City Council Recap
MONDAY, July 14, 2025
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD
5:00 P.M. - WORK SESSION (Fountain Conference Room)
Chanhassen Bluffs Community Center Workshop #3
The City Council continued its ongoing work on the Chanhassen Bluffs Community Center project during a dedicated workshop session. This marked the third formal council workshop focused on the facility since voters supported the project in November 2024. Since then, the city has selected a design team, toured comparable facilities and secured a site at Powers Boulevard and Highway 212. At this meeting, representatives from the project team provided updates on the site layout, proposed floorplans and preliminary cost estimates as the project moves closer to the design phase.
The cost estimates, presented by design partner BKV, came in higher than the originally anticipated budget. BKV shared that aligning the project with the available budget would likely involve reducing square footage and adjusting or removing certain amenities and features, including the restaurant and one of the proposed hockey rinks.
Council members shared reservations about the gap between early cost estimates and the current projections and emphasized their interest in staying true to the original vision and budget supported by voters. While no decisions were made, City Council asked BKV to explore a version of the project that maintains both the approved $80 million budget and the core programming elements.
West 78th Street (East) Clocktower Discussion
The City Council discussed the future of the East Side Clock Tower, located near Colonial Square. Originally constructed in 1988 as part of a broader downtown redevelopment plan, the clock tower has become increasingly costly to maintain, with all four of its clocks currently nonfunctional due to outdated mechanical components. With a new clock tower being built as part of the new City Hall, staff presented this as a timely opportunity to revisit the purpose and viability of maintaining the existing structure.
Parks and Recreation Director Jerry Ruegemer provided a historical overview and outlined several options for the structure’s future. Council reviewed a range of possibilities, including full removal of the tower, artistic reuse of the clock faces, partial or full mechanical restoration or leaving the structure intact while removing or covering nonfunctional components. Cost estimates for various repair or replacement approaches ranged from $12,000 to $68,000.
Council members expressed a general preference to retain the clock tower structure in some form. They acknowledged its visual and historical role in the community but agreed that the clocks themselves may no longer be essential, particularly with a new functional tower nearing completion at City Hall. Council directed Ruegemer to return at a future meeting with refined options for keeping the tower in place while potentially removing or replacing the clock components. Staff may also explore public feedback opportunities, such as a community survey, before final recommendations are made.
Highway 41 Trail Underpass Discussion
The City Council continued its discussion on the proposed Highway 41 pedestrian underpass near West 78th Street, following an initial work session on the topic held May 19, 2025. The underpass is a proposed component of the larger, fully funded Highway 5 Improvement Project but is considered a standalone element requiring a separate city funding commitment. The goal of the underpass is to create a safer, grade-separated pedestrian and bicycle connection across Highway 41 in an area that currently lacks crossing infrastructure.
During the work session, Public Works Director / City Engineer Charlie Howley presented updated concept designs and refined cost estimates, which show the city’s share ranging from $800,000 to $1.1 million, down from a previously estimated $1.25 million. The underpass would consist of a 14' x 10' concrete box culvert designed to accommodate future road expansion and trail connectivity. Project grants have already offset the city’s original share of the Highway 5 trail underpass, meaning this would be Chanhassen’s only financial contribution tied to the larger Highway 5 project.
The council expressed strong support for the trail underpass and directed staff to proceed with preparing a Joint Powers Agreement with Carver County that includes the structure. That agreement is expected to return to the council for formal approval in September 2025.
7:00 P.M. CITY COUNCIL MEETING (City Council Chambers)
The Council unanimously approved the following items on the Consent Agenda. They were:
One resident rose to encourage the council to raise the “no wake” ordinance on Lake Minnewashta from 945.0 to 945.9 and submitted a petition from multiple property owners supporting the change.
Ordinance XXX: Amending Chapter 10 Regulating Short-Term Rentals
The City Council considered an ordinance amending Chapter 10 of the Chanhassen City Code to update regulations around short-term rentals. This discussion followed prior updates made in October 2022, when the city adopted its first ordinance on the topic and in May 2024, when procedures were streamlined to ease the annual renewal process and clarify operating standards. The latest amendment aimed to bring the city's ordinance into alignment with state lodging license requirements and to clarify procedures related to unlicensed rentals and code enforcement.
The proposed changes, presented by city staff, included requiring all short-term rental license applicants to provide an approved Minnesota Department of Health lodging license and reinforced rules around occupancy, parking, and license revocation procedures. The updated ordinance also clarified the city’s authority to take enforcement action and the appeals process available to license holders.
During the meeting, councilmembers voiced strong support for the revisions, stating the updates added helpful clarity for both staff and residents while still allowing flexibility for different types of properties. They requested that one provision be reinstated: a restriction that between 10 p.m. and 7 a.m., no more than the maximum number of overnight guests stipulated in the license may be present on the property. Staff agreed to reinsert the provision into the final ordinance language.
Council asked whether the city currently sends notices—particularly those that could impact licensure—via registered mail to ensure receipt. Staff responded that while this is not the current practice, they have discussed it and will explore the option further at the council's request.
Following discussion, the City Council voted unanimously to adopt the amended ordinance and approved the summary ordinance for publication.
