Chanhassen, MN
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City Council Recap: May 18, 2026
Summary
5:30 P.M. - WORK SESSION (TRAINING ROOM)
2025 Audit Presentation
The City Council received a presentation on the results of the city’s 2025 annual financial audit during its May 18 work session. The audit, conducted by the independent accounting firm Abdo, reviewed the city’s 2025 financial statements and overall financial reporting practices. Annual audits are a routine part of the city’s financial oversight process and are intended to help ensure transparency, accountability and long-term financial sustainability.
Auditors issued the city an “unmodified opinion,” which is the highest level of assurance an organization can receive under generally accepted accounting principles (GAAP), and reported no instances of noncompliance with Minnesota legal requirements. Auditors also noted there were no findings identified during the audit process.
The presentation highlighted several positive financial indicators, including general fund revenues finishing nearly $2 million above budget projections in 2025, while expenditures remained close to budgeted levels. The city also ended the year with its unassigned general fund balance slightly above the City Council’s policy target for reserves.
Auditors additionally reviewed the city’s utility and enterprise funds, noting that recent infrastructure and capital investments have impacted reserve levels in some areas. However, city staff noted that long-term financial planning and utility rate studies project those funds gradually improving over time.
The presentation also included comparisons to peer cities across Minnesota and Carver County. Auditors noted that Chanhassen’s tax rate and day-to-day operating expenses generally remain below average compared to similar communities, while debt-related costs have increased in recent years due to major capital and infrastructure investments.
Development Sketch Plan Review: 1371 Pioneer Trail
The City Council discussed an early development concept for approximately 30 acres of property located generally at 1371 Pioneer Trail in the southwest corner of the Highway 212 and Powers Boulevard intersection. The discussion centered around a potential light industrial development proposed by Opus, which would require future City Council consideration of both a Comprehensive Plan amendment and rezoning request, as the property is currently guided for office-related uses under the city’s 2040 Comprehensive Plan. The work session was intended to provide preliminary feedback on the concept, including site design, land use compatibility and infrastructure considerations such as the potential construction of a future sanitary sewer lift station needed to serve the property.
The conceptual proposal included a roughly 150,000-square-foot building that could accommodate office, light industrial and warehouse uses permitted under the city’s Industrial Office Park (IOP) zoning district. Representatives from Opus and CBRE said they had spent more than a year studying and marketing the site, noting that demand for traditional office space remains limited while interest in industrial and flex industrial space continues to be strong. They also shared that a potential user currently interested in the site is a local food production and distribution company seeking to relocate operations from Minneapolis to Carver County.
Council members generally expressed openness to considering office-industrial uses for the site, particularly given current market conditions and the limited demand for standalone office development. However, several council members also raised concerns about traffic impacts, truck circulation and the visual appearance of the building due to its visibility from Highway 212 and proximity to the future Chanhassen Community Center. Council members emphasized the importance of high-quality architectural design and screening of truck parking and outdoor storage areas.
The discussion also included questions related to the estimated $4 million sanitary sewer lift station needed to support future development in the area. City staff noted the lift station would ultimately serve multiple surrounding properties, but questions remain regarding timing, financing responsibilities and long-term development patterns. Several council members expressed reservations about making major zoning or infrastructure decisions immediately ahead of the city’s upcoming 2050 Comprehensive Plan update process, suggesting that the broader future of the area should be evaluated more holistically as part of that effort. As a result, the proposed project appeared premature.
Guidelines for Public Accuracy Test
The City Council received information regarding preparations for the city’s upcoming Public Accuracy Test (PAT), a required pre-election process used to verify that voting equipment is functioning properly and accurately tabulating ballots ahead of the 2026 primary and general elections. Staff reviewed how the PAT process works, using test ballots designed to confirm machines properly accept, reject and count ballots under different scenarios.
Staff explained that separate PATs will be conducted ahead of both the August primary and November general election, with dates coordinated alongside Carver County. The tests will take place in the City Hall training room and will include all voting equipment used by the city’s six precincts, including assistive voting devices. Election judges and staff compare machine-generated totals against predetermined results to verify accuracy before equipment is approved for election use.
The City Council also reviewed updated public observation guidelines. Members of the public will be allowed to observe the tests from a designated roped-off area but may not interfere with election judges, equipment or ballots. Staff also shared that, unlike in 2024, the public will be allowed to take photos and videos during the 2026 PAT process, and the city additionally plans to video record the testing sessions for transparency purposes. Council members and staff also discussed room setup, election judge comfort, and general election security planning related to the testing process.
7:00 P.M. CITY COUNCIL MEETING (City Council Chambers)
Consent Agenda
The Council unanimously approved the following items on the Consent Agenda. They were:
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Approve City Council Meeting Minutes dated April 27, 2026
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Approve City Council Work Session Meeting Minutes dated April 27, 2026
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Receive Commission on Aging Minutes dated March 20, 2026
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Receive Park and Recreation Commission Minutes dated March 24, 2026
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Receive Economic Development Commission Minutes dated April 14, 2026
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Approve Claims Paid dated May 18, 2026
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Approve an Encroachment Agreement between the City of Chanhassen and the property owner at 1773 Valley Ridge Trail South (Lot 8, Block 3, Bluff Creek Estates 1st Addition
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Approve Professional Services Agreement for completion of the 2050 Comprehensive Plan
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Approve Contract for Collection of Yard Waste Pickup Services
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Approve Continua Proposal For Tables and Chairs For The Civic Campus Park Building
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Public Accuracy Test Guidelines
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2240 Bentz Court Agreement for Grant of Permanent Easement for Public Right-Of-Way, Trail, and Drainage and Utility Purposes
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Resolution 2026-XX: Accept Donation from Kidde
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Resolution 2026-XX: Authorize Stormwater BMP Vegetation Management Services Contract for 2026
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Resolution 2026-XX: Authorize execution of an Aquatic Invasive Species Watercraft Inspection Agreement with Carver County
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Resolution 2026-XX: Accept 2026 Community Events Sponsorship Donations from Area Businesses
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Resolution 2026-XX: Accept a $15,000 Donation from Xfinity
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Resolution 26-XX; DNR License for Highway 5 Watermain
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Ordinance XXX: Amending Chanhassen City Code, Chapter 6 Adjusting the Slow No-Wake Ordinance Elevation on Lake Minnewashta
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Ordinance XXX: Amending Chapter 20 to Add Brew Pubs as a Permitted Use in the IOP Zoning District
National Public Works Week
The City Council recognized National Public Works Week during its May 18 meeting and honored the many Public Works employees who help maintain and support the city’s infrastructure and daily operations. National Public Works Week, sponsored annually by the American Public Works Association, celebrates the professionals who help keep communities running through services related to streets, utilities, parks, engineering, facilities and fleet operations. This year’s theme was “Rooted in Service, Powered by Community.”
Invitation to Memorial Day Ceremony - May 25, 2026
The City Council recognized and promoted the upcoming Memorial Day Ceremony taking place Monday, May 25, in partnership with the Chanhassen American Legion. The annual event honors those who died while serving in the United States military and includes traditional cemetery services at several local cemeteries followed by a community ceremony at the Al Klingelhutz Memorial Pavilion at Lake Ann Park. This year’s ceremony will feature keynote speaker Miki Huntington, a U.S. Army veteran who served for 25 years before transitioning into higher education and professional coaching.
Adopt Ordinance XXX: Amending the 2026 Fee Schedule and Approving Summary Publication of Ordinance
The City Council held a public hearing and adopted amendments to the city’s 2026 fee schedule, including updates related to a new brew pub liquor license category and public rentals at the new City Hall building. The changes followed a request from a local business to establish the new license type and reflected the city’s efforts to begin offering select City Hall and Senior Center spaces for community use.
Staff shared that the city is now prepared to begin offering limited room rentals after completing operational setup and final building work following the move into the new facility last fall. Rentals will generally take place outside of normal business hours and will include onsite staffing support for building access, security and basic assistance during events.
The City Council also discussed general facility use expectations and restrictions for renters, including cleanup responsibilities and limitations on certain decorations and materials within the building.
Resolution #2026-XX, Approve vacating a portion of Right of Way of Hancock Place
The City Council held a public hearing and approved the vacation of the remaining portion of unimproved public right of way associated with Hancock Place in the Red Cedar Point neighborhood. The right of way was originally dedicated as part of the 1913 plat for Red Cedar Point, Lake Minnewashta and had been intended as a public road, though it was never improved or constructed.
City staff explained that other portions of the corridor had already been vacated through prior City Council actions over the years and that the remaining section was no longer needed for transportation purposes. The unused corridor is located along common rear lot lines between nearby residential properties. As part of the vacation process, the adjacent property owners will each receive half of the vacated right of way area.
Staff also noted that drainage and utility easements would remain in place as needed and that the city had received several questions from nearby residents ahead of the public hearing, though no objections to the request had been submitted. Following the public hearing, the City Council approved the resolution vacating the remaining public right of way.
Council Remarks
Mayor Elise Ryan closed the meeting by publicly thanking State Senator Julia Coleman and State Representative Lucy Rehm for helping secure state bonding funding to support the future Chanhassen Community Center. She noted that the funding effort had involved extensive collaboration between the City Council, city staff and the city’s legislative representatives and lobbyists, and said the city appreciated the continued support for the project at the state level.
Mayor Ryan also expressed appreciation for the many local businesses and community partners that support city events and activities throughout the year, including the Fourth of July celebration and other community programs. She noted that Chanhassen benefits from a generous and engaged business community and thanked local sponsors for their ongoing partnership and willingness to invest in community events and initiatives.