MONDAY, SEPTEMBER 29, 2025
CHANHASSEN CITY HALL, 7700 MARKET BOULEVARD
11:30 P.M. - WORK SESSION (Lake Susan Room)
At its September 29 work session, the Chanhassen City Council received an in-depth presentation from The Sports Facilities Companies (SFC) on the projected performance and management of the proposed Chanhassen Bluffs Community Center. This was the first dedicated time councilmembers had to engage directly with SFC, which has been working behind the scenes with city staff and the design team on planning and operational analysis.
SFC described its process of blending local market research, participation data and comparisons to similar facilities nationwide. Their analysis was built around three main goals: creating a true community asset that enhances quality of life, ensuring programs and amenities are accessible to residents of all ages and developing a financially sustainable model that limits the need for ongoing city subsidy.
The analysis shows that the center will likely run at a loss in its first couple of years as it gets established, but performance is expected to improve steadily over time. By the third year of operations, however, the facility is projected to break even, moving into positive territory in subsequent years. Over time, revenue growth from memberships, ice and court rentals, food and beverage, and community events is expected to outpace expenses, allowing the center to operate sustainably.
Council also reviewed the potential for the facility to generate broader economic impact. SFC estimates the community center could attract a steady schedule of tournaments, special events and non-sports activities that would bring visitors into Chanhassen. These visitors would spend money on lodging, dining and retail, creating meaningful new revenue for local businesses. At the same time, SFC emphasized that local access will remain the top priority, with the city maintaining full control over scheduling to balance resident use with outside events.
Another key area of discussion was food and beverage service. Earlier plans for a full-service restaurant have shifted to a hybrid model—offering more variety than a snack bar but without the cost and complexity of a sit-down establishment. This approach would still allow for catering at weddings, meetings and other events. Alcohol sales remain a policy decision for the city to make, with SFC prepared to support whatever direction is chosen.
Finally, councilmembers considered the question of management. SFC outlined the advantages of outsourcing daily operations to a professional firm, including cost savings, staff training and support, liability coverage and access to national event booking networks. Under this approach, employees would be hired and managed by SFC but would serve the community as Chanhassen Community Center staff, with the city retaining final authority over budgets, policies and programming decisions.
No formal action was taken, but the session provided valuable context as council and staff continue planning. Future discussions will focus on refining membership options, food and beverage policies, and the structure of facility governance to ensure the community center fulfills its promise as both a local gathering place and a regional destination.
