CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD 
Summary   
5:30 P.M. - WORK SESSION (Fountain Conference Room) 

All councilmembers were in attendance.  

Hwy 7 Corridor Study Update 

The City Council held a work session to hear an update from MnDOT on the ongoing Highway 7 Corridor Study, which focuses on the 18-mile stretch between Hopkins Crossroad and the western Hennepin County line in St. Bonifacius. Prompted by a 2021–2022 road safety audit, the study aims to identify long-term transportation needs and explore improvement options for all users. Councilmembers received an overview of the project’s progress, goals, and risks—particularly the challenge of aligning future improvements with an FY2029 MnDOT pavement project. 

Two leading alternatives for Segment 1 (St. Bonifacius to TH 41) were presented: a roundabout corridor with raised medians and intersection upgrades and an “improved intersections only” approach using a mix of designs like ¾ intersections, signalized RCIs and a Green T (a modified T-intersection that prioritizes mainline traffic flow while still allowing side-road access). Each alternative was evaluated for traffic flow, crash reduction, cost and pedestrian safety. Roundabouts, for example, showed strong safety benefits but raised concerns about travel distance and public acceptance. 

MnDOT is also evaluating options for a continuous bike/pedestrian trail along Segment 1, with a preliminary recommendation to offset the trail from the roadway where feasible. Segment 2 (TH 41 to I-494) focuses on safer pedestrian crossings, including potential grade separations near Minnetonka High School. 

Council feedback will help shape MnDOT’s upcoming implementation plan and final recommendations, expected later this summer following additional public engagement. 

6440 Hazeltine Blvd Development Proposal Discussion 

The City Council held a work session to discuss a preliminary development concept for 6440 Hazeltine Boulevard, where the Headwaters development team is exploring the possibility of a multi-family residential project. This was an informal discussion intended to provide early Council feedback before any formal land use application is submitted. 

The 5.5-acre site is currently zoned Residential Single Family (RSF) but is guided for Residential Medium Density in the city’s 2040 Comprehensive Plan, which supports a net density of 4–8 units per acre. Rezoning would be required, with potential zoning districts including R-4 Mixed Low Density, RLM Residential Low & Medium Density, or R-8 Mixed Medium Density. The developer’s proposed concept includes 44 units, which aligns with the density range supported by the Comp Plan. 

Josh McKinney (MeasureGroup) and Ryan Sailer (Headwaters Development) shared their initial thoughts and ambitions for the site, which is located near Lake Minnewashta and directly across Highway 41 from Minnetonka Middle School West. While no formal action was taken, Council emphasized that traffic flow and access management would need to be a major consideration as the concept moves forward. 
 
Discuss 75,000 grant to Carver County CDA to acquire and rehab 6721 Hopi Road 
 
The City Council discussed a funding request from the Carver County Community Development Agency (CDA) for $75,000 in Local Affordable Housing Aid (LAHA) to support the acquisition and rehabilitation of a single-family home at 6721 Hopi Road. The proposal represents a partnership between the City, Habitat for Humanity, the CDA and private donors to establish Chanhassen’s first Community Land Trust (CLT) home. 

The 1926-built, three-bedroom home would undergo approximately $95,000 in renovations. With all funding sources secured—including $75,000 from the city—the home could be sold to a low- to moderate-income household (earning at or below 80% of the Area Median Income) for $235,000, well below market value. The home would enter the Carver County CLT and remain affordable for at least 99 years through a ground lease.  

This was the first formal presentation of the project to the council. Melodie Bridgeman from the CDA attended to provide additional information and answer questions. Later in the meeting, the Council approved the request as part of its consent agenda. Councilmembers voiced support for this project while also emphasizing the need to consider how future LAHA funds can be used strategically to expand housing affordability across a broader range of neighborhoods in Chanhassen. 
 
Excess ROW at Lyman Blvd and Hwy 101 
 
The City Council received an update from staff regarding a potential acquisition of excess right-of-way (ROW) on the north side of Lyman Boulevard, west of Highway 101. Kraus-Anderson, who is the property owner of the Crossroads development immediately adjacent, has expressed interest in purchasing the excess ROW currently owned by Carver County to support the development of a specialty grocery store and accompanying parking at the Crossroads Shopping Center. Because Carver County can sell the land directly to the city, the process is more efficient if the city acts as the intermediator. 
 
7:00 P.M. CITY COUNCIL MEETING (City Council Chambers) 

Councilmember Haley Schubert was not in attendance. 
 
Moment of Silence in honor of Melissa and Mark Hortman 
 
The City Council began its meeting with a moment of silence in honor of Melissa and Mark Hortman, whose lives were tragically lost in a devastating event on June 14. Mayor Elise Ryan offered condolences on behalf of the city, emphasizing the importance of unity and compassion during such difficult times. 

Consent Agenda  

• The Council unanimously approved the following items on the Consent Agenda. They were: 

• Approve City Council Meeting Minutes dated June 9, 2025 

• Approve City Council Work Session Minutes dated June 9, 2025 

• Receive Economic Development Commission Minutes dated April 8, 2025 

• Approve Claims Paid dated June 23, 2025 

• Fire Station Facility Needs Study 

• Amendment to existing Easement Agreement and Construction License between Chanhassen and the University of Minnesota related to the Crimson Bay Road Improvement project 

• Approve a Massage Therapy Business License for Spalon Montage - New Manager 

• Appointment to the Commission on Aging 

• Approve $75,000 grant to Carver County CDA to acquire and rehab 6721 Hopi Road 

• Award design contract for the 2026 Lake Drive East Rehabilitation Project 

• Resolution 2025-XX: Authorizing Continued Participation in the Office of State Auditor (OSA) Performance Measurement Program 

• Resolution 2025-XX: Accept a $15,000 Donation from Xfinity 

• Resolution 2025-XX: Abandoning condemnation related to the Highway 41 MMSW Roundabout Project 

Invitation to the Annual 4th of July Celebration 
 
The City Council extended an invitation to the community to attend Chanhassen’s 42nd Annual 4th of July Celebration—three days of festivities held July 2–4 at City Center Park and Lake Ann Park. This year’s event, presented in partnership with the Rotary Club of Chanhassen and SouthWest Metro Chamber of Commerce, includes carnival rides, live music, food vendors, fireworks, a street dance and a parade with a new route. The celebration is the city’s largest community event of the year and is supported by numerous sponsors, including Xfinity, Nicolet National Bank and other local businesses. 

Xfinity Sponsorship Recognition 

The City Council publicly recognized and thanked Xfinity for its generous sponsorship of Chanhassen’s 42nd Annual 4th of July Celebration. As a major event sponsor, Xfinity contributed $15,000 to support the Street Dance stage and the community’s widely attended fireworks display, and will also present a new Movie in the Park event on July 1 featuring The Parent Trap. Council acknowledged the significance of this support in helping bring free, high-quality entertainment to thousands of residents and visitors throughout the holiday weekend. 
 
Resolution #2025-XX, Approving the Right-of-Way, and Drainage and Utility Easement Vacations necessary for the new Pleasant View Pointe Plat 

The City Council held a public hearing to consider vacating existing public right-of-way and drainage and utility easements to accommodate the new Pleasant View Pointe development. This action, requested by Rachel Development, is a necessary step to “clean up” the plat by removing outdated easements and right-of-way segments and replacing them with new, properly aligned ones. The item marks a key procedural milestone in the preparation of the site, following appropriate public notice and in compliance with Minnesota law. Following the public hearing, the council unanimously approved a resolution vacating certain public right-of-way and drainage and utility easements within the Pleasant View Pointe plat, contingent upon the simultaneous recording of new, replacement easements as part of the plat. 

Consider Avienda Apartments Preliminary Plat and Site Plan Review (Planning Case 25-08) 

The City Council reviewed a preliminary plat and site plan for the Avienda Apartments project, a proposed 412-unit luxury apartment complex located within the previously approved Avienda Planned Unit Development (PUD). The project covers just over 11 acres and includes two 4-story residential buildings with structured parking, clubhouses, and a wide range of resident amenities. This discussion marked a continuation of the city’s ongoing review of the larger Avienda development, which was originally approved in 2020 and has since undergone multiple revisions. The Planning Commission previously recommended approval of this phase, subject to staff conditions. 

8:00 P.M. - WORK SESSION (Fountain Conference Room) (continued) 

Preliminary 2026 Budget & Levy Discussion #1 

The City Council held a work session to begin its first discussion of the City’s preliminary 2026 budget and property tax levy. This marks the beginning of the annual budgeting process, which will continue through the fall before final adoption in December. No formal action was taken, but staff sought early feedback from Council as departments begin preparing their detailed budget requests.