01-11-2022 Agenda and PacketA.7:00 P.M. - CALL TO ORDER
B.APPROVAL OF MINUTES
B.1 Approve Economic Development Commission Minutes dated December 15, 2021
C.ADMINISTRATIVE PRESENTATIONS
D.GENERAL BUSINESS
D.1 Review Sewer Availability Charge (SAC) Credit
D.2 Discuss 2022 Work Plan
E.CORRESPONDENCE DISCUSSION
E.1 2022 Economic Development Commission Meeting Schedule
F.ADJOURNMENT
AGENDA
CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION
TUESDAY, JANUARY 11, 2022
CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD
1
Economic Development Commission Item
January 11, 2022
Subject Approve Economic Development Commission Minutes dated December 15,
2021
Section APPROVAL OF MINUTES Item No: B.1
Prepared By Kim Meuwissen, City Clerk File No:
SUMMARY
BACKGROUND
DISCUSSION
RECOMMENDATION
ATTACHMENTS
Economic Development Commission Minutes dated December 15, 2021
2
CHANHASSEN ECONOMIC
DEVELOPMENT COMMISSION
REGULAR MEETING
DECEMBER 15, 2021
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; Kate Aanenson, Community Development
Director.
PUBLIC PRESENT:
Lee Hall, Next Stage
APPROVAL OF MINUTES:
Member Soller moved, Member Ebeling seconded to approve the Minutes of the Economic
Development Commission meeting dated October 12, 2021 as presented. All voted in favor
except Chair Eric Anderson who abstained and the motion carried with a vote of 4 to 0.
GENERAL BUSINESS:
1. DISCUSS CREATING CRITERIA FOR GRANTING SEWER AVAILABILITY
CHARGE (SAC) CREDIT
Mr. Generous stated the City currently does not have a policy for providing the credit and right
now there are about 17 SAC credits available.
Chair Anderson asked if they are crediting the City charge or the Met Council charge.
Mr. Generous replied it is the City payment and they generally collect it from businesses as part
of the building permit process.
Ms. Aanenson shared that for a small business person the credit can make a big difference.
Chair Anderson agreed it is a huge difference. He has seen that the amount of charges between
SAC, WAC, etc. has doubled to the point where a project like he is working on with senior
housing it is $12-13 dollars per foot of construction cost. It is impactful to small and large
3
Economic Development Commission – December 15, 2021
2
businesses. He encouraged the ability to have a SAC credit policy and thinks it is a great idea but
with 17 SAC credits they cannot go far.
Ms. Aanenson replied that is correct and right now they are looking to help some of those
smaller businesses and entrepreneurs and looking to the Commissioners to see if there is any
additional criteria.
The Commissioners and Staff discussed criteria and options going forward, including limiting
the credit to businesses rather than housing developments, and the fact that it could help new
businesses to come into the City.
Ms. Aanenson and Staff will put something together and bring it back for the Commissioners
input.
2. REVIEW 2021 WORK PLAN, COMMISSION GOALS AND BYLAWS
Mr. Generous noted they will be coming into a new year and should look forward to what the
plan should be for 2022. He noted it must be adopted by April, 2022.
The Commissioners discussed the item, noting it would be helpful to the EDC to have guidance
from the City Council as to what they would like the EDC to focus on. They would also like to
have a joint meeting with the City C ouncil and Planning Commission to talk through some of
these things. The Commissioners talked about potential focus areas including a business subsidy
program, Sewer Access Charges (SAC) and Water Access Charges (WAC), hotel tax, a survey
for businesses, and developer feedback.
Chair Anderson asked the Commissioners to think about what they would like to see in 2022 and
come back to the January meeting ready to share ideas.
ADMINISTRATIVE PRESENTATIONS:
1. SMALL AND NEW BUSINESS
Lee Hall gave a presentation, noting he is from Next Stage which is a non-profit organization
that works in the space of entrepreneurial development. He has been partnering with Carver
County since 2012 and noted the things to succeed in small business are tools, skills, know-how,
passion, and resources. Next Stage tries to address these pieces through one-on-one consulting
with entrepreneurs as well as being a small business lender. He noted it is very busy right now
with lots of activity and entrepreneurs coming in; many people have left their jobs and are
looking for a different work situation. While at one time entrepreneurialism was not on their
agenda, many are now looking at that option and exploring how they want to work and live. Mr.
Hall noted there are a lot of funds and resources available to small business owners right now,
and stated inflation is up. The technology divide is a big factor in businesses right now and Next
Stage has processed many grants from the CARES Act; those who embraced new technologies
4
Economic Development Commission – December 15, 2021
3
and ways to interact with customers online during COVID-19 saw more success than those who
were reluctant to utilize technologies and many of those are struggling. The advice he has for
small businesses is to make the technology changes needed because the world is upside down
and people are dealing with change on a regular basis. Now is the time to do it.
CORRESPONDENCE DISCUSSION:
1. GOVERNOR'S COUNCIL ON ECONOMIC EXPANSION RECOMMENDATIONS
ADJOURNMENT:
Chair Anderson adjourned the Economic Development Commission meeting at 7:47 p.m.
Submitted by Bob Generous
Senior Planner
Prepared by Kim Meuwissen
City Clerk
5
Economic Development Commission Item
January 11, 2022
Subject Review Sewer Availability Charge (SAC) Credit
Section GENERAL BUSINESS Item No: D.1
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
Approve motion recommending adding the Sewer Availability Charge (SAC) credit priority to the
City's Business Subsidy policy.
BACKGROUND
At the December 15, 2021 EDC meeting, the commission reviewed other communities' policies and
discussed potential criteria for directing the use of SAC credits.
DISCUSSION
Based on staff's notes, we have prepared the following policy guidelines.
RECOMMENDATION
Staff recommends the EDC approve a motion to incorporate the following policy in the City's Business
Subsidy policy as an Economic Development Incentive Program:
4. Sewer Availability Charge (SAC) Credit. The Metropolitan Council Environmental Services (MCES)
charges the sewer availability charge (SAC) directly to local governments, pursuant to Minnesota
Statutes section 473.517 subd. (3). SAC credits are created when the MCES determines that a change in
use or elimination of a use permanently frees up sewer capacity (in SAC units) within a local
jurisdiction. SAC credit policy shall prioritize the following:
1. Expanding existing businesses.
2. Bringing new or unique businesses to the community.
3. Providing additional employment opportunities (quality or quantity).
4. Targeting small businesses.
ATTACHMENTS
Business Subsidy Guidelines
6
7
City of Chanhassen
Business Subsidy Guidelines
Approved October 11, 1999
Amended April 28, 2003
Amended September 24, 2018
8
1
CITY OF CHANHASSEN
BUSINESS SUBSIDY GUIDELINES
GENERAL PURPOSE
Economic development incentives are financial tools that enable the City of Chanhassen to provide
opportunities and benefits for its businesses and residents. Incentives can take a variety of forms,
including, but not limited to: grants, tax increment financing, tax abatement, and sewer access
credits. The City of Chanhassen provides economic development incentives in order to achieve its
long-range vision of creating a diverse and sustainable economic base. This is achieved in part
through the creation and retention of quality, high paying jobs. A diverse and sustainable economy
offers opportunity for improved quality of life for the residents of Chanhassen. Economic
development projects may also achieve other worthwhile goals. For instance, some projects provide
value to the community in the forms of infrastructure improvements, stabilization of business
districts or neighborhoods, or concentration of selected industries.
The City of Chanhassen reserves the right to approve or reject subsidies for projects on a case-by-
case basis, taking into consideration established policies, project criteria, and demand on City
services in relation to the potential benefits from the project. Meeting the guidelines in this document
does not guarantee the award of business assistance to the project. Approval or denial of one project
is not intended to set precedent for approval or denial of another project.
The City of Chanhassen can deviate from these guidelines for projects that supersede the objectives
identified herein. Any applicant who is not in good standing with the City, in regards to licenses, fees
or other specific charges, will not be considered for business subsidies.
OBJECTIVES
The City of Chanhassen may consider offering a business subsidy or incentive in order for a project
to achieve one or more of the following objectives:
• To increase the City’s tax base.
• To retain local jobs and/or increase the number and diversity of jobs that offer stable
employment and/or attractive wages and benefits. Preference will be given to higher paying
jobs that also provide benefits such as health care coverage.
• To support projects that provide value in the forms of needed transportation and other utility
infrastructure improvements that would be completed in conjunction with the project.
• To encourage additional unsubsidized private development in the area, either directly or
indirectly through “spin off” development.
• To facilitate the development process and to achieve development on sites which would not
otherwise be developed but for the use of a business subsidy.
• To remove blight and/or encourage redevelopment of commercial and industrial areas that
will result in high-quality redevelopment and private reinvestment.
9
2
• To offset increased costs of redevelopment (i.e. contaminated site clean-up) over and above
the costs normally incurred in development.
• To create opportunities for a diversification of housing stock available within the community.
• To support a project that will improve the quality of life in the City by providing a desirable
good or service and addressing an unmet demand in the community.
• To contribute to the implementation of other public policies, as adopted by the City from
time to time, such as the promotion of energy conservation, and decreasing capital and/or
operating costs of local government.
• To support the retention and/or adaptive re-use of buildings of historical or architectural
significance.
ECONOMIC DEVELOPMENT INCENTIVE PROGRAMS
The application and subsequent use of these programs is at the discretion of the Chanhassen City
Council, and may include additional applications, policies, and procedures.
1) Tax Abatement: The City of Chanhassen is granted the power to utilize tax abatement by
the State of Minnesota. The fundamental purpose of tax abatement is to encourage desirable
development or redevelopment that would not otherwise occur but for the assistance provided
through the tax abatement. The City utilizes “Pay-As-You-Go” Tax Abatement, which relies
on the developer to pay for the up-front project costs with reimbursement from tax
abatement.
2) Tax Increment Financing: The City of Chanhassen is granted the power to utilize tax
increment financing (TIF) by the State of Minnesota. The fundamental purpose of TIF is to
encourage desirable development or redevelopment that would not otherwise occur but for
the assistance provided through TIF. The City utilizes “Pay-As-You-Go” TIF, which relies
on the developer to pay for the up-front project costs with reimbursement from tax increment.
3) MN DEED Programs: There are a variety of programs available through the State of
Minnesota DEED division. They include the Job Creation Fund and Minnesota Investment
Fund, among others. In order for a business to utilize these programs it is typical for MN
DEED to ask for support and cooperation from the city. Chanhassen has worked with MN
DEED in the past on projects and would consider the use of these programs in the future on a
case-by-case basis.
APPLICATION PROCESS
1. The City reserves the right to:
a) Request additional information.
b) Deny any application.
c) Select a third party administrator to assist in the management of the process.
10
3
2. Applicant should retain and be assisted by qualified financial consultants and/or underwriters,
and legal counsel.
3. Construction of the project shall not be commenced until the City has given preliminary approval
to the application for financing. Any advanced planning or construction completed will be done
at the sole risk of the applicant.
4. Applicants should complete the appropriate planning application, and include a plans and/or
narratives that outline the following:
a) The specific request (program, amount)
b) The reasoning and need for assistance
c) Description of the company
d) A concept plan and description of the project
e) The number of jobs created and total compensation (breakdown of wages and benefits)
f) Impact to the tax base
g) Other impacts to the community
h) Traffic demands
i) Infrastructure demands and/or needs
j) Any additional information that would be helpful to staff and City Council
5. Development must be of the highest quality with high quality building materials and landscaping
as agreed between the City and the Developer.
6. If establishing a TIF district, the developer must pay all costs of establishing the district unless
the City agrees to allow costs to come out of the district.
7. All projects must be consistent with Chanhassen’s Comprehensive Plan and any other similar
plan or guide for development of the community.
ADDITIONAL INFORMATION
1. City staff will review the data and make preliminary recommendations to the City Council as to
compliance of the application and proposed project with City objectives, and business subsidy
criteria, and Comp Plan.
2. After evaluation of the formal recommendation, the City Council will consider approval of the
establishment of the Business Subsidy and hold the appropriate hearings.
3. All applications and supporting materials and documents shall become the property of the City.
g:\admin\cp\economic development\business subsidy\business subsidy guidelines - 2018 final.docx
11
Economic Development Commission Item
January 11, 2022
Subject Discuss 2022 Work Plan
Section GENERAL BUSINESS Item No: D.2
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
The Economic Development Commission (EDC) shall discuss goals of the commission, review
progress in meeting the goals and develop a work program for 2022.
BACKGROUND
As an advisory body to the City Council with the responsibility of researching, reviewing, and making
recommendations on issues related to economic development, the Economic Development Commission
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.
DISCUSSION
For 2021, staff had submitted the following work program for the EDC:
2021 WORK PROGRAM
Projects
Staff encouraged the EDC to concentrate their efforts in 2021 on the following projects:
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.
Create a feedback survey for developers and business owners to be used to understand and
improve city interaction with the development and business community.
Investigate a signage idea/plan for the promotion of businesses in the downtown.
Work with the school district and Chanhassen businesses to market job opportunities and support
the creation of local jobs.
City Code
Staff shall submit City Code amendments to the EDC for comments relative to economic development.
12
Educational Opportunities
1. Comprehensive Plan - The city adopted the 2040 Comprehensive Plan on February 10, 2020.
Staff will bring some chapters of the 2040 Comprehensive Plan to the EDC for discussion and
review in conjunction with economic development.
2. Miscellaneous - Staff will provide periodic items to the EDC as the schedule and time permit.
Some items may include housing demands and trends, demographic statistics, mixed-use
development, sustainable development, development trends, redevelopment issues, transportation
projects, senior-friendly cities, etc.
RECOMMENDATION
Staff requests that the EDC discuss and evaluate a potential work program for 2022. At the February
meeting, staff will provide the annual report, which must be submitted to City Council, as well as the
2022 work program. Staff recommends inclusion of the following in the work program for 2022:
1. Develop a strategic plan for economic development for the city.
2. Cooperate and coordinate with Buy Chanhassen and the Southwest Area Chamber of Commerce
on promoting business retention, expansion and recruitment to Chanhassen.
3. Work with Planning Staff to review and recommend City Code amendments relative to
economic development.
4. Review Carver County Community Development Agency, CDA, assistance and resources
available to Chanhassen Businesses.
5. Upon hiring an Economic Development Manager, the EDC will work to increase partnerships
with the business community.
6. Continuing education including housing demand and trends, demographic statistics, mixed-use
development, sustainable development, development trends, redevelopment issues, transportation
projects, senior-friendly cities, etc.
7. Participate in joint meetings/discussion with City Council and other commissions.
ATTACHMENTS
EDC 2020 Goals
13
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
14
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.
15
Economic Development Commission Item
January 11, 2022
Subject 2022 Economic Development Commission Meeting Schedule
Section CORRESPONDENCE DISCUSSION Item No: E.1
Prepared By Bob Generous, Senior Planner File No:
SUMMARY
2022 Meeting Schedule:
Tuesday, January 11, 2022
Tuesday, February 8, 2022
Tuesday, March 8, 2022
Tuesday, April 12, 2022
Tuesday May 10, 2022
Tuesday, June 14, 2022
Tuesday, July 12, 2022
Wednesday, August 10, 2022
Tuesday, September 13, 2022
Tuesday, October 11, 2022
Wednesday, November 9, 2022
Wednesday, December 14, 2022
BACKGROUND
DISCUSSION
The Economic Development Commission normally meets on the second Tuesday of the month.
However, in August, November and December, the EDC will be meeting on the second Wednesday of
the month due to elections in August and November and a conflict with the Park & Recreation
Commission in December.
RECOMMENDATION
ATTACHMENTS
16