewery would have to pay for a permit and the food truck would have to pay for a permit but whatever the food truck makes they keep. His goal is not to reduce patronage to local restaurants but to get people to frequent his brewery by providing food and bands. Member Donovan asked if permits should be seasonal. Chair Anderson asked if there were concerns about parking. Mr. Rosati stated that he is currently working with the City on parking. He is looking to extend his patio area which would allow for a spot to put a food truck or outdoor games. Mr. Rosati would prefer if the ordinance no longer tied food trucks to special events. He felt that food trucks should pay for a one-time or seasonal permit. James Gordon, owner of Dog Park Gourmet Hot Dogs, stated that he has served food at breweries and at events throughout Minnesota. He stated that food trucks from outside Chanhassen are not paying rent but Chanhassen food trucks are paying rent. He operates a food cart rather than a truck which has fewer regulations and comes to a location by invitation. Michele Harvet, Chanhassen resident, supported allowing food trucks to operate outside of special events. Economic Development Commission – May 11 , 2021 4 Mr. Generous stated that a survey on the City website regarding the Mobile Food Vending ordinance received three comments in support of the ordinance allowing food trucks with a common refrain of “let food trucks in.” Steve Zumbusch, resident and representative of The Garden By The Woods, stated he was in favor of bringing more food trucks in. The Garden By The Woods has tried to get food trucks in but, due to parking limitations, has not had a good response. He would like to see adjustments in parking regulations. He feels that more competition encourages existing businesses to do things to a higher standard. Mr. Generous stated he would look into past requests by The Garden By The Woods to see why permits were denied. Member Ebeling asked if The Garden By The Woods has looked into partnering with restaurants to supply food for events. Mr. Zumbusch explained that people come to events that The Garden By The Woods holds looking to walk past and grab something to eat and move on. In a brewery, they might sit down for 5-10 minutes to wait for food. Joor Schultz, owner of Soup du Joor, has operated a food truck for three years. She spoke about the history of the food truck ordinance in Chanhassen. She currently holds permits and licenses within eight different cities and travels to breweries and wineries. Most breweries have food trucks on Friday and Saturday evenings. She felt that the proposed ordinance should be passed and food trucks shouldn’t be allowed to pull up at a park and start selling. If they receive permission from a location, they should be able to sell at a specific date and time. The cities she has worked with charge an annual permit fee between $0 and $150 per year. Her food truck has high insurance coverage and is licensed by the Minneapolis Department of Health. Within other cities, if the food truck goes to a private event there is no special permit required since the event is not publicly posted and does not draw traffic. If an event is held at a brewery, it would drive traffic so other cities require a permit. Chair Anderson asked if there were issues with parking at locations where Ms. Schultz brings her food truck. Ms. Schultz stated she has never had a parking issue. She typically has a designated spot at the breweries she works at. Her truck is 14 feet long but the average truck may be 20 feet long. She uses an electrical outlet outside of the building but other food trucks may run on propane or a generator. Chair Anderson asked about parking at a private residence. Economic Development Commission – May 11 , 2021 5 Ms. Schultz stated that rules about private residences depend on the city. Sometimes she is required to be within the driveway of the person who has hired her. She meets with them prior to the event to review the site and discuss electricity. She would avoid soft or muddy surfaces, such as a lawn, where the truck may sink in, but other types of hard surfaces would work and are not regulated by the Minnesota Department of Health. Member Donovan stated she has empathy for small businesses but believes in competition. She feels that patrons of the Chanhassen Brewery would still have access to local restaurant menus to choose from. She appreciates the suggestion of only allowing Chanhassen food trucks. Could there be a different fee structure for local food trucks versus ones from outside Chanhassen? Member Donovan felt that parking should be addressed on a case-by-case basis and the size of the food truck may also need to be considered. Member Ebeling was in favor of allowing more food trucks. Perhaps the number of days could be restricted or local restaurants could provide food on weekdays and food trucks on weekends. He also wondered if “special event” should be redefined or the number of allowed days changed. Mr. Generous stated that the Economic Development Commission was the first to look at the ordinance and it has not yet been reviewed by the City Attorney. Member Sanford stated that the definition of mobile food vending does not match between the proposed ordinance and Minnesota State Statute. He is concerned about parking issues and questions the need for impervious surfaces. He feels that trucks should have a designated parking area and food trucks should be allowed to service residential and commercial clients. Chair Anderson asked Mr. Generous about food trucks for a residential client. Mr. Generous stated that the food truck cannot be parked within the public right-of-way. Member Sanford felt that section “f” of the General Requirements on the proposed ordinance was awkward which states “The vehicle must be located on paved surfaces, but not on parking stalls (unless it has been proven that the business does not need those spaces).” He asked what the circumstances for proving that the business does not need those spaces would be. He would like to see the ordinance less regulated. Chair Anderson stated that most cities are getting away from heavy parking ratios. He asked if there could be some sort of trigger in the event they take up parking and there are repeat complaints from neighboring businesses. Mr. Sanford stated that money from permits could be used to fund subsidies. He also questioned if food trucks are allowed in public spaces, for example, at a softball game. Economic Development Commission – May 11 , 2021 6 Mr. Sanford added that a Restaurant Revitalization Fund has been established and is administered through the U.S. Small Business Administration. Applications for grants opened this week. Member Donovan left the meeting at 8:16 p.m. Member Kressler stated that Chanhassen needs this type of activity and he hopes there is a way to allow more flexibility in the process to get food trucks into Chanhassen. Mr. Gordon added a concern regarding peddlers who are not homeless or in need aggressively approaching residents and businesses. Member Kressler continued that food trucks should be allowed at private events. Mr. Sanford read a portion of the proposed ordinance “Vending operations on properties located in Residential Zoning Districts must limit sales to the property owner and other private parties”. Chair Anderson recommended looking into ways to manage right-of-way parking permits to allow food trucks to park on public streets. The Economic Development Commission members discussed their recommendations. Member Sanford recommended in the following paragraph “f”: “Vendors must park in a designated parking lot and must not impede normal traffic flow. The vehicle must be located on paved surfaces, but not on parking stalls (unless it has been proven that the business does not need those spaces).” striking “not on parking stalls (unless it has been proven that the business does not need those spaces). Chair Anderson asked staff to conduct a survey of other cities in the Twin Cities area to find out their food truck fees and not put Chanhassen fees at the top end of the spectrum. Member Sanford moved, Chair Anderson seconded to recommend the proposed ordinance amendment to Chapter 20, Secs. 20-972 as written with the following suggested changes: 1. Food trucks allowed and not limited to individual Chanhassen residents or businesses. 2. Relaxation of parking requirements including definition of impervious surfaces, consideration for vehicle weight restrictions, and access of public safety vehicles. 3. Annual permits required for all food trucks and permit fees going back into economic development. 4. Allowing food trucks to park on city streets on a case-by-case basis by permit. 5. Penalty and revocation of permit issuance for up to 13 months for violations. 6. Definitions should follow State Statutes. Economic Development Commission – May 11 , 2021 7 7. Removal of the statement in paragraph f: “not on parking stalls (unless it has been proven that the business does not need those spaces).” All voted in favor and the motion carried unanimously with a vote of 4 to 0. BUSINESS SURVEY Senior Planner Generous asked the Economic Development Commission about their goals for conducting a business survey. Who do they want to ask the questions of? Member Ebeling responded that the Commission hoped to hear from business owners as well as potential developers. Member Sanford added that he would like to determine how the City is perceived. Is the City difficult to deal with or do they make the process of developing in Chanhassen easy? He would like to see more small businesses and more variety in the types of businesses who come to the City. He would like to see a plan on whom to bring to the City and how to incentivize them. Chair Anderson stated that he has participated in discussions between developers and Planning Commissions regarding what a developer wants to see but developers don’t want to share that information with their competitors. The City does not currently have an Economic Development Coordinator. Member Sanford stated that it would be helpful to involve the City Manager and Mayor in this discussion. Who is going to be designated to make these type of connections with businesses? The City needs to be allies with businesses and developers and, if the City is perceived as a problem, they need to change that perception. Member Sanford added, what do businesses need from the City and Economic Development Commission? There may need to be a different survey for restaurants. Chair Anderson suggested the City reach out to some of the businesses in town to ask what the best venue for collecting information would be. Mr. Generous added that the City is in the process of hiring a Communications Manager. Mr. Generous asked the Commission at what point of interaction the City should conduct this survey. When they fill out a building permit? Member Sanford stated there may be two types of survey. One could address “how did this process go?” and the other would determine what businesses are looking for from the City. Economic Development Commission – May 11 , 2021 8 Chair Anderson suggested the Commission may need to consult experts for advice on the development process in Chanhassen. The Economic Development Commission decided to table the discussion until the City Manager and Mayor could participate in discussions. Assistant City Manager Foster added that the City recently signed onto a survey service called FlashVote. Perhaps this tool could be used to conduct short, non-targeted surveys of residents. CORRESPONDENCE DISCUSSION. EMAIL FROM ELISE DURBIN DATED 04-14-2021 ADJOURNMENT. Member Sanford moved, Member Ebeling seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 4-0. The Economic Development Commission meeting was adjourned at 8:45 p.m. Submitted by Bob Generous Senior Planner Prepared by Kim Meuwissen Office Manager