03-08-2022 Agenda and PacketA.WORK SESSION
B.7:00 P.M. - CALL TO ORDER
C.APPROVAL OF MINUTES
C.1 Approve Economic Development Commission Minutes dated February 8, 2022
D.GENERAL BUSINESS
D.1 Adopt 2022 Work Plan
E.ADMINISTRATIVE PRESENTATIONS
F.CORRESPONDENCE DISCUSSION
F.1 Bio-Innovation, Greater MSP Grant Application
G.ADJOURNMENT
AGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
TUESDAY, MARCH 8, 2022
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
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Economic Development Commission Item
March 8, 2022
Subject Approve Economic Development Commission Minutes dated February 8, 2022
Section APPROVAL OF MINUTES Item No: C.1
Prepared By Amy Weidman, Admin Support Specialist File No:
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
ATTACHMENTS
February 8, 2022 Economic Development Commission Minutes
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CHANHASSEN ECONOMIC
DEVELOPMENT COMMISSION
REGULAR MEETING
FEBRUARY 8, 2022
Chairman Anderson called the meeting to order at 7:00 p.m.
MEMBERS PRESENT: Jim Sanford, Ryan Soller, James Ebeling, Eric Anderson, and David
Kressler.
MEMBERS ABSENT: None.
STAFF PRESENT: Bob Generous, Senior Planner
PUBLIC PRESENT: None.
APPROVAL OF MINUTES:
APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED
JANUARY 11, 2022
Member Sanford moved, Member Ebeling seconded to approve the Minutes of the
Economic Development Commission meeting dated January 11, 2022 as presented. All
voted in favor and the motion carried unanimously with a vote of 5 to 0.
GNERAL BUSINESS:
DISCUSSION OF 2022 WORK PLAN
Senior Planner Bob Generous put together the primary objectives of what the EDC wants to
accomplish this year. He asked the Commissioners to discuss if they’d like to prioritize them
differently and look at the 2020 EDC goals and whether they want to continue to bring some of
those over as secondary goals. He reminded the Commissioners that they must present an Annual
Report to the City Council.
The Commissioners discussed the goals and priorities, making adjustments to the document.
Member Kressler feels this is a good set of objectives yet some are still geared towards tasks or
regular business and should be separated out as they are not necessarily goals but things in which
they must follow-up on a regular basis. He thinks it would be wise to look at things and pare
down to 2-3 as it is difficult to get through more than that in the course of a year.
Member Sanford thinks with a new Economic Community Development person coming on Staff,
the goals ought to be formulated toward developing that relationship and look at how this
Commission can be supportive of the person hired. He thinks they also need to set a goal to make
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Economic Development Commission – February 8, 2022
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sure they are meeting with the City Council to get a good idea of the plan for the City and
following the guidance of the elected officials as to the direction they want to go. He suggested a
community survey to get feedback on what residents and businesses would like to see which
would help direct the City Council. Then the EDC can work through the process with the new
Economic Development Manager.
Chair Anderson suggested asking Staff or City Council for goals that they would like the new
Economic Development Manager to accomplish.
Member Ebeling noted it is difficult to set the goals until they talk to the City Council.
Mr. Generous stated that after every EDC meeting he shares that they would like to have a
meeting or work session with the City Council.
Member Soller noted the EDC is relatively new and a good goal is to develop credibility and
establish their place as it does not seem like they are a “go-to” Commission for residents or
businesses interested in economic development or the City Council.
Member Ebeling thinks an absolute goal is looking at City Code and things that can be amended
such as the food truck ordinance as that is where the EDC has had the most success so far.
The Commissioners continued the discussion to look at City Code and make recommendations to
the Planning Commission and City Council. They offered their willingness to consult or to help
with the hiring of the Economic Development Manager if needed.
Mr. Generous will make the changes to the goals document and bring it back to the EDC for
final approval.
NEW BUSINESS:None.
ADMINISTRATIVE PRESENTATION:None.
CORRESPONDENCE DISCUSSION:None.
ADJOURNMENT:
Chairman Anderson adjourned the Economic Development Commission meeting at 7:51
p.m.
Submitted by Bob Generous
Senior Planner
Prepared by Kim Meuwissen
City Clerk
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Economic Development Commission Item
March 8, 2022
Subject Adopt 2022 Work Plan
Section GENERAL BUSINESS Item No: D.1
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
As required by the City Code section 2-46.13 (e) Reports: The Commission will produce an annual
report for the City Council detailing the community development activities of the past year. The report
also provides a summary of residential and commercial construction activities and outlines the progress
that has been made toward achieving the goals of all strategic plans.
BACKGROUND
At the January 11, 2022 and February 8, 2022 EDC meetings, 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 as well as differentiating between work plans and ongoing
normal business items.
DISCUSSION
Based on the previous discussion, I believe that I have assimilated commission direction in the attached
report.
RECOMMENDATION
Please review the attached report and make any modifications deemed appropriate. If acceptable,
approve the report as the 2021 annual report and work plan for 2022.
ATTACHMENTS
Memo 2021 year and 2022 work plan
2021 Year in review
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MEMORANDUM
TO:Economic Development Commission
FROM:Bob Generous, Senior Planner
DATE:March 9, 2022
SUBJ:2021 Year in Review and 2022 Recommended Work Plan
BACKGROUND
As required by the City Code section 2-46.13 (e) Reports: The Commission will produce an
annual report for the City Council detailing the community development activities of the past
year. The report also provides a summary of residential and commercial construction activities
and outlines the progress that has been made toward achieving the goals of all strategic plans.
The Economic Development Commission (EDC) is an advisory body to the City Council and the
Economic Development Authority charged with the responsibility of researching, reviewing, and
making recommendations on issues related to economic development. The EDC will review
ways in which the City can expand existing businesses, attract desirable new business, and
revitalize existing businesses and the community as a whole.
Below is a summary of items the EDC reviewed in 2020 as well as possible work projects for
2021
2021 REVIEW
In 2021, the City issued building permits for 208 dwelling units, which was approximately 104
percent of our projected housing growth for 2021. We are projecting a two percent (2%) increase
(approximately 200 units) in total housing stock for 2022. As can be seen in the average
residential building permit data (72 single-family and 50 attached units), there is currently
sufficient approved single-family residential lots available for development with a lot inventory
of 92 platted single-family lots, but a deficiency of attached single-family lots with 14 lots
available. With the approval of the Lake Place at Powers Ridge project, 110 apartment units
were approved for development of which 50 units will be affordable.
The Economic Development Commission had the following work program for 2021:
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2021 Year in Review & 2022 Recommended Work Plan
March 9, 2022
Page 2
Develop a strategic plan for economic development for the city. This item was started,
with the EDC reviewing City strengths and weaknesses (3/9/21 and 4/11/21), but with the
City Council adoption of a Strategic Plan (6/8/21 presentation) for the City, it was not
finished as a separate item.
Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of
Commerce on promoting business retention, expansion and recruitment to Chanhassen.
Vernelle Clayton discussed the Lodging Tax and Visitors bureau with the EDC (1/12/21).
Create a feedback survey for developers and business owners to be used to understand
and improve City interaction with the development and business community. Still a
desired outcome (6/8/21). We had Ari Lyksette, Communication Manager, discuss
communications initiatives and opportunities through the City (10/12/21). Jake Foster,
Assistant City Manager, also presented communication options the City was reviewing
(1/12/21).
Investigate a signage idea/plan for the promotion of businesses in the downtown. This
morphed into preliminary discussions regarding revisions to the City’s sign ordinance
(10/12/21), which will come back in 2022.
Work with the school district and Chanhassen businesses to market job opportunities and
support the creation of local jobs. Not pursued.
Financial Incentives. The EDC discussed elements of providing Sewer Availability
Charge (SAC) credits.
City Code
Staff shall submit City Code amendments to the EDC for comments relative to economic
development, Food Trucks (5/11/21). A preliminary discussion of sign code amendments was
presented to the EDC (10/12/21). Specific ordinance changes will be presented to the EDC for
review and comment.
Educational Opportunities
The Commission investigated various economic development programs for local businesses as
well as City initiatives: Lee Hall, Next Stage, MN (12/15/21), ULI Takeaway (10/12/21 and
9/14/21), Downtown Vision Plan (9/14/21), Downtown Capital Improvements (9/14/21),
MetroNet Fiber Optics (2/9/21), CARES Fundings (3/9/21), CDA Update (6/8/21).
2022 WORK PROGRAM
The EDC directed that the work program be divided into two sections: Work Projects and
Normal Business Items (Tasks). The work projects will be a reasonable number of larger
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2021 Year in Review & 2022 Recommended Work Plan
March 9, 2022
Page 3
projects that will further economic development opportunities within the community. The work
projects will have multiple components and inputs. Tasks will be continuing items that the EDC
will undertake on an ad hoc basis.
Work Projects
1. Communication:
a. Develop communication mechanisms for feedback and surveys for developers, business
owners, and residents to understand and improve City interaction with the development
and business community.
b. Investigate what stakeholders believe are necessary to attract, expand and retain
businesses.
c. Work with the Economic Development Manager, when hired, to create partnerships and
communication avenues.
d. Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of
Commerce on promoting business retention, expansion and recruitment to Chanhassen.
2. Develop Vision:
a. Work with City Council and Planning Commission on a vision for economic
development in the community.
b. Review role of economic development in the City’s Strategic Plan.
c. Promote economic development incentives: financial, zoning, density, etc.
d. Work to establish the EDC as a credible and viable commission for the furtherance of
economic development in Chanhassen.
Tasks
a. Work with City staff to review and recommend City Code amendments relative to
economic development.
b. 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.
c. Participate in joint meetings/discussions with the City Council and other Commissions.
d. Review Carver County Community Development Agency (CDA) and other assistance
and resources available to Chanhassen businesses.
ACTION
Staff recommends approval of the annual report and 2022 work program. The EDC may suggest
additional items that they may review/research in 2022. Any other suggestions that the
Commission would like to see staff address will be added to the list. Subject to Economic
Development Commission concurrence, staff will forward this report to the City Council.
g:\plan\economic development\edc\2022\memo 2021 year and 2022 work plan.docx
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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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Economic Development Commission Item
March 8, 2022
Subject Bio-Innovation, Greater MSP Grant Application
Section CORRESPONDENCE DISCUSSION Item No: F.1
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
No action necessary.
BACKGROUND
U.S. Secretary of Commerce Gina M. Raimondo announced the GREATER MSP Partnership is one of
the 60 finalists for the U.S. Economic Development Administration’s (EDA) $1 billion “Build Back
Better Regional Challenge.” There were 529 applications from regional coalitions from across the
country, and only about 11 percent were selected to move on to Phase 2 of the application process.
Twenty to thirty regions across the country will be awarded $25-100 million to implement projects
designed to build and scale industry clusters that create transformational economic change.
The grants awarded through the Challenge, which is a premier part of the American Rescue Plan, are
designed to accelerate economic recovery from the COVID pandemic and to create industry clusters
that will be resilient to future economic shocks. The GREATER MSP Partnership’s proposal is centered
on accelerating growth of the bio-innovation industry cluster in Minnesota.
“Advancing to the final round of this national competition is a big win for the region that’s shared with
more than 50 organizations involved in the proposal,” said GREATER MSP President and CEO Peter
Frosch. “This amazing coalition is working on a plan to accelerate job growth and racial equity by
growing Minnesota’s bio-innovation sector – one of the fastest growing segments of the global
economy. It’s a bold move to keep our region and state at the forefront of innovation,” Frosch added.
The Bold North BioInnovation Cluster proposal is a plan for investing in Minnesota’s next globally-
leading economic sector. Bio-innovation builds on two existing sectors of strength in human health and
food and agriculture. New opportunities for growth exist in adjacent domains, including sustainability,
data and computing, and advanced manufacturing. The application submitted by the GREATER MSP
Partnership is focused on creating a vibrant economic sector that addresses historic inequities and racial
disparities, with a stated vision to build America’s most inclusive bio-innovation cluster.
DISCUSSION
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I participated in a webinar requesting partnership commitments from businesses and governments in the
Minneapolis - St. Paul region as part of a bio-innovation. Partnerships included development proposals
supportive of bio-innovation uses, educational opportunities related to bio-innovation, and financial
support for bio-innovative clusters proposed in the region. The grant being pursued is for $75,000,000.
The local match is $20,000,000, which can be in kind, supportive or financial commitments.
The Greater MSP is preparing a final round submittal for the EDA grant.
GREATER MSP is the economic development partnership for the 15-county Minneapolis Saint Paul
region. Over 300 leading businesses, universities, cities, counties, philanthropies, and others are
working together to accelerate the competitiveness of the regional economy and drive inclusive
economic growth through job creation, capital investment and the execution of strategic initiatives. For
more information go to greatermsp.org.
RECOMMENDATION
ATTACHMENTS
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