5:30 P.M. - WORK SESSION (TRAINING ROOM) 

Chanhassen Community Center Discussion 

The City Council continued its discussion of the Chanhassen Community Center with members of the project team, including BKV Group, RJM Construction and Sports Facilities Companies. The work session followed the council’s June 29 review of the latest budget, design options and project schedule. 

The project team presented a revised base project cost of approximately $80.9 million for the 183,850-square-foot facility. The figure includes construction, land, design and engineering, furniture, fixtures and equipment and a $2.4 million construction contingency. The revised base design also restores the larger second-floor terrace outside the community rooms. 

Council members expressed support for moving forward with a project budget of up to $82.5 million. That amount would include operable partitions in the dance studio and party room, a wood gym floor, an interior connection walkway in Ice Arena 1, a service elevator, a rubber sports surface on the walking track and the higher-end motorized Skyfold partition in the community rooms rather than the Modernfold option. The budget also carries a $575,000 allowance for additional fireproofing at the arena and field house roof structures if it is required through the ongoing code review.  

Finance Director Kelly Grinnell presented an updated financing approach that was central to the council’s willingness to consider a budget above the previously discussed $80 million figure. The proposed funding plan includes approximately $2.5 million in park dedication fees, $40 million in 20-year local option sales tax bonds and taxable Economic Development Authority lease revenue bonds for the remaining amount. By extending the lease revenue bonds from 20 to 30 years, the city can accommodate the higher project cost without increasing the property tax impact previously projected for residents. The plan does not eliminate the property tax contribution anticipated for the center. Rather, it keeps the estimated impact for a $600,000 home at approximately $17 per month.  

Grinnell also reported that the half-percent local sales tax generated more than $3 million during its first year, exceeding projections and potentially allowing the sales tax bonds to be repaid approximately two-and-a-half years early. The financing projection continues to assume approximately $10 million over 30 years from the future sale of the existing Recreation Center, a partnership with a school or hockey organization and naming rights. The $2.5 million awarded through the state bonding bill is also not currently included in the financing plan while staff determines whether the requirements associated with accepting the funding would create additional project costs. 

Council did not direct staff to include the Tier 2 alternates in the current project framework. Those items include a roof over the community room terrace, radiant heating for Ice Arena 1 spectator area, enhanced exterior precast finishes and an entry marquee. The larger terrace itself remains included, but the additional roof over it does not. A second Zamboni and parking entrance monument sign could be considered later, while a geothermal system would require a separate future decision. If the additional roof-structure fireproofing is not required, the project cost would decrease rather than automatically redirecting the money to other alternates. 

Although no formal action was taken during the work session, council members reached a general consensus supporting the $82.5 million project framework. Staff and the project team will return Aug. 10 with a comprehensive project and award recommendation, including proposed subcontractor awards that must be approved at that meeting to preserve the current bids. If approved, subcontract negotiations, site mobilization, a groundbreaking ceremony and initial construction work would begin in August, with substantial completion anticipated in summer 2028. 

Tree Farm and Heritage Tree Ordinance 

The City Council discussed a request from the Earhart family to reconsider how the city’s tree preservation requirements would apply to the tree nursery on their property if the remaining land is developed. Staff explained that the recently adopted Heritage Tree Ordinance establishes additional regulations for trees measuring at least 25 inches in diameter, but that provision does not affect trees actively managed as nursery stock as they would not grow to that size.  A separate ordinance change lowered the threshold for significant trees from 12 inches to 5 inches, meaning trees of that size would need to be inventoried when a subdivision application is submitted and could count toward canopy preservation and replacement requirements if removed.  

Councilmembers discussed whether the city should establish an exemption for certified tree farms. Staff noted that the property’s existing conceptual development plan could be used to identify trees located within future roads or building areas and relocate them to portions of the property expected to remain undisturbed. Staff could also explore a planned unit development if the eventual project presents circumstances warranting flexibility. Councilmembers ultimately agreed that a citywide ordinance amendment was not necessary for this individual property and supported continued communication between staff and the landowner to address the issue through future development planning.  

Recreational Vehicle Storage in Residential Driveways 

The City Council discussed a resident request to allow recreational vehicles to be stored in residential driveways. When the city last reviewed its residential storage regulations, it allowed certain trailers and boats to remain in driveways but did not extend the same allowance to recreational vehicles. Several councilmembers said they did not see a meaningful reason to treat the two categories differently and expressed support for reconsidering the restriction. Councilmembers supported moving the request forward for a more detailed review and potential ordinance amendment. That future discussion will address specific requirements such as vehicle length, seasonal or time restrictions and other standards governing where and how recreational vehicles could be stored.  

Fire Services Task Force 

The City Council supported developing a Fire Services Task Force to help plan for the Chanhassen Fire Department’s future staffing, facilities and financial needs. Mayor Elise Ryan said the city has increasingly discussed those issues during the past year, but the scope and long-term cost require more sustained analysis than can be accomplished through periodic council work sessions. The task force would likely meet monthly and develop short- and long-term recommendations that could later be brought to the full council for more focused discussion and decisions. Councilmembers emphasized the value of involving residents and other outside perspectives, drawing comparisons to the community-based process used for the city’s parks task force. The group would also help participants better understand fire service standards, response expectations and potential alternative service models. Staff will further develop the task force’s scope, membership and meeting structure before bringing a formal proposal back to the council. 

7:00 P.M. CITY COUNCIL MEETING (City Council Chambers) 

Consent Agenda