02-08-2022 Agenda and PacketA.7:00 P.M. - CALL TO ORDER
B.APPROVAL OF MINUTES
B.1 Approve Economic Development Commission Minutes dated January 11, 2022
C.GENERAL BUSINESS
C.1 Discussion of 2022 Work Plan
D.ADMINISTRATIVE PRESENTATIONS
E.CORRESPONDENCE DISCUSSION
F.ADJOURNMENT
AGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
TUESDAY, FEBRUARY 8, 2022
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
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Economic Development Commission Item
February 8, 2022
Subject Approve Economic Development Commission Minutes dated January 11, 2022
Section APPROVAL OF MINUTES Item No: B.1
Prepared By Kim Meuwissen, City Clerk File No:
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
ATTACHMENTS
January 11, 2022 Economic Development Commission Minutes
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CHANHASSEN ECONOMIC
DEVELOPMENT COMMISSION
REGULAR MEETING
JANUARY 11, 2022
Chairman Anderson called the meeting to order at 7:00 p.m.
MEMBERS PRESENT Jim Sanford (virtual), James Ebeling (virtual), Eric Anderson (in-
person), and David Kressler (virtual).
MEMBERS ABSENT: Ryan Soller.
STAFF PRESENT: Bob Generous, Senior Planner.
Chair Anderson and Mr. Generous were present in chambers with the other
Commissioners attending via Zoom teleconference.
PUBLIC PRESENT: None.
APPROVAL OF MINUTES: ECONOMIC DEVELOPMENT COMMISSION MINUTES
DATED DECEMBER 15, 2021
Member Kressler moved, Member Sanford seconded to approve the Minutes of the
Economic Development Commission meeting dated December 15, 2021 as presented. All
voted in favor and the motion carried unanimously with a vote of 4 to 0.
GENERAL BUSINESS:
1. REVIEW SEWER AVAILABILITY CHARGE (SAC) CREDIT
Mr. Generous noted the Commissioners looked at this the previous month. He summarized notes
from the last meeting, including limiting the availability of SACs and prioritizing it to expand
existing businesses; bringing newer, unique businesses to the community; providing additional
employment opportunities (quality and quantity); and targeting small business rather than using
it for larger developments.
Member Sanford asked if this is going across all SAC credits or only with regards to the credits
they have because they have been returned?
Mr. Generous replied it is only the ones that the City has control over.
Chair Anderson would love to see an opportunity for the City to help a business “buy down” the
SAC credits on redevelopment. He understands they must find a funding source for that.
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Economic Development Commission – January 11, 2022
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Mr. Generous noted that could be an item for discussion at a later time.
The Commissioners discussed additions and changes to the document.
Member Sanford moved revised language, Member Kressler seconded to approve the
Sewer Availability Charge (SAC) Credit. All voted in favor and the motion carried
unanimously with a vote of 4 to 0.
2. DISCUSS 2022 WORK PLAN
Mr. Generous noted this is an initial discussion with a final decision in March to guide the
Commission as it moves forward in 2022 and into 2023.
Chair Anderson asked if the plan assumes that an economic development staff position will be
added in 2022.
Mr. Generous replied that is the plan.
Chair Anderson would suggest adding that the success of the plan requires the hiring of an
economic development coordinator who can deal with the day-to-day things that the
Commissioners are unable to. That person would also be able to bring forward the important
things to prioritize to the City.
The items Staff recommended the EDC discuss and evaluate are as follows:
Develop a strategic plan for economic development for the city.
Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of
Commerce on promoting business retention, expansion, and recruitment to Chanhassen.
Work with Planning Staff to review and recommend City Code amendments relative to
economic development.
Review Carver County Community Development Agency (CDA) assistance and
resources available to Chanhassen Businesses.
Upon hiring an Economic Development Manager, the EDC will work to increase
partnerships with the business community.
Continuing education including housing demand and trends, demographic statistics,
mixed-use development, sustainable development, development trends, redevelopment
issues, transportation projects, senior-friendly cities, etc.
Participate in joint meetings/discussion with City Council and other commissions.
The Commission discussed the 2022 work plan, which items to prioritize and how to move
forward. The commission eliminated some of the items and combined others as one item.
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Economic Development Commission – January 11, 2022
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Mr. Generous noted the Commissioners can think about the list and discuss adding additional
items before a final decision. He is also working on getting the joint meeting between the EDC,
Planning Commission, and City Council on the calendar.
NEW BUSINESS:None.
ADMINISTRATIVE PRESENTATION:None.
CORRESPONDENCE DISCUSSION:
2022 Economic Development Commission Meeting Schedule
Mr. Generous noted there are some outliers in meeting on the second Tuesday of the month and
he wants to make the Commissioners aware. He noted Commission applications are due by
January 28, 2022 and they have three positions that will come up for reapplication: Ryan Soller,
James Ebeling, and James Sanford.
ADJOURNMENT:
Chair Anderson moved to adjourn. All voted in favor and the motion carried unanimously
with a vote of 4 to 0. The Economic Development Commission meeting was adjourned the
meeting at 7:57 p.m.
Submitted by Bob Generous
Senior Planner
Prepared by Kim Meuwissen
City Clerk
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Economic Development Commission Item
February 8, 2022
Subject Discussion of 2022 Work Plan
Section GENERAL BUSINESS Item No: C.1
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
The Economic Development Commission (EDC) continues to discuss goals of the Commission, review
progress in meeting the goals and develop a work program for 2022.
BACKGROUND
At the January 11, 2022, EDC meeting, the Commission reviewed the items that they would pursue in
2022. The discussion centered on trying to develop a few higher priority items that the Commission
would concentrate on.
DISCUSSION
Projects
The EDC will concentrate their efforts in 2022 on the following projects:
Develop communication mechanisms for feedback and surveys for developers and business
owners to be used to understand and improve City interaction with the development and business
community. Investigate what businesses believe are necessary to attract businesses, expand and
retain businesses.
Promote the creation of economic development incentives: financial, zoning, density, etc.
Work with Planning staff to review and recommend City Code amendments relative to economic
development.
Review Carver County Community Development Agency (CDA) and other assistance and
resources available to Chanhassen businesses.
Upon hiring an Economic Development Manager, the EDC will work to increase partnerships
with the business community.
Continue education efforts including housing demand and trends, demographic statistics, mixed-
use development, sustainable development, development trends, redevelopment issues,
transportation projects, senior-friendly cities, etc.
Participate in joint meetings/discussions with the City Council and other Commissions.
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Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of Commerce
on promoting business retention, expansion and recruitment to Chanhassen.
RECOMMENDATION
Staff requests that the EDC discuss and evaluate a potential work program for 2022 and determine if the
Commission wishes to bring forward the 2020 goals as 2022 goals or if the list should be refined
further.
ATTACHMENTS
Economic Development Commission 2020 Goals
2021 Year in Review
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EDC Goals
Primary 2020 Goals
1.Create a Business Subsidy program using either a levy, abatement, TIF or other financing mechanism to
help offset costs of barrier of entry.
2.Look for ways the EDC can encourage local businesses to communicate more frequently and effectively
with other local businesses, city staff, elected officials, commissions, Buy Chanhassen and the SW
Chamber.
3.Have staff prepare a feedback survey for developers and potential business owners at the various
points of contact with city staff. This would include the planning department after a developer has
completed a development process and the building department after a business has gone through an
improvement project.
4.Improve walkability/connectivity of the downtown, in particular over highway 5.
5.Have the EDC along with Buy Chanhassen/SW Chamber support the creation of a local job fair in the
City. This could include part time, seasonal and other full time opportunities for employment in the
City of Chanhassen. The event could be held at a City gathering place.
Other Future Goals
Understanding of how to attempt diversification of local businesses in terms of size and types of
business.
Look to attain more entertainment retail (ex. Top Golf)
Define vision of business community in the City of Chanhassen. Do we want our business community
to look more like Minnetonka/Eden Prairie or Hopkins.
Be more proactive rather than reactive in attracting local businesses while still following the
comprehensive plan.
Engage residents and various city groups to help them understand impact of goals and growth in the
city.
Facilitate economic growth of existing businesses both with employment and improving the quality of
life for our residents.
Use advertising/marketing to draw residents from other cities to Chanhassen businesses.
Recruit successful businesses from other communities to Chanhassen.
Create business cards for the members of the EDC in order for them to identify themselves and share
their contact information with local businesses.
Increase/Improve internet connectivity for local business community.
Improve city competitiveness by making sure it is move in ready for all forms of business.
Engage with Buy Chanhassen and Southwest Chamber of Commerce to bring more light to Chanhassen
businesses.
Increase awareness of local public transportation-SW Metro
Employment opportunities
Attempt to assist local businesses with the creation of a Health Insurance Consortium in order for local
businesses to be more attractive for employment opportunities.
Considerations for City Council
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1.The EDC would be strongly supportive of the building of a public facility that encompasses large
gathering spaces in a multi-use facility that brings increased traffic and visitors to the City of
Chanhassen. The facility could host local business meetings, small conferences, and resident gathering
events.
2.The EDC strongly supports a local lodging tax for the creation and financial support of a
Visitors/Convention Bureau.
3.The EDC believes there is a high need for affordable housing to assist our local businesses. The lack of
affordable housing makes it difficult for small businesses to draw on local employees for its operations.
The EDC strongly encourages the City Council to consider offering assistance for an affordable housing
TIF district project.
Potential Business Subsidy Program Areas
1. A subsidy program to incentivize new Entertainment Businesses within the City of Chanhassen. The
subsidy could be a low interest micro loan program funded in part by an HRA/EDA levy.
2. A current/existing business subsidy program for small local businesses that need assistance during
difficult economic downturns in varying business sectors. The program could be in the form of a low
interest micro loan or a small grant program for certain qualifying expenses.
3. In order to encourage new small businesses to move to Chanhassen or to start a new business in
Chanhassen the creation of a business subsidy program. The program could be a low interest micro
loan program, a Waiver of Utility Connection fees for new SAC units, a small business incubator lease
assistance program or a Jobs for Fees program similar to one created by the City of Jordan. Most of
these would require a HRA/EDA levy or a waiver of a small amount of Utility Connection revenues.
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PERMITS
and
INSPECTIONS
BUILDING
COMMUNITY DEVELOPMENT
DEPARTMENT
The Building Division contains two support staff, one building official and four inspectors. Eric
Tessman is the Building Official for the city. The inspectors review building plans for
compliance with building codes, inspect buildings under construction,and enforce property
maintenance issues. Support staff issue the building permits, schedule inspections, receive all
permit applications and distribute building plans for city review.
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In 2021, the city issued two permits for projects with building permit valuation in excess of one
million dollars. The City issued 3,302 permits worth $58,286,155 for residential additions and
remodeling in 2021. Historically, we average 1,167 such permits.
Commercial and Institutional Construction
There were no significant, new commercial, industrial or institutional projects in 2021. The total
valuation for all new commercial, industrial and institutional projects in 2021 was $4,069,902.
Tennant finish and remodeling activity had 72 permits with a valuation of $11,352,774.
New Single-Family Home Construction
Year Permits Average Valuation Total Valuation
Average New
Single-Family
Home Values
Excludes Land Cost
2021 98 $503,774 $49,369,812
2020 68 $411,529 $27,984,000
2019 40 $637,390 $25,495,591
2018 49 $406,275 $19,865,000
2017 55 $420,195 $22,798,000
2016 46 $401,638 $18,834,000
Inspections
2021 Building Inspection Activity
2021 Building Activity
Residential Building
Permits
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter Total
Residential Single-Family 23 23 38 14 98
Residential Townhomes 0 0 0 0 0
Apartments/Senior Facilities 0 0 110 0 110
Total Residential 23 23 148 14 208
Year Building
Inspections
Mechanical
Inspections
Plumbing
Inspections
Total
Inspections
2021 6,732 1,368 1,430 9,530
2020 3,413 1,171 1,323 5,907
2019 3,467 1,708 1,667 6,842
2018 2,863 1,425 1,551 5,839
2017 2,583 1,490 1,405 5,478
2016 2,722 1,459 1,770 5,951
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Commercial Building
Permits
1st
Quarter
2nd
Quarter
3rd
Quarter
4th
Quarter Total
New 0 0 0 2 2
Redeveloped 0 0 0 0 0
Remodeled 9 21 20 22 72
Total Commercial 9 21 20 24 74
A significant amount of the building permit activity, totaling 2,134 permits, which occurred in
2020, was due to household remodeling and addition construction, and building re-roofs which
resulted from summer thunderstorms.
Available Lot Inventory (End
of Quarter)1st Quarter 2nd Quarter 3rd Quarter 4th Quarter
Single-Family Lots 159 140 105 92
Residential Townhome Lots 14 14 14 14
Total Available Lots
173 154 119 106
Total Permit History 2017 2018 2019 2020 2021
Single-Family 55 49 40 68 98
Townhomes 12 56 28 0 0
Apartments/Senior Facilities 0 268 0 0 110
Commercial 73 72 76 70 74
Total Number of All Permits 140 445 144 138 282
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Residential Building Permits Issued
Year Single Family Attached SF Apts Total Dwelllings
1992 228 0 0 228
1993 251 16 0 267
1994 269 110 0 379
1995 216 197 65 478
1996 170 37 0 207
1997 177 97 0 274
1998 263 162 0 425
1999 187 88 0 187
2000 124 34 162 320
2001 85 44 100 229
2002 54 246 0 300
2003 59 94 243 396
2004 76 16 0 92
2005 60 24 0 84
2006 89 42 48 179
2007 65 86 18 169
2008 28 38 0 66
2009 71 14 0 85
2010 71 30 0 101
2011 106 62 0 168
2012 107 78 0 185
2013 89 86 0 175
2014 57 96 0 153
2015 80 24 0 104
2016 48 0 76 124
2017 55 12 0 67
2018 49 56 268 373
2019 40 18 0 58
2020 68 0 0 68
2021 98 0 110 208
Avg 2000 - 2021 72 50 47 168
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HOUSING PERMITS
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DEVELOPMENT REVIEW
PLANNING
COMMUNITY DEVELOPMENT
DEPARTMENT
The Planning Division consists of the Community Development Director, three planners and a
natural resource specialist. The Planning staff enforces the zoning ordinance, reviews building
plans, prepares current and long-range plans for the community, discusses development potential
for individual properties, reviews development proposals and coordinates this review with other
departments and agencies, prepares reports for the Planning Commission and City Council,
provides information about the community to businesses, property owners and the general
public, performs research projects and writes ordinances and resolutions.
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There were 24 cases reviewed by the Planning Commission.
Planning Cases
TYPE 2017 2018 2019 2020 2021
5 Yr.
Avg.
SIGN PERMITS 37 62 36 16 56 41
VARIANCES 13 9 10 10 17 12
CONDITIONAL USE PERMITS 2 3 1 1 2 2
INTERIM USE PERMITS 0 0 1 1 4 1
REZONINGS 1 1 0 1 2 1
SITE PLAN REVIEWS 3 3 5 2 2 3
PLANNED UNIT
DEVELOPMENTS 3 4 1 4 0 2
SUBDIVISIONS 3 4 4 1 6 4
VACATIONS 6 1 3 2 2 3
WETLAND ALTERATION
PERMITS 1 1 1 0 0 1
CODE AMENDMENTS 13 6 24 5 14 12
LAND USE PLAN
AMENDMENTS 0 1 0 0 0 0
TOTAL 82 95 86 43 105 82
Residential Subdivisions
CASE #PROJECT NAME GROSS
ACRES
NET
ACRES
TOTAL
UNITS
GROSS
DENSITY
NET
DENSITY
2020-22 Deer Haven 2.81 2.81 4 1.42 1.42
2021-15 Eagle Bluff 4.1 1.6 2 0.49 1.25
TOTALS 6.91 4.41 6 0.87 1.36
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Site Plan Review
CHANHASSEN POPULATION Number Increase % Increase Met Council
1960 CENSUS 3,411
1970 CENSUS 4,879 1,468 43%
1980 CENSUS 6,359 1,480 30%
1990 CENSUS 11,732 5,373 84%
1995 ESTIMATE 15,588 3,856 33%
2000 CENSUS 20,321 4,733 30.4%20,321
2005 ESTIMATE 23,652 3,331 16.4%22,518
2010 CENSUS 22,952 -700 -3%22,952
2015 ESTIMATE 24,655 1,703 7.4%25,194
2020 CENSUS 25,951 1,296 5.3%26,700
2021 ESTIMATE 26,271 320 1.2%
2022 ESTIMATE 26,399 128 0.5%
2025 PROJECTION 27,262 863 3%
2030 PROJECTION 28,656 1,394 5%31,700
2035 PROJECTION 30,469 1,813 6%
2040 PROJECTION 31,589 1,390 5%37,100
Project Location Developer
Building
Square
Feet
Acres Type of Use
Lake Place
#2021-04
1361 Lake Drive
West.
Lakes at
Chanhassen,
LLC
166,000 3.5
110 Unit Senior
Independent
Living
River Valley
Industrial Center
#2021-19
2100 Stoughton
Avenue
Capstone
Investors, LLC 82,000 0.79 Office
Warehouse
TOTAL 248,000 4.29
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DEVELOPMENTS
Deer Haven (PC #2020-22)
A four-lot subdivision with a variance for the use of a private street on 2.81 acres
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9197 Eagle Ridge Road (PC #2021-15)
A two-lot subdivision with a variance for the use of a private street on 4.1 acres. Outlot A was
dedicated to the City and will provide a trail connection from Highway 101 to Eagle Ridge Road.
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Lake Place (PC #2021-04)
Site plan review with a building height variance for the construction of a 110-unit,three-story
Independent Living Senior apartment.
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River Valley Industrial Center (PC #2021-19)
Subdivision and Site plan approval for an 82,000-square foot office warehouse building at 2100
Stoughto Avenue. Building construction is contingent on final platting of the site.
(Revised to address Chaska access requirement.)
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