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06-24-2024 City Council Agenda and PacketA.5:30 P.M. - WORK SESSION Note: Unless otherwise noted, work sessions are held in the Fountain Conference Room in the lower level of City Hall and are open to the public. If the City Council does not complete the work session items in the time allotted, the remaining items will be considered after the regular agenda. A.1 2025 Preliminary Budget and Levy Discussion A.2 Lake Ann Park Preserve Construction Update A.3 PMP and Assessment Policy Follow-Up Discussion A.4 Review Downtown Design Standards and Design Guidelines Planning Studies A.5 Chanhassen Bluffs Community Center A.6 City Council Roundtable A.7 Future Work Session Schedule B.7:00 P.M. - ECONOMIC DEVELOPMENT AUTHORITY B.1 Approve Economic Development Authority Meeting Minutes dated April 15, 2024 B.2 Adopt a Resolution approving Tax Increment Financing (TIF) Private Development contract between the Chanhassen Economic Development Authority and Roers Chanhassen Bennett Apartments Owner LLC, and the Private Development contract between the Chanhassen Economic Development Authority and Roers Chanhassen Harlow Apartments Owner LLC for the development of Chanhassen Market Street Addition. Â Resolution being prepared by the City's TIF attorney and will be added to this case. C.7:00 P.M. - CALL TO ORDER (Pledge of Allegiance) D.PUBLIC ANNOUNCEMENTS AGENDA CHANHASSEN CITY COUNCIL MONDAY, JUNE 24, 2024 CITY COUNCIL CHAMBERS, 7700 MARKET BOULEVARD 1 D.1 Invitation to the Annual 4th of July Celebration D.2 Xfinity Sponsorship Recognition E.CONSENT AGENDA All items listed under the Consent Agenda are considered to be routine by the city council and will be considered as one motion. There will be no separate discussion of these items. If discussion is desired, that item will be removed from the Consent Agenda and considered separately. City council action is based on the staff recommendation for each item. Refer to the council packet for each staff report. E.1 Approve City Council Work Session Minutes dated May 13, 2024 E.2 Approve City Council Work Session Minutes dated June 10, 2024 E.3 Approve City Council Minutes dated June 10, 2024 E.4 Receive Planning Commission Minutes dated May 7, 2024 E.5 Receive Economic Development Commission Minutes dated May 14, 2024 E.6 Receive Environmental Commission Minutes dated May 8, 2024 E.7 Receive Planning Commission Minutes dated June 4, 2024 E.8 Approve Claims Paid dated June 24, 2024 E.9 Economic Development Commission Appointment E.10 Receive First Quarter Economic Development Activity Report E.11 Approve an Encroachment Agreement between City of Chanhassen and Philip Manley E.12 Adopt City Sewer Access Charge (SAC) and Water Access Charge (WAC) Waiver Policy and Credit Program E.13 Adopt Local Housing Incentive Account Deferred Loan Program E.14 Approve Pay Equity Report E.15 Approve a Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District for the public storm water management BMP infrastructure related to the 2024 City Pavement Rehabilitation Project # 24-01. E.16 Approve Temporary Modification of the Licensed Premises to serve Beer in the Hackamore Brewing Company Parking Lot Area E.17 Approve Temporary Event Permit, July 4 Parade, Rotary Club of Chanhassen E.18 Resolution 2024-XX: Authorizing Continued Participation in the Office of State Auditor (OSA) Performance Measurement Program 2 E.19 Resolution 2024-XX: Appoint Election Judges for State Primary and General Elections and Approve Rates of Pay E.20 Resolution 2024-XX: Appoint Data Practices Responsible Authority E.21 Resolution 2024-XX; Call for Public Hearing to Order the Market Boulevard Improvement Project E.22 Resolution 2024-XX: Accept a $8,000 Donation from Xfinity E.23 Resolution 2024-XX: Resolution Providing for the Sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A E.24 Resolution No. 2024-XX: Award Construction Contract for the 2024 Trail Improvement Project E.25 Adopt Ordinance XXX: Amending 2024 Fee Schedule E.26 Adopt Ordinance XXX: Amending the Lot Requirements and Setbacks for the R-8 and R-12 Residential Zoning District E.27 Adopt Ordinance XXX: Amending Conditional Uses in the Rural Residential (RR) Zoning District. F.VISITOR PRESENTATIONS Visitor Presentations requesting a response or action from the City Council must complete and submit the Citizen Action Request Form (see VISITOR GUIDELINES at the end of this agenda). G.PUBLIC HEARINGS G.1 Resolution 2024-XX: Adopt Adjusted Final Assessment Roll for the Chan View Area of the 2024 City Pavement Rehabilitation Project. H.GENERAL BUSINESS I.COUNCIL PRESENTATIONS J.ADMINISTRATIVE PRESENTATIONS K.CORRESPONDENCE DISCUSSION K.1 4th of July Parade Route Letters L.ADJOURNMENT GUIDELINES FOR VISITOR PRESENTATIONS Welcome to the Chanhassen City Council Meeting. In the interest of open communications, the Chanhassen City Council wishes to provide an opportunity for the public to address the City Council. That opportunity is provided at every regular City Council meeting during Visitor Presentations. Anyone seeking a response or action from the City Council following their presentation is 3 Anyone seeking a response or action from the City Council following their presentation is required to complete and submit a Citizen Action Request Form. An online form is available at https://www.chanhassenmn.gov/action or paper forms are available in the city council chambers prior to the meeting. A total of thirty minutes is alloted for Visitor Presentations. Priority is given to Chanhassen residents. An additional thirty minutes may be provided after General Business items are complete at the discretion of the City Council. Anyone indicating a desire to speak during Visitor Presentations will be acknowledged by the Mayor. When called upon to speak, state your name, address, and topic. All remarks shall be addressed to the City Council as a whole, not to any specific member(s) or to any person who is not a member of the City Council. If there are a number of individuals present to speak on the same topic, please designate a spokesperson that can summarize the issue. Limit your comments to five minutes. Additional time may be granted at the discretion of the Mayor. If you have written comments, provide a copy to the Council. Comments may also be emailed to the City Council at council@chanhassenmn.gov. During Visitor Presentations, the Council and staff listen to comments and will not engage in discussion. Council members or the City Manager may ask questions of you in order to gain a thorough understanding of your concern, suggestion or request. Please be aware that disrespectful comments or comments of a personal nature, directed at an individual either by name or inference, will not be allowed. Personnel concerns should be directed to the City Manager. Members of the City Council and some staff members may gather at Tequila Butcher, 590 West 79th Street in Chanhassen immediately after the meeting for a purely social event. All members of the public are welcome. 4 City Council Item June 24, 2024 Item 2025 Preliminary Budget and Levy Discussion File No.Item No: A.1 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Kelly Grinnell, Finance Director Reviewed By Laurie Hokkanen SUGGESTED ACTION Discussion Motion Type N/A Strategic Priority Financial Sustainability SUMMARY Staff has started work on the 2025 budget. At the work session on June 24, staff will review the County Assessor’s report showing property values for taxes payable in 2025 and a variety of items affecting the 2025 budget. Staff will also review current property tax levy projections. The attached memo provides additional information. Staff requests City Council input as department heads submit budget requests and staff begins to prepare draft budgets. BACKGROUND DISCUSSION BUDGET 5 RECOMMENDATION ATTACHMENTS Memo - Prelim 2025 Budget and Levy Discussion 2024-06-24 2025 Budget Calendar.pdf 6 1 Date: June 24, 2024 To: Mayor and Council Members From: Kelly Grinnell, Finance Director Re: Preliminary 2025 Budget & Levy Discussion 2025 Budget Calendar Staff has begun work on the 2025 budget. The attached budget calendar lists key dates for budget items, council work sessions and council meetings. The next council work session to discuss the budget is scheduled for August 12, 2024. The council is required to adopt a preliminary tax levy by September 30 of each year and hold a Truth in Taxation public meeting prior to adopting a final levy and budget before the end of the calendar year. Property Tax Market Values for Pay 2025 One of the key factors affecting property tax rates and individual property owners is property tax values. The Carver County Assessor provided a report on Estimated Market Value (EMV) for the City for property taxes payable in 2025: The overall increase in EMV from 2023 to 2024 is 2.25% or $136.5 million, compared to a 3.98% increase last year. Commercial/Industrial properties showed the largest increase in EMV, with a 5.56% increase over last year. Staff expects a large increase in CI properties for taxes payable in 2026 as well, due to the Audubon and Xcel Energy projects underway. The following chart shows the breakdown of EMV among property types: 7 2 Homestead Market Value Exclusion (HMVE) Increased The 2023 MN State legislature increased the market value exclusion for homeowners. The HMVE decreases property taxes on lower-valued owner-occupied homes. Beginning with taxes payable in 2025, the HMVE exclusion increased from $413,800 to $517,200. The increase in the HMVE will result in an overall decrease in tax capacity for the City and slightly higher property taxes for higher valued homes and commercial/industrial properties. County staff are still working on tax capacity values, so the full impact of the law change is not yet known. 2025 General Fund Budget Finance staff has identified several items that will impact wages and benefits for the 2025 General Fund budget. The current union contract is in effect through 2025. The contract calls for a 3% COLA for union employees, therefore a 3% COLA would be budgeted for all FTEs. Eligible employees will also receive a step increase of 3%. The City is issuing an RFP for health insurance this year (this is required by state statute every five years). Based on claims history and current demographics we expect favorable proposals. We have penciled in a 10% increase and have $30,000 in assigned fund balance if premiums are significantly higher than expected. There is currently a vacant position for a Senior Planner and staff is considering replacing this position with a Facilities Maintenance Technician position. There are several other items that will impact the 2025 General Fund budget including: • Strategic Plan Update - $20,000 • Carver County Sheriff’s Contract – expect 6.3% increase, compared to 12.5% in 2024 and 8.4% in 2023 • Solar Garden rate credits – due to rate change from MN Public Utilities Commission we will likely lose most of our credit, which is about $50,000 among all funds • No election in 2025 – decrease in budget from 2024 of $33,000 • Required municipal contribution to the Fire Relief Association – amount to be determined, but have penciled in $50,000, none was required in 2023 or 2024 • Wildlife population management - $30,000? – may need to delay this program Based on what is currently known, staff is projecting overall expenditures to increase 4-5% over 2024, however department heads will submit formal requests in the next few weeks. Staff does not expect any significant changes in revenues in 2025 compared to 2024. Levy projections from last year showed a 4% increase in the General Fund levy. 8 3 2025 Other Funds The City has several other budgeted funds, including special revenue funds and capital project funds. At this time staff does not expect any significant changes compared to earlier projections for these funds. Staff will be working on updates to the Capital Improvement Plan for 2025-2029. Some of the capital project funds have a property tax levy, but staff does not expect any changes to the levy projections for these funds. The City has three Enterprise (or Utility) Funds: Water, Sewer, and Storm Water. These funds do not have a property tax levy and are operated like a business, with user fees set to cover operating, capital, and debt expenses. Budgets for these funds will be considered in the fall. Property Tax Levy Projections The table below shows levy projections from the December 2023 Truth in Taxation meeting based on the 7.4% increase in 2024 and new levies for City Hall Campus debt: Staff has refined the projections based on new debt service projections for the Civic Campus and with the potential addition of debt for the Chanhassen Bluffs Recreation Center: Staff requests City Council input as department heads submit budget requests and staff begins to prepare draft budgets. 9 2025 Budget Calendar Date Meeting Agenda Items June 24, 2024 Work Session Preliminary Discussions about 2025 Budgets and Levies June 25, 2024 Dept Heads Submit Gov Fund Budget and CIP Requests July 12, 2024 July 15, 2023 City Manager/Dept Head Review of Budget and CIP Requests July 26, 2024 August 12, 2024 Work Session Review Early Draft of 2025 General Fund Budget & Levy September 9, 2024 Work Session & Council Meeting Presentation of Preliminary 2025 Levy and Gov Fund Budgets; 2025-2029 Gov Fund CIP Adopt Preliminary 2025 Levy and Gov Funds Budgets September 23, 2024 Council Meeting May need if Preliminary Levy and Budget not adopted on 9/9/2024 (if needed) September 23, 2024 Dept Heads Submit Utility Fund Budget and CIP Requests October 6, 2024 October 28, 2024 Work Session Presentation of Preliminary 2025 Utility Fund Budgets and 2025-2029 Utility Fund CIP November 18, 2024 Work Session Unresolved Items (if needed) November 25, 2024 Work Session Final Review of Proposed 2025 Levy, Budgets, and CIP for all funds December 9, 2024 Council Meeting Presentation of Proposed 2025 Final Levy, Budgets, and CIP for all funds Hold Truth in Taxation Public Meeting Adopt Resolution Approving Final Levy, budgets, and CIP for all funds Staff Staff Staff 10 City Council Item June 24, 2024 Item Lake Ann Park Preserve Construction Update File No.Item No: A.2 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Jerry Ruegemer, Park and Recreation Director Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The Lake Ann Park Preserve Project has made advances with 90% construction design, drawings, approved permits, ongoing archeology study and boardwalk construction to gain access into the preserve. Staff will present an update regarding the construction status and forecast the project timeline moving forward. BACKGROUND DISCUSSION BUDGET RECOMMENDATION 11 ATTACHMENTS Lake Ann Preserve City Council Work Session Update 12 Lake Ann Park Preserve Construction Update June 24 City Council Work Session 13 14 Bid Package #2 •Includes –Trails, Tree Grubbing, Greenwood Shores Parking Lot Improvements, Stormwater BMPs •Advertised After Archeological Study Reports Finalized Providing Clear Direction Moving Forward 15 Greenwood Shores Parking Lot •8 Parking Spots •3 Filtration Ponds •Public Works Staff Still Have Access To Lift Station 16 Project Communication •Website Project Page Updates •March 18 •April 1 •May 20 •June 10 •June 21 •Postcard Mailer –March 8 •GovDelivery List Subscribers -357 17 18 Boardwalk A •Longest Boardwalk –350 ft •Construction Material Delivered -June 21 •Boardwalk Construction Begins –June 24 •6-8 Weeks To Complete •Built Over Met Council Interceptor 19 Met Council Encroachment Agreement •Met Council/Prince Easement Agreement, May 5, 1989 •Update Easement Agreement, February 22, 1990 •City Takes Ownership -Lake Ann Preserve, 2019 •Encroachment Agreement Necessary To Construct Boardwalk Over Interceptor •Encroachment Agreement Approved By City Council, January 22, 2024 20 Boardwalk B Construction 21 Boardwalk B 22 Boardwalk B 23 Boardwalk C 24 Archeology Findings •SHPO Office Identified Lithic Scattering –1977 •Further Archaeological Field Investigations Needed To Be Completed To Delineate Site Boundary •City Hired The 106 Group (Archaeologist) For Field Study •SHPO Allowed The City To Proceed With Boardwalk Construction. Minimal To No Impact on Site •The 106 Group Finalizing Artifact Analysis. Report complete between June 28 -July 12, delivered to SHPO Office •SHPO has 45 -60 Days To Analyze Report 25 •Field Work Performed April/May •The 106 Group Excavated Every 30-40 yards, For The Proposed Designed Trail •Samples Collected & Artifacts Cataloged •Lab Analysis Performed To Produce Report Submitted to SHPO Office 26 106 Group Field Map 27 Archeology Potential Recommendations •The 106 Group recommendations won’t be final until done analysis/reporting •Agencies need to agree with recommendations prior to proceeding. They will also need to agree if Phase II is recommended. •fieldwork could hypothetically get started prior to the full review of the Phase I report, if necessary •FS-01: This is the site with both lithics and ceramics. The discovery of ceramics will often indicate that a site has the potential to provide additional information. Therefore, this one may get recommended as “potentially eligible,” which would require Phase II if it’s going to be impacted by project work •Analysis may change this recommendation, but for the time being it is safer to assume that FS -01 will be recommended potentially eligible •Avoidance may be a realistic option for this site, which would preclude the need for a Phase II, However, any avoidance plan/design should be restricted to the areas already surveyed •If new plan is designed to avoid the site pushes the new route into unsurveyed areas –a new survey is needed in those areas, which could potentially lead to discovering more sites •FS-02: One isolated find; likely 106 Group will be recommending this as “not potentially eligible” and requiring no further work •FS-03: Identified sites would be difficult to route around it, provided the landscape/wetland restrictions, and because the artifacts, while relatively disperse, included a diverse array of artifact types (i.e., different types of lithic artifacts) •It is unlikely this site is connected to the 21CR0042 (1977 site); however, it’s not very far away from it, and the agencies (SHPO, specifically) might push back on a recommendation of “not potentially eligible” due to the sites’ proximity and similar artifact discovery •Archaeologists are leaning toward this one also being recommended “potentially eligible,” pending analysis, and agency concurrence •Phase II would be recommended for any areas where the project would disturb the site. 28 Conclusion •All Boardwalks -Substantial Completion August 30 •Residents Gain Access At All Entry Points •$250K MN DNR Local Connection Trail -Submit Reimbursement (Fall 2024) •Grant Submitted For Boardwalk A •Archeological Delays Won’t Affect Grant Deadlines •SHPO Report Back August/September •Bid Package #2 Delayed? •Stormwater BMP’s, Trail/Parking Lot Construction Delayed to Spring, 2025? 29 Questions? 30 City Council Item June 24, 2024 Item PMP and Assessment Policy Follow-Up Discussion File No.PW425 Item No: A.3 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION No formal action - discussion only Motion Type N/A Strategic Priority Asset Management SUMMARY This is a follow-up to the discussion at the 5/13/24 City Council Work Session. The topics staff will be presenting on include: Strategies to help property owners with the cost burden What's the plan for the Streets with OCI's less than 50 Consider a flat rate assessment for Mill & Overlay projects BACKGROUND N/A DISCUSSION N/A 31 BUDGET N/A RECOMMENDATION N/A ATTACHMENTS 32 City Council Item June 24, 2024 Item Review Downtown Design Standards and Design Guidelines Planning Studies File No.Item No: A.4 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Eric Maass, Community Development Director Reviewed By Eric Maass SUGGESTED ACTION No formal action suggested. Motion Type N/A Strategic Priority Development & Redevelopment SUMMARY The city contracted with HKGi to develop downtown design standards and guidelines specific to the downtown area of Chanhassen. Currently, the city has design standards for specific use types including office, commercial, multi-family residential, and industrial projects; however, those standards do not respond to the specifics of the downtown area. This project will develop specific standards for all uses within the area defined as downtown. This project is being supported by a Carver County Community Growth Partnership Initiative (CGPI) planning grant. Additional information regarding this project and the process to date can be found on the city's website: Downtown Design Guidelines and Design Standards. BACKGROUND The City Council has reviewed the documents during two previous work sessions and provided feedback which has resulted in refinement of both the Downtown Design Standards and Downtown Design Guidelines documents. The City Council was interested in the Planning Commission holding a public hearing on the proposed documents to gather citizen input as well as input from the Planning 33 Commission itself. The Planning Commission shared general agreement and appreciation for the current draft of both the Downtown Design Standards and Design Guidelines and thought they did a good job in articulating the vision for the downtown area and establishing both standards and guidelines for any future projects to follow. The Planning Commission agreed that improving the pedestrian experience should be a goal of this planning effort and that bump-outs at intersection crossings were a good strategy to further that goal. They also agreed that a bike lane on the north side of West 78th would be advantageous to the downtown and provide another means of traveling to/from/within the downtown area. The Planning Commission was not opposed to on street parking but noted that if on street parking was provided that it should not be metered and it would be most beneficial as short term parking to support businesses along the roadway and for visitors to the future city hall/senior center. Given mixed feedback from the City Council and the Planning Commission regarding on street parking, the proposed sections within the design guidelines provide the long term flexibility if in the future the city decides to move forward with additional on street parking, but at this time the road sections have been revised to eliminate the indication of on street parking between the pedestrian bump-outs at intersections. The area between the bump-outs would have a solid white line to indicate that the area is not a travel lane for cars. While not expected to be, if it became an issue that people were using the area as a travel lane, the city could elect to place large planters in the area between the bump-out's to further articulate that the area is not to be used as a travel lane. Meeting minutes from the June 4th Planning Commission are attached to this case for further reference. DISCUSSION BUDGET RECOMMENDATION No formal recommendation at this time. If the City Council is generally supportive of the Design Standards and Design Guidelines as presented, staff would take both documents back to the Planning Commission for their formal recommendation. Following a formal recommendation from the Planning Commission, both the Design Standards and Design Guidelines would come back to the City Council for formal adoption. ATTACHMENTS Chanhassen Downtown Design Guidelines Chanhassen Downtown Design Standards Planning Commission Meeting Minutes - June 4, 2024 34 DOWNTOWN DESIGN GUIDELINES CITY OF CHANHASSEN, MINNESOTA JUNE 4TH, 2024 35 2 CITY OF CHANHASSEN, MN CONTENTS PROJECT PURPOSE DESIGN, ACCESS, & CONNECTIVITY Develop Downtown Design Guidelines that encourage property owners and developers to design new development that achieves the community’s aspirations and preferred downtown character Leverage best practices from other cities for downtown, mixed use, and pedestrian- oriented design standards/guidelines INTRODUCTION 3 What Are Design Guidelines? 3 SITE DESIGN 4 Overview 4 Goals 4 Design Guidelines 5 BUILDING DESIGN 10 Overview 10 Goals 10 Design Guidelines 11 STREETS 14 Overview 14 Goals 14 Design Guidelines 15 Street Typologies 19 WAYFINDING 29 Overview 29 Potential Sign Locations 31 36 3 DESIGN GUIDELINESDRAFT INTRODUCTION WHAT ARE DESIGN GUIDELINES? • Provide property owners and developers additional guidance in the form of community preferences and best practices, rather than requirements. • Language of design guidelines is “should”, “encourage”, “prefer”. • Focused on guiding development that creates a strong sense of place. • Used alongside the required design standards in the zoning code. • Property owners and developers should review these guidelines prior to submitting a development application and are expected to provide a narrative as part of their development proposal that identifies how the project achieves these guidelines. 37 4 CITY OF CHANHASSEN, MN SITE DESIGN OVERVIEW The site development guidelines articulate the desired development characteristics for private redevelopment projects within the downtown. The guidelines for the placement of parking, either surface or structured, trees/landscaping, site furnishings, lighting, utility and service/delivery/storage areas and on-site stormwater management. The guidelines are not intended to impose a particular style upon new development or construction in Downtown Chanhassen. GOALS • Consider the broader context of the downtown when designing an individual redevelopment site. Thinking contextually about the bigger picture will aid in the transition of the overall downtown during earlier phases of redevelopment. • Respect adjacent properties in order to design the appropriate landscaping, lighting levels, building entry points, and loading and delivery areas. • Ensure site development patterns reflect a unified scale and character that create an identifiable downtown. • Promote the development of a multi-modal downtown with buildings that define and enclose downtown streets and parks/open spaces, create streets with a “sense of place”, reinforce the urban character of the downtown, and encourage pedestrian-oriented activity along the streets and sidewalks. • Promote site development patterns that are oriented to downtown’s public streets, parks and open spaces/plazas. • Encourage convenient, safe and attractive walk/bike connections from building entries and parking facilities to public sidewalk and trail systems, and bike parking/storage facilities. • Managing stormwater effectively is critical to the ecological functions and public safety of the downtown. Well-designed stormwater management approaches can lead to water conservation, groundwater recharge, and reductions in the cost of the City’s stormwater infrastructure and maintenance. • Utilize structured parking to support the necessary densities for redevelopment structured parking must be utilized for mixed-use development. This likely means below grade parking for residential uses, or potential ramp structures lined with residential, commercial, or office uses. The city should pursue a district-wide approach to parking: Design structured parking with the potential to serve both public and private functions. 38 5 DESIGN GUIDELINESDRAFT PARKING 1. Single-use parking spaces should be minimized. 2. Public parking facilities should be easily accessible and identifiable. District signage should be utilized to identify public parking facilities, such as the Southwest Transit parking structure. 3. The presence of structured parking entrances should be minimized so that they do not dominate the street frontage of a building. Possible techniques include: -recessing the entry; -extending portions of the structure over the entrance; -using screening and landscaping; -using the smallest curb cut possible; and -creating a more dominant pedestrian entrance to the automobile entrance in terms of prominence on the streetscape. 4. Above-grade parking structures should fit with the character of surrounding buildings using complementary exterior wall materials, treatments, forms, articulation, fenestration, patterns, and colors. Even though these buildings store automobiles, they should appear to be part of a collection of neighboring buildings along the street. 5. Above-grade parking structures should contain, or be lined by, commercial/retail uses at street level along W 78th and Market Blvd. and by office or residential uses on upper stories. 6. If above-grade parking structures do not contain active uses at street level, landscaping and other screening devices are encouraged to buffer parking structures from pedestrian view. 7. Design parking facilities to minimize impacts of vehicle headlights on adjacent uses. 8. Surface parking lots should have enhanced landscaping, tree plantings, and a strong pedestrian connection to business and resident entries of buildings. DESIGN GUIDELINES 39 6 CITY OF CHANHASSEN, MN TREES/LANDSCAPING 1. Maximize the ratio of planted surfaces to non-planted surfaces to reduce unnecessary hard surface cover wherever possible. 2. Encourage landscaped plazas, courtyards and gardens. 3. Native plant and tree species are encouraged to reduce maintenance and promote water conservation. 4. Encourage landscaping along exterior building walls to provide shade and cooling. ON-SITE STORMWATER MANAGEMENT 1. State of the art techniques should be considered for collecting, filtering, and treating stormwater runoff from development sites whenever feasible. When/ where possible take a regional approach. 2. Design site irrigation facilities with water efficient systems. 3. Utilize native plant material to reduce water demand. 4. Incorporate porous pavers into hard surface areas to increase stormwater infiltration. 5. Encourage the use of green roofs to reduce the amount of stormwater runoff. 6. Promote the harvesting and reuse of stormwater for irrigation and grey water purposes. 7. Potential for additional underground storage. SITE DESIGN 40 7 DESIGN GUIDELINESDRAFT SITE FURNISHINGS 1. Locate site furnishings for ease of use by patrons. Site plans should identify locations with seating, trash receptacles, etc. 2. Site furnishings should be harmonious with the building architecture and compliment the public realm established by the streetscape. LIGHTING 1. Use building lighting only for safe illumination of building entries, service areas, and pedestrian/ vehicle movement areas. 2. Lighting at building entries, service areas, and pedestrian/vehicle movement areas should be limited to low wattage downcast or low cut-off fixtures that may remain on throughout the night. 3. Service area lighting should be confined within the service area boundaries and enclosure walls. No spill-over lighting should occur outside of the service or storage area. Lighting sources should not be visible from the street. 4. Accent lighting should be limited to indirect lighting of specific signage, architectural, and landscape features only; lighting should not exhibit or advertise the buildings itself. Unshielded bulbs or exposed neon lighting should not be used to accentuate building signage, architectural, and landscape features. 5. Consider how overhead string lighting and seasonal lighting can be incorporated to promote placemaking. 41 8 CITY OF CHANHASSEN, MN SERVICE, DELIVERY, AND STORAGE AREAS 1. Locate service, delivery, and storage areas so that views of them from adjacent properties, streets, open spaces, and pathways are minimized. 2. Where feasible, utilize landscape and architectural screening to minimize visual impacts of service, delivery, and storage areas. 3. Use signage to clearly identify service entrances to discourage the use of main building entries for service and delivery areas. SITE DESIGN UTILITIES 1. As streets are reconstructed, existing above ground utilities should be relocated below ground within the public street rights-of-way whenever feasible. 2. Enhance the visual aesthetics of any above ground utility structures with landscaping, fencing, or other approved screening devices. Ensure access for maintenance. 3. Locate above ground utility structures away from major pedestrian and gathering areas, building entrances, windows, and stormwater drainage areas where feasible. 42 9 DESIGN GUIDELINESDRAFT POTENTIAL DESIGN GUIDELINES FOR PUBLIC ART 1. Existing and new spaces, such as parking lots, plazas, and parks, that allow artists and audiences to interact in a participatory, temporary and somewhat unstructured manner should be created within the downtown. Public art events could include festivals, street painting events, concerts, and markets. 2. The creation of signature public art works at gateway sites and other major destinations should be promoted to create visible landmarks. 3. Artists should be engaged in creating unique, customized public realm elements, such as seating, bike racks, wayfinding, tree grates, light fixtures, and transit facilities. 4. Pedestrian-friendly wayfinding should be created as an integral component of the public art initiative to encourage people to move from one area to another within the downtown. 5. Public-private partnerships should be leveraged to create public art that enhances public infrastructure and open spaces, and maximize synergy with developers, both public and private. 6. New technologies, such as Quick Response (QR) codes and geo- locational applications, should be embraced to allow audiences to access information about public art and other events going on in the downtown. 43 10 CITY OF CHANHASSEN, MN BUILDING DESIGN OVERVIEW The following guidelines provide direction on building character, placement of building entries, exterior building materials, awnings/canopies, signs, and sustainability. The guidelines are not intended to impose a particular style upon new development or construction in Downtown Chanhassen. GOALS • Encourage buildings that are human scaled, contribute to downtown’s mix of uses, and create a high-quality pedestrian environment. • New buildings should have an enduring architecture with cohesive features that enhance the unique character of the downtown district. • Creative building design that allows a variety of architectural techniques in order to achieve a complementary mix of downtown buildings with individual styles. • Promote the incorporation of green building strategies and sustainable design elements to reduce energy use and costs. 44 11 DESIGN GUIDELINESDRAFT BUILDING ENTRANCES 1. Entrances should be welcoming to passers-by being architecturally distinct from the rest of the building and serving as a focal point. 2. The use of awnings, recessed entries, porticos, front porches, verandas, and other similar features are encouraged to provide weather protection as well as visual interest to an entrance. 3. Entrances and lobbies should incorporate transparency and lighting to encourage visibility and create a welcoming connection to the street. 4. A majority of entrances on the primary frontage should be close to the same elevation of the sidewalk to provide ease of access to pedestrians. DESIGN GUIDELINES BUILDING CHARACTER 1. Building design should emphasize a human scale at ground level, at entryways, and along street frontages through the creative use of windows, doors, columns, canopies, and awnings or other architectural elements. 2. Building facades should include thoughtful changes in building materials, parapet heights, fenestration, and other elements which create variety in the building façade but still contribute to a cohesive design. 3. Ground floors and lower floors should be designed to have more visual interest and detail than upper floors through elements such as large windows, inset doorways, terraces, vertical piers, landscape walls, art, and other design elements that reinforce a human scale. 4. Encourage the incorporation of functional balconies or upper level terraces in buildings along streets and open spaces to create interest and variety of the building façade as well as put more “eyes on the street”. 45 12 CITY OF CHANHASSEN, MN EXTERIOR BUILDING MATERIALS 1. Architectural innovation is encouraged through the use of both contemporary and traditional materials. 2. Changes in material should generally occur where the wall plane changes, between stories of a multi-story building, or where there is an architectural detail such as a belt course, cornice, parapet, or wall cap. 3. Primary building colors should be muted earth tones. 4. Accent colors should harmonize with, and complement, primary building colors. Use of color accents should be understated or reserved; garish use of color should be avoided. BUILDING DESIGN AWNINGS AND CANOPIES 1. Awnings should project over individual window and door openings but should not extend between window and door openings. 2. Awnings should be mounted on the frame of a window or door opening rather than the wall surrounding the opening. 3. Retractable, open-ended shed awnings, with a front valance or panel but no side panels, are the preferred style. Shed awnings are more transparent, allow increased views into storefront windows, don’t obscure building architectural features, and are visually lighter and simpler in appearance. 4. Awning signs should usually be located on the front valance, so that the signage is visible whether the awning is extended out or retracted against the building’s façade. 5. Canvas, canvas blend, and acrylics that resemble canvas are appropriate materials for awnings and canopies; vinyl, metal, glass and shiny materials are generally not appropriate. 46 13 DESIGN GUIDELINESDRAFT SUSTAINABILITY 1. Buildings should be designed to maximize the use of natural light to reduce overall energy consumption and reduce exposure to artificial lighting which can negatively impact human health. 2. Windows should be non-reflective, provide a high degree of light transmittance, and include operable windows to create opportunities for cross-ventilation and reduction of energy costs. 3. Sustainable features such as green roofs, electric vehicle charging stations, window shading devices, photovoltaic panels are encouraged to reduce the ecological footprint of the development. 4. Flat building roofs should be used for their green roof potential such as community gardens, solar panels, and rainwater harvesting equipment. SIGNS 1. Signs should be placed to fit in with the building’s overall architectural composition and not compete with its architectural features. 2. The scale of a sign should reflect the scale of the building’s façade in terms of width and height, as well as the rhythms and sizes of window and door openings. 3. Sign materials should be compatible with the materials and character of the building façade. 4. Color tones between a sign’s lettering/symbols and background should have sufficient contrast to make the sign clearly legible. Sign colors should complement those of the building’s façade. Projected signage for sidewalk pedestrians 47 14 CITY OF CHANHASSEN, MN OVERVIEW An active street life is critical to successful downtowns. Providing a safe, comfortable, and a uniquely identifiable public realm connects people to the place, brings energy and life to the district and makes a memorable place. Pedestrian oriented streets set the tone for downtown redevelopment and character. The following design guidelines focus on the design of streets and the public realm in the Downtown Mixed Use and Downtown West character areas of downtown Chanhassen. GOALS CREATE A UNIFIED STREETSCAPE DESIGN THROUGHOUT THE DOWNTOWN Landscaped medians and roadside buffers with accent lighting and seasonal lighting, street trees and plantings to provide shade and add to the pedestrian experience, streetscape lighting and banner poles as the defining the streetscape character and rhythm; integrated site furnishings and wayfinding/signage. ENSURE UNIVERSAL DESIGN Continuous, unobstructed sidewalks (ranging from 5’-8’ in width); ADA curb ramps for all users at all intersections; accessible pedestrian crossing signals. PROVIDE EXTENSIVE LANDSCAPING Improved boulevard and median plantings; coordinated utility locations with landscape plans to provide more potential tree planting and landscape planting locations. Promote a healthy, well- maintained urban forest canopy. PROVIDE SPACES FOR PUBLIC LIFE Safe, useable public seating for gathering; landscaping; reclaiming of excess street space for public use including expanded walkways, boulevards, or bump-out islands for pedestrian crossings; space for outdoor cafe and restaurant seating and merchant displays. ENHANCE PEDESTRIAN SAFETY Safe, convenient pedestrian crossings; curb radii and curb bump-outs that slow traffic, shorten crossing distance, and enhance visibility; pedestrian countdown signals and other pedestrian priority signals. DESIGN FOR ACTIVE STREETS AT ALL SEASONS Comfortable environments to enhance the movement of people in the public realm throughout all streets in the downtown area. STREETS 48 15 DESIGN GUIDELINESDRAFT DESIGN GUIDELINES STREET NETWORK AND DESIGN 1. With redevelopment, break down the large existing “superblocks” of development in the downtown between W. 78th Street and the rail line by creating new street connections that reduce the block size, on both the east and west sides of Market Boulevard to create a more pedestrian and walkable district. 2. Build off the existing pattern of development and existing street network and access points along W. 78th Street and Market Boulevard to create a more intuitive and navigable grid pattern for the core of downtown. 3. Create a hierarchy of street types based on roadway design criteria, available right-of-way, and intended adjacent uses to create a multi- functional network of streets and to guide a range of adjacent development types for the district. 4. Recognize existing infrastructure investments and right-of-way corridors and build the new street network to maximize redevelopment potential and to create a new pattern and scale of development in the area. BIKE FACILITIES 1. Provide a multi-use pathway along the north side of West 78th Street through the downtown to connect the downtown to Lake Ann Park and trails to the west and the existing pedestrian bridge over Highway 5 on the east side of downtown. 2. Locate bike racks throughout the district to encourage and facilitate biking as a means of transportation. Bike racks should be placed in groups at convenient, safe, and within well-lit paved areas in the build to zone or public right of way. Bike racks should also be provided in parking garages. 3. Promote development of free bike maintenance stations that provide amenities, such as a tire pump, tire air gauge, tire levers, tools, etc., along major bike routes and at the Civic Campus and SW Transit Station. 4. Provide bike parking/storage facilities at the Civic Campus and SW Transit Station. 49 16 CITY OF CHANHASSEN, MN STREETS INTERSECTION CROSSINGS 1. Minimize the number of vehicle curb cuts on through sidewalks. 2. Provide frequent pedestrian connections throughout the downtown via walks, trails, and pedestrian or shared use streets. 3. Provide curb bump-outs at street intersections, wherever feasible, to shorten crosswalk distances, calm traffic, provide areas for street furnishings/landscaping, and to delineate the limits of on- street parking. 4. Provide clearly marked walk/bike crossings at all street intersections with reflective paint, special paving materials, light signal and/or signage alerting motorists to the walk/bike crossing. 5. Utilize pedestrian-activated countdown crossing lights at key signalized intersections. SIDEWALKS 1. Provide continuous sidewalks on both sides of the street within each street type. 2. Align sidewalks with one another and connect them to key civic and commercial destinations in the downtown and to the surrounding residential neighborhoods. 3. Provide an expanded pedestrian zone to accommodate anticipated pedestrian traffic levels and allow for street furnishings, lighting, plantings, and outdoor restaurant seating on Primary Downtown Roadways. 4. Provide curb bump-outs at street intersections, wherever feasible, to shorten crosswalk distances, calm traffic, provide areas for street furnishings/landscaping, and delineate limits of on-street parking. 5. Provide clearly marked walk/bike crossings at all Primary Roadway intersections with reflective paint, special paving materials, light signal and/or signage alerting motorists to the walk/bike crossings. 6. Utilize pedestrian-activated countdown crossing lights at key signalized intersections. 50 17 DESIGN GUIDELINESDRAFT LANDSCAPING 1. Where medians exist, maintain the medians with landscape plantings and trees with accent lighting and seasonal holiday lighting. 2. Plant street trees at regular intervals appropriate to the root structure and canopy of the tree species chosen. Encouraged to provide a street tree every 20-30 feet. 3. Install similar mix of street tree species and spacing on both sides of the street within a given block. 4. Plant native tree and plant species to reduce maintenance (reduced irrigation, salt tolerance, etc.), and reduce the urban heat island effect. 5. Plant low-maintenance/drought-tolerant plants and trees to reduce irrigation needs; consider allowing exceptions for higher-maintenance materials in areas with high pedestrian traffic and community gathering spaces. 6. Consider trees and plant materials that minimize visual obstruction of business signage facing the street. 7. Consider planters with annual flowering plants to create a welcoming pedestrian environment and contribute to the unique identity of downtown Chanhassen. 8. Prohibit plant materials, fencing, or landscape improvements greater than 18 inches in height within sight lines of any street intersection or driveway. 9. Prohibit artificial plant materials. 51 18 CITY OF CHANHASSEN, MN STREETS LIGHTING 1. Design streetscape lighting to accommodate vehicular traffic but also a comfortable and safe light level for pedestrians. 2. Utilize a similar family of fixtures for the lighting design of all public streets within the district. Variation of pole height, mounting height, and accessories to be dictated by streetscape type and overall lighting level needs. FURNISHINGS 1. Place street furnishings (benches and seating, trash/recycling receptacles, bollards, bike racks, wayfinding kiosks or signage, etc.) at building entry areas, plazas, near intersections, and along the primary roadways in downtown. 2. Utilize a consistent design palette (style, materials, and color) of street furnishings that are visually interesting and reflect the character of the downtown Chanhassen, tie to the Civic Campus design, and provide a strong sense of community identity. 3. Provide street furnishings that enhance the comfort, accessibility, safety, and functionality of the streetscape. 4. Utilize street furnishings that are made of durable materials, easily maintained/repaired, and are locally available, when feasible. 5. Install street light poles that accommodate banners and holiday decorations that will improve the visual character and identity of the street. 52 19 DESIGN GUIDELINESDRAFT STREET TYPOLOGIES The Streetscape Typology Diagram highlights the proposed street network for the downtown. See the following pages for detailed street sections, dimensions, and descriptions of key features for the types listed below. These street sections are intended to express the design intent and key characteristics or features of each street type. As streets are reconstructed or redevelopment begins to take place in the downtown, more detailed design of the streets should occur. 12A E A B C C C C D D D 3 53 20 CITY OF CHANHASSEN, MN STREETS THRU LANE MEDIAN/THRU LANE BUMP-OUT MULTI-USE TRAILBLVD.POTENTIAL WALK 6’6’11’12’18’9’ +/-80’0-15’0-15’ BUILD TO ZONE RIGHT OF WAY BUILD TO ZONE 12’6’ BLVD.THRU LANE 1DOWNTOWN CORE - W 78TH ST(WEST OF LAREDO DR.)80’ R.O.W. 1 DOWNTOWN CORE - W 78TH ST(WEST OF LAREDO DR.)80’ R.O.W. This stretch of West 78th Street through downtown, being the narrowest section, will have a single lane of traffic in each direction. Sidewalks and tree lined boulevards will be on both side of the street with a center median. The north side of the street will have an expanded walkway to allowed for a multi-use trail. DESIGN FEATURES • Sidewalks • Multi-use trail • Median for left turn lane stacking • Single thru lane in each direction • Boulevard trees with structural soils Typical Section Looking West KEY MAP 54 21 DESIGN GUIDELINESDRAFT MEDIAN/THRU LANE MULTI-USE TRAILWALKWALK 15’3’9’12’11’9’14’20’ +/-90’0-15’0-15’ BUILD TO ZONE RIGHT OF WAY BUILD TO ZONE 12’ THRU LANE THRU LANE BUMP-OUTBUMP-OUT BLVD. 2DOWNTOWN CORE - W 78TH ST(BETWEEN LAREDO & MARKET)90’ R.O.W. 2 DOWNTOWN CORE - W 78TH ST(BETWEEN LAREDO & MARKET)90’ R.O.W. This section has a slightly wider right-of-way for West 78th Street with similar characteristics to the 80’ right-of-way section. This area includes an expanded boulevard to the north which allows for more robust landscaping along the road. Typical Section Looking West DESIGN FEATURES • Sidewalk • Multi-use trail • Median for left turn lane stacking • Single thru lane in each direction • Boulevard trees with structural soils KEY MAP 55 22 CITY OF CHANHASSEN, MN STREETS 8’ WALK BLVD.THRU LANE THRU LANE MEDIAN/ TURN LANE THRU LANE BLVD.MULTI-USE TRAIL LANDSCAPE 13’12’12’20’-4”11’9’11’12’15’ +/-110’ RIGHT OF WAY BUILD TO ZONE 0’-15’ BUMP-OUT BUILD TO ZONE 0’-15’ 3DOWNTOWN CORE - W 78TH ST(BETWEEN MARKET & KERBER)110’ R.O.W. 3 DOWNTOWN CORE - W 78TH ST(BETWEEN MARKET & KERBER)110’ R.O.W. As the widest right-of-way on West 78th Street, this section provides expanded boulevards on both sides of the road to allow for more robust landscaping. On the north side of the road, there will be one thru lane. On the south side of the road, there will be two thru lanes. DESIGN FEATURES • Sidewalk • Multi-use trail • Median for left turn lane stacking • Single thru lane (west bound) • Two thru lanes (east bound) • Boulevard trees KEY MAP Typical Section Looking West 56 23 DESIGN GUIDELINESDRAFT 6’5’20’ WALK BLVD.THRU LANE THRU LANE MEDIAN/ TURN LANE THRU LANE BLVD.MULTI-USE TRAILTHRU LANE 9’12’12’20’ +/-100’ 11’11’12’5’7’ BUILD TO ZONE BUILD TO ZONE RIGHT OF WAY 5’-25’5’-25’ LANDSCAPE AREA ADOWNTOWN ENTRY - W 78TH ST(WEST OF KERBER BLVD.)100’ R.O.W. A DOWNTOWN ENTRY - W 78TH ST(WEST OF KERBER BLVD.)100’ R.O.W. The section of West 78th on the west end of downtown, which experiences higher traffic due to destination retailers, as well as parts of Great Plains Boulevard and W. 78th on the east side of downtown, have similar sidewalk, boulevard, and median conditions as the Downtown Core Streets. However, these areas feature two travel lanes in each direction. DESIGN FEATURES • Sidewalk • Multi-use trail • Median for left turn lane stacking • Two thru lanes in each direction • Boulevard trees KEY MAP Typical Section Looking North or West 57 24 CITY OF CHANHASSEN, MN STREETS THRU LANE THRU LANE BLVD.WALKBLVD.WALK 20’7’6’12’12’7’6’ +/-50’ BUILD TO ZONE RIGHT OF WAY BUILD TO ZONE 0’-30’0’-30’ 30’ BCIVIC CAMPUS - MARKET BLVD. & CHAN VIEW50’ R.O.W. B CIVIC CAMPUS - MARKET BLVD. & CHAN VIEW50’ R.O.W. This section of Market Boulevard and Chan View, with the narrowest roadways and right- of-way in downtown, allows for travel lanes in each direction and sidewalks on both sides. The narrow travel lanes create opportunities for expand sidewalks and corresponding boulevards to match these dimensions on other downtown streets. KEY MAP DESIGN FEATURES • Sidewalk on one side • Boulevard • Narrow travel lanes in each direction Typical Section Looking North 58 25 DESIGN GUIDELINESDRAFT WALKPATIO LAWNTHRU LANE TURN LANE THRU LANE BLVD.BLVD.MULTI-USE TRAIL 10’8’5’10’11’12’11’10’8’5’ +/-80’ BUILD TO ZONE RIGHT OF WAY BUILD TO ZONE 10’-30’10’-30’ 20’10’ NEIGHBORHOOD CONNECTOR80’ R.O.W.C NEIGHBORHOOD CONNECTOR80’ R.O.W. Parts of Kerber Boulevard, Laredo Drive, Great Plains Boulevard, and W 78th Street extend into the surrounding neighborhoods. These streets feature single travel lanes in each direction with center-striped turn lanes to facilitate traffic movement. Pedestrians and bicyclists are accommodated with a sidewalk on one side and a multi-use trail on the other. C KEY MAP DESIGN FEATURES • Two travel lanes, one in each direction with a center turn lane • Sidewalk • Multi-use trail • Boulevards Typical Section Looking North or West 59 26 CITY OF CHANHASSEN, MN STREETS THRU LANE THRU LANE BLVD.WALKWALKBLVD. BUILD TO ZONEBUILD TO ZONE RIGHT OF WAY +/- 66’ 11’11’30’9’9’7’6’6’7’10’ 0’-30’0’-30’ BUMP-OUTBUMP-OUT STORMWATER TREATMENT CONNECT STORE FRONTS AND BUILDING ENTRIES TO PUBLIC SIDEWALK TURF DOWNTOWN NEIGHBORHOOD - FUTURE STREETS66’ R.O.W.D DOWNTOWN NEIGHBORHOOD - FUTURE STREETS66’ R.O.W. As redevelopment occurs in the downtown, opportunities exist to breakdown the larger super blocks of development that exist today (for example, the extension of Laredo Street south). New streets will create a smaller, more walkable scale with redevelopment. These streets will have a travel lane in each direction, bump-outs at intersections, and boulevards. D KEY MAP DESIGN FEATURES • Travel lane in each direction • Intersection bump outs • Sidewalk • Boulevard Typical Section 60 27 DESIGN GUIDELINESDRAFT RIGHT-TURN LANE THRU LANE THRU LANE BLVD.MULTI-USE TRAILMEDIANWALKBLVD. 6’15’15’6’9’9’11’14’8’ +/- 85’0-15’0-15’ RIGHT OF WAY BUILD TO ZONEBUILD TO ZONE 12’10’ LEFT-TURN LANE MARKET BOULEVARD85’ R.O.W.E MARKET BOULEVARD85’ R.O.W. Scheduled for reconstruction in 2025, the section of Market Boulevard from Highway 5 north to West 78th will be revamped to include sidewalks, a multi-use trail, single travel lanes in each direction, and dedicated left and right turn lanes. A mini roundabout will be added to facilitate access to existing developments. E KEY MAP DESIGN FEATURES • Sidewalk on the west side, multi- use path on the east side • Median for left turn lane stacking • Single thru lane in each direction • Boulevard trees with opportunities for stormwater treatment within the boulevards • Mini round-a-bout to facilitate development access Section Looking North 61 28 CITY OF CHANHASSEN, MN WAYFINDING OVERVIEW Signage helps announce and celebrate the downtown district and wayfinding helps patrons and visitors navigate the downtown to key civic destinations like the Library, License Center and Post Office. The following represents the desired look and aesthetic for broader wayfinding throughout the downtown. Signage varies in scale from highway-oriented signage located along Highway 5, to gateway monuments, and wayfinding signs that could be located within the boulevard or post mounted throughout the downtown. The signage aesthetics is derived from the Civic Campus architecture and site design and provides continuity throughout the downtown district. SIGN FAMILY 62 29 DESIGN GUIDELINESDRAFT CIVIC CAMPUS SIGNS OVERVIEW Signage helps announce and celebrate the downtown district and wayfinding helps patrons and visitors navigate the downtown to key civic destinations like the Library, License Center and Post Office. The following represents the desired look and aesthetic for broader wayfinding throughout the downtown. Signage varies in scale from highway-oriented signage located along Highway 5, to gateway monuments, and wayfinding signs that could be located within the boulevard or post mounted throughout the downtown. The signage aesthetics is derived from the Civic Campus architecture and site design and provides continuity throughout the downtown district. 63 30 CITY OF CHANHASSEN, MN WAYFINDING SIGN MATERIALITY The following represent ts the intended materiality for the wayfinding signs in downtown. 64 31 DESIGN GUIDELINESDRAFT POTENTIAL SIGN LOCATIONS 65 32 CITY OF CHANHASSEN, MN 66 1 DIVISION 20-XXIII-11 DESIGN STANDARDS FOR CENTRAL BUSINESS DISTRICT Sec 20-____ Purpose These design standards regulate site design and building design to enhance the quality of all new development and redevelopment. These design standards will: a) Promote high-quality site design, including placement of buildings, front yards, off-street parking areas, private usable open space, walk/bike connec�ons, waste storage, and mechanical equipment. b) Promote high-quality building design, including building massing, building facades, parking structure facades, roof design, and exterior building materials. c) Create a unified, harmonious and high-quality visual environment throughout the downtown. d) Foster a dis�nc�ve and posi�ve community image, thereby iden�fying downtown Chanhassen as a special place with a unique iden�ty in the Twin Ci�es Region as a whole. Sec 20-____ Intent The city intends that all development within the downtown should strive toward the highest level of quality in both design and construc�on. The criteria by which new development in the downtown shall be evaluated are as follows: a) Consistency with all provisions of the comprehensive plan, as amended from �me to �me; the surface water protec�on program; all provisions of the zoning ordinance and subdivision ordinance not specifically overridden by the provisions of these design standards; and all other applicable land use regula�ons. b) Preserva�on of the natural condi�ons found on each site to the greatest extent possible, through minimized removal of trees and other vegeta�on and soil, minimized site grading, and applica�on of the prac�ces found in the city's surface water management plan. c) Establishment throughout the downtown of harmonious physical and visual rela�onships among exis�ng, new, and proposed buildings, open spaces, natural terrain, and plant materials and placement with the intent of crea�ng a unique and unified appearance for the downtown. d) Use of appropriate materials, ligh�ng, textures, colors, and architectural and landscape forms to create a unified, high-quality design concept for each site that is compa�ble with adjacent and neighboring structures and func�ons, including but not limited to natural areas, city-owned property, and vacant land subject to future development in accordance with the comprehensive plan. e) Crea�on of unified site designs, each with a sense of internal order, that provide desirable environments for site users and visitors and the community as a whole and that consider all site elements including: the rela�onship of buildings to surrounding landforms; grading; architectural design; building, parking and loading dock orienta�on; building height; use of manmade materials, including paving; site furnishings (ligh�ng, outdoor sea�ng, signage, etc.); landscaping (reten�on of natural vegeta�on, plant selec�on and placement, reten�on and incorpora�on of water features, etc.); and other visible outdoor site elements. f) Crea�on of a suitable balance between the amount and arrangement of open space, landscaping, and view protec�on and the design and func�on of man-made features on the other. Achieving this balance shall take into account screening, buffering, size and orienta�on of 67 2 open spaces, personal and property security, localized wind and solar effects, and protec�on of important public ways. g) Provision of safe and adequate access to and from sites giving ample considera�on to the loca�on and number of access points from public streets, the safety and convenience of merging and turning movements, and traffic management and mi�ga�on. h) Provision of on-site vehicular, bicycling, and pedestrian circula�on by way of interior drives, parking areas, pathways, and walkways adequate to handle an�cipated needs and to safety buffer pedestrians and cyclists from motor vehicles. Ample considera�on shall be given to the width of interior drives, internal traffic movement and flow, separa�on of pedestrian, cycling, automobile; and delivery traffic, and the safe, convenient, and prac�cal arrangement of parking spaces. i) Adequate separa�on and protec�on of each site from adjacent proper�es, through reasonable provisions for surface water drainage, sound and sight buffers, view protec�on, privacy, and other aspects of design that may not be specifically covered by these or other regula�ons but are found to have significant effect on any or all of the proper�es and roadways. Sec 20-____ District Applica�ons a) The design standards shall apply to all development in the Central Business District. The design standards apply with the following excep�ons: i. Internal altera�ons to buildings that affect less than 50 percent of the building's gross floor area and do result in a change to the building height, roof line or footprint. ii. Replacement or repair of exis�ng materials. iii. The standards shall apply only to the building or site elements being developed or altered. A proposal for changes to a building would be required to meet only those standards that pertain to buildings while changes to a parking area would only be required to meet standards for parking areas. b) The Street Typologies diagram establishes the street type designa�on for each downtown street including expansion of the future downtown street network. 68 3 c) The City shall apply the design standards propor�onately to the degree of change proposed. Minor improvements may be made to exis�ng uses without costly upgrades or a complete change to the site. The Community Development Director may waive specific design standards based on the scale of the project. Sec 20-____ Defini�ons a) Build-to-Zone means the area on the lot where all or a por�on of the street-facing building facade must be located, established as a minimum and maximum front yard setback range. b) Occupied Space means an interior building space regularly occupied by the building users. It does not include storage areas, u�lity space, or parking. c) Street Frontage means the building and yard area facing and directly adjacent to a street right- of-way line. d) Street Frontage Coverage means the minimum percentage of the lot line that must have a building façade located within the build-to zone. Sec 20-____ Site Design Standards a) Building Placement and Yard Standards 1) Street frontage coverage: A minimum percentage of all building fronts are required to be placed within a lot’s build-to-zone. To determine compliance with the street frontage coverage requirement, the total length of the building or building por�on(s) located in the build-to-zone is divided by the length of the lot or parcel on which the building is located. The remainder of a building may be placed outside the maximum front setback but shall not be located closer to the street than the minimum front setback. Street Type Downtown Core and Market Blvd Downtown Neighborhood Downtown Entry Neighborhood Connector Minimum 80% 70% 50% 40% Figure 1. Street Frontage Coverage 69 4 2) Front/corner yard areas: i) Front/corner yard areas along streets shall be designed as a unified streetscape that may include but is not limited to sidewalks, plan�ngs, open space, public or private sea�ng areas that are required to be installed and maintained by the building owner or homeowners’ associa�on. ii) Walls, fences, monument signs, ligh�ng, elevated private outdoor spaces, stairs leading to residen�al entries, guardrails, handrails and other similar building and landscape elements are allowed encroachments within the front/corner yard areas. iii) U�li�es, transformers, and telecommunica�ons equipment shall, to the extent feasible, not be located in the front/corner yard and shall be architecturally integrated or screened by landscaping or decora�ve fencing. iv) Awnings, canopies, marquees, signs, shading devices, cornices and ligh�ng are permited encroachments within the public right-of-way and setback areas but must be a minimum of eight (8) feet above sidewalk grade. b) Off-Street Parking and Loading Area Standards 1) Off-street vehicle parking areas: i) For Downtown Core Streets and Downtown Neighborhood Streets, including future downtown street extensions, off-street parking areas shall not be permited between the building and the street. ii) Vehicular entrances and exits to parking areas shall have a maximum linear width of 12 feet if accommoda�ng one direc�on of travel, and a maximum linear width of 24 feet if accommoda�ng both an exit and entrance within the same curb cut. iii) Screening along the edges of off-street parking areas shall be high enough to screen vehicle headlights from adjacent proper�es, streets, and walkways, minimum of three (3) feet high but shall not impact vehicle sight lines. Figure 2. Off-Street Parking 70 5 2) Off-street loading areas: i) All loading areas shall be screened to minimize visibility from all streets and neighboring buildings. Screening shall be provided by architectural elements, landscaping, fencing, or walls that are consistent with the building’s architecture. ii) In the Downtown Mixed Use character area, loading areas shall have exterior ligh�ng to increase safety for vehicular and pedestrian movement. c) Private Usable Open Space Standards 1) Private usable open space: Each development, both residen�al and non-residen�al, shall provide a minimum of 10% of the lot area as private usable open space. Private usable open spaces will not count toward public open space dedica�on requirements. Usable open space means designed outdoor space that is either on the ground floor or in an upper level or building roo�op that is intended for passive or ac�ve recrea�on that is accessible and suited to the needs of the development’s residents, employees, and/or business patrons, and shall generally have the following characteris�cs: i) Func�onal and aesthe�c design that relates to the principal building or buildings, with clear edges, including sea�ng, landscaping, recrea�onal facili�es, sidewalk connec�ons, and other ameni�es; ii) May be designed as courtyards, plazas, picnic areas, swimming pools, play areas, roo�op pa�os/gardens, or trails within natural areas; iii) Compa�ble with or expands upon exis�ng pedestrian connec�ons and public parks or open space; iv) May include both private common areas for use by all residents of that development, as well as a private unit’s open space for exclusive use by that unit’s residents; and v) Does not include driveways, parking areas, steep slopes, or stormwater ponds. d) On-Site Walk/Bike Connec�on Standards 1) Provision of internal site pedestrian and bicycle connec�ons to all exis�ng or planned public sidewalks and trails adjacent to the site. e) Waste Storage Standards 1) Storage of waste containers shall be accommodated inside buildings when feasible. 2) Waste storage is allowed outdoors if adequately screened either through architectural elements or with landscaping, fencing, or walls. The loca�on shall minimize visibility from all streets and neighboring buildings. No waste storage is allowed between the building and the street, nor adjacent to the street. f) Mechanical Equipment Standards 1) To avoid noise and air quality impacts on open space areas, mechanical ducts or vents, with the excep�on of residen�al kitchen and bathroom vents, shall not be located adjacent to areas designated for common courtyards or ac�vity areas. 2) Roo�op mechanical equipment greater than four feet in height or visible from the adjacent public right-of-way shall be screened in an enclosure that also considers views of adjacent buildings. All screening shall be at least of equal height to the mechanical equipment that it screens. 71 6 Sec 20-____ Building Design Standards Figure 3. Building Design a) Building Massing Standards 1) Building Length: Maximum of 250 feet without a major break in the building facade. 2) Low and Upper Floor Stepbacks: Por�ons of the building’s lower and upper floors shall be stepped back from the ground floor façade along street frontages a minimum of 5 feet. Stepbacks shall provide ver�cal ar�cula�on to ground floor commercial spaces and architectural design features and/or provide ver�cal relief for the adjacent pedestrian environment where deemed appropriate by the City. b) Building Façade Standards 1) All buildings shall be constructed to meet the building façade standards in the following table: Building Façade Design Street Type Downtown Core and Market Blvd Downtown Neighborhood Downtown Entry Neighborhood Connector Primary Building Entrance Minimum of one primary entrance per street facade Spacing of Building Entrances Maximum distance between entrances is 75 �. 72 7 Street Façade Ar�cula�on Minimum Every 35 �. Every 35 �. Every 55 �. Every 20 �. Street Façade Ground Floor Transparency Minimum 65% 65% 50% 20% c) Parking Structure Façade Standards 1) Liner uses along street façades: All off-street parking structures that front a public street must be lined with occupied space at the ground floor, at least 18 feet in depth, between the parking area and exterior wall of the building. 2) All other frontages must visually screen the interior from the exterior under dayligh�ng and night ligh�ng condi�ons. d) Roof Design Standards 1) Flat roof only with a decora�ve parapet. e) Exterior Building Materials Standards 1) Exterior building materials are classified as primary, secondary or accent materials and are allowed as follows: Class of Exterior Building Materials Percentage Allowed Primary 50% minimum Secondary 40% maximum Accent 10% maximum Accent materials may include door and window frames, lintels, cornices and other minor elements. 2) The classes of materials consist of the following: Class of Exterior Building Materials Materials Allowed Primary Brick Stone Wood Glass Secondary Stucco or Synthe�c stucco (upper floors only) Decora�ve/textured masonry units Accent Metal Glass block Spandrel glass Prohibited Tinted or mirrored glass 73 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES JUNE 4, 2024 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chair Eric Noyes, Steve Jobe, Perry Schwartz, Ed Goff, Ryan Soller, Jeremy Rosengren, Katie Trevena. MEMBERS ABSENT: None. STAFF PRESENT: Rachel Arsenault, Associate Planner; Rachel Jeske, Planner; Eric Maass, Community Development Director. PUBLIC PRESENT: Bryan Harjes HKGi Vernelle Clayton Manager, Market Square and Colonial Square Heidi Armstrong Resident on Kerber Boulevard Bob Seward 8031 Cheyenne Avenue TJ Hart 8670 Chanhassen Hills Drive Reuben Kelzenberg Resident on Iroquois Street PUBLIC HEARINGS: 1. REVIEW DESIGN STANDARDS FOR THE CENTRAL BUSINESS DISTRICT Community Development Director Eric Maass introduced Bryan Harjes, HKGi, to review the downtown design guidelines and design standards. Mr. Harjes presented an overview of the design standards for the downtown area of Chanhassen. He explained the different design standards for the area defined as downtown. These design standards include landscaping, building materials, and lighting. Mr. Maass highlighted the second requirement of exterior materials. He stated that they wanted standards that provided flexibility for an architectural design that made sense with the building. Mr. Harjes explained the design goals of streets along with the overall design. He detailed the differences between the downtown mixed-use design guidelines and the downtown west guidelines. Mr. Maass commented that the design guidelines provide a framework for private development in Chanhassen. The street guidelines provide standards for how the city will design its streets. 74 Planning Commission Minutes – June 4, 2024 2 There are no plans to reconstruct West 78th Street because of this planning project. The treatment of the intersection of Market Boulevard would adhere to these guidelines. Mr. Harjes presented slides to showcase the existing conditions of West 78th Street. Mr. Maass stated that the city considered the level of service for West 78th Street if the westbound land was dropped to a single lane. Mr. Harjes continued explaining the West 78th Street complete streets design and the 80-foot right of way. Mr. Maass commented that creating a bump out at the intersection would possibly allow the opportunity to create more on-street parking or large planter boxes. Mr. Harjes reviewed information about the various widths of right-of-way in the different areas of downtown. Chairman Noyes asked how future street changes relate to traffic signals or roundabouts. Mr. Maass stated that the specific intersection control would be determined in the feasibility portion of a road project. Mr. Harjes commented that roundabouts need more space to accommodate. There were concerns about additional acquisitions. They considered a smaller roundabout on Market Boulevard and different traffic control measures for other intersections. Commissioner Schwartz asked for the city’s philosophy on controlling traffic in specific intersections. Mr. Maass responded that the city’s goal is to balance the needs of each mode of transportation. The consideration of traffic needs has impacted the discussion between downtown mixed-use and downtown west. Commissioner Schwartz asked if the city planned to install parking meters for on-street parking. Mr. Maass responded that the city had not discussed parking meter installation. Mr. Schwartz asked about Excelsior’s experience installing parking meters downtown, and he commented that there would be increased traffic, but often parking meters annoy people. Mr. Maass stated that the City Council has discussed this project multiple times and parking meters have never been a consideration. Commissioner Goff asked if the multi-use trail was always on the north. Mr. Harjes commented that on West 78th Street, the multi-use would always be on the north side, and on Market Boulevard, it would be on the east side. 75 Planning Commission Minutes – June 4, 2024 3 Mr. Maass displayed a side-by-side image of West 78th Street and Market Boulevard. Commissioner Goff suggested including directions on the figures. Commissioner Soller asked why it was critical to include design guidelines for West 78th Street when any projects would be completed quite a few years in the future Mr. Maass responded that this document is intended to guide development now and into the future. He explained the differences between the design guidelines and the city code. These design guidelines would influence future discussions. Commissioner Soller commented that this is a guide for the future, but engineers ten years from now might not be held to these guidelines. He asked if the document would be evolving and if it could be amended. Mr. Maass answered that the guidelines could be amended through a process that would include Planning Commission review, a public hearing, and City Council approval. Commissioner Schwartz asked if a part of the document would be implemented into the comprehensive plan. Mr. Maass responded that planning studies are often referenced in comprehensive plans. Commissioner Soller stated that structured parking seems to be the most preferred in development. He asked if that guideline would persuade or prevent development. He acknowledged that this was a guideline but would guide the vision for downtown development. Mr. Maass stated that it would provide clarity to prospective developers, and they would know the expectations from the start before investing time, money, or effort into a project. Commissioner Goff asked if a developer went against the guidelines and if they would need a variance. Mr. Maass answered that they would not need a variance, but the guidelines show a preference. This document would be helpful for those looking for financial assistance to make a project viable. Commissioner Schwartz asked if the document had been shared with prospective developers to get their thoughts on the guidelines. Mr. Maass commented that the guidelines were shared with architects since they often design the buildings. He provided an example of revisions that resulted from comments from the architects. Commissioner Trevena asked if there was any differentiation for structured parking for the different types of buildings in the downtown district. 76 Planning Commission Minutes – June 4, 2024 4 Mr. Maass responded that the idea is to limit surface parking as much as possible. If there is surface parking, it is encouraged to be located in the rear or on the side. Commissioner Jobe asked if there was a limit on the size of trucks allowed. Mr. Maass stated that they require fire apparatus accessibility, which accounts for the large truck traffic that would need to access the sites. Commissioner Schwartz asked if they anticipated having indoor access to the building from structured parking. Mr. Maass responded that this would be dependent on the project. He explained that most projects with public structured parking would be on the first floor and would be accessible to the business or the sidewalk. Commissioner Schwartz asked how many levels of structured parking there would be. Mr. Maass answered that this would be dependent on the needs of the project. Commissioner Soller stated that the access from the commercial area to the Central Business District was non-existent. He asked if there was anything in the plans to connect these areas for pedestrians or bicycles. Mr. Maass demonstrated the two crossings over the railroad into downtown. Commissioner Soller commented that to do pedestrian or bicycle crossing, you would have to go all the way to Market Boulevard or Great Plains. He asked whether connectivity to the district was important. Mr. Maass used the map to show where the pedestrian overpass was located and explained how it could create options for bike paths in the future. Commissioner Schwartz expressed concerns about the safety of the pedestrian pathway being next to the bicycle pathway. Mr. Maass responded that there was not enough right-of-way to have two separate trails. He stated that they were trying to accommodate bump-outs, through lanes, and different plants, which did not leave room for two separate pathways. Chairman Noyes opened the public hearing. Vernelle Clayton, who manages Market Square and Colonial Square in Chanhassen, suggested that when promoting the downtown district, it is not just West 78th Street. She requested providing signage for additional streets beside West 78th Street. She stated most individuals drive 77 Planning Commission Minutes – June 4, 2024 5 to the grocery store or appointments. She commented that retail succeeds based on the number of cars that pass by the stores and voiced concerns about limiting traffic downtown. Heidi Armstrong, a resident of Kerber Boulevard, asked what created this initiative to change, as she appreciated the small-town feel of Chanhassen. Ms. Armstrong stated that Chanhassen does not have many problems and voiced concerns about the tax impacts of these large changes. Chairman Noyes summarized the discussion of the meeting, which focused on creating guidelines, not a specific project. Mr. Maass stated that the downtown development guidelines create standards for the Central Business District, and he explained the current guidelines in place in the city. He agreed the downtown is a special place, which prompted the creation of the guidelines so when or if projects come forward, the requirements are clear. Chairman Noyes clarified that there were no specific projects proposed downtown, but these would create outlines for when projects do occur. Bob Seward, 8031 Cheyenne Avenue, asked whether it was accurate that another 500-unit apartment building was being constructed. Mr. Maass explained that there was not a project that was building 500 multi-family homes but clarified that there was a redevelopment project with the Country Inn and Suites that included multi-family housing. Mr. Seward voiced concerns about the traffic in Chanhassen with the redevelopment of additional housing. He believed that there was drag racing occurring often on Highway 5 and that police presence was limited. He expressed concerns that this would continually get worse. TJ Hart, 8670 Chanhassen Hills Drive, provided an overview of positive attributes of the design standards for the Central Business District. He encouraged the potential implementation of reduced lane widths to ten feet for safety standards. He commented that two lanes encourage faster travel and a curb-out in those areas would be more appropriate for the flow of traffic and pedestrian crossing. He stated that the off-street parking mandates in the city code would be difficult for smaller developers or businesses. Reuben Kelzenberg, Iroquois, asked if it was a dead issue for Market Boulevard to line up with Laredo Drive. He stated that it seems surprising that everything must be rebuilt. He encouraged limiting street parking on West 78th Street to allow for easy snowplowing and traffic navigation. Chairman Noyes closed the public hearing. Commissioner Schwartz stated that many residents seem to be surprised about projects. He suggested that the city makes efforts to communicate changes. He encouraged residents to reach out about changes to better understand what was happening. 78 Planning Commission Minutes – June 4, 2024 6 Chairman Noyes commented at a March Planning Commission meeting, they reviewed the different communication types and frequency for projects in the city. Commissioner Trevena explained that the Chanhassen website provides additional information about ongoing projects in the city. She encouraged the citizens to be active. Commissioner Soller voiced support for the future vision and what the guidelines might create. He emphasized that these guidelines are for a long period. These projects are subject to market forces. He stated that these guidelines are to make traffic efficient but asked for additional input about this information. Mr. Maass commented that West 78th Street does not have a complete sidewalk. He clarified that businesses are crucial downtown. He explained the value of allowing for multiple means of transportation downtown. Chairman Noyes stated that it is difficult because these are guidelines for a specific subsection of Chanhassen. It might be appropriate to slow traffic in certain areas of Chanhassen, but not throughout the city. Commissioner Jobe stated that the comment about on-street parking was valid. Commissioner Trevena commented that overall, she is in favor of the guidelines but voiced concern about the structured parking from a developer’s standpoint. She stated that structured parking was expensive to maintain over time. Commissioner Schwartz said that it was a great move for the city to create the guidelines to help establish a vision for the city. He voiced concerns that business owners outside of the Central Business District might be concerned with the money and focus on West 78th Street. He encouraged the city to continue to help other businesses grow and succeed. Chairman Noyes stated that there are no quick solutions but explained the necessity for the long- term plan to continue to develop. Commissioner Goff expressed favor for the plan. He stated that the guidelines were the first step. If the plan does not work, a future planning commission will need to figure out the next steps. Commissioner Soller provided positive feedback about revitalizing downtown in new ways. He stated that other locations should not be neglected with signage. Commissioner Schwartz stated there had been previous discussions of extending the signage to different areas of Chanhassen to create a cohesive welcome to the city. Commissioner Soller stated that residents could submit public comments that could be read if they had additional thoughts to share. 79 Planning Commission Minutes – June 4, 2024 7 2. ORDINANCE XXX: AMENDING LOT REQUIREMENTS AND SETBACKS IN THE R-8 AND R-12 ZONING DISTRICTS Community Development Director Eric Maass presented an overview of the R-8 Zoning District and the R-12 Zoning District. He explained the future land use map from the 2040 Comprehensive Plan. He reviewed the R-8 Zoning District’s proposed standards and current standards. He reviewed the R-12 Zoning District’s proposed standards and current standards. Commissioner Jobe asked about lot cover with the multi-family units. Mr. Maass clarified that they are considering the impervious area in the overall lot. Commissioner Jobe asked about stormwater runoff on these properties. Mr. Maass stated that all these properties need to consider how to manage their stormwater runoff accordingly. Commissioner Schwartz asked if this ordinance would prevent developers from building homes with a zero-foot front setback. Mr. Maass stated that there was a 25-foot setback, which is approximately the size of a car. He stated there could not be a building with a 0-foot setback unless they wanted to pursue a PUD. There could be row homes, but there would need to be a yard. Commissioner Schwartz questioned whether it would allow developers to impact the width of private streets. Mr. Maass stated that private streets are required to be 50 feet wide and would not be changed with this ordinance. Chairman Noyes asked who changes the zoning of a location in Chanhassen and asked how it would be used by the city. Mr. Maass explained that the city is required to update its comprehensive plan every ten years. This determines the land use guidance, which would help guide the zoning. Properties can be rezoned if they align with the land use guidance. There are only a handful of properties eligible. Chairman Noyes asked what the potential for properties to be developed is, and how many residents would be impacted. Mr. Maass stated that city utilities impact which properties can be developed. He provided examples of properties that could be developed for medium density. He commented that the zoning designation would not change for any one property. Chairman Noyes clarified that this ultimately changes the design of the properties. 80 Planning Commission Minutes – June 4, 2024 8 Mr. Maass responded that this would facilitate the option of straight zoning for this type of development. Commissioner Soller asked for clarification regarding the minimum lot area. He asked if it was 1,500 square feet of a minimum lot area per dwelling unit and if the setback would be in addition to this. Mr. Maass explained the minimum lot frontage and lot area. He clarified that individuals could not go below the required lot area or above the maximum lot coverage. He said that the higher- density district would have greater lot coverage as a percentage because of the units being put in the same amount of land. Commissioner Soller asked if today the maximum lot coverage is 35 percent and if there was no increase from 35 to 50 percent, would that still create the need for PUDs. Mr. Maass stated that 35 percent of 1,500 square feet is 525 square feet of impervious lot cover. This would be approximately a small garage. The increase of max lot coverage would allow a reasonable-sized structure on a property. They can average the lot coverage over a development and the HOA-managed green space and stormwater ponds can alleviate the lot cover of the impervious area. Chairman Noyes commented that these developments would have common walls due to the nature of the development. This is where the density argument comes in. Chairman Noyes opened the public hearing. There were no public comments. Chairman Noyes closed the public hearing. Commissioner Jobe moved, Commissioner Schwartz seconded that the Chanhassen Board of Appeals and Adjustments recommends that the City Council adopt the ordinance amending lot requirements and setbacks in the R-8 and R-12 zoning districts. All voted in favor and the motion carried unanimously with a vote of 7 to 0. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED MAY 7, 2024 Commissioner Goff moved, Commissioner Rosengren seconded to approve the Chanhassen Planning Commission summary minutes dated May 7, 2024 as presented. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. CITY COUNCIL ACTION UPDATE: Planning Director Maass updated the Commissioners on recent council actions, noting the construction and site preparation would begin tomorrow. 81 Planning Commission Minutes – June 4, 2024 9 ADJOURNMENT: Commissioner Schwartz moved, Commissioner Goff seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 8:11 p.m. Submitted by Eric Maass Planning Director 82 City Council Item June 24, 2024 Item Chanhassen Bluffs Community Center File No.Item No: A.5 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By SUGGESTED ACTION Continued discussion Motion Type N/A Strategic Priority Development & Redevelopment SUMMARY The City Council will continue discussion of the upcoming referendum for the Chanhassen Bluffs Community Center. Specific discussion points include: Review Project Website Discuss Ballot Language BACKGROUND DISCUSSION BUDGET 83 RECOMMENDATION ATTACHMENTS 84 City Council Item June 24, 2024 Item City Council Roundtable File No.Item No: A.6 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION None Motion Type N/A Strategic Priority N/A SUMMARY The quarterly roundtable is a time for the City Council to discuss items of interest, propose new items for review, and ask general questions of staff/each other. Items with interest from at least two Council Members may be scheduled for research by staff, future work sessions, or other action as appropriate. BACKGROUND DISCUSSION Items submitted for possible discussion. The City Council can choose to discuss some or all items and may discuss items that are not listed. Items should generally have the support of at least two council members to continue discussion and/or 85 have staff research. Citizen Action Requests See attached. BUDGET RECOMMENDATION ATTACHMENTS Roundtable Process Overview Citizen Action Request 86 CHANHASSEN CITY COUNCIL Roundtable Overviewand Guidelines The quarterly roundtable is scheduled time for the City Council to discuss items of interest, propose new items for review, and ask general questions of staff/each other. The roundtable is designed to fill in the gaps between the annual Strategic Plan updates. Staff will provide a one-year historical summary of the Citizen Action Request Forms received in the packet for each roundtable. Timing: Quarterly, at a work session. Procedure: Submit items for consideration and publication in the council packet by noon on the Wednesday prior to the meeting. Be prepared to give a brief overview of proposed items at the work session. Actions: The City Council should determine the next steps, using the following menu of options: 1. Do nothing at this time 2. Park for discussion during the Strategic Plan update in January 3. Request staff prepare an issue paper (requires two votes of support) 4. Refer to a commission for further consideration (requires two votes of support) 5. Schedule a city council work session (requires three votes of support) CITY OF CHANHASSEN A Community For Life. 87 88 City Council Item June 24, 2024 Item Future Work Session Schedule File No.Item No: A.7 Agenda Section 5:30 P.M. - WORK SESSION Prepared By Laurie Hokkanen, City Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The City Council is tentatively scheduled to hold the following work sessions: July 8 City Council meeting canceled July 22 Chanhassen Bluffs Community Center ballot language Wildlife Management Plans update August 12, 2024 Review Early Draft of 2025 General Fund Budget & Levy 89 August 26, 2024 September 9, 2024 Presentation of Preliminary 2025 Levy and Gov Fund Budgets; 2025-2029 Gov Fund CIP Pending items: Police and Fire Staffing Levels Mental Health presentation from CCSO Playground material and color selection for Civic Campus BACKGROUND Staff or the City Council may suggest topics for work sessions. Dates are tentative until the meeting agenda is published. Work sessions are typically held at 5:30 pm in conjunction with the regular City Council meeting, but may be scheduled for other times as needed. DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 90 City Council Item June 24, 2024 Item Approve Economic Development Authority Meeting Minutes dated April 15, 2024 File No.Item No: B.1 Agenda Section 7:00 P.M. - ECONOMIC DEVELOPMENT AUTHORITY Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen Economic Development Authority approves the meeting minutes dated April 15, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION 91 ATTACHMENTS EDA Minutes dated April 15, 2024 92 CHANHASSEN CITY COUNCIL ECONOMIC DEVELOPMENT AUTHORITY MEETING MINUTES APRIL 15, 2024 Mayor Ryan called the meeting to order at 9:40 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, Councilman von Oven, Councilman McDonald, Councilman Kimber. COUNCIL MEMBERS ABSENT: None. STAFF PRESENT: Laurie Hokkanen, City Manager; Eric Maass, Community Development Director; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Parks and Recreation Director; Andrea McDowell-Poehler, City Attorney. PUBLIC PRESENT: None. 1. Approve Economic Development Authority Meeting Minutes dated March 11, 2024 Councilwoman Schubert moved, Councilman Kimber seconded to approve the Economic Development Authority Meeting Minutes dated March 11, 2024. All voted in favor and the motion carried unanimously with a vote of 5 to 0. 2. Resolution 2024-01 EDA: Adopt Modification to the Redevelopment Plan for the Chanhassen Redevelopment Project Area and Tax Increment Financing District No. 13 Councilman McDonald moved, Councilman von Oven seconded that the Economic Development Authority adopt a resolution approving a modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area and approve the Tax Increment Financing Plan for Tax Increment Financing District No. 13. Four voted in favor, and the motion carried with a vote of 4 to 1. Councilwoman Schubert voted nay. ADJOURNMENT: Councilwoman Schubert moved, Councilman McDonald seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 5 to 0. The Economic Development Authority meeting was adjourned at 9:43 p.m. Submitted by Laurie Hokkanen City Manager 93 City Council Item June 24, 2024 Item Adopt a Resolution approving Tax Increment Financing (TIF) Private Development contract between the Chanhassen Economic Development Authority and Roers Chanhassen Bennett Apartments Owner LLC, and the Private Development contract between the Chanhassen Economic Development Authority and Roers Chanhassen Harlow Apartments Owner LLC for the development of Chanhassen Market Street Addition. Resolution being prepared by the City's TIF attorney and will be added to this case. File No.Planning Case File 24-01 Item No: B.2 Agenda Section 7:00 P.M. - ECONOMIC DEVELOPMENT AUTHORITY Prepared By Eric Maass, Community Development Director Reviewed By Laurie Hokkanen SUGGESTED ACTION Motion to adopt the resolution approving the Chanhassen Economic Development Authority entering into two contracts for Tax Increment Financing assistance for the Market Street Addition redevelopment. Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY The attached private development contracts establish the terms related to Tax Increment Financing (TIF) to be provided in support of the redevelopment of the Chanhassen Cinema and Country Inn & Suites properties into a vertical mixed-use development that consists of two buildings which total 310 market-rate apartments and approximately 14,880 square feet of leasable commercial space. Each 94 building will have separate ownership entities which necessitates the individual private development contracts. Because TIF utilizes future property tax revenue to repay the TIF financing it is necessary that each building have its own redevelopment contract. BACKGROUND The City Council approved the preliminary plat and site plan for the redevelopment of the Chanhassen Cinema and Country Inn & Suites properties. The City Council and the Economic Development Authority (EDA) approved a Tax Increment Financing (TIF) plan associated with this redevelopment. The next step in the redevelopment process related to TIF is for the EDA to approve a contract for private development between the EDA and the developer. A later step will also include the City Council approving the project's Final Plat and regular development contract. Since the City Council's approval of the preliminary plat and site plan, city staff and the city's TIF financial and legal consultants have been negotiating the terms of the Redevelopment Contract with the developer, consistent with what was presented throughout the approval process. While each building is contained within its own TIF contract, each contract stipulates that tax increment financing payments will not be provided for one building if the other building has not at a minimum began construction of the foundation for the other building. Both buildings are required to begin construction by December 31, 2024 and complete construction by December 31, 2026. Following adoption of TIF contracts for private development, the next step in the development process would be for the city to approve the final plat and development contract for the proposed project. The final plat and development contract are standard elements of a development project and are not unique to this proposed redevelopment. Those are anticipated to go before the City Council in August. DISCUSSION Through the entitlement process, the City Council expressed that the following should be included in the TIF contracts for private development. Each of the below is included in the contracts proposed for approval. TIF Priorities 1. Fair labor laws - Construction of the project shall comply with fair labor laws. 2. Permitted Use Restriction - During the term of the redevelopment contract, neither a standalone liquor store nor a standalone tobacco or cannabis business shall be permitted to operate on the property. A restaurant, brewery, or distillery do not apply. 3. All Sewer Access Charges (SAC) and Water Access Charges (WAC) paid by developer - During the term of the redevelopment contract, payment of all SAC and WAC charges associated with residential and business operations within the development shall be paid for by the Developer 4. Lookback provision in the event of a property sale - If the project is sold prior to the expiration of the TIF payments, then there shall be a lookback provision included so that the city can review the financial specifics of that sale to determine if the terms of the sale provided an adequate Internal Rate of Return (IRR) such that the TIF payments are no longer necessary. 5. Laredo Drive Extension (West Building Contract) - If the city acquires the necessary interest in the land currently owned by Kraus Anderson that would be necessary for the second half of the Laredo Drive extension, then Roers would be responsible for constructing the full extent of Laredo Drive. The draft redevelopment agreement gives the city up to December 31, 2025, to acquire the necessary right of way. If the city does so, then the Laredo Drive South extension 95 would be required to be built by the Developer per the terms of the redevelopment contract. Estimated $400,000 in city right-of-way acquisition costs. Those funds would be recouped by the city through TIF on the front end of the term of TIF assistance. Estimated $1,100,000 in additional construction and design costs for the second half of the Laredo Drive. In the event that the city acquires the necessary additional right of way, then the Developer would construct the southern half of Laredo Drive. If that were to occur, the redevelopment contract is structured such that the EDA would remit up to 95% of the generated TIF of the West Building back to the developer to offset the increased cost associated with designing and building the second half of Laredo Drive. The agreement stipulates that the TIF amount increase would be up to but the lesser amount of $1,100,000 or the actual reasonable amount it costs to design and build the southern extension of Laredo Drive to Market Street. Each of the above is currently included in the Private Development Contract between the Developer and the city's EDA. BUDGET RECOMMENDATION Staff recommends that the EDA approve the private development contracts as proposed. ATTACHMENTS Redevelopment Contract (West Building & Laredo Drive) Redevelopment Contract (East Building) EDA resolution approving both redevelopment contracts Presentation 96 CH135-65-956439.v3 Execution Copy CONTRACT FOR PRIVATE DEVELOPMENT By and Between THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY and ROERS CHANHASSEN HARLOW APARTMENTS OWNER LLC This document drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 97 i CH135-65-956439.v3 TABLE OF CONTENTS PAGE PREAMBLE ....................................................................................................................................1 ARTICLE I Definitions Section 1.1. Definitions................................................................................................................2 Section 1.2. Exhibits ...................................................................................................................5 Section 1.3. Rules of Interpretation ............................................................................................5 ARTICLE II Representations and Warranties Section 2.1. Representations by the EDA ....................................................................................6 Section 2.2. Representations and Warranties by the Developer ..................................................6 ARTICLE III Acquisition of Development Property; Public Assistance Section 3.1. Acquisition of Development Property .....................................................................8 Section 3.2. Issuance of Pay-As-You-Go Note ...........................................................................8 Section 3.3. Conditions Precedent to Issuance of the Note .........................................................8 Section 3.4. Records ....................................................................................................................9 Section 3.5. Lookback Provisions and Reduction of Note ..........................................................9 Section 3.6. Business Subsidy ...................................................................................................12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements .............................................................12 Section 4.2. Preliminary Plans and Construction Plans .............................................................12 Section 4.3. Commencement and Completion of Construction .................................................13 Section 4.4. Certificate of Completion ......................................................................................13 Section 4.5. Compliance with Labor Laws ................................................................................14 Section 4.6. Completion of Second Building.............................................................................15 ARTICLE V Insurance Section 5.1. Insurance ................................................................................................................15 Section 5.2. Evidence of Insurance ...........................................................................................15 98 ii CH135-65-956439.v3 ARTICLE VI Payment of Taxes; Assessment Agreement; Use of Tax Increment Section 6.1. Taxes ......................................................................................................................16 Section 6.2. Assessment Agreement ..........................................................................................17 Section 6.3. Suspension or Reduction of Payment on Note ......................................................17 Section 6.4. Right to Collect Delinquent Taxes and Special Assessments ................................18 Section 6.5. Use of Tax Increment.............................................................................................18 ARTICLE VII Restrictions on Sale of Minimum Improvements; Termination of Agreement Section 7.1. Prohibition Against Sale of Minimum Improvements ...........................................18 Section 7.2. Termination of Agreement .....................................................................................19 ARTICLE VIII Events of Default Section 8.1. Events of Default Defined .....................................................................................19 Section 8.2. Remedies on Default ..............................................................................................20 Section 8.3. Remedies after Certificate of Completion .............................................................20 Section 8.4. No Remedy Exclusive............................................................................................21 Section 8.5. No Additional Waiver Implied by One Waiver .....................................................21 Section 8.6. Acceptance of Third-Party Cure ............................................................................21 ARTICLE IX Additional Provisions Section 9.1. Conflict of Interests; Representatives Not Individually Liable .............................21 Section 9.2. Equal Employment Opportunity ............................................................................21 Section 9.3. Restrictions on Use ................................................................................................22 Section 9.4. Notices and Demands ............................................................................................22 Section 9.5. Counterparts ...........................................................................................................22 Section 9.6. Disclaimer of Relationships ...................................................................................22 Section 9.7. Amendment ............................................................................................................23 Section 9.8. Recording; Agreement Runs with the Land ...........................................................23 Section 9.9. Release and Indemnification Covenants ................................................................23 Section 9.10. Titles of Articles and Sections ...............................................................................23 Section 9.11. Governing Law; Venue ..........................................................................................23 Section 9.12. Fees and Charges ...................................................................................................23 TESTIMONIUM............................................................................................................................24 SIGNATURES ......................................................................................................................... 24-25 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY EXHIBIT B LIST OF PRELIMINARY PLANS EXHIBIT C FORM OF CERTIFICATE OF COMPLETION EXHIBIT D FORM OF AUTHORIZING RESOLUTION WITH NOTE 99 iii CH135-65-956439.v3 EXHIBIT E FORM OF INVESTMENT LETTER EXHIBIT F PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS EXHIBIT G FORM OF ASSESSMENT AGREEMENT 100 1 CH135-65-956439.v3 CONTRACT FOR PRIVATE DEVELOPMENT This Contract for Private Development (the “Agreement”) is made this _____ day of _____________, 2024, by and between the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, having its principal office at 7700 Market Boulevard, Chanhassen, Minnesota 55317 (the “Chanhassen Economic Development Authority” or the “EDA”), and Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company, having its principal office at Two Carlson Parkway North, Suite 400, Plymouth, Minnesota 55447 (the “Developer”). WITNESSETH: WHEREAS, the City of Chanhassen (the “City”) and the EDA previously established the Downtown Chanhassen Redevelopment Project Area and adopted a Redevelopment Plan to encourage development and redevelopment in a portion of the community; and WHEREAS, the EDA finds that it is in the public interest, helpful for the tax base and beneficial for the health, safety and welfare of the community as a whole to promote mixed use development in the community in locations where it is compatible with surrounding land uses; and WHEREAS, the EDA finds that, due to market conditions which exist today and are likely to persist for the foreseeable future, the private sector alone is not able to accomplish construction of mixed use developments and, therefore, such will not occur without public intervention; and WHEREAS, in order to foster the redevelopment described above, the EDA and the City intend to modify the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area to more fully implement the goals and objectives thereof, all pursuant to Minnesota Statutes, sections 469.001 through 469.047; and WHEREAS, the EDA and the City also intend to establish Tax Increment Financing District No. 13, a renewal and renovation district, within the Downtown Chanhassen Redevelopment Project Area and adopt a tax increment financing plan related thereto, all pursuant to Minnesota Statutes, sections 469.174 through 469.1799; and WHEREAS, the Developer has proposed to develop the property located at or approximately at 575 West 78th Street, Chanhassen, Minnesota 55317 with one five story building including approximately 126 multifamily rental housing units, 3,029 gross square feet of commercial space, 68 structured parking stalls, and 63 surface parking stalls, all as more fully described herein; and WHEREAS, the EDA and the City believe is in the vital and best interests of Chanhassen and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements for which the Downtown Chanhassen Redevelopment Project Area and Tax Increment Financing District No. 13 were or will be established. 101 2 CH135-65-956439.v3 NOW, THEREFORE, in consideration of the covenants and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement the following terms shall have the meanings given below unless a different meaning clearly appears from the context: “Administrative Costs” means the administrative expenses incurred by the EDA regarding the TIF District as defined in section 469.174, subd. 14 of the TIF Act. “Affiliate” means a corporation, partnership, joint venture, association, business trust or similar entity organized under the laws of the United States of America or a state thereof which is directly controlled by or under common control with the Developer or any other Affiliate. For purposes of this definition, control means the power to direct management and policies through the ownership of at least a majority of its voting securities or the right to designate or elect at least a majority of the members of its governing body by contract or otherwise. “Agreement” means this Agreement, as the same may be from time to time modified, amended, or supplemented. “Assessment Agreement” means an agreement in the general form attached hereto as Exhibit G establishing a Minimum Market Value for the Development Property and Minimum Improvements. “Assessor” means the Carver County assessor. “Authorizing Resolution” means the resolution, in substantially the form attached hereto as Exhibit D, which authorizes the issuance of the Note by the EDA Executive Director upon satisfaction of the conditions precedent specified in Section 3.3 of this Agreement. “Available Tax Increment” means 95 percent of the Tax Increment paid to the EDA by the County with respect to the Development Property and the Minimum Improvements, subject to adjustment as provided in section 4.6 of this Agreement. “Business Subsidy Act” means Minnesota Statutes, sections 116J.993 through 116J.995, as amended. “Certificate of Completion” means the certificate, in substantially the form attached hereto as Exhibit C, which will be provided to the Developer pursuant to Article IV of this Agreement. “City” means the city of Chanhassen, a municipal corporation under the laws of Minnesota. 102 3 CH135-65-956439.v3 “City Approvals” means, collectively, the Development Contract and any other land use approvals required by the City prior to constructing the Minimum Improvements. “Construction Plans” means the final plans for construction of the Minimum Improvements which shall be submitted by the Developer pursuant to section 4.2 of this Agreement. “County” means Carver County, Minnesota. “Developer” means Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company. “Development Contract” means the Chanhassen Market Street Addition Development Contract between the City and the Developer and the developer of the Second Building which entitles the Minimum Improvements and the Second Building. “Development Property” means the property generally located at 575 West 78th Street, Chanhassen, Minnesota 55317 and is legally described in Exhibit A attached hereto. “Economic Development Authorities Act” or “EDA Act” means Minnesota Statutes, sections 469.090 through 469.108, as amended. “Economic Development Authority” or “EDA” means the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota. “Event of Default” means an action by the Developer or the EDA listed in Article VIII of this Agreement. “Final Payment Date” means the earliest of (i) February 1, 2042; (ii) the date the principal of the Note has been paid in full; or (iii) the date this Agreement or the Note is terminated or cancelled in accordance with the terms of this Agreement. “Housing and Redevelopment Authorities Act” or “HRA Act” means Minnesota Statutes, sections 469.001 through 469.047, as amended. “Material Change” means a change in the Construction Plans which would reasonably be expected to adversely affect the generation of tax increment attributable to the Minimum Improvements. “Maturity Date” means the date the Note has been paid in full or terminated, whichever is earlier. “Minimum Improvements” means a mixed use development of one five story building including approximately 126 multifamily rental housing units, 3,029 gross square feet of commercial space, 68 structured parking stalls, and 63 surface parking stalls. After completion of the Minimum Improvements, the term shall mean the Development Property as improved by the Minimum Improvements. 103 4 CH135-65-956439.v3 “Minimum Market Value” means a minimum market value of the Development Property and Minimum Improvements of $36,971,000 as of January 2, 2026 for taxes payable beginning in 2027. “Note” means the Tax Increment Revenue Note, in substantially the form set forth in the Authorizing Resolution, to be delivered by the EDA to the Developer to reimburse the Developer for the Qualifying Costs pursuant to Article III of this Agreement. “Payment Date” means August 1, 2026 and each February 1 and August 1 through February 1, 2042. (If the Note is issued after August 1, 2026, the initial payment date shall be the next subsequent February 1 or August 1 after the issuance date.) “Preliminary Plans” means the plans of the Minimum Improvements referenced in Exhibit B attached hereto. “Public Assistance” means the financial assistance to be offered by the EDA to the Developer through issuance of the Note. “Qualifying Costs” means the cost of demolition of existing improvements, earthwork, grading, foundations and footings, site preparation, landscaping and site improvements, utility costs, structured and surface parking improvements and other qualifying expenditures made by the Developer related to completion of the Minimum Improvements which the EDA intends to partially reimburse through the Note. “Redevelopment Plan” means the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area, which was modified most recently on March 15, 2024. “Redevelopment Project” or “Project” means the Downtown Chanhassen Redevelopment Project. “Sale” means any conveyance of fee simple title in and to the Minimum Improvements or the Development Property, as more fully defined in Article VII of this Agreement. “Second Building” means the building to be constructed by a related developer on the property located at 591 West 78th Street, Chanhassen, Minnesota 55317 but which is not part of the Minimum Improvements. “State” means the state of Minnesota. “Substantial Completion” means completion of the Minimum Improvements to a degree allowing the issuance of a certificate of occupancy by the City’s building official. “Tax Increment” means the tax increment, as that term is defined in Minnesota Statutes, section 469.174, subd. 25, which is paid to the EDA by the County with respect to the Minimum Improvements and the Development Property. 104 5 CH135-65-956439.v3 “Tax Increment Financing Act” or “TIF Act” means Minnesota Statutes, sections 469.174 through 469.1799, as amended. “Tax Increment Financing District” or “TIF District” means Tax Increment Financing District No. 13, a renewal and renovation district. “Tax Increment Financing Plan” or “TIF Plan” means the tax increment plan for Tax Increment Financing District No. 13 which was approved by the EDA and the City on March 11, 2024. “Tax Official” means the Assessor, County auditor, County or state board of equalization, the commissioners of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. “Termination Date” means the date Tax Increment Financing District No. 13 terminates, which date is the earliest of: (i) the date all of the EDA’s financial obligations with regard to the TIF District have been satisfied; (ii) the date that this Agreement and the Note are terminated by the EDA for any reason; or (iii) payment of all amounts owed under the Note. “Unavoidable Delays” means delays which are the direct result of adverse weather conditions; strikes or other labor troubles; fire or other casualty to the Minimum Improvements; litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays; or, except those of the EDA or the City reasonably contemplated by this Agreement, any acts or omissions of any federal, State or local governmental unit which directly result in delays in construction of the Minimum Improvements; default or unanticipated delay by the EDA or the City under this Agreement; or any other cause beyond the reasonable control of a party. Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part of this Agreement: Exhibit A. Legal Description of Development Property Exhibit B. List of Preliminary Plans Exhibit C. Form of Certificate of Completion Exhibit D. Form of Authorizing Resolution with Note Exhibit E. Form of Investment Letter Exhibit F. Proforma, Lookback and Total Development Costs Exhibit G. Form of Assessment Agreement Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of Minnesota. (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than any particular section or subdivision hereof. 105 6 CH135-65-956439.v3 (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II Representations and Warranties Section 2.1. Representations by the EDA. The EDA makes the following representations as the basis for the undertaking on its part herein contained: (a) The EDA is an economic development authority duly organized and existing under the EDA Act and also having the powers of a housing and redevelopment authority under the HRA Act. The EDA has the authority to enter into this Agreement and carry out its obligations hereunder. (b) The EDA has approved execution of this Agreement. The individuals executing this Agreement and related agreements and documents on behalf of the EDA have the authority to do so and to bind the EDA by their actions. (c) The Downtown Chanhassen Redevelopment Project is a redevelopment project within the meaning of the HRA Act and was created, adopted and approved in accordance with the HRA Act. (d) TIF District No. 13 is a renewal and renovation district within the meaning of the TIF Act and was created, adopted and approved in accordance with the TIF Act. (e) There are no previous agreements to which the EDA is a party pertaining to the Development Property which would preclude the parties from entering into this Agreement or which would impede the fulfillment of the terms and conditions of this Agreement. (f) The activities of the EDA pursuant to this Agreement are undertaken pursuant to the modified Redevelopment Plan and the TIF Plan and are for the purpose of redevelopment of the Development Property with a housing and commercial mixed-use project. (g) The EDA will act in a timely manner to consider all approvals required under this Agreement and will cooperate with the Developer in seeking consideration of approvals which must be granted by the City or other public entities. Section 2.2. Representations and Warranties by the Developer. The Developer makes the following representations and warranties as the basis for the undertaking on its part herein contained: 106 7 CH135-65-956439.v3 (a) The Developer is a limited liability company validly existing under the laws of the state of Delaware. The Developer has the authority to enter into this Agreement and carry out its obligations hereunder. (b) The persons executing this Agreement and related agreements and documents on behalf of the Developer have the authority to do so and to bind the Developer by their actions. (c) The Developer has entered into a purchase agreement to acquire the Development Property(or has been assigned the interest of Roers Acquisitions LLC, a Minnesota limited liability company and an affiliate under common ownership and control with the Developer, a purchaser with respect to a purchase agreement to acquire the Development Property) and anticipates closing on the acquisition of the Development Property by December 31, 2024. (d) The Developer will construct the Minimum Improvements in substantial accordance with the terms of this Agreement, the Redevelopment Plan, the TIF Plan, the Construction Plans and all local, State and federal laws and regulations, including, but not limited to, environmental, zoning, building code and public health laws and regulations. (e) The Developer will apply for and use all reasonable efforts to obtain, in a timely manner, all required permits, licenses and approvals from the City, and will meet, in a timely manner, the requirements of all applicable local, State and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed or used for their intended purpose. (f) The Developer has analyzed the economics of the cost of demolition of existing improvements, earthwork, grading, foundations and footings, site preparation, landscaping and site improvements, utility costs, structured and surface parking improvements and construction of the Minimum Improvements and concluded that, absent the Public Assistance to be offered under this Agreement, it would not undertake this project. (g) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate organizational documents or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 107 8 CH135-65-956439.v3 ARTICLE III Acquisition of Development Property; Public Assistance Section 3.1. Acquisition of Development Property. Subject to Unavoidable Delays, the Developer agrees to acquire the Development Property in fee by December 31, 2024. The EDA makes no representations to the Developer regarding the suitability of the Development Property for the use and purpose intended by the Developer. Section 3.2. Issuance of Pay-As-You-Go Note. (a) In consideration of the Developer incurring the Qualifying Costs while constructing the Minimum Improvements, the EDA will issue to the Developer the Note in an aggregate principal amount not to exceed $2,911,000 in substantially the form set forth in the Authorizing Resolution attached hereto as Exhibit D. The EDA and the Developer agree that the consideration from the Developer for the purchase of the Note will consist of the Developer’s payment of the Qualifying Costs which are eligible for reimbursement with Tax Increment and which are incurred by the Developer in at least the principal amount of the Note. The Authorizing Resolution will authorize delivery of the Note by the EDA Executive Director upon satisfaction by the Developer of all the conditions precedent specified in section 3.3 of this Agreement. (b) The Developer understands and acknowledges that the EDA makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the Note will be sufficient to pay the Note. Any estimates of Tax Increment prepared by the EDA or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the EDA and are not intended as representations on which the Developer may rely. Section 3.3. Conditions Precedent to Issuance of the Note. Notwithstanding anything in this Agreement to the contrary, the EDA Executive Director is authorized to issue the Note to the Developer only after all of the following conditions precedent have been satisfied: (a) The Developer has acquired the Development Property in fee; (b) The Developer has executed this Agreement and it has been recorded against the Development Property; (c) The Assessment Agreement has been fully executed and recorded against the Development Property; (d) The Developer has completed the Minimum Improvements and the EDA has issued the Certificate of Completion; (e) The Developer has submitted evidence, including paid receipts and lien waivers, it has incurred and paid for the Qualifying Costs in an amount not less than the principal amount of the Note; 108 9 CH135-65-956439.v3 (f) The Developer has submitted the Investment Letter in the general form attached hereto as Exhibit E; (g) The Developer has submitted evidence satisfactory to the EDA to comply with section 3.5(c); (h) The Developer has made the certification required by Section 4.5 regarding proper payments having been made to all contractors, subcontractors and project laborers; (i) Construction of the Second Building has begun as required by Section 4.7 of this Agreement; (j) The EDA has adopted the Authorizing Resolution; and (k) There has been no Event of Default on the part of the Developer which has not been cured. Section 3.4. Records. The EDA and its representatives will have the right at all reasonable times after reasonable notice to inspect, examine and copy invoices paid by the Developer and/or its general contractor relating to the Minimum Improvements and the Qualifying Costs for which the Developer will be reimbursed under the Note. Section 3.5. Lookback Provisions and Reduction of Note. (a) The Public Assistance offered by the EDA to the Developer under this Agreement is based on certain assumptions regarding likely performance of the Minimum Improvements including operating revenues, expenses and development costs of construction. The EDA and the Developer agree that the actual financial performance of the Minimum Improvements will be reviewed at the times described in this section 3.5, and that the Note may be adjusted accordingly. The Developer shall provide the EDA and its municipal advisor (the “Consultant”) with the Pro Forma Financial Statements showing a target Yield on Cost Average Annual Return of 7.0%. (b) For the purposes of this section 3.5, the following terms have the following meanings: 1. “Calculation Date” means either (A) 90 days after the date of Stabilization or (B) at least 30 days prior to refinancing or Sale of the Minimum Improvements. 2. “Yield on Cost” means NOI divided by the Total Development Costs less any grants, calculated as set forth in the sample lookback calculation attached hereto as Exhibit F. 3. “Yield on Cost Average Annual Return” means the average of each annual Yield on Cost beginning at the time that the Certificate of Occupancy is issued and ending on the Termination Date, as set forth in the sample lookback calculation attached hereto as Exhibit F. 109 10 CH135-65-956439.v3 4. “Net Operating Income” or “NOI” means total annual income and other project- derived annual revenue, including payments under the Note, less Operating Expenses, which exclude debt service payments. For purposes of the Yield on Cost Average Annual Return calculation on the Calculation Date, (i) revenue for periods prior to the Calculation Date shall be based upon actual occupancy; (ii) revenue for periods after the Calculation Date shall be based on 95% occupancy and inflated by 3.0% annually, and (iii) Operating Expenses for periods after the Calculation Date, shall be inflated by 3.0% annually. 5. “Operating Expenses” means reasonable and customary expenses actually incurred in operating the Minimum Improvements and any other expenses actually incurred by the Developer pursuant to its obligations under this Agreement, determined in the same manner as shown in the Pro Forma Financial Statement, which excludes expenses after debt service, and includes administrative, payroll, marketing, insurance, property management fees, utilities, maintenance, deposits to commercially reasonable capital replacement reserves and payment of real estate taxes, but subject to final review and acceptance by the Consultant. 6. “Pro Forma Financial Statement” means the cash flow pro forma model financial statement projecting future returns, a summary of which is attached to this Agreement as Exhibit F. 7. “Stabilization” means the date corresponding to two years after the date of completion, as evidenced by the EDA’s issuance of a Certificate of Completion. 8. “Total Development Costs” means the total expenditures to complete the Minimum Improvements inclusive of land acquisition, hard construction costs, soft costs and financing costs as approved by Developer’s senior construction debt lender. 9. “Cash Flow” means NOI less debt service (principal and interest) with respect to the loans encumbering the Minimum Improvements. 10. “IRR” means the internal rate of return for the Minimum Improvements, where the IRR is calculated as the annualized return of the annual Cash Flow and net Sale proceeds over the applicable period on Developer’s actual utilization of equity for Total Development Costs. (c) Lookback at Completion of Construction: After completion of the Minimum Improvements but prior to issuance of the Note, the Developer agrees to submit evidence of its actual Total Development Costs to the EDA for comparison with the estimated Total Development Costs listed on Exhibit F. If the actual Total Development Costs are less than the estimated Total Development Costs, the Note will be reduced such that projected NOI over the term of the Note does not exceed a 7.0% Yield on Cost Average Annual Return. The Note will not be issued until the EDA has compared actual with estimated Total Development Costs as described herein and adjusted the principal amount of the Note, if necessary (d) Lookback on Stabilization: Upon Stabilization, the Developer shall deliver to the EDA and Consultant, at a minimum: (i) the Developer’s actual financial statement, in the same 110 11 CH135-65-956439.v3 form as the Pro Forma Financial Statement submitted to the EDA pursuant to clause (b) 6 above and showing NOI, and such other financial information as the Consultant shall reasonably require, and (ii) evidence, satisfactory to the EDA, of its actual Total Development Costs. 1. The Yield on Cost Average Annual Return shall be calculated by the Consultant based on the financial statement submitted to the EDA pursuant to clause (d) above (in the manner the Consultant determines is consistent with the sample lookback calculation attached as Exhibit F, as approved by the EDA). 2. If the Yield on Cost Average Annual Return does not exceed 7.0% over the term of the Note, the Note will not be revised for Lookback on Stabilization. 3. If the Consultant determines, based on such review, that the Yield on Cost Average Annual Return over the term of the Note exceeds 7.0% (to be calculated in a manner comparable to the sample attached as Exhibit F), then the principal balance of the Note will be reduced as determined by the Consultant below: (A) First, by determining the period over which the Note needs to be outstanding to achieve a 7.0% Yield on Cost Average Annual Return over the term of the Note based on the Consultant’s calculation of the Yield on Cost Average Annual Return. (B) Second, by determining the present value of actual or projected (with respect to future payments) bi-annual Note payments over the life of the Note through the year determined in clause (A) using the interest rate on the Note as the present value discount rate. (C) Third, by determining the amount equal to 50% of the difference between the original principal amount of the Note and the present value number calculated in clause (B). (D) Finally, the new principal amount of the Note will then be determined by adding the amounts in clauses (B) and (C) and rounding to the nearest $1,000 (the “Revised Note Principal Amount”). (E) Such Revised Note Principal Amount will be effective upon delivery to the Developer of a written notice stating the Revised Note Principal Amount as determined by the Consultant in accordance with this section 3.5, accompanied by the Consultant’s report. The Developer shall, thereupon, deliver the Note in exchange for a new Note in the Revised Note Principal Amount. (e) Lookback Upon Sale or Refinancing: Regardless of whether Stabilization has occurred, if the Developer sells to an entity which is not an Affiliate or refinances the Minimum Improvements (provided, however, the placement of permanent debt on the Minimum Improvements will not constitute a refinance giving rise to the review as described in this subsection (e)) during the term of the Note, the Developer agrees to provide to the Consultant the Pro Forma Financial Statements for the period from the date of the Certificate of Occupancy 111 12 CH135-65-956439.v3 through such anticipated Sale or refinance date (provided that the Developer and the EDA agree that the calculation will occur prior to the actual refinancing). 1. For a refinancing, if the Consultant determines, based on such review, that the NOI exceeds a Yield on Cost Average Annual Return of 7.0% after adjusting the Total Development Costs for the receipt of any net refinancing proceeds, then the Note shall be reduced by 50% of the excess amount of such returns, including a reduction to $0.00, if applicable. Such reduction will be effective upon delivery to Developer of a written notice stating the amount of such excess amount as determined by the EDA in accordance with this subsection (e), accompanied by the Consultant’s report. 2. For a Sale, if the Consultant determines, based on such review, that the actual Cash Flows and net Sale proceeds realized by the Developer upon Sale will exceed a IRR of 16.0%, then the Note shall be reduced by 50% of the excess amount of such returns, including a reduction to $0.00, if applicable. Such reduction will be effective upon delivery to Developer of a written notice stating the amount of such excess amount as determined by the EDA in accordance with this subsection (e), accompanied by the Consultant’s report. Section 3.6. Business Subsidy. The Public Assistance offered to the Developer under this Agreement is not a business subsidy under the Business Subsidy Act because it qualifies for the exceptions under section 116J.993, subd. 3(7) for housing and subd. 3(17) regarding redevelopment. ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance with the Preliminary Plans and the Construction Plans. The Developer acknowledges that, in addition to the requirements of this Agreement, construction of the Minimum Improvements will necessitate compliance with the City Approvals and possibly approvals by other governmental agencies. To the extent such approvals have not already been obtained, the Developer agrees to submit in a timely manner all applications for and pursue to their conclusion all other approvals needed prior to constructing the Minimum Improvements. Section 4.2. Preliminary Plans and Construction Plans. (a) The Developer has submitted and the EDA has approved the Preliminary Plans listed in Exhibit B attached hereto. Prior to beginning construction on the Minimum Improvements, the Developer shall submit dated Construction Plans to the EDA. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in substantial conformity with the Preliminary Plans and this Agreement. The EDA will approve the Construction Plans if they (1) are consistent with the Preliminary Plans; (2) conform to all applicable federal, State and local laws, ordinances, rules and regulations; (3) are adequate to provide for the construction of the Minimum Improvements; (4) conform to the State building code; and (5) if there has occurred no uncured Event of Default on the part of the Developer. Except as otherwise set forth herein, no approval by the EDA shall 112 13 CH135-65-956439.v3 relieve the Developer of the obligation to comply with the terms of this Agreement and the terms of all applicable federal, State and local laws, ordinances, rules and regulations in the construction of the Minimum Improvements. Except as otherwise set forth herein, no approval by the EDA shall constitute a waiver of an Event of Default. The EDA shall use good faith efforts to review the Construction Plans and either approve or reject them in writing within 15 business days after receipt. Any rejection, in whole or in part, shall set forth in detail the reasons for rejection. (b) If the Developer desires to make any Material Change in the Construction Plans after approval, the Developer shall submit the proposed change to the EDA for its approval. If the proposed change is consistent with the Preliminary Plans or is otherwise acceptable to the EDA and meets all other requirements of section 4.2(a) above, the EDA shall approve the proposed change. Such change in the Construction Plans shall be deemed approved by the EDA unless rejected within the required 15 business day period, in whole or in part, by written notice by the EDA to the Developer, setting forth in detail the reasons for rejection. (c) Through the Termination Date, all sewer access charges (“SAC”) and water access charges (“WAC”) made by the City regarding the Minimum Improvements or commercial tenant improvements shall be paid by the Developer. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by no later than December 31, 2024. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans. The Developer shall make such reports to the EDA regarding construction of the Minimum Improvements as the EDA deems necessary or helpful in order to monitor progress on construction of the Minimum Improvements. Subject to Unavoidable Delays, the Developer shall have achieved Substantial Completion of all of the Minimum Improvements by no later than December 31, 2026. Section 4.4. Certificate of Completion. (a) After Substantial Completion of the Minimum Improvements in accordance with the Construction Plans and at the written request of the Developer, the EDA will, within 20 days thereafter, furnish the Developer with an appropriate Certificate of Completion so certifying in the form of Exhibit C attached hereto. Such Certificate of Completion by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of the Developer to construct the Minimum Improvements and the dates for the beginning and completion thereof. If requested by the Developer, the EDA will issue a separate Certificate of Completion for each of the two buildings constituting the Minimum Improvements. (b) The Certificate of Completion shall be in such form set forth in Exhibit C and as will enable it to be recorded in the proper County office for the recordation of deeds and other instruments pertaining to the Development Property. If the EDA shall refuse to provide a Certificate of Completion in accordance with the provisions of this section 4.4, the EDA shall promptly notify Developer within the same 20 day period following receipt of request by the Developer for the Certificate of Completion, and such notification from the EDA shall include a written statement, indicating in adequate detail in what respects the Developer has failed to 113 14 CH135-65-956439.v3 complete the relevant portion of the Minimum Improvements in accordance with the Construction Plans and what measures or acts will be necessary, in the opinion of the EDA, for the Developer to take or perform in order to obtain such certification. If the EDA fails to issue such a written statement within such 20-day period, the EDA shall be deemed to have waived its right to do so and shall be deemed to have issued a Certificate of Completion to the Developer. The Developer shall have 60 days following receipt of the EDA’s written response to cure or agree to terms with the EDA regarding issues to be resolved prior to the Developer obtaining a Certification of Completion from the EDA. Section 4.5. Compliance with Labor Laws. (a) The Developer shall not use any disqualified contractors or permit the use of any disqualified subcontractors listed on the Minnesota State “Suspended/Debarred Vendor Detailed Information” website. The Developer shall and shall require all contractors and subcontractors to comply with all applicable federal, state, and local labor laws. (b) The Developer shall and shall require all contractors and subcontractors to fully and completely comply with all otherwise applicable federal, state and local labor and employment laws, including, without limitation, those relating to wage and hour requirements, if any such laws are applicable. The Developer shall maintain or ensure access to all documentation necessary to establish compliance with the foregoing applicable laws, if any, and shall allow the EDA or its designee reasonable access to such data. (c) The Developer shall require its prime contractor to report any wage claims that are filed with the Minnesota Department of Labor and Industry (the “DLI”) or adverse determinations of wage theft or payroll fraud against such prime contractor arising from the Minimum Improvements, and shall require that its prime contractor require its subcontractors to report any wage claims that are filed with the DLI or adverse determinations of wage theft or payroll fraud against such subcontractors arising from the Minimum Improvements. The Developer shall promptly notify the EDA of any wage claims filed with DLI or adverse determinations of wage theft or payroll fraud against the prime contractor or subcontractor arising from the Minimum Improvements, to the extent that the Developer obtains actual knowledge of such claims or adverse determinations. The Developer shall require its prime contractor to provide a list to the Developer and the EDA of all entities contracted by the prime contractor performing work on the Minimum Improvements that are required to register through the DLI’s Contractor Registration Program (the “Contractor List”). The Contractor List shall be provided to the Developer and EDA within 90 days after the commencement of construction of the Minimum Improvements and updated and shared every 90 days until the completion of the Minimum Improvements. (d) If a third party files a claim with the DLI involving wage theft or payroll fraud regarding any contractor or subcontractor doing work on the Minimum Improvements, the Developer shall fully cooperate with DLI. (e) The Developer shall certify to the EDA that, to the best of the Developer’s knowledge , proper payments to all contractors, subcontractors and project laborers have been made prior to the issuance of a Certificate of Completion and as a condition precedent to issuance of the TIF Note, provided, however, that in the event the Developer disputes a lien, the Developer 114 15 CH135-65-956439.v3 may bond over or establish an escrow account to protect against the lien on terms reasonably acceptable to the EDA. (f) The Developer acknowledges that failure to substantially comply with this Section 4.5 will, after the expiration of all applicable notice and cure periods, be an Event of Default and could result in non-issuance of the TIF Note, or, if the TIF Note has already been issued, delaying, reducing and/or terminating TIF Note payments. Section 4.6 Completion of Second Building. The Second Building is intended to be constructed by a related developer on a site adjacent to the Development Property. While not part of the Minimum Improvements required by this Agreement, the Second Building is an integral part of the EDA’s plan for redevelopment of the area and its completion is important for fulfilling the EDA’s goals and objectives in establishing the TIF District. The Note will not be issued until after construction of the Second Building has begun. Construction of the Second Building will be deemed to have begun only after physical work has been initiated on construction of the foundation of the building. ARTICLE V Insurance Section 5.1. Insurance. The Developer or its general contractor will provide and maintain at all times during the process of constructing the Minimum Improvements a Special Form Basis Insurance Policy and, from time to time during that period, at the request of the EDA no more frequently than once annually, furnish the EDA with proof of payment of premiums on policies covering the following: (1) Builder’s risk insurance, written on the so-called “Builder’s Risk – Completed Value Basis,” in an amount equal to one hundred percent (100%) of the insurable value of the applicable portion of the Minimum Improvements at the date of completion, and with coverage available in reporting form on the so-called “special” form of policy; (2) Commercial general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (3) Workers’ compensation insurance, with statutory coverage. Section 5.2. Evidence of Insurance. All insurance required in this Article V of this Agreement must be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of Minnesota to assume the risks covered thereby. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein. Upon written request by the EDA, the Developer agrees to deposit with the EDA a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. 115 16 CH135-65-956439.v3 ARTICLE VI Payment of Taxes; Assessment Agreement; Use of Tax Increment Section 6.1. Taxes. The Developer agrees that prior to the Termination Date: (i) it will not seek administrative or judicial review of the applicability of any tax statute determined by any Tax Official to be applicable to the Minimum Improvements or the Development Property or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (ii) it will not seek administrative or judicial review of the constitutionality of any tax statute determined by any Tax Official to be applicable to the Minimum Improvements or the Development Property or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; and (iii) it will not cause a reduction in the assessed value of the Minimum Improvements or the Development Property below the Minimum Market Value described in section 6.2(a) of this Agreement through: (a) willful destruction of the Minimum Improvements or any part thereof; (b) failure to reconstruct damaged or destroyed property; (c) a request to the Assessor to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value ; (d) a petition to the board of equalization of the County to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value; (e) a petition to the board of equalization of the State or the commissioner of revenue of the State to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value; (f) an action in a district court of the State or the tax court of the State seeking a reduction in the assessed value of the Minimum Improvements or the Development Property below the Minimum Market Value; (g) an application to the commissioner of revenue of the State or to any local taxing jurisdiction requesting an abatement or deferral of real estate taxes on the Minimum Improvements or the Development Property; (h) a transfer of the Minimum Improvements or the Development Property, or any part thereof, to an entity exempt from the payment of real estate taxes under State law and that entity applies for tax exemption; or (i) any other proceedings, whether administrative, legal or equitable, with any administrative body within the County or the State or with any court of the State or the federal government. 116 17 CH135-65-956439.v3 Section 6.2. Assessment Agreement. (a) At the time of execution of this Agreement, the EDA and the Developer shall execute an Assessment Agreement for the Development Property and Minimum Improvements. The Assessment Agreement shall specify an aggregate Minimum Market Value of $36,971,000 as of January 2, 2026 for taxes payable beginning in 2027 through the Termination Date, notwithstanding any failure to start or complete the Minimum Improvements by said date or any failure to reconstruct the Minimum Improvements after damage or destruction before the Termination Date. (b) The Assessment Agreement shall be substantially in the form attached hereto as Exhibit G. Nothing in the Assessment Agreement shall limit the discretion of the Assessor to assign a market value to the Minimum Improvements or the Development Property in excess of the Minimum Market Value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in any increase in the market value established pursuant to section 6.2(a) of this Agreement; provided, however, that the Developer shall not seek a reduction of such market value below the Minimum Market Value set forth in the Assessment Agreement in any year so long as such Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect until the Termination Date; provided that if at any time before the Termination Date the Assessment Agreement is found to be terminated or unenforceable by any Tax Official or court of competent jurisdiction, the Minimum Market Value described in this section 6.2 shall remain an obligation of the Developer or its successors and assigns (whether or not such value is binding on the Assessor), it being the intent of the parties that the obligation of the Developer to maintain, and not seek reduction of, the Minimum Market Value specified in this Section 6.2 is an obligation under this Agreement as well as under the Assessment Agreement, and is enforceable by the EDA against the Developer, its successors and assigns, in accordance with the terms of this Agreement and the Assessment Agreement. Notwithstanding anything contained in this Agreement to the contrary, the Developer shall not be precluded from contesting the market value of the Minimum Improvements or the Development Property, or any substantial portion thereof, if the Minimum Improvements or the Development Property is acquired by a public entity through eminent domain prior to the Termination Date. Section 6.3. Suspension or Reduction of Payment on Note. (a) The Developer may, at any time following the issuance of the Certificate of Completion, seek through petition or other means to have the Assessor’s estimated market value for the Minimum Improvements or Development Property reduced to not less than the Minimum Market Value. Such activity must be preceded by written notice from the Developer to the EDA indicating its intention to do so. (b) Upon receiving notice that the Developer seeks a reduction in the Assessor’s estimated market value of all or any portion of the Minimum Improvements or Development Property, or otherwise learning of the Developer’s intentions, the EDA may suspend or reduce payments due under the Note except for the portion of such payments from Available Tax Increment, based on the Minimum Market Value, or the Assessor’s estimated market value for the year in which the Minimum Improvements have been completed, if less than Minimum Market Value, until the actual amount of the reduction in market value is determined, whereupon the EDA will make the suspended payments less any amount that the EDA is required to repay the County as a result any retroactive reduction in market value of the Minimum Improvements or 117 18 CH135-65-956439.v3 Development Property. During the period that the payments are subject to suspension, the EDA may make partial payments on the Note, from the amounts subject to suspension, if it determines, in its sole and absolute discretion, that the amount retained will be sufficient to cover any repayment which the County may require. The EDA’s suspension or reduction of payments of the Note pursuant to this Section 6.3 shall not be considered a default under section 8.1 hereof. Section 6.4. Right to Collect Delinquent Taxes and Special Assessments. The Developer acknowledges that at all times prior to the Termination Date the EDA shall have the right to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and special assessments due on the Development Property or the Minimum Improvements and to pay over the same as a tax payment to the County auditor. In any such suit in which the EDA prevails, the EDA shall also be entitled to recover its reasonable out-of-pocket costs and expenses, including attorney fees. Section 6.5. Use of Tax Increment. The TIF District is a renewal and renovation district within the meaning of section 469.174, subd. 10a of the TIF Act. Except for payments to the Developer as provided for in this Agreement and the Note, the EDA shall be free to use any Tax Increment it receives from the County with respect to the TIF District for any purpose for which such increment may lawfully be used under the TIF Act and the EDA shall have no obligations to the Developer with respect to the use of such Tax Increment. ARTICLE VII Restrictions on Sale of Minimum Improvements; Termination of Agreement Section 7.1. Prohibition Against Sale of Minimum Improvements. (a) The Developer represents and agrees that its use of the Development Property and its other undertakings pursuant to the Agreement, are, and will be, used for the purpose of construction of the Minimum Improvements on the Development Property and not for speculation in land holding. The Developer represents and agrees that, prior to the issuance of a Certificate of Completion regarding the Minimum Improvements, there shall be no Sale of the Development Property or the Minimum Improvements constructed thereon nor shall the Developer suffer any such Sale to be made, without the prior written approval of the EDA; provided however, notwithstanding the foregoing, the Developer shall be entitled to lease housing units and commercial space within the Minimum Improvements to third parties without the prior written approval of the EDA. As a condition of approval of any such sale, the EDA shall require, at a minimum, that the proposed transferee shall have entered into an agreement whereby the transferee expressly assumes all of the Developer’s obligations under this Agreement. Any such agreement shall include the EDA as a party and otherwise be in form and substance reasonably acceptable to the EDA. (b) Notwithstanding anything in this Agreement to the contrary, Developer is authorized, without the approval of EDA, to obtain construction and permanent financing for the Minimum Improvements and to mortgage the Development Property to provide security for the construction and permanent financing, and the EDA is authorized to subordinate this Agreement 118 19 CH135-65-956439.v3 to such mortgage. In the event of foreclosure, deed-in-lieu of foreclosure or other transfer of the Minimum Improvements or the Development Property as a result of default under such mortgage, such transfer shall require the prior written approval of the EDA, which shall not be unreasonably withheld. As a condition of approval of any such transfer, the EDA shall require, at a minimum, that the proposed transferee shall have entered into an agreement whereby the transferee expressly assumes all of the Developer’s obligations under this Agreement. (c) After a Certificate of Completion has been issued, Developer may, without the approval of the EDA but with 30 days prior written notice to the EDA, sell or transfer all or any portion of the Minimum Improvements or the Development Property to another party except that in the event that the Developer sells or transfers the Minimum Improvements or the Development Property or any portion to any entity which is not an Affiliate of the Developer, the sale shall be subject to the lookback on Sale provisions of Section 3.5 of this Agreement. Section 7.2. Termination of Agreement. Upon the occurrence of the Termination Date, the parties agree to execute and record a document terminating this Agreement. ARTICLE VIII Events of Default Section 8.1. Events of Default Defined. Each and every one of the following shall be an Event of Default under this Agreement: (a) Failure by the Developer to seek approval from the EDA, the City and other entities necessary in order to construct the Minimum Improvements diligently and in good faith; provided that if a Certificate of Completion is issued by the EDA, such failure shall no longer be an Event of Default; (b) Failure of the Developer to pay real estate taxes or special assessments on the Minimum Improvements or the Development Property as they become due; (c) Failure by the Developer to commence and completion construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement, including the timing thereof, unless such failure is caused by an Unavoidable Delay or waived by the Developer and the EDA; (d) If there is an Event of Default by the Developer regarding any requirement under the Development Contract of the Developer or related to the Development Property. (e) There is a challenge to the Minimum Market Value in violation of Article VI of this Agreement or the Assessment Agreement; (f) If the Developer shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors (provided, however, that the parent of the Developer pledging its interest in the Developer to a lender as security for a loan financing the construction of Minimum 119 20 CH135-65-956439.v3 Improvements, and an exercise of such pledge, shall not constitute an Event of Default), or shall consent to the appointment of a receiver; (g) Sale of the Minimum Improvements or the Development Property, or any portion thereof, by the Developer in violation of Article VII of this Agreement; or (h) Failure by either party to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement, including but not limited to any action necessary for the establishment of the TIF District. Section 8.2. Remedies on Default. Whenever any Event of Default referred to in section 8.1 of this Agreement occurs, the non-defaulting party may take any one or more of the following actions after providing 30 days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said 30 days from the receipt of Notice or, if the Event of Default is by its nature incurable within 30 days, the defaulting party does not provide assurances to the non-defaulting party reasonably satisfactory to the non- defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under this Agreement until it receives assurances from the defaulting party, deemed adequate by the non-defaulting party, that the defaulting party will cure its default and continue its performance under this Agreement; (b) The EDA may enforce the Assessment Agreement; (c) Prior to issuance of the Certificate of Completion, cancel and rescind or terminate this Agreement; (d) If there is a Sale in violation of Article VII of this Agreement, cancel or terminate the Note; (e) If the default occurs after issuance of the Certificate of Completion, the EDA may suspend payments under the Note; and (f) Take whatever action, including legal or administrative action, which may appear necessary or desirable to the non-defaulting party to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the defaulting party under this Agreement. Section 8.3. Remedies after Certificate of Completion. The EDA may exercise its rights under Section 8.2(e) only for the following Events of Default: (a) the Developer fails to pay real estate taxes or special assessments on the Minimum Improvements or the Development Property or any part thereof when due and the taxes or special assessments have not been paid, or provision satisfactory to the EDA made for their payment, within 45 days after written demand by the EDA to do so; or 120 21 CH135-65-956439.v3 (b) the Developer takes or permits an action prohibited by section 6.1 of this Agreement; or (c) the Developer transfers the Minimum Improvements or the Development Property, or any part thereof, to an entity exempt from the payment of real estate taxes under State law; or (d) the Developer fails to comply with the lookback provisions of section 3.5(d) through (f) of this Agreement. Section 8.4. No Remedy Exclusive. No remedy conferred herein or reserved to the parties is intended to be exclusive of any other available remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.5. No Additional Waiver Implied by One Waiver. In the event any covenant or agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.6. Acceptance of Third-Party Cure. In the event that an Event of Default, or potential Event of Default, is cured by a third-party lender which has loan to the Developer or an affiliate thereof for the purposes of financing the construction of the Minimum Improvements, the EDA shall accept such proffered cure on the same basis as if such cure had been effected by the Developer. ARTICLE IX Additional Provisions Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No member, official, or employee of the EDA shall have any personal financial interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his or her personal financial interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the EDA shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach or for any amount which may become due or on any obligations under the terms of this Agreement. Section 9.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in 121 22 CH135-65-956439.v3 this Agreement, it will comply with all applicable equal employment and nondiscrimination laws and regulations. Section 9.3. Restrictions on Use. The Developer agrees that through the Termination Date it will use the Minimum Improvements for only such uses as permitted under the City’s land use regulations and in compliance with the City Approvals. In addition, through the Termination Date, a standalone liquor store, tobacco business or cannabis business is not permitted in the Minimum Improvements. Section 9.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, any notice, demand, or other communication under the Agreement or any related document by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified United States mail, postage prepaid, return receipt requested, or delivered personally to: (a) in the case of the Developer: Roers Chanhassen Harlow Apartments Owner LLC c/o Roers Companies Two Carlson Parkway North, Suite 400 Plymouth, MN 55447 Attn: General Counsel and with a copy to: Winthrop & Weinstine, P.A. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 Attn: Kevin M. McLain (b) in the case of the EDA: Chanhassen Economic Development Authority 7700 Market Boulevard Chanhassen, MN 55317 Attn: Executive Director and with a copy to: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 Attn: Ronald H. Batty or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this section 9.4. Section 9.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 9.6. Disclaimer of Relationships. The Developer acknowledges that nothing contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed 122 23 CH135-65-956439.v3 by the Developer or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the EDA and the Developer. Section 9.7. Amendment. This Agreement may be amended only by the written agreement of the parties. Section 9.8. Recording; Agreement Runs with the Land. This Agreement shall be recorded among the County land records and the Developer agrees to pay for the cost of recording same. This Agreement runs with the Development Property and shall bind the successors and assigns of the EDA and the Developer. Section 9.9. Release and Indemnification Covenants. a) Except for any negligent act of the following named parties, the Developer hereby releases from and covenants and agrees that the EDA, and its governing body members, officers, agents, servants, and employees (the “Indemnified Parties”) shall not be liable for, and hereby agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. b) The aforesaid indemnification shall not apply to willful misrepresentation or any willful or wanton misconduct or negligence of the EDA. c) Except for any negligent or willful act of the EDA, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its partners, officers, agents, servants or employees or any other person who may be about the Minimum Improvements or the Minimum Improvements due to any act of negligence of any person. Section 9.10. Titles of Articles and Sections. Any titles of the several parts, articles, and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.11. Governing Law; Venue. This Agreement shall be construed in accordance with the laws of Minnesota. Any dispute arising from this Agreement shall be heard in the State or federal courts of Minnesota, and all parties waive any objection to the jurisdiction thereof, whether based on convenience or otherwise. Section 9.12. Fees and Charges. The Developer agrees to pay the EDA for all fees or costs for legal, financial advisory, engineering, planning or other staff time for preparation of the TIF Plan and related documents and analysis, drafting or negotiating this Agreement and for reviewing any plans regarding the Minimum Improvements submitted in satisfaction of this Agreement. ******************** 123 24 CH135-65-956439.v3 IN WITNESS WHEREOF, the EDA and the Developer have caused this Agreement to be duly executed in their names and behalves on or as of the date first above written. THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 2024, by _______________________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 2024, by _______________________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 124 25 CH135-65-956439.v3 ROERS CHANHASSEN HARLOW APARTMENTS OWNER LLC By: ___________________________ Tom Cronin, Authorized Signatory STATE OF __________ ) ) ss. COUNTY OF ________ ) The foregoing instrument was executed before me this _____ day of _______________, 2024, by Tom Cronin, the Authorized Signatory of Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company, on behalf of the company. ____________________________________ Notary Public 125 A-1 CH135-65-956439.v3 EXHIBIT A TO CONTRACT FOR PRIVATE DEVELOPMENT LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY PIDS: 25-11-80-010 (east building) 25-44-60-011 (east building) 25-28-30-010 (east building) [legal descriptions to be added] 126 B-1 CH135-65-956439.v3 EXHIBIT B TO CONTRACT FOR PRIVATE DEVELOPMENT LIST OF PRELIMINARY PLANS The following constitute the Preliminary Plans of the Minimum Improvements: [to be included] 127 C-1 CH135-65-956439.v3 EXHIBIT C TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF CERTIFICATE OF COMPLETION WHEREAS, the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the “EDA”), and Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company (the “Developer”), have entered into a certain Contract for Private Development (the “Agreement”) dated the ____ day of ____________, 2024, and recorded in the office of the County Recorder in Carver County, Minnesota, as Document No. __________, which Agreement contained certain covenants and restrictions regarding completion of the Minimum Improvements, as defined in the Agreement; and WHEREAS, the Developer has performed said covenants and conditions in a manner deemed sufficient by the EDA to permit the execution and recording of this certification. NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements specified to be done and made by the Developer has been completed and the County Recorder in Carver County, Minnesota, is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions relating to completion of the Minimum Improvements. Dated: _______________. CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 202_, by _______________________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 128 C-2 CH135-65-956439.v3 STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 202_, by _______________________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public This Instrument Drafted By: KENNEDY & GRAVEN, CHARTERED (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 129 D-1 CH135-65-956439.v3 EXHIBIT D TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF AUTHORIZING RESOLUTION WITH NOTE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ______ RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 202__ IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,911,000 BE IT RESOLVED BY the Chanhassen Economic Development Authority (the “EDA”), as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The EDA has heretofore approved the establishment of Tax Increment Financing District No. 13 (the “TIF District”), located in the Downtown Chanhassen Redevelopment Project (the “Redevelopment Project”), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Redevelopment Project. Pursuant to Minnesota Statutes, Section 469.178, the EDA is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Minimum Improvements and Development Property in the Redevelopment Project. The bonds are payable from all or any portion of revenues derived from the Minimum Improvements and the Development Property (each as defined in the Agreement (defined below)) in the TIF District and pledged to the payment of the bonds. The EDA hereby finds and determines that it is in the best interests of Chanhassen that it issue and sell its taxable Tax Increment Revenue Note, Series 202__ (the “Note”), in the aggregate principal amount up to $2,911,000, for the purpose of financing certain public costs of the Redevelopment Project. 1.02. Agreement Approved; Issuance, Sale and Terms of the Note. The EDA has previously approved the Contract for Private Development (the “Agreement”) between the EDA and Roers Chanhassen Harlow Apartments Owner LLC, a limited liability company under the laws of Delaware (the “Owner”), and authorized the President and Executive Director to execute the Agreement. Pursuant to the Agreement, the Note will be issued to the Owner. The Note will be dated as of the date of delivery and will bear interest at the rate of [the lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements.] In exchange for the EDA’s issuance of 130 D-2 CH135-65-956439.v3 the Note to the Owner, the Owner will pay certain costs related to the Minimum Improvements (the Qualifying Costs, as defined in the Agreement) pursuant to Section 3.2 of the Agreement. The Note will be delivered in the principal amount up to $2,911,000 for reimbursement of the Owner’s costs in accordance with the terms of Sections 3.2 and 3.3 of the Agreement. Section 2. Form of Note. The Note will be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA CARVER COUNTY CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $__________ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 202__ Date Rate of Original Issue [lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements] The Chanhassen Economic Development Authority (the “EDA”), for value received, certifies that it is indebted and hereby promises to pay to Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company, or registered assigns (the “Owner”), the principal sum of $_________ with interest thereon at the rate specified below, as and to the extent set forth herein. 1. Payments. Principal and interest payments (“Payments”) will be paid on August 1, 2026, and each February 1 and August 1 thereafter until the earlier of payment in full or February 1, 2042 (“Payment Dates”), in the amounts and from the sources set forth in Section 3 herein. Payments are payable by mail to the address of the Owner or any other address as the Owner may designate upon 30 days written notice to the EDA. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest shall be simple, non-compounding interest at ___% per annum which is [the lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements.] Interest shall be computed on the basis of a 360-day year consisting of 12 30-day months. 131 D-3 CH135-65-956439.v3 3. Available Tax Increment. Payments on this Note are payable on each Payment Date in the amount of and solely payable from “Available Tax Increment,” which will mean, on each Payment Date, 95 percent of the Tax Increment attributable to the Development Property and Minimum Improvements (as defined in the Agreement) and paid to the EDA by Carver County, Minnesota in the six months preceding the Payment Date, all as the terms are defined in the Contract for Private Development between the EDA and Owner dated as of ______________, 2024 (the “Agreement”). Available Tax Increment will not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default by the Owner under the Agreement. The EDA will have no obligation to pay principal or interest on this Note on each Payment Date from any source other than Available Tax Increment, and the failure of the EDA to pay the entire amount of principal and interest on this Note on any Payment Date will not constitute a default hereunder as long as the EDA pays principal and interest to the extent of Available Tax Increment. If on any Payment Date there is insufficient Available Tax Increment to pay accrued and unpaid interest on this Note on such date, the amount of such deficiency shall be deferred and paid, without interest thereon, on the next Payment Date on which the EDA has Available Tax Increment in excess of the amount necessary to pay the accrued and unpaid interest on this Note on such subsequent Payment Date. The EDA will have no obligation to pay any unpaid balance of principal or interest that may remain after the Final Payment Date of February 1, 2042. 4. Optional Prepayment. The principal sum and accrued interest payable under this Note is pre-payable in whole or in part at any time by the EDA without premium or penalty. No partial prepayment will affect the amount or timing of any other regular payment otherwise required to be made under this Note. 5. Suspension of Payment. At the EDA’s option, the EDA’s obligation to make any payments under this Note will be suspended upon the occurrence of an Event of Default on the part of the Developer as defined in Section 8.1 of the Agreement, but only if the Event of Default has not been cured in accordance with Section 8.2 of the Agreement. The EDA may also suspend payments under this Note in accordance with Section 6.3 of the Agreement. 6. Nature of Obligation. This Note is a single note in the total principal amount of $___________ issued to aid in financing certain public costs of a Redevelopment Project undertaken by the EDA pursuant to Minnesota Statutes, Sections 469.090 through 469.108, as amended, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the EDA on ______________, 202__, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This Note is a limited obligation of the EDA which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note will not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Chanhassen Economic Development Authority or the City of Chanhassen. Neither the State of Minnesota, nor any political subdivision thereof will be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota 132 D-4 CH135-65-956439.v3 or any political subdivision thereof is pledged to the payment of the principal of and interest on this Note or other costs incident hereto. 7. Estimated Tax Increment Payments. Any estimates of Tax Increment prepared by the EDA or its municipal advisors in connection with the TIF District or the Agreement are for the benefit of the EDA, and are not intended as representations on which the Owner may rely. THE EDA MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF OR INTEREST ON THIS NOTE. 8. Registration and Transfer; Assignment. As provided in the Resolution, and subject to certain limitations set forth herein, this Note is issuable only as a fully registered note without coupons. This Note is transferable upon the books of the EDA kept for that purpose at the principal office of the EDA’s Executive Director as Registrar, by the Owner hereof in person or by the Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the EDA, duly executed by the Owner. Upon the transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the EDA with respect to the transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount and interest rate and maturing on the same dates. This Note may be transferred without the approval of the EDA; provided that this Note will not be transferred to any person other than an Affiliate, or other related entity, of the Owner unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. This Note may be assigned with the consent of the EDA, which will not be unreasonably withheld or delayed. Notwithstanding anything to the contrary in this Note, in no event will a lender providing funds to the Developer and taking an assignment of the Note as security for such funds be required to sign an investment letter at either the time of execution of an assignment or transfer of the Note as a result of the assignment. This Note is subject to the Lookback provisions of section 3.5 of the Agreement. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the EDA according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. 133 D-5 CH135-65-956439.v3 IN WITNESS WHEREOF, the board of commissioners of the Chanhassen Economic Development Authority, has caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY President Executive Director 134 D-6 CH135-65-956439.v3 REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the EDA’s Executive Director, in the name of the person last listed below. Date of Registration Registered Owner Signature of Executive Director Roers Chanhassen Harlow Apartments Owner LLC c/o Roers Companies Two Carlson Parkway North Suite 400 Plymouth, MN 55447 Attn: General Counsel Federal Tax ID #___________ [End of Form of Note] Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note will be issued as a single typewritten note numbered R-1. The Note will be issuable only in fully registered form. Principal and interest of the Note will be payable by check or draft issued by the Registrar described herein. 3.02. Dates. Principal and interest of the Note will be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not the day is a business day. 3.03. Registration. The EDA hereby appoints the Executive Director to perform the functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the EDA and the Registrar with respect thereto will be as follows: (a) Register. The Registrar will keep at his office a bond register in which the Registrar will provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount, interest rate and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note will not be transferred to any person other than an Affiliate, or other related entity, of the Owner 135 D-7 CH135-65-956439.v3 unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until the Payment Date. (c) Cancellation. The Note surrendered upon any transfer will be promptly cancelled by the Registrar and thereafter disposed of as directed by the EDA. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until he is satisfied that the endorsement on the Note or separate instrument of transfer is legally authorized. The Registrar will incur no liability for his refusal, in good faith, to make transfers which he, in his judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The EDA and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Note and for all other purposes, and all the payments so made to any registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the liability of the EDA upon the Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to the transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case the Note becomes mutilated or is lost, stolen, or destroyed, the Registrar will deliver a new Note of like amount, interest rate, maturity dates and tenor in exchange and substitution for and upon cancellation of the mutilated Note or in lieu of and in substitution for the Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the EDA and the Registrar will be named as obligees. The Note so surrendered to the Registrar will be cancelled by him and evidence of the cancellation will be given to the EDA. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it will not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note will be prepared under the direction of the Executive Director and will be executed on behalf of the EDA by the signatures of its Chair and Executive Director. In case any officer whose signature appears on the Note ceases to be the officer before the delivery of the Note, the signature will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. When the Note has 136 D-8 CH135-65-956439.v3 been so executed, it will be delivered by the EDA to the Owner following the delivery of the necessary items delineated in Section 3.3 of the Agreement. Section 4. Security Provisions. 4.01. Pledge. The EDA hereby pledges to the payment of the principal and interest of the Note all Available Tax Increment as defined in the Note. Available Tax Increment will be applied to payment of accrued interest first, then the principal of the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the EDA will maintain a separate and special “Bond Fund” to be used for no purpose other than the payment of the principal of and interest on the Note. The EDA irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment remaining in the Bond Fund will be transferred to the EDA’s account for the TIF District upon the payment of all principal and interest to be paid with respect to the Note. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the EDA are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the EDA, and the other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all the certified copies, certificates, and affidavits, including any heretofore furnished, will be deemed representations of the City as to the facts recited therein. Section 6. Effective Date. This resolution will be effective upon execution by the President and Executive Director following authorization by the board of commissioners of the Chanhassen Economic Development Authority. Adopted by the Chanhassen Economic Development Authority, this ____ day of ________, 202___. President Executive Director 137 E-1 CH135-65-956439.v3 EXHIBIT E TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF INVESTMENT LETTER To the Chanhassen Economic Development Authority (the “EDA”) Attention: Executive Director Dated: __________________, 202__ Re: $____________ Tax Increment Revenue Note (Roers Chanhassen Harlow Apartments Owner Project) The undersigned, as Purchaser of $___________ in principal amount of the above- captioned Tax Increment Revenue Note (Roers Chanhassen Harlow Apartments Owner Project) (the “Note”), approved by the Board of Commissioners of the Chanhassen Economic Development Authority on ______________, 202__, hereby represents to you and to Kennedy & Graven, Chartered, Minneapolis, Minnesota, as legal counsel to the EDA, as follows: 1. We understand and acknowledge that the Note is delivered to the Purchaser on this date pursuant to the Contract for Private Development by and between the EDA and the Purchaser dated __________________, 2024 (the “Agreement”). 2. The Note is payable solely from Available Tax Increment pledged to the Note, as defined therein. 3. We have sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal obligations, to be able to evaluate the risks and merits of the investment represented by the purchase of the above-stated principal amount of the Note. 4. We acknowledge that no offering statement, prospectus, offering circular or other comprehensive offering document or disclosure containing material information with respect to the EDA and the Note has been issued or prepared by the EDA, and that, in due diligence, we have made our own inquiry and analysis with respect to the EDA, the Note and the security therefor, and other material factors affecting the security and payment of the Note. 5. We acknowledge that we have either been supplied with or have access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making investment decisions, and we have had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the EDA, the Note and the security therefor, and that as reasonable investors we have been able to make our decision to purchase the above-stated principal amount of the Note. 138 E-2 CH135-65-956439.v3 6. We have been informed that the Note (i) is not being registered or otherwise qualified for sale under the “Blue Sky” laws and regulations of any state, or under federal securities laws or regulations, (ii) will not be listed on any stock or other securities exchange, and (iii) will carry no rating from any rating service. 7. We acknowledge that the EDA and Kennedy & Graven, Chartered, as legal counsel to the EDA, have not made any representations or warranties as to the status of payments on the Note for the purpose of federal or state income taxation. 8. We represent to you that we are purchasing the Note for our own account and not for resale or other distribution thereof, except to the extent otherwise provided in the Note or as otherwise approved in writing by the EDA. 9. All capitalized terms used herein have the meaning provided in the Agreement unless the context clearly requires otherwise. 10. The Purchaser’s federal tax identification number is __________________. 11. We acknowledge receipt of the Note on the date hereof. IN WITNESS WHEREOF, the undersigned has executed this Investment Letter as of the date and year first written above. ROERS CHANHASSEN HARLOW APARTMENTS OWNER LLC By: ___________________________ ________________, _________ STATE OF ) ) ss. COUNTY OF ) The foregoing instrument was executed before me this _____ day of _______________, 202__, by __________________, the ___________ of Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company, on behalf of the company. ____________________________________ Notary Public 139 F-1 CH135-65-956439.v3 EXHIBIT F TO CONTRACT FOR PRIVATE DEVELOPMENT PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS [to be completed] 140 G-1 CH135-65-956439.v3 EXHIBIT G TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF ASSESSMENT AGREEMENT and ASSESSOR’S CERTIFICATION By and among THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY and ROERS CHANHASSEN HARLOW APARTMENTS OWNER LLC and COUNTY ASSESSOR FOR CARVER COUNTY, MINNESOTA This Document was drafted by: KENNEDY & GRAVEN, Chartered (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 141 G-2 CH135-65-956439.v3 THIS ASSESSMENT AGREEMENT, dated as of this ___ day of __________, 2024, by and between the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the “EDA”), and Roers Chanhassen Harlow Apartments Owner LLC, a limited liability company under the laws of Delaware (the “Owner”). WITNESSETH: WHEREAS, on or before the date hereof, the EDA and the Owner have entered into a Contract for Private Development (the “Agreement”) concerning the property legally described on Exhibit A hereto, (the “Development Property”); and WHEREAS, pursuant to the Agreement, the Owner will construct a project consisting of two buildings, including approximately 126 multifamily rental housing units, 3,029 sq. ft. of commercial space and 68 structured parking stalls (the “Minimum Improvements”); and WHEREAS, the EDA and the Owner desires to establish a minimum market value for the Development Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, section 469.177, Subd. 8; and WHEREAS, the EDA and the County Assessor for Carver County, Minnesota have reviewed the Plans for the Minimum Improvements which the Owner has agreed to construct on the Development Property pursuant to the Agreement. NOW, THEREFORE, the parties to this Assessment Agreement, in consideration of the promises, covenants and agreements made herein and in the Agreement by each to the other, do hereby agree as follows: 1. The Minimum Market Value for the Development Property with the Minimum Improvements shall be $36,971,000. The parties agree that this Minimum Market Value shall be placed against the Development Property as of January 2, 2026, for taxes payable beginning in 2027 notwithstanding any failure to start or complete construction of such Minimum Improvements by that date. 2. The Minimum Market Value herein established shall be of no further force and effect and this Assessment Agreement shall terminate on the Termination Date. The Termination Date has the meaning given to it under the Agreement. 3. This Assessment Agreement shall be promptly recorded by the Owner with a copy of Minnesota Statutes, section 469.177, Subd. 8 set forth in Exhibit B hereto. The Owner shall pay all costs of recording this Assessment Agreement. 4. Neither the preambles nor the provisions of this Assessment Agreement are intended to, nor shall they be construed as, modifying the terms of the Agreement. Unless the context indicates clearly to the contrary, the terms used in this Assessment Agreement shall have the same meaning as the terms used in the Agreement. 142 G-3 CH135-65-956439.v3 5. This Assessment Agreement shall inure to the benefit of and be binding upon the parties and their successors and assigns. 6. Each of the parties has authority to enter into this Assessment Agreement and to take all actions required of it and has taken all actions necessary to authorize the execution and delivery of this Assessment Agreement. 7. In the event any provision of this Assessment Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Development Property, or for carrying out the expressed intention of this Assessment Agreement. 9. Except as provided in Section 8 hereof, this Assessment Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Assessment Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Assessment Agreement shall be governed by and construed in accordance with the laws of Minnesota. ********* 143 G-4 CH135-65-956439.v3 CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: ________________, President And by: ___________________, Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument as acknowledged before me this ____ day of ____________, 2024, by _____________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument as acknowledged before me this ____ day of ____________, 2024, by _____________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 144 G-5 CH135-65-956439.v3 ROERS CHANHASSEN HARLOW APARTMENTS OWNER LLC ___________________________ Tom Cronin, Authorized Signatory STATE OF __________ ) ) SS. COUNTY OF _________ ) The foregoing instrument was executed before me this _____ day of _______________, 2024, by Tom Cronin, the Authorized Signatory of Roers Chanhassen Harlow Apartments Owner LLC, a Delaware limited liability company, on behalf of the company, ____________________________________ Notary Public 145 G-6 CH135-65-956439.v3 CERTIFICATION BY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certify as follows: The undersigned Assessor being legally responsible for the assessment of the described property, hereby certifies that the market value assigned to such land and improvements at the property, legally described on Exhibit A attached hereto, shall be not less than Thirty-Six Million Nine Hundred Seventy-One Thousand Dollars ($36,971,000) as of January 2nd, 2026, for taxes payable beginning in 2027, until termination of this Agreement. __________________________________________ County Assessor for Carver County, Minnesota STATE OF MINNESOTA ) ) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this ______ day of __________, 2024, by __________________________, the County Assessor, Carver County, Minnesota. __________________________________________ Notary Public 146 G-7 CH135-65-956439.v3 EXHIBIT A TO ASSESSMENT AGREEMENT The Development Property is legally described as follows: PIDS: 25-11-80-010 (east building) 25-44-60-011 (east building) 25-28-30-010 (east building) [legal descriptions to be added] 147 G-8 CH135-65-956439.v3 EXHIBIT B TO ASSESSMENT AGREEMENT Section 469.177, subd. 8. Assessment Agreements. An authority may enter into a written assessment agreement with any person establishing a minimum market value of land, existing improvements, or improvements to be constructed in a district, if the property is owned or will be owned by the person. The minimum market value established by an assessment agreement may be fixed, or increase or decrease in later years from the initial minimum market value. If an agreement is fully executed before July 1 of an assessment year, the market value as provided under the agreement must be used by the county or local assessor as the taxable market value of the property for that assessment. Agreements executed on or after July 1 of an assessment year become effective for assessment purposes in the following assessment year. An assessment agreement terminates on the earliest of the date on which conditions in the assessment agreement for termination are satisfied, the termination date specified in the agreement, or the date when tax increment is no longer paid to the authority under section 469.176, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district and the property that is the subject of the agreement is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon the agreement: The undersigned assessor, being legally responsible for the assessment of the above described property, certifies that the market values assigned to the land and improvements are reasonable. The assessment agreement shall be filed for record and recorded in the office of the county recorder or the registrar of titles of each county where the real estate or any part thereof is situated. After the agreement becomes effective for assessment purposes, the assessor shall value the property under section 273.11, except that the market value assigned shall not be less than the minimum market value established by the assessment agreement. The assessor may assign a market value to the property in excess of the minimum market value established by the assessment agreement. The owner of the property may seek, through the exercise of administrative and legal remedies, a reduction in market value for property tax purposes, but no city assessor, county assessor, county auditor, board of review, board of equalization, commissioner of revenue, or court of this state shall grant a reduction of the market value below the minimum market value established by the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction, or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording an assessment agreement constitutes notice of the agreement to anyone who acquires any interest in the land or improvements that is subject to the assessment agreement, and the agreement is binding upon them. 148 CH135-65-935359.v6 Execution Copy CONTRACT FOR PRIVATE DEVELOPMENT By and Between THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY and ROERS CHANHASSEN BENNETT APARTMENTS OWNER LLC This document drafted by: KENNEDY & GRAVEN, CHARTERED (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 149 i CH135-65-935359.v6 TABLE OF CONTENTS PAGE PREAMBLE ....................................................................................................................................1 ARTICLE I Definitions Section 1.1. Definitions................................................................................................................2 Section 1.2. Exhibits ...................................................................................................................5 Section 1.3. Rules of Interpretation ............................................................................................5 ARTICLE II Representations and Warranties Section 2.1. Representations by the EDA ....................................................................................6 Section 2.2. Representations and Warranties by the Developer ..................................................7 ARTICLE III Acquisition of Development Property; Public Assistance Section 3.1. Acquisition of Development Property .....................................................................8 Section 3.2. Issuance of Pay-As-You-Go Note ...........................................................................8 Section 3.3. Conditions Precedent to Issuance of the Note .........................................................8 Section 3.4. Records ....................................................................................................................9 Section 3.5. Lookback Provisions and Reduction of Note ..........................................................9 Section 3.6. Business Subsidy ...................................................................................................12 ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements .............................................................12 Section 4.2. Preliminary Plans and Construction Plans .............................................................12 Section 4.3. Commencement and Completion of Construction .................................................13 Section 4.4. Certificate of Completion ......................................................................................13 Section 4.5. Compliance with Labor Laws ................................................................................14 Section 4.6. Extension of Laredo Drive .....................................................................................15 Section 4.7. Completion of Second Building.............................................................................16 ARTICLE V Insurance Section 5.1. Insurance ................................................................................................................16 Section 5.2. Evidence of Insurance ...........................................................................................16 150 ii CH135-65-935359.v6 ARTICLE VI Payment of Taxes; Assessment Agreement; Use of Tax Increment Section 6.1. Taxes ......................................................................................................................17 Section 6.2. Assessment Agreement ..........................................................................................18 Section 6.3. Suspension or Reduction of Payment on Note ......................................................18 Section 6.4. Right to Collect Delinquent Taxes and Special Assessments ................................19 Section 6.5. Use of Tax Increment.............................................................................................19 ARTICLE VII Restrictions on Sale of Minimum Improvements; Termination of Agreement Section 7.1. Prohibition Against Sale of Minimum Improvements ...........................................19 Section 7.2. Termination of Agreement .....................................................................................20 ARTICLE VIII Events of Default Section 8.1. Events of Default Defined .....................................................................................20 Section 8.2. Remedies on Default ..............................................................................................21 Section 8.3. Remedies after Certificate of Completion .............................................................21 Section 8.4. No Remedy Exclusive............................................................................................22 Section 8.5. No Additional Waiver Implied by One Waiver .....................................................22 Section 8.6. Acceptance of Third-Party Cure ............................................................................22 ARTICLE IX Additional Provisions Section 9.1. Conflict of Interests; Representatives Not Individually Liable .............................22 Section 9.2. Equal Employment Opportunity ............................................................................22 Section 9.3. Restrictions on Use ................................................................................................23 Section 9.4. Notices and Demands ............................................................................................23 Section 9.5. Counterparts ...........................................................................................................23 Section 9.6. Disclaimer of Relationships ...................................................................................23 Section 9.7. Amendment ............................................................................................................24 Section 9.8. Recording; Agreement Runs with the Land ...........................................................24 Section 9.9. Release and Indemnification Covenants ................................................................24 Section 9.10. Titles of Articles and Sections ...............................................................................24 Section 9.11. Governing Law; Venue ..........................................................................................24 Section 9.12. Fees and Charges ...................................................................................................24 TESTIMONIUM............................................................................................................................25 SIGNATURES ......................................................................................................................... 25-26 EXHIBIT A LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY EXHIBIT B LIST OF PRELIMINARY PLANS EXHIBIT C FORM OF CERTIFICATE OF COMPLETION EXHIBIT D FORM OF AUTHORIZING RESOLUTION WITH NOTE 151 iii CH135-65-935359.v6 EXHIBIT E FORM OF INVESTMENT LETTER EXHIBIT F PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS EXHIBIT G FORM OF ASSESSMENT AGREEMENT 152 1 CH135-65-935359.v6 CONTRACT FOR PRIVATE DEVELOPMENT This Contract for Private Development (the “Agreement”) is made this _____ day of _____________, 2024, by and between the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, having its principal office at 7700 Market Boulevard, Chanhassen, Minnesota 55317 (the “Chanhassen Economic Development Authority” or the “EDA”), and Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company, having its principal office at Two Carlson Parkway North, Suite 400, Plymouth, Minnesota 55447 (the “Developer”). WITNESSETH: WHEREAS, the City of Chanhassen (the “City”) and the EDA previously established the Downtown Chanhassen Redevelopment Project Area and adopted a Redevelopment Plan to encourage development and redevelopment in a portion of the community; and WHEREAS, the EDA finds that it is in the public interest, helpful for the tax base and beneficial for the health, safety and welfare of the community as a whole to promote mixed use development in the community in locations where it is compatible with surrounding land uses; and WHEREAS, the EDA finds that, due to market conditions which exist today and are likely to persist for the foreseeable future, the private sector alone is not able to accomplish construction of mixed use developments and, therefore, such will not occur without public intervention; and WHEREAS, in order to foster the redevelopment described above, the EDA and the City intend to modify the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area to more fully implement the goals and objectives thereof, all pursuant to Minnesota Statutes, sections 469.001 through 469.047; and WHEREAS, the EDA and the City also intend to establish Tax Increment Financing District No. 13, a renewal and renovation district, within the Downtown Chanhassen Redevelopment Project Area and adopt a tax increment financing plan related thereto, all pursuant to Minnesota Statutes, sections 469.174 through 469.1799; and WHEREAS, the Developer has proposed to develop the property located at or approximately at 591 West 78th Street, Chanhassen, Minnesota 55317 with one six story building including approximately 184 multifamily rental housing units, 11,853 gross square feet of commercial space, and 338 structured parking stalls, all as more fully described herein; and WHEREAS, the EDA and the City believe is in the vital and best interests of Chanhassen and the health, safety and welfare of its residents, and in accord with the public purposes and provisions of the applicable state and local laws and requirements for which the Downtown Chanhassen Redevelopment Project Area and Tax Increment Financing District No. 13 were or will be established. 153 2 CH135-65-935359.v6 NOW, THEREFORE, in consideration of the covenants and the mutual obligations of the parties hereto, each of them does hereby covenant and agree with the other as follows: ARTICLE I Definitions Section 1.1. Definitions. In this Agreement the following terms shall have the meanings given below unless a different meaning clearly appears from the context: “Administrative Costs” means the administrative expenses incurred by the EDA regarding the TIF District as defined in section 469.174, subd. 14 of the TIF Act. “Affiliate” means a corporation, partnership, joint venture, association, business trust or similar entity organized under the laws of the United States of America or a state thereof which is directly controlled by or under common control with the Developer or any other Affiliate. For purposes of this definition, control means the power to direct management and policies through the ownership of at least a majority of its voting securities or the right to designate or elect at least a majority of the members of its governing body by contract or otherwise. “Agreement” means this Agreement, as the same may be from time to time modified, amended, or supplemented. “Assessment Agreement” means an agreement in the general form attached hereto as Exhibit G establishing a Minimum Market Value for the Development Property and Minimum Improvements. “Assessor” means the Carver County assessor. “Authorizing Resolution” means the resolution, in substantially the form attached hereto as Exhibit D, which authorizes the issuance of the Note by the EDA Executive Director upon satisfaction of the conditions precedent specified in Section 3.3 of this Agreement. “Available Tax Increment” means 75 percent of the Tax Increment paid to the EDA by the County with respect to the Development Property and the Minimum Improvements, subject to adjustment as provided in section 4.6 of this Agreement. “Business Subsidy Act” means Minnesota Statutes, sections 116J.993 through 116J.995, as amended. “Certificate of Completion” means the certificate, in substantially the form attached hereto as Exhibit C, which will be provided to the Developer pursuant to Article IV of this Agreement. “City” means the city of Chanhassen, a municipal corporation under the laws of Minnesota. 154 3 CH135-65-935359.v6 “City Approvals” means, collectively, the Development Contract and any other land use approvals required by the City prior to constructing the Minimum Improvements. “Construction Plans” means the final plans for construction of the Minimum Improvements which shall be submitted by the Developer pursuant to section 4.2 of this Agreement. “County” means Carver County, Minnesota. “Developer” means Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company. “Development Contract” means the Chanhassen Market Street Addition Development Contract between the City and the Developer and the developer of the Second Building which entitles the Minimum Improvements and the Second Building. “Development Property” means the property generally located at 591 West 78th Street, Chanhassen, Minnesota 55317 and is legally described in Exhibit A attached hereto. “Economic Development Authorities Act” or “EDA Act” means Minnesota Statutes, sections 469.090 through 469.108, as amended. “Economic Development Authority” or “EDA” means the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota. “Event of Default” means an action by the Developer or the EDA listed in Article VIII of this Agreement. “Final Payment Date” means the earliest of (i) February 1, 2042; (ii) the date the principal of the Note has been paid in full; or (iii) the date this Agreement or the Note is terminated or cancelled in accordance with the terms of this Agreement. “Housing and Redevelopment Authorities Act” or “HRA Act” means Minnesota Statutes, sections 469.001 through 469.047, as amended. “Material Change” means a change in the Construction Plans which would reasonably be expected to adversely affect the generation of tax increment attributable to the Minimum Improvements. “Maturity Date” means the date the Note has been paid in full or terminated, whichever is earlier. “Minimum Improvements” means a mixed use development of one six story building including approximately 184 multifamily rental housing units, 11,853 gross square feet of commercial space, and 338 structured parking stalls and construction of Laredo Drive North as defined in section 4.6(a) of this Agreement. After completion of the Minimum Improvements, the term shall mean the Development Property as improved by the Minimum Improvements. 155 4 CH135-65-935359.v6 “Minimum Market Value” means a minimum market value of the Development Property and Minimum Improvements of $58,996,000 as of January 2, 2026 for taxes payable beginning in 2027. “Note” means the Tax Increment Revenue Note, in substantially the form set forth in the Authorizing Resolution, to be delivered by the EDA to the Developer to reimburse the Developer for the Qualifying Costs pursuant to Article III of this Agreement. “Payment Date” means August 1, 2026 and each February 1 and August 1 through February 1, 2042. (If the Note is issued after August 1, 2026, the initial payment date shall be the next subsequent February 1 or August 1 after the issuance date.) “Preliminary Plans” means the plans of the Minimum Improvements referenced in Exhibit B attached hereto. “Public Assistance” means the financial assistance to be offered by the EDA to the Developer through issuance of the Note. “Qualifying Costs” means the cost of demolition of existing improvements, earthwork, grading, foundations and footings, site preparation, landscaping and site improvements, utility costs, structured and surface parking improvements, Laredo Drive North and, if constructed, Laredo Drive South and other qualifying expenditures made by the Developer related to completion of the Minimum Improvements which the EDA intends to partially reimburse through the Note. “Redevelopment Plan” means the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area, which was modified most recently on March 15, 2024. “Redevelopment Project” or “Project” means the Downtown Chanhassen Redevelopment Project. “Sale” means any conveyance of fee simple title in and to the Minimum Improvements or the Development Property, as more fully defined in Article VII of this Agreement. “Second Building” means the building to be constructed by a related developer on the property located at 575 West 78th Street, Chanhassen, Minnesota 55317 but which is not part of the Minimum Improvements. “State” means the state of Minnesota. “Substantial Completion” means completion of the Minimum Improvements to a degree allowing the issuance of a certificate of occupancy by the City’s building official. 156 5 CH135-65-935359.v6 “Tax Increment” means the tax increment, as that term is defined in Minnesota Statutes, section 469.174, subd. 25, which is paid to the EDA by the County with respect to the Minimum Improvements and the Development Property. “Tax Increment Financing Act” or “TIF Act” means Minnesota Statutes, sections 469.174 through 469.1799, as amended. “Tax Increment Financing District” or “TIF District” means Tax Increment Financing District No. 13, a renewal and renovation district. “Tax Increment Financing Plan” or “TIF Plan” means the tax increment plan for Tax Increment Financing District No. 13 which was approved by the EDA and the City on March 11, 2024. “Tax Official” means the Assessor, County auditor, County or state board of equalization, the commissioners of revenue of the State, or any State or federal district court, the tax court of the State, or the State Supreme Court. “Termination Date” means the date Tax Increment Financing District No. 13 terminates, which date is the earliest of: (i) the date all of the EDA’s financial obligations with regard to the TIF District have been satisfied; (ii) the date that this Agreement and the Note are terminated by the EDA for any reason; or (iii) payment of all amounts owed under the Note. “Unavoidable Delays” means delays which are the direct result of adverse weather conditions; strikes or other labor troubles; fire or other casualty to the Minimum Improvements; litigation commenced by third parties which, by injunction or other similar judicial action, directly results in delays; or, except those of the EDA or the City reasonably contemplated by this Agreement, any acts or omissions of any federal, State or local governmental unit which directly result in delays in construction of the Minimum Improvements; default or unanticipated delay by the EDA or the City under this Agreement; or any other cause beyond the reasonable control of a party. Section 1.2. Exhibits. The following exhibits are attached to and by reference made a part of this Agreement: Exhibit A. Legal Description of Development Property Exhibit B. List of Preliminary Plans Exhibit C. Form of Certificate of Completion Exhibit D. Form of Authorizing Resolution with Note Exhibit E. Form of Investment Letter Exhibit F. Proforma, Lookback and Total Development Costs Exhibit G. Form of Assessment Agreement Section 1.3. Rules of Interpretation. (a) This Agreement shall be interpreted in accordance with and governed by the laws of Minnesota. 157 6 CH135-65-935359.v6 (b) The words “herein” and “hereof” and words of similar import, without reference to any particular section or subdivision, refer to this Agreement as a whole rather than any particular section or subdivision hereof. (c) References herein to any particular section or subdivision hereof are to the section or subdivision of this Agreement as originally executed. (d) Any titles of the several parts, articles and sections of this Agreement are inserted for convenience and reference only and shall be disregarded in construing or interpreting any of its provisions. ARTICLE II Representations and Warranties Section 2.1. Representations by the EDA. The EDA makes the following representations as the basis for the undertaking on its part herein contained: (a) The EDA is an economic development authority duly organized and existing under the EDA Act and also having the powers of a housing and redevelopment authority under the HRA Act. The EDA has the authority to enter into this Agreement and carry out its obligations hereunder. (b) The EDA has approved execution of this Agreement. The individuals executing this Agreement and related agreements and documents on behalf of the EDA have the authority to do so and to bind the EDA by their actions. (c) The Downtown Chanhassen Redevelopment Project is a redevelopment project within the meaning of the HRA Act and was created, adopted and approved in accordance with the HRA Act. (d) TIF District No. 13 is a renewal and renovation district within the meaning of the TIF Act and was created, adopted and approved in accordance with the TIF Act. (e) There are no previous agreements to which the EDA is a party pertaining to the Development Property which would preclude the parties from entering into this Agreement or which would impede the fulfillment of the terms and conditions of this Agreement. (f) The activities of the EDA pursuant to this Agreement are undertaken pursuant to the modified Redevelopment Plan and the TIF Plan and are for the purpose of redevelopment of the Development Property with a housing and commercial mixed-use project. (g) The EDA will act in a timely manner to consider all approvals required under this Agreement and will cooperate with the Developer in seeking consideration of approvals which must be granted by the City or other public entities. 158 7 CH135-65-935359.v6 Section 2.2. Representations and Warranties by the Developer. The Developer makes the following representations and warranties as the basis for the undertaking on its part herein contained: (a) The Developer is a limited liability company validly existing under the laws of the state of Delaware. The Developer has the authority to enter into this Agreement and carry out its obligations hereunder. (b) The persons executing this Agreement and related agreements and documents on behalf of the Developer have the authority to do so and to bind the Developer by their actions. (c) The Developer has entered into a purchase agreement to acquire the Development Property(or has been assigned the interest of Roers Acquisitions LLC, a Minnesota limited liability company and an affiliate under common ownership and control with the Developer, a purchaser with respect to a purchase agreement to acquire the Development Property) and anticipates closing on the acquisition of the Development Property by December 31, 2024. (d) The Developer will construct the Minimum Improvements in substantial accordance with the terms of this Agreement, the Redevelopment Plan, the TIF Plan, the Construction Plans and all local, State and federal laws and regulations, including, but not limited to, environmental, zoning, building code and public health laws and regulations. (e) The Developer will apply for and use all reasonable efforts to obtain, in a timely manner, all required permits, licenses and approvals from the City, and will meet, in a timely manner, the requirements of all applicable local, State and federal laws and regulations which must be obtained or met before the Minimum Improvements may be lawfully constructed or used for their intended purpose. (f) The Developer has analyzed the economics of the cost of demolition of existing improvements, earthwork, grading, foundations and footings, site preparation, landscaping and site improvements, utility costs, structured and surface parking improvements and construction of the Minimum Improvements and concluded that, absent the Public Assistance to be offered under this Agreement, it would not undertake this project. (g) Neither the execution and delivery of this Agreement, the consummation of the transactions contemplated hereby, nor the fulfillment of or compliance with the terms and conditions of this Agreement is prevented, limited by or conflicts with or results in a breach of, the terms, conditions or provisions of any corporate organizational documents or any evidence of indebtedness, agreement or instrument of whatever nature to which the Developer is now a party or by which it is bound, or constitutes a default under any of the foregoing. 159 8 CH135-65-935359.v6 ARTICLE III Acquisition of Development Property; Public Assistance Section 3.1. Acquisition of Development Property. Subject to Unavoidable Delays, the Developer agrees to acquire the Development Property in fee by December 31, 2024. The EDA makes no representations to the Developer regarding the suitability of the Development Property for the use and purpose intended by the Developer. Section 3.2. Issuance of Pay-As-You-Go Note. (a) In consideration of the Developer incurring the Qualifying Costs while constructing the Minimum Improvements, the EDA will issue to the Developer the Note in an aggregate principal amount not to exceed $3,900,000 in substantially the form set forth in the Authorizing Resolution attached hereto as Exhibit D. If the Developer also constructs Laredo Drive South, the Note will be issued in an aggregate principal amount not to exceed $5,000,000. The EDA and the Developer agree that the consideration from the Developer for the purchase of the Note will consist of the Developer’s payment of the Qualifying Costs which are eligible for reimbursement with Tax Increment and which are incurred by the Developer in at least the principal amount of the Note. The Authorizing Resolution will authorize delivery of the Note by the EDA Executive Director upon satisfaction by the Developer of all the conditions precedent specified in section 3.3 of this Agreement. (b) The Developer understands and acknowledges that the EDA makes no representations or warranties regarding the amount of Available Tax Increment, or that revenues pledged to the Note will be sufficient to pay the Note. Any estimates of Tax Increment prepared by the EDA or its financial advisors in connection with the TIF District or this Agreement are for the benefit of the EDA and are not intended as representations on which the Developer may rely. Section 3.3. Conditions Precedent to Issuance of the Note. Notwithstanding anything in this Agreement to the contrary, the EDA Executive Director is authorized to issue the Note to the Developer only after all of the following conditions precedent have been satisfied: (a) The Developer has acquired the Development Property in fee; (b) The Developer has executed this Agreement and it has been recorded against the Development Property; (c) The Assessment Agreement has been fully executed and recorded against the Development Property; (d) The Developer has completed the Minimum Improvements and the EDA has issued the Certificate of Completion; (e) The Developer has submitted evidence, including paid receipts and lien waivers, it has incurred and paid for the Qualifying Costs in an amount not less than the principal amount of the Note; 160 9 CH135-65-935359.v6 (f) The Developer has submitted the Investment Letter in the general form attached hereto as Exhibit E; (g) The Developer has submitted evidence satisfactory to the EDA to comply with section 3.5(c); (h) The Developer has made the certification required by Section 4.5 regarding proper payments having been made to all contractors, subcontractors and project laborers; (i) Construction of the Second Building has begun as required by Section 4.7 of this Agreement; (j) The EDA has adopted the Authorizing Resolution; and (k) There has been no Event of Default on the part of the Developer which has not been cured. Section 3.4. Records. The EDA and its representatives will have the right at all reasonable times after reasonable notice to inspect, examine and copy invoices paid by the Developer and/or its general contractor relating to the Minimum Improvements and the Qualifying Costs for which the Developer will be reimbursed under the Note. Section 3.5. Lookback Provisions and Reduction of Note. (a) The Public Assistance offered by the EDA to the Developer under this Agreement is based on certain assumptions regarding likely performance of the Minimum Improvements including operating revenues, expenses and development costs of construction. The EDA and the Developer agree that the actual financial performance of the Minimum Improvements will be reviewed at the times described in this section 3.5, and that the Note may be adjusted accordingly. The Developer shall provide the EDA and its municipal advisor (the “Consultant”) with the Pro Forma Financial Statements showing a target Yield on Cost Average Annual Return of 7.0%. (b) For the purposes of this section 3.5, the following terms have the following meanings: 1. “Calculation Date” means either (A) 90 days after the date of Stabilization or (B) at least 30 days prior to refinancing or Sale of the Minimum Improvements. 2. “Yield on Cost” means NOI divided by the Total Development Costs less any grants, calculated as set forth in the sample lookback calculation attached hereto as Exhibit F. 3. “Yield on Cost Average Annual Return” means the average of each annual Yield on Cost beginning at the time that the Certificate of Occupancy is issued and ending on the Termination Date, as set forth in the sample lookback calculation attached hereto as Exhibit F. 161 10 CH135-65-935359.v6 4. “Net Operating Income” or “NOI” means total annual income and other project- derived annual revenue, including payments under the Note, less Operating Expenses, which exclude debt service payments. For purposes of the Yield on Cost Average Annual Return calculation on the Calculation Date, (i) revenue for periods prior to the Calculation Date shall be based upon actual occupancy; (ii) revenue for periods after the Calculation Date shall be based on 95% occupancy and inflated by 3.0% annually, and (iii) Operating Expenses for periods after the Calculation Date, shall be inflated by 3.0% annually. 5. “Operating Expenses” means reasonable and customary expenses actually incurred in operating the Minimum Improvements and any other expenses actually incurred by the Developer pursuant to its obligations under this Agreement, determined in the same manner as shown in the Pro Forma Financial Statement, which excludes expenses after debt service, and includes administrative, payroll, marketing, insurance, property management fees, utilities, maintenance, deposits to commercially reasonable capital replacement reserves and payment of real estate taxes, but subject to final review and acceptance by the Consultant. 6. “Pro Forma Financial Statement” means the cash flow pro forma model financial statement projecting future returns, a summary of which is attached to this Agreement as Exhibit F. 7. “Stabilization” means the date corresponding to two years after the date of completion, as evidenced by the EDA’s issuance of a Certificate of Completion. 8. “Total Development Costs” means the total expenditures to complete the Minimum Improvements inclusive of land acquisition, hard construction costs, soft costs and financing costs as approved by Developer’s senior construction debt lender. 9. “Cash Flow” means NOI less debt service (principal and interest) with respect to the loans encumbering the Minimum Improvements. 10. “IRR” means the internal rate of return for the Minimum Improvements, where the IRR is calculated as the annualized return of the annual Cash Flow and net Sale proceeds over the applicable period on Developer’s actual utilization of equity for Total Development Costs. (c) Lookback at Completion of Construction: After completion of the Minimum Improvements but prior to issuance of the Note, the Developer agrees to submit evidence of its actual Total Development Costs to the EDA for comparison with the estimated Total Development Costs listed on Exhibit F. If the actual Total Development Costs are less than the estimated Total Development Costs, the Note will be reduced such that projected NOI over the term of the Note does not exceed a 7.0% Yield on Cost Average Annual Return. The Note will not be issued until the EDA has compared actual with estimated Total Development Costs as described herein and adjusted the principal amount of the Note, if necessary (d) Lookback on Stabilization: Upon Stabilization, the Developer shall deliver to the EDA and Consultant, at a minimum: (i) the Developer’s actual financial statement, in the same 162 11 CH135-65-935359.v6 form as the Pro Forma Financial Statement submitted to the EDA pursuant to clause (b) 6 above and showing NOI, and such other financial information as the Consultant shall reasonably require, and (ii) evidence, satisfactory to the EDA, of its actual Total Development Costs. 1. The Yield on Cost Average Annual Return shall be calculated by the Consultant based on the financial statement submitted to the EDA pursuant to clause (d) above (in the manner the Consultant determines is consistent with the sample lookback calculation attached as Exhibit F, as approved by the EDA). 2. If the Yield on Cost Average Annual Return does not exceed 7.0% over the term of the Note, the Note will not be revised for Lookback on Stabilization. 3. If the Consultant determines, based on such review, that the Yield on Cost Average Annual Return over the term of the Note exceeds 7.0% (to be calculated in a manner comparable to the sample attached as Exhibit F), then the principal balance of the Note will be reduced as determined by the Consultant below: (A) First, by determining the period over which the Note needs to be outstanding to achieve a 7.0% Yield on Cost Average Annual Return over the term of the Note based on the Consultant’s calculation of the Yield on Cost Average Annual Return. (B) Second, by determining the present value of actual or projected (with respect to future payments) bi-annual Note payments over the life of the Note through the year determined in clause (A) using the interest rate on the Note as the present value discount rate. (C) Third, by determining the amount equal to 50% of the difference between the original principal amount of the Note and the present value number calculated in clause (B). (D) Finally, the new principal amount of the Note will then be determined by adding the amounts in clauses (B) and (C) and rounding to the nearest $1,000 (the “Revised Note Principal Amount”). (E) Such Revised Note Principal Amount will be effective upon delivery to the Developer of a written notice stating the Revised Note Principal Amount as determined by the Consultant in accordance with this section 3.5, accompanied by the Consultant’s report. The Developer shall, thereupon, deliver the Note in exchange for a new Note in the Revised Note Principal Amount. (e) Lookback Upon Sale or Refinancing: Regardless of whether Stabilization has occurred, if the Developer sells to an entity which is not an Affiliate or refinances the Minimum Improvements (provided, however, the placement of permanent debt on the Minimum Improvements will not constitute a refinance giving rise to the review as described in this subsection (e)) during the term of the Note, the Developer agrees to provide to the Consultant the Pro Forma Financial Statements for the period from the date of the Certificate of Occupancy 163 12 CH135-65-935359.v6 through such anticipated Sale or refinance date (provided that the Developer and the EDA agree that the calculation will occur prior to the actual refinancing). 1. For a refinancing, if the Consultant determines, based on such review, that the NOI exceeds a Yield on Cost Average Annual Return of 7.0% after adjusting the Total Development Costs for the receipt of any net refinancing proceeds, then the Note shall be reduced by 50% of the excess amount of such returns, including a reduction to $0.00, if applicable. Such reduction will be effective upon delivery to Developer of a written notice stating the amount of such excess amount as determined by the EDA in accordance with this subsection (e), accompanied by the Consultant’s report. 2. For a Sale, if the Consultant determines, based on such review, that the actual Cash Flows and net Sale proceeds realized by the Developer upon Sale will exceed a IRR of 16.0%, then the Note shall be reduced by 50% of the excess amount of such returns, including a reduction to $0.00, if applicable. Such reduction will be effective upon delivery to Developer of a written notice stating the amount of such excess amount as determined by the EDA in accordance with this subsection (e), accompanied by the Consultant’s report. Section 3.6. Business Subsidy. The Public Assistance offered to the Developer under this Agreement is not a business subsidy under the Business Subsidy Act because it qualifies for the exceptions under section 116J.993, subd. 3(7) for housing and subd. 3(17) regarding redevelopment. ARTICLE IV Construction of Minimum Improvements Section 4.1. Construction of Minimum Improvements. The Developer agrees that it will construct the Minimum Improvements on the Development Property in accordance with the Preliminary Plans and the Construction Plans. The Developer acknowledges that, in addition to the requirements of this Agreement, construction of the Minimum Improvements will necessitate compliance with the City Approvals and possibly approvals by other governmental agencies. To the extent such approvals have not already been obtained, the Developer agrees to submit in a timely manner all applications for and pursue to their conclusion all other approvals needed prior to constructing the Minimum Improvements. Section 4.2. Preliminary Plans and Construction Plans. (a) The Developer has submitted and the EDA has approved the Preliminary Plans listed in Exhibit B attached hereto. Prior to beginning construction on the Minimum Improvements, the Developer shall submit dated Construction Plans to the EDA. The Construction Plans shall provide for the construction of the Minimum Improvements and shall be in substantial conformity with the Preliminary Plans and this Agreement. The EDA will approve the Construction Plans if they (1) are consistent with the Preliminary Plans; (2) conform to all applicable federal, State and local laws, ordinances, rules and regulations; (3) are adequate to provide for the construction of the Minimum Improvements; (4) conform to the State building code; and (5) if there has occurred no uncured Event of Default on the part of the Developer. Except as otherwise set forth herein, no approval by the EDA shall 164 13 CH135-65-935359.v6 relieve the Developer of the obligation to comply with the terms of this Agreement and the terms of all applicable federal, State and local laws, ordinances, rules and regulations in the construction of the Minimum Improvements. Except as otherwise set forth herein, no approval by the EDA shall constitute a waiver of an Event of Default. The EDA shall use good faith efforts to review the Construction Plans and either approve or reject them in writing within 15 business days after receipt. Any rejection, in whole or in part, shall set forth in detail the reasons for rejection. (b) If the Developer desires to make any Material Change in the Construction Plans after approval, the Developer shall submit the proposed change to the EDA for its approval. If the proposed change is consistent with the Preliminary Plans or is otherwise acceptable to the EDA and meets all other requirements of section 4.2(a) above, the EDA shall approve the proposed change. Such change in the Construction Plans shall be deemed approved by the EDA unless rejected within the required 15 business day period, in whole or in part, by written notice by the EDA to the Developer, setting forth in detail the reasons for rejection. (c) Through the Termination Date, all sewer access charges (“SAC”) and water access charges (“WAC”) made by the City regarding the Minimum Improvements or commercial tenant improvements shall be paid by the Developer. Section 4.3. Commencement and Completion of Construction. Subject to Unavoidable Delays, the Developer shall commence construction of the Minimum Improvements by no later than December 31, 2024. All work with respect to the Minimum Improvements to be constructed or provided by the Developer on the Development Property shall be in conformity with the Construction Plans. The Developer shall make such reports to the EDA regarding construction of the Minimum Improvements as the EDA deems necessary or helpful in order to monitor progress on construction of the Minimum Improvements. Subject to Unavoidable Delays, the Developer shall have achieved Substantial Completion of all of the Minimum Improvements by no later than December 31, 2026. Section 4.4. Certificate of Completion. (a) After Substantial Completion of the Minimum Improvements in accordance with the Construction Plans and at the written request of the Developer, the EDA will, within 20 days thereafter, furnish the Developer with an appropriate Certificate of Completion so certifying in the form of Exhibit C attached hereto. Such Certificate of Completion by the EDA shall be a conclusive determination of satisfaction and termination of the agreements and covenants in this Agreement with respect to the obligations of the Developer to construct the Minimum Improvements and the dates for the beginning and completion thereof. If requested by the Developer, the EDA will issue a separate Certificate of Completion for each of the two buildings constituting the Minimum Improvements. (b) The Certificate of Completion shall be in such form set forth in Exhibit C and as will enable it to be recorded in the proper County office for the recordation of deeds and other instruments pertaining to the Development Property. If the EDA shall refuse to provide a Certificate of Completion in accordance with the provisions of this section 4.4, the EDA shall promptly notify Developer within the same 20 day period following receipt of request by the Developer for the Certificate of Completion, and such notification from the EDA shall include a written statement, indicating in adequate detail in what respects the Developer has failed to 165 14 CH135-65-935359.v6 complete the relevant portion of the Minimum Improvements in accordance with the Construction Plans and what measures or acts will be necessary, in the opinion of the EDA, for the Developer to take or perform in order to obtain such certification. If the EDA fails to issue such a written statement within such 20-day period, the EDA shall be deemed to have waived its right to do so and shall be deemed to have issued a Certificate of Completion to the Developer. The Developer shall have 60 days following receipt of the EDA’s written response to cure or agree to terms with the EDA regarding issues to be resolved prior to the Developer obtaining a Certification of Completion from the EDA. Section 4.5. Compliance with Labor Laws. (a) The Developer shall not use any disqualified contractors or permit the use of any disqualified subcontractors listed on the Minnesota State “Suspended/Debarred Vendor Detailed Information” website. The Developer shall and shall require all contractors and subcontractors to comply with all applicable federal, state, and local labor laws. (b) The Developer shall and shall require all contractors and subcontractors to fully and completely comply with all otherwise applicable federal, state and local labor and employment laws, including, without limitation, those relating to wage and hour requirements, if any such laws are applicable. The Developer shall maintain or ensure access to all documentation necessary to establish compliance with the foregoing applicable laws, if any, and shall allow the EDA or its designee reasonable access to such data. (c) The Developer shall require its prime contractor to report any wage claims that are filed with the Minnesota Department of Labor and Industry (the “DLI”) or adverse determinations of wage theft or payroll fraud against such prime contractor arising from the Minimum Improvements, and shall require that its prime contractor require its subcontractors to report any wage claims that are filed with the DLI or adverse determinations of wage theft or payroll fraud against such subcontractors arising from the Minimum Improvements. The Developer shall promptly notify the EDA of any wage claims filed with DLI or adverse determinations of wage theft or payroll fraud against the prime contractor or subcontractor arising from the Minimum Improvements, to the extent that the Developer obtains actual knowledge of such claims or adverse determinations. The Developer shall require its prime contractor to provide a list to the Developer and the EDA of all entities contracted by the prime contractor performing work on the Minimum Improvements that are required to register through the DLI’s Contractor Registration Program (the “Contractor List”). The Contractor List shall be provided to the Developer and EDA within 90 days after the commencement of construction of the Minimum Improvements and updated and shared every 90 days until the completion of the Minimum Improvements. (d) If a third party files a claim with the DLI involving wage theft or payroll fraud regarding any contractor or subcontractor doing work on the Minimum Improvements, the Developer shall fully cooperate with DLI. (e) The Developer shall certify to the EDA that, to the best of the Developer’s knowledge , proper payments to all contractors, subcontractors and project laborers have been made prior to the issuance of a Certificate of Completion and as a condition precedent to issuance of the TIF Note, provided, however, that in the event the Developer disputes a lien, the Developer 166 15 CH135-65-935359.v6 may bond over or establish an escrow account to protect against the lien on terms reasonably acceptable to the EDA. (f) The Developer acknowledges that failure to substantially comply with this Section 4.5 will, after the expiration of all applicable notice and cure periods, be an Event of Default and could result in non-issuance of the TIF Note, or, if the TIF Note has already been issued, delaying, reducing and/or terminating TIF Note payments. Section 4.6 Extension of Laredo Drive. (a) The extension of Laredo Drive from West 78th Street to the southern property line of the of the Development Property (“Laredo Drive North”) is included in the Minimum Improvements. Laredo Drive North will be constructed by the Developer in accordance with plans and specifications prepared by the Developer and approved by the City and completed no later than December 31, 2026. Upon completion of Laredo Drive North, the City will inspect the project for compliance with the approved plans and specifications and will require the Developer to correct any deficiencies. The City will accept Laredo Drive North for maintenance as a public improvement in accordance with the special provisions and general conditions of the Development Contract to be entered into by the City and the Developer. (b) The City has also determined that it is desirable to further extend Laredo Drive from the planned terminus of Laredo Drive North southward to Market Street (“Laredo Drive South”). The land needed for Laredo Drive South is not on the Development Property or under the control of the Developer. The City is negotiating with the property owner for acquisition of the required land. The City will acquire sufficient interest in that land to permit the Developer to construct Laredo Drive South in conjunction with Laredo Drive North. The City will acquire the required interest in the additional land by December 31, 2025 or such later date as may be agreed upon by the City and the Developer. (c) If the City acquires the land needed to construct Laredo Drive South in a timely manner (i.e., December 31, 2025 or such later date as may be agreed upon by the City and the Developer), the Developer agrees to construct both segments of the road extension in connection with the Minimum Improvements and to complete the full road project by no later than December 31, 2026 (provided, however, that if the City acquires the land needed to construct Laredo Drive South after December 31, 2025 in accordance with section 4.6(b) hereof, then the City shall allow the Developer such additional time to complete the full road project as is reasonably necessary in light of such delay in the City’s acquisition of the needed land). Laredo Drive South is not considered an element of the Minimum Improvements as it relates to section 3.2 and 3.3 and the issuance and conditions precedent to the issuance of the completion, inspection, correction of defects and submission of the warranty bond, and acceptance of both segments of the road extension will occur in the same manner for the full project as described in subsection (a) above in reference to Laredo Drive North. (d) The estimated costs for Laredo Drive South is $1,500,000.00. This includes an estimated $400,000 in land acquisition and $1,100,000 in construction and design costs. If the Developer constructs both Laredo Drive North and Laredo Drive South, the EDA agrees to reimburse the Developer for the additional expense by increasing the principal amount of the Note by the actual amount of the Developer’s costs for Laredo Drive South or by the estimated $1,100,000 in construction and design costs, whichever is lesser and by increasing the Available 167 16 CH135-65-935359.v6 Tax Increment from 75 percent to 95 percent of Tax Increment. The estimated $400,000 in land acquisition costs paid up front by the City shall be repaid to the City through Tax Increment retained by the EDA. If the City fails to acquire the land for Laredo Drive South in the time for the Developer to construct it with the Minimum Improvements, Available Tax Increment shall remain at 75 percent and the Developer shall be relieved of any obligation construct Lareo Drive South. Section 4.7 Completion of Second Building. The Second Building is intended to be constructed by a related developer on a site adjacent to the Development Property. While not part of the Minimum Improvements required by this Agreement, the Second Building is an integral part of the EDA’s plan for redevelopment of the area and its completion is important for fulfilling the EDA’s goals and objectives in establishing the TIF District. The Note will not be issued until after construction of the Second Building has begun. Construction of the Second Building will be deemed to have begun only after physical work has been initiated on construction of the foundation of the building. ARTICLE V Insurance Section 5.1. Insurance. The Developer or its general contractor will provide and maintain at all times during the process of constructing the Minimum Improvements a Special Form Basis Insurance Policy and, from time to time during that period, at the request of the EDA no more frequently than once annually, furnish the EDA with proof of payment of premiums on policies covering the following: (1) Builder’s risk insurance, written on the so-called “Builder’s Risk – Completed Value Basis,” in an amount equal to one hundred percent (100%) of the insurable value of the applicable portion of the Minimum Improvements at the date of completion, and with coverage available in reporting form on the so-called “special” form of policy; (2) Commercial general liability insurance (including operations, contingent liability, operations of subcontractors, completed operations and contractual liability insurance) with limits against bodily injury and property damage of not less than $2,000,000 for each occurrence (to accomplish the above-required limits, an umbrella excess liability policy may be used); and (3) Workers’ compensation insurance, with statutory coverage. Section 5.2. Evidence of Insurance. All insurance required in this Article V of this Agreement must be taken out and maintained in responsible insurance companies selected by the Developer which are authorized under the laws of Minnesota to assume the risks covered thereby. In lieu of separate policies, the Developer may maintain a single policy, blanket or umbrella policies, or a combination thereof, having the coverage required herein. Upon written request by the EDA, the Developer agrees to deposit with the EDA a certificate or certificates or binders of the respective insurers stating that such insurance is in force and effect. 168 17 CH135-65-935359.v6 ARTICLE VI Payment of Taxes; Assessment Agreement; Use of Tax Increment Section 6.1. Taxes. The Developer agrees that prior to the Termination Date: (i) it will not seek administrative or judicial review of the applicability of any tax statute determined by any Tax Official to be applicable to the Minimum Improvements or the Development Property or raise the inapplicability of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; (ii) it will not seek administrative or judicial review of the constitutionality of any tax statute determined by any Tax Official to be applicable to the Minimum Improvements or the Development Property or raise the unconstitutionality of any such tax statute as a defense in any proceedings, including delinquent tax proceedings; and (iii) it will not cause a reduction in the assessed value of the Minimum Improvements or the Development Property below the Minimum Market Value described in section 6.2(a) of this Agreement through: (a) willful destruction of the Minimum Improvements or any part thereof; (b) failure to reconstruct damaged or destroyed property; (c) a request to the Assessor to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value ; (d) a petition to the board of equalization of the County to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value; (e) a petition to the board of equalization of the State or the commissioner of revenue of the State to reduce the assessed value of all or any portion of the Minimum Improvements or the Development Property below the Minimum Market Value; (f) an action in a district court of the State or the tax court of the State seeking a reduction in the assessed value of the Minimum Improvements or the Development Property below the Minimum Market Value; (g) an application to the commissioner of revenue of the State or to any local taxing jurisdiction requesting an abatement or deferral of real estate taxes on the Minimum Improvements or the Development Property; (h) a transfer of the Minimum Improvements or the Development Property, or any part thereof, to an entity exempt from the payment of real estate taxes under State law and that entity applies for tax exemption; or (i) any other proceedings, whether administrative, legal or equitable, with any administrative body within the County or the State or with any court of the State or the federal government. 169 18 CH135-65-935359.v6 Section 6.2. Assessment Agreement. (a) At the time of execution of this Agreement, the EDA and the Developer shall execute an Assessment Agreement for the Development Property and Minimum Improvements. The Assessment Agreement shall specify an aggregate Minimum Market Value of $58,996,000 as of January 2, 2026 for taxes payable beginning in 2027 through the Termination Date, notwithstanding any failure to start or complete the Minimum Improvements by said date or any failure to reconstruct the Minimum Improvements after damage or destruction before the Termination Date. (b) The Assessment Agreement shall be substantially in the form attached hereto as Exhibit G. Nothing in the Assessment Agreement shall limit the discretion of the Assessor to assign a market value to the Minimum Improvements or the Development Property in excess of the Minimum Market Value nor prohibit the Developer from seeking through the exercise of legal or administrative remedies a reduction in any increase in the market value established pursuant to section 6.2(a) of this Agreement; provided, however, that the Developer shall not seek a reduction of such market value below the Minimum Market Value set forth in the Assessment Agreement in any year so long as such Assessment Agreement shall remain in effect. The Assessment Agreement shall remain in effect until the Termination Date; provided that if at any time before the Termination Date the Assessment Agreement is found to be terminated or unenforceable by any Tax Official or court of competent jurisdiction, the Minimum Market Value described in this section 6.2 shall remain an obligation of the Developer or its successors and assigns (whether or not such value is binding on the Assessor), it being the intent of the parties that the obligation of the Developer to maintain, and not seek reduction of, the Minimum Market Value specified in this Section 6.2 is an obligation under this Agreement as well as under the Assessment Agreement, and is enforceable by the EDA against the Developer, its successors and assigns, in accordance with the terms of this Agreement and the Assessment Agreement. Notwithstanding anything contained in this Agreement to the contrary, the Developer shall not be precluded from contesting the market value of the Minimum Improvements or the Development Property, or any substantial portion thereof, if the Minimum Improvements or the Development Property is acquired by a public entity through eminent domain prior to the Termination Date. Section 6.3. Suspension or Reduction of Payment on Note. (a) The Developer may, at any time following the issuance of the Certificate of Completion, seek through petition or other means to have the Assessor’s estimated market value for the Minimum Improvements or Development Property reduced to not less than the Minimum Market Value. Such activity must be preceded by written notice from the Developer to the EDA indicating its intention to do so. (b) Upon receiving notice that the Developer seeks a reduction in the Assessor’s estimated market value of all or any portion of the Minimum Improvements or Development Property, or otherwise learning of the Developer’s intentions, the EDA may suspend or reduce payments due under the Note except for the portion of such payments from Available Tax Increment, based on the Minimum Market Value, or the Assessor’s estimated market value for the year in which the Minimum Improvements have been completed, if less than Minimum Market Value, until the actual amount of the reduction in market value is determined, whereupon the EDA will make the suspended payments less any amount that the EDA is required to repay the County as a result any retroactive reduction in market value of the Minimum Improvements or 170 19 CH135-65-935359.v6 Development Property. During the period that the payments are subject to suspension, the EDA may make partial payments on the Note, from the amounts subject to suspension, if it determines, in its sole and absolute discretion, that the amount retained will be sufficient to cover any repayment which the County may require. The EDA’s suspension or reduction of payments of the Note pursuant to this Section 6.3 shall not be considered a default under section 8.1 hereof. Section 6.4. Right to Collect Delinquent Taxes and Special Assessments. The Developer acknowledges that at all times prior to the Termination Date the EDA shall have the right to sue the Developer or its successors and assigns to collect delinquent real estate taxes and any penalty or interest thereon and special assessments due on the Development Property or the Minimum Improvements and to pay over the same as a tax payment to the County auditor. In any such suit in which the EDA prevails, the EDA shall also be entitled to recover its reasonable out-of-pocket costs and expenses, including attorney fees. Section 6.5. Use of Tax Increment. The TIF District is a renewal and renovation district within the meaning of section 469.174, subd. 10a of the TIF Act. Except for payments to the Developer as provided for in this Agreement and the Note, the EDA shall be free to use any Tax Increment it receives from the County with respect to the TIF District for any purpose for which such increment may lawfully be used under the TIF Act and the EDA shall have no obligations to the Developer with respect to the use of such Tax Increment. ARTICLE VII Restrictions on Sale of Minimum Improvements; Termination of Agreement Section 7.1. Prohibition Against Sale of Minimum Improvements. (a) The Developer represents and agrees that its use of the Development Property and its other undertakings pursuant to the Agreement, are, and will be, used for the purpose of construction of the Minimum Improvements on the Development Property and not for speculation in land holding. The Developer represents and agrees that, prior to the issuance of a Certificate of Completion regarding the Minimum Improvements, there shall be no Sale of the Development Property or the Minimum Improvements constructed thereon nor shall the Developer suffer any such Sale to be made, without the prior written approval of the EDA; provided however, notwithstanding the foregoing, the Developer shall be entitled to lease housing units and commercial space within the Minimum Improvements to third parties without the prior written approval of the EDA. As a condition of approval of any such sale, the EDA shall require, at a minimum, that the proposed transferee shall have entered into an agreement whereby the transferee expressly assumes all of the Developer’s obligations under this Agreement. Any such agreement shall include the EDA as a party and otherwise be in form and substance reasonably acceptable to the EDA. (b) Notwithstanding anything in this Agreement to the contrary, Developer is authorized, without the approval of EDA, to obtain construction and permanent financing for the Minimum Improvements and to mortgage the Development Property to provide security for the construction and permanent financing, and the EDA is authorized to subordinate this Agreement 171 20 CH135-65-935359.v6 to such mortgage. In the event of foreclosure, deed-in-lieu of foreclosure or other transfer of the Minimum Improvements or the Development Property as a result of default under such mortgage, such transfer shall require the prior written approval of the EDA, which shall not be unreasonably withheld. As a condition of approval of any such transfer, the EDA shall require, at a minimum, that the proposed transferee shall have entered into an agreement whereby the transferee expressly assumes all of the Developer’s obligations under this Agreement. (c) After a Certificate of Completion has been issued, Developer may, without the approval of the EDA but with 30 days prior written notice to the EDA, sell or transfer all or any portion of the Minimum Improvements or the Development Property to another party except that in the event that the Developer sells or transfers the Minimum Improvements or the Development Property or any portion to any entity which is not an Affiliate of the Developer, the sale shall be subject to the lookback on Sale provisions of Section 3.5 of this Agreement. Section 7.2. Termination of Agreement. Upon the occurrence of the Termination Date, the parties agree to execute and record a document terminating this Agreement. ARTICLE VIII Events of Default Section 8.1. Events of Default Defined. Each and every one of the following shall be an Event of Default under this Agreement: (a) Failure by the Developer to seek approval from the EDA, the City and other entities necessary in order to construct the Minimum Improvements diligently and in good faith; provided that if a Certificate of Completion is issued by the EDA, such failure shall no longer be an Event of Default; (b) Failure of the Developer to pay real estate taxes or special assessments on the Minimum Improvements or the Development Property as they become due; (c) Failure by the Developer to commence and completion construction of the Minimum Improvements pursuant to the terms, conditions and limitations of Article IV of this Agreement, including the timing thereof, unless such failure is caused by an Unavoidable Delay or waived by the Developer and the EDA; (d) If there is an Event of Default by the Developer regarding any requirement under the Development Contract of the Developer or related to the Development Property. (e) There is a challenge to the Minimum Market Value in violation of Article VI of this Agreement or the Assessment Agreement; (f) If the Developer shall file a petition in bankruptcy, or shall make an assignment for the benefit of its creditors (provided, however, that the parent of the Developer pledging its interest in the Developer to a lender as security for a loan financing the construction of Minimum 172 21 CH135-65-935359.v6 Improvements, and an exercise of such pledge, shall not constitute an Event of Default), or shall consent to the appointment of a receiver; (g) Sale of the Minimum Improvements or the Development Property, or any portion thereof, by the Developer in violation of Article VII of this Agreement; or (h) Failure by either party to observe or perform any material covenant, condition, obligation or agreement on its part to be observed or performed under this Agreement, including but not limited to any action necessary for the establishment of the TIF District. Section 8.2. Remedies on Default. Whenever any Event of Default referred to in section 8.1 of this Agreement occurs, the non-defaulting party may take any one or more of the following actions after providing 30 days written notice to the defaulting party of the Event of Default, but only if the Event of Default has not been cured within said 30 days from the receipt of Notice or, if the Event of Default is by its nature incurable within 30 days, the defaulting party does not provide assurances to the non-defaulting party reasonably satisfactory to the non- defaulting party that the Event of Default will be cured and will be cured as soon as reasonably possible: (a) Suspend its performance under this Agreement until it receives assurances from the defaulting party, deemed adequate by the non-defaulting party, that the defaulting party will cure its default and continue its performance under this Agreement; (b) The EDA may enforce the Assessment Agreement; (c) Prior to issuance of the Certificate of Completion, cancel and rescind or terminate this Agreement; (d) If there is a Sale in violation of Article VII of this Agreement, cancel or terminate the Note; (e) If the default occurs after issuance of the Certificate of Completion, the EDA may suspend payments under the Note; and (f) Take whatever action, including legal or administrative action, which may appear necessary or desirable to the non-defaulting party to collect any payments due under this Agreement or to enforce performance and observance of any obligation, agreement, or covenant of the defaulting party under this Agreement. Section 8.3. Remedies after Certificate of Completion. The EDA may exercise its rights under Section 8.2(e) only for the following Events of Default: (a) the Developer fails to pay real estate taxes or special assessments on the Minimum Improvements or the Development Property or any part thereof when due and the taxes or special assessments have not been paid, or provision satisfactory to the EDA made for their payment, within 45 days after written demand by the EDA to do so; or 173 22 CH135-65-935359.v6 (b) the Developer takes or permits an action prohibited by section 6.1 of this Agreement; or (c) the Developer transfers the Minimum Improvements or the Development Property, or any part thereof, to an entity exempt from the payment of real estate taxes under State law; or (d) the Developer fails to comply with the lookback provisions of section 3.5(d) through (f) of this Agreement. Section 8.4. No Remedy Exclusive. No remedy conferred herein or reserved to the parties is intended to be exclusive of any other available remedy or remedies, but each and every remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement or now or hereafter existing at law or in equity. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power may be exercised from time to time and as often as may be deemed expedient. In order to entitle the EDA or the Developer to exercise any remedy reserved to it, it shall not be necessary to give notice, other than such notice as may be required under this Agreement. Section 8.5. No Additional Waiver Implied by One Waiver. In the event any covenant or agreement contained in this Agreement should be breached by either party and thereafter waived by the other party, such waiver shall be limited to the particular breach so waived and shall not be deemed to waive any other concurrent, previous or subsequent breach hereunder. Section 8.6. Acceptance of Third-Party Cure. In the event that an Event of Default, or potential Event of Default, is cured by a third-party lender which has loan to the Developer or an affiliate thereof for the purposes of financing the construction of the Minimum Improvements, the EDA shall accept such proffered cure on the same basis as if such cure had been effected by the Developer. ARTICLE IX Additional Provisions Section 9.1. Conflict of Interests; Representatives Not Individually Liable. No member, official, or employee of the EDA shall have any personal financial interest, direct or indirect, in the Agreement, nor shall any such member, official, or employee participate in any decision relating to the Agreement which affects his or her personal financial interests or the interests of any corporation, partnership, or association in which he or she is, directly or indirectly, interested. No member, official, or employee of the EDA shall be personally liable to the Developer, or any successor in interest, in the event of any default or breach or for any amount which may become due or on any obligations under the terms of this Agreement. Section 9.2. Equal Employment Opportunity. The Developer, for itself and its successors and assigns, agrees that during the construction of the Minimum Improvements provided for in 174 23 CH135-65-935359.v6 this Agreement, it will comply with all applicable equal employment and nondiscrimination laws and regulations. Section 9.3. Restrictions on Use. The Developer agrees that through the Termination Date it will use the Minimum Improvements for only such uses as permitted under the City’s land use regulations and in compliance with the City Approvals. In addition, through the Termination Date, a standalone liquor store, tobacco business or cannabis business is not permitted in the Minimum Improvements. Section 9.4. Notices and Demands. Except as otherwise expressly provided in this Agreement, any notice, demand, or other communication under the Agreement or any related document by either party to the other shall be sufficiently given or delivered if it is dispatched by registered or certified United States mail, postage prepaid, return receipt requested, or delivered personally to: (a) in the case of the Developer: Roers Chanhassen Bennett Apartments Owner LLC c/o Roers Companies Two Carlson Parkway North, Suite 400 Plymouth, MN 55447 Attn: General Counsel and with a copy to: Winthrop & Weinstine, P.A. 225 South Sixth Street, Suite 3500 Minneapolis, MN 55402 Attn: Kevin M. McLain (b) in the case of the EDA: Chanhassen Economic Development Authority 7700 Market Boulevard Chanhassen, MN 55317 Attn: Executive Director and with a copy to: Kennedy & Graven, Chartered 150 South Fifth Street, Suite 700 Minneapolis, MN 55402 Attn: Ronald H. Batty or at such other address with respect to either such party as that party may, from time to time, designate in writing and forward to the other as provided in this section 9.4. Section 9.5. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall constitute one and the same instrument. Section 9.6. Disclaimer of Relationships. The Developer acknowledges that nothing contained in this Agreement nor any act by the EDA or the Developer shall be deemed or construed 175 24 CH135-65-935359.v6 by the Developer or by any third person to create any relationship of third-party beneficiary, principal and agent, limited or general partner, or joint venture between the EDA and the Developer. Section 9.7. Amendment. This Agreement may be amended only by the written agreement of the parties. Section 9.8. Recording; Agreement Runs with the Land. This Agreement shall be recorded among the County land records and the Developer agrees to pay for the cost of recording same. This Agreement runs with the Development Property and shall bind the successors and assigns of the EDA and the Developer. Section 9.9. Release and Indemnification Covenants. a) Except for any negligent act of the following named parties, the Developer hereby releases from and covenants and agrees that the EDA, and its governing body members, officers, agents, servants, and employees (the “Indemnified Parties”) shall not be liable for, and hereby agrees to indemnify and hold harmless the Indemnified Parties against any loss or damage to property or any injury to or death of any person occurring at or about or resulting from any defect in the Minimum Improvements. b) The aforesaid indemnification shall not apply to willful misrepresentation or any willful or wanton misconduct or negligence of the EDA. c) Except for any negligent or willful act of the EDA, the Indemnified Parties shall not be liable for any damage or injury to the persons or property of the Developer or its partners, officers, agents, servants or employees or any other person who may be about the Minimum Improvements or the Minimum Improvements due to any act of negligence of any person. Section 9.10. Titles of Articles and Sections. Any titles of the several parts, articles, and sections of this Agreement are inserted for convenience of reference only and shall be disregarded in construing or interpreting any of its provisions. Section 9.11. Governing Law; Venue. This Agreement shall be construed in accordance with the laws of Minnesota. Any dispute arising from this Agreement shall be heard in the State or federal courts of Minnesota, and all parties waive any objection to the jurisdiction thereof, whether based on convenience or otherwise. Section 9.12. Fees and Charges. The Developer agrees to pay the EDA for all fees or costs for legal, financial advisory, engineering, planning or other staff time for preparation of the TIF Plan and related documents and analysis, drafting or negotiating this Agreement and for reviewing any plans regarding the Minimum Improvements submitted in satisfaction of this Agreement. ******************** 176 25 CH135-65-935359.v6 IN WITNESS WHEREOF, the EDA and the Developer have caused this Agreement to be duly executed in their names and behalves on or as of the date first above written. THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 2024, by _______________________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 2024, by _______________________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 177 26 CH135-65-935359.v6 ROERS CHANHASSEN BENNETT APARTMENTS OWNER LLC By: ___________________________ Tom Cronin, Authorized Signatory STATE OF ___________ ) ) ss. COUNTY OF _________ ) The foregoing instrument was executed before me this _____ day of _______________, 2024, by Tom Cronin, the Authorized Signatory of Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company, on behalf of the company. ____________________________________ Notary Public 178 A-1 CH135-65-935359.v6 EXHIBIT A TO CONTRACT FOR PRIVATE DEVELOPMENT LEGAL DESCRIPTION OF DEVELOPMENT PROPERTY PIDS: 25-11-90-030 (west building) 25-11-90-010 (west building) 25-11-90-040 (west building) 25-11-80-020 (west building) [legal descriptions to be added] 179 B-1 CH135-65-935359.v6 EXHIBIT B TO CONTRACT FOR PRIVATE DEVELOPMENT LIST OF PRELIMINARY PLANS The following constitute the Preliminary Plans of the Minimum Improvements: [to be included] 180 C-1 CH135-65-935359.v6 EXHIBIT C TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF CERTIFICATE OF COMPLETION WHEREAS, the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the “EDA”), and Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company (the “Developer”), have entered into a certain Contract for Private Development (the “Agreement”) dated the ____ day of ____________, 2024, and recorded in the office of the County Recorder in Carver County, Minnesota, as Document No. __________, which Agreement contained certain covenants and restrictions regarding completion of the Minimum Improvements, as defined in the Agreement; and WHEREAS, the Developer has performed said covenants and conditions in a manner deemed sufficient by the EDA to permit the execution and recording of this certification. NOW, THEREFORE, this is to certify that all construction of the Minimum Improvements specified to be done and made by the Developer has been completed and the County Recorder in Carver County, Minnesota, is hereby authorized to accept for recording and to record the filing of this instrument, to be a conclusive determination of the satisfactory termination of the covenants and conditions relating to completion of the Minimum Improvements. Dated: _______________. CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: Its President By: Its Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 202_, by _______________________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 181 C-2 CH135-65-935359.v6 STATE OF MINNESOTA ) ) ss. COUNTY OF _________ ) The foregoing instrument as acknowledged before me this _____ day of ____________, 202_, by _______________________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public This Instrument Drafted By: KENNEDY & GRAVEN, CHARTERED (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 182 D-1 CH135-65-935359.v6 EXHIBIT D TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF AUTHORIZING RESOLUTION WITH NOTE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. ______ RESOLUTION APPROVING THE ISSUANCE OF, AND PROVIDING THE FORM, TERMS, COVENANTS AND DIRECTIONS FOR THE ISSUANCE OF ITS TAXABLE TAX INCREMENT REVENUE NOTE, SERIES 202__ IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $__________ BE IT RESOLVED BY the Chanhassen Economic Development Authority (the “EDA”), as follows: Section 1. Authorization; Award of Sale. 1.01. Authorization. The EDA has heretofore approved the establishment of Tax Increment Financing District No. 13 (the “TIF District”), located in the Downtown Chanhassen Redevelopment Project (the “Redevelopment Project”), and has adopted a tax increment financing plan for the purpose of financing certain improvements within the Redevelopment Project. Pursuant to Minnesota Statutes, Section 469.178, the EDA is authorized to issue and sell its bonds for the purpose of financing a portion of the public development costs of the Minimum Improvements and Development Property in the Redevelopment Project. The bonds are payable from all or any portion of revenues derived from the Minimum Improvements and the Development Property (each as defined in the Agreement (defined below)) in the TIF District and pledged to the payment of the bonds. The EDA hereby finds and determines that it is in the best interests of Chanhassen that it issue and sell its taxable Tax Increment Revenue Note, Series 202__ (the “Note”), in the aggregate principal amount up to $__________, for the purpose of financing certain public costs of the Redevelopment Project. 1.02. Agreement Approved; Issuance, Sale and Terms of the Note. The EDA has previously approved the Contract for Private Development (the “Agreement”) between the EDA and Roers Chanhassen Bennett Apartments Owner LLC, a limited liability company under the laws of Delaware (the “Owner”), and authorized the President and Executive Director to execute the Agreement. Pursuant to the Agreement, the Note will be issued to the Owner. The Note will be dated as of the date of delivery and will bear interest at the rate of [the lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements]. In exchange for the EDA’s issuance of 183 D-2 CH135-65-935359.v6 the Note to the Owner, the Owner will pay certain costs related to the Minimum Improvements (the Qualifying Costs, as defined in the Agreement) pursuant to Section 3.2 of the Agreement. The Note will be delivered in the principal amount up to $__________ for reimbursement of the Owner’s costs in accordance with the terms of Sections 3.2 and 3.3 of the Agreement. Section 2. Form of Note. The Note will be in substantially the following form, with the blanks to be properly filled in and the principal amount and payment schedule adjusted as of the date of issue: UNITED STATE OF AMERICA STATE OF MINNESOTA CARVER COUNTY CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY No. R-1 $__________ TAXABLE TAX INCREMENT REVENUE NOTE SERIES 202__ Date Rate of Original Issue [lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements] The Chanhassen Economic Development Authority (the “EDA”), for value received, certifies that it is indebted and hereby promises to pay to Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company, or registered assigns (the “Owner”), the principal sum of $_________ with interest thereon at the rate specified below, as and to the extent set forth herein. 1. Payments. Principal and interest payments (“Payments”) will be paid on August 1, 2026, and each February 1 and August 1 thereafter until the earlier of payment in full or February 1, 2042 (“Payment Dates”), in the amounts and from the sources set forth in Section 3 herein. Payments are payable by mail to the address of the Owner or any other address as the Owner may designate upon 30 days written notice to the EDA. Payments on this Note are payable in any coin or currency of the United States of America which, on the Payment Date, is legal tender for the payment of public and private debts. 2. Interest. Interest shall be simple, non-compounding interest at ___% per annum which is [the lesser of (i) 6.0% per annum; (ii) the actual rate of interest paid if the Developer finances the Note separately from the construction loan or first mortgage; or (iii) the actual rate of interest paid by the Developer on the construction financing for the Minimum Improvements]. Interest shall be computed on the basis of a 360-day year consisting of 12 30-day months. 184 D-3 CH135-65-935359.v6 3. Available Tax Increment. Payments on this Note are payable on each Payment Date in the amount of and solely payable from “Available Tax Increment,” which will mean, on each Payment Date, 75 percent of the Tax Increment attributable to the Development Property and Minimum Improvements (as defined in the Agreement) and paid to the EDA by Carver County, Minnesota in the six months preceding the Payment Date, all as the terms are defined in the Contract for Private Development between the EDA and Owner dated as of ______________, 2024 (the “Agreement”). Available Tax Increment may be increased to 95 percent of the Tax Increment under the terms of the Agreement. Available Tax Increment will not include any Tax Increment if, as of any Payment Date, there is an uncured Event of Default by the Owner under the Agreement. The EDA will have no obligation to pay principal or interest on this Note on each Payment Date from any source other than Available Tax Increment, and the failure of the EDA to pay the entire amount of principal and interest on this Note on any Payment Date will not constitute a default hereunder as long as the EDA pays principal and interest to the extent of Available Tax Increment. If on any Payment Date there is insufficient Available Tax Increment to pay accrued and unpaid interest on this Note on such date, the amount of such deficiency shall be deferred and paid, without interest thereon, on the next Payment Date on which the EDA has Available Tax Increment in excess of the amount necessary to pay the accrued and unpaid interest on this Note on such subsequent Payment Date. The EDA will have no obligation to pay any unpaid balance of principal or interest that may remain after the Final Payment Date of February 1, 2042. 4. Optional Prepayment. The principal sum and accrued interest payable under this Note is pre-payable in whole or in part at any time by the EDA without premium or penalty. No partial prepayment will affect the amount or timing of any other regular payment otherwise required to be made under this Note. 5. Suspension of Payment. At the EDA’s option, the EDA’s obligation to make any payments under this Note will be suspended upon the occurrence of an Event of Default on the part of the Developer as defined in Section 8.1 of the Agreement, but only if the Event of Default has not been cured in accordance with Section 8.2 of the Agreement. The EDA may also suspend payments under this Note in accordance with Section 6.3 of the Agreement. 6. Nature of Obligation. This Note is a single note in the total principal amount of $___________ issued to aid in financing certain public costs of a Redevelopment Project undertaken by the EDA pursuant to Minnesota Statutes, Sections 469.090 through 469.108, as amended, and is issued pursuant to an authorizing resolution (the “Resolution”) duly adopted by the EDA on ______________, 202__, pursuant to and in full conformity with the Constitution and laws of the State of Minnesota, including Minnesota Statutes, Sections 469.174 to 469.1794, as amended. This Note is a limited obligation of the EDA which is payable solely from Available Tax Increment pledged to the payment hereof under the Resolution. This Note will not be deemed to constitute a general obligation of the State of Minnesota or any political subdivision thereof, including, without limitation, the Chanhassen Economic Development Authority or the City of Chanhassen. Neither the State of Minnesota, nor any political subdivision thereof will be obligated to pay the principal of or interest on this Note or other costs incident hereto except out of Available 185 D-4 CH135-65-935359.v6 Tax Increment, and neither the full faith and credit nor the taxing power of the State of Minnesota or any political subdivision thereof is pledged to the payment of the principal of and interest on this Note or other costs incident hereto. 7. Estimated Tax Increment Payments. Any estimates of Tax Increment prepared by the EDA or its municipal advisors in connection with the TIF District or the Agreement are for the benefit of the EDA, and are not intended as representations on which the Owner may rely. THE EDA MAKES NO REPRESENTATION OR WARRANTY THAT THE AVAILABLE TAX INCREMENT WILL BE SUFFICIENT TO PAY THE PRINCIPAL OF OR INTEREST ON THIS NOTE. 8. Registration and Transfer; Assignment. As provided in the Resolution, and subject to certain limitations set forth herein, this Note is issuable only as a fully registered note without coupons. This Note is transferable upon the books of the EDA kept for that purpose at the principal office of the EDA’s Executive Director as Registrar, by the Owner hereof in person or by the Owner’s attorney duly authorized in writing, upon surrender of this Note together with a written instrument of transfer satisfactory to the EDA, duly executed by the Owner. Upon the transfer or exchange and the payment by the Owner of any tax, fee, or governmental charge required to be paid by the EDA with respect to the transfer or exchange, there will be issued in the name of the transferee a new Note of the same aggregate principal amount and interest rate and maturing on the same dates. This Note may be transferred without the approval of the EDA; provided that this Note will not be transferred to any person other than an Affiliate, or other related entity, of the Owner unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. This Note may be assigned with the consent of the EDA, which will not be unreasonably withheld or delayed. Notwithstanding anything to the contrary in this Note, in no event will a lender providing funds to the Developer and taking an assignment of the Note as security for such funds be required to sign an investment letter at either the time of execution of an assignment or transfer of the Note as a result of the assignment. This Note is subject to the Lookback provisions of section 3.5 of the Agreement. IT IS HEREBY CERTIFIED AND RECITED that all acts, conditions, and things required by the Constitution and laws of the State of Minnesota to be done, to exist, to happen, and to be performed in order to make this Note a valid and binding limited obligation of the EDA according to its terms, have been done, do exist, have happened, and have been performed in due form, time and manner as so required. 186 D-5 CH135-65-935359.v6 IN WITNESS WHEREOF, the board of commissioners of the Chanhassen Economic Development Authority, has caused this Note to be executed with the manual signatures of its President and Executive Director, all as of the Date of Original Issue specified above. CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY President Executive Director 187 D-6 CH135-65-935359.v6 REGISTRATION PROVISIONS The ownership of the unpaid balance of the within Note is registered in the bond register of the EDA’s Executive Director, in the name of the person last listed below. Date of Registration Registered Owner Signature of Executive Director Roers Chanhassen Bennett Apartments Owner LLC c/o Roers Companies Two Carlson Parkway North Suite 400 Plymouth, MN 55447 Attn: General Counsel Federal Tax ID #___________ [End of Form of Note] Section 3. Terms, Execution and Delivery. 3.01. Denomination, Payment. The Note will be issued as a single typewritten note numbered R-1. The Note will be issuable only in fully registered form. Principal and interest of the Note will be payable by check or draft issued by the Registrar described herein. 3.02. Dates. Principal and interest of the Note will be payable by mail to the owner of record thereof as of the close of business on the fifteenth day of the month preceding the Payment Date, whether or not the day is a business day. 3.03. Registration. The EDA hereby appoints the Executive Director to perform the functions of registrar, transfer agent and paying agent (the “Registrar”). The effect of registration and the rights and duties of the EDA and the Registrar with respect thereto will be as follows: (a) Register. The Registrar will keep at his office a bond register in which the Registrar will provide for the registration of ownership of the Note and the registration of transfers and exchanges of the Note. (b) Transfer of Note. Upon surrender for transfer of the Note duly endorsed by the registered owner thereof or accompanied by a written instrument of transfer, in form reasonably satisfactory to the Registrar, duly executed by the registered owner thereof or by an attorney duly authorized by the registered owner in writing, the Registrar will authenticate and deliver, in the name of the designated transferee or transferees, a new Note of a like aggregate principal amount, interest rate and maturity, as requested by the transferor. Notwithstanding the foregoing, the Note will not be transferred to any person other than an Affiliate, or other related entity, of the Owner 188 D-7 CH135-65-935359.v6 unless the EDA has been provided with an investment letter in a form substantially similar to the investment letter submitted by the Owner or a certificate of the transferor, in a form satisfactory to the EDA, that the transfer is exempt from registration and prospectus delivery requirements of federal and applicable state securities laws. The Registrar may close the books for registration of any transfer after the fifteenth day of the month preceding each Payment Date and until the Payment Date. (c) Cancellation. The Note surrendered upon any transfer will be promptly cancelled by the Registrar and thereafter disposed of as directed by the EDA. (d) Improper or Unauthorized Transfer. When the Note is presented to the Registrar for transfer, the Registrar may refuse to transfer the same until he is satisfied that the endorsement on the Note or separate instrument of transfer is legally authorized. The Registrar will incur no liability for his refusal, in good faith, to make transfers which he, in his judgment, deems improper or unauthorized. (e) Persons Deemed Owners. The EDA and the Registrar may treat the person in whose name the Note is at any time registered in the bond register as the absolute owner of the Note, whether the Note is overdue or not, for the purpose of receiving payment of, or on account of, the principal of and interest on the Note and for all other purposes, and all the payments so made to any registered owner or upon the owner’s order will be valid and effectual to satisfy and discharge the liability of the EDA upon the Note to the extent of the sum or sums so paid. (f) Taxes, Fees and Charges. For every transfer or exchange of the Note, the Registrar may impose a charge upon the owner thereof sufficient to reimburse the Registrar for any tax, fee, or other governmental charge required to be paid with respect to the transfer or exchange. (g) Mutilated, Lost, Stolen or Destroyed Note. In case the Note becomes mutilated or is lost, stolen, or destroyed, the Registrar will deliver a new Note of like amount, interest rate, maturity dates and tenor in exchange and substitution for and upon cancellation of the mutilated Note or in lieu of and in substitution for the Note lost, stolen, or destroyed, upon the payment of the reasonable expenses and charges of the Registrar in connection therewith; and, in the case the Note lost, stolen, or destroyed, upon filing with the Registrar of evidence satisfactory to it that the Note was lost, stolen, or destroyed, and of the ownership thereof, and upon furnishing to the Registrar of an appropriate bond or indemnity in form, substance, and amount satisfactory to it, in which both the EDA and the Registrar will be named as obligees. The Note so surrendered to the Registrar will be cancelled by him and evidence of the cancellation will be given to the EDA. If the mutilated, lost, stolen, or destroyed Note has already matured or been called for redemption in accordance with its terms, it will not be necessary to issue a new Note prior to payment. 3.04. Preparation and Delivery. The Note will be prepared under the direction of the Executive Director and will be executed on behalf of the EDA by the signatures of its Chair and Executive Director. In case any officer whose signature appears on the Note ceases to be the officer before the delivery of the Note, the signature will nevertheless be valid and sufficient for all purposes, the same as if the officer had remained in office until delivery. When the Note has 189 D-8 CH135-65-935359.v6 been so executed, it will be delivered by the EDA to the Owner following the delivery of the necessary items delineated in Section 3.3 of the Agreement. Section 4. Security Provisions. 4.01. Pledge. The EDA hereby pledges to the payment of the principal and interest of the Note all Available Tax Increment as defined in the Note. Available Tax Increment will be applied to payment of accrued interest first, then the principal of the Note in accordance with the terms of the form of Note set forth in Section 2 of this resolution. 4.02. Bond Fund. Until the date the Note is no longer outstanding and no principal thereof or interest thereon (to the extent required to be paid pursuant to this resolution) remains unpaid, the EDA will maintain a separate and special “Bond Fund” to be used for no purpose other than the payment of the principal of and interest on the Note. The EDA irrevocably agrees to appropriate to the Bond Fund in each year Available Tax Increment. Any Available Tax Increment remaining in the Bond Fund will be transferred to the EDA’s account for the TIF District upon the payment of all principal and interest to be paid with respect to the Note. Section 5. Certification of Proceedings. 5.01. Certification of Proceedings. The officers of the EDA are hereby authorized and directed to prepare and furnish to the Owner of the Note certified copies of all proceedings and records of the EDA, and the other affidavits, certificates, and information as may be required to show the facts relating to the legality and marketability of the Note as the same appear from the books and records under their custody and control or as otherwise known to them, and all the certified copies, certificates, and affidavits, including any heretofore furnished, will be deemed representations of the City as to the facts recited therein. Section 6. Effective Date. This resolution will be effective upon execution by the President and Executive Director following authorization by the board of commissioners of the Chanhassen Economic Development Authority. Adopted by the Chanhassen Economic Development Authority, this ____ day of ________, 202___. President Executive Director 190 E-1 CH135-65-935359.v6 EXHIBIT E TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF INVESTMENT LETTER To the Chanhassen Economic Development Authority (the “EDA”) Attention: Executive Director Dated: __________________, 202__ Re: $____________ Tax Increment Revenue Note (Roers Chanhassen Bennett Apartments Owner Project) The undersigned, as Purchaser of $___________ in principal amount of the above- captioned Tax Increment Revenue Note (Roers Chanhassen Bennett Apartments Owner Project) (the “Note”), approved by the Board of Commissioners of the Chanhassen Economic Development Authority on ______________, 202__, hereby represents to you and to Kennedy & Graven, Chartered, Minneapolis, Minnesota, as legal counsel to the EDA, as follows: 1. We understand and acknowledge that the Note is delivered to the Purchaser on this date pursuant to the Contract for Private Development by and between the EDA and the Purchaser dated __________________, 2024 (the “Agreement”). 2. The Note is payable solely from Available Tax Increment pledged to the Note, as defined therein. 3. We have sufficient knowledge and experience in financial and business matters, including purchase and ownership of municipal obligations, to be able to evaluate the risks and merits of the investment represented by the purchase of the above-stated principal amount of the Note. 4. We acknowledge that no offering statement, prospectus, offering circular or other comprehensive offering document or disclosure containing material information with respect to the EDA and the Note has been issued or prepared by the EDA, and that, in due diligence, we have made our own inquiry and analysis with respect to the EDA, the Note and the security therefor, and other material factors affecting the security and payment of the Note. 5. We acknowledge that we have either been supplied with or have access to information, including financial statements and other financial information, to which a reasonable investor would attach significance in making investment decisions, and we have had the opportunity to ask questions and receive answers from knowledgeable individuals concerning the EDA, the Note and the security therefor, and that as reasonable investors we have been able to make our decision to purchase the above-stated principal amount of the Note. 191 E-2 CH135-65-935359.v6 6. We have been informed that the Note (i) is not being registered or otherwise qualified for sale under the “Blue Sky” laws and regulations of any state, or under federal securities laws or regulations, (ii) will not be listed on any stock or other securities exchange, and (iii) will carry no rating from any rating service. 7. We acknowledge that the EDA and Kennedy & Graven, Chartered, as legal counsel to the EDA, have not made any representations or warranties as to the status of payments on the Note for the purpose of federal or state income taxation. 8. We represent to you that we are purchasing the Note for our own account and not for resale or other distribution thereof, except to the extent otherwise provided in the Note or as otherwise approved in writing by the EDA. 9. All capitalized terms used herein have the meaning provided in the Agreement unless the context clearly requires otherwise. 10. The Purchaser’s federal tax identification number is __________________. 11. We acknowledge receipt of the Note on the date hereof. IN WITNESS WHEREOF, the undersigned has executed this Investment Letter as of the date and year first written above. ROERS CHANHASSEN BENNETT APARTMENTS OWNER LLC By: ___________________________ ________________, _________ STATE OF ) ) ss. COUNTY OF___________ ) The foregoing instrument was executed before me this _____ day of _______________, 202__, by __________________, the ___________ of Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company, on behalf of the company. ____________________________________ Notary Public 192 F-1 CH135-65-935359.v6 EXHIBIT F TO CONTRACT FOR PRIVATE DEVELOPMENT PROFORMA, LOOKBACK AND TOTAL DEVELOPMENT COSTS 193 F-2 CH135-65-935359.v6 194 F-3 CH135-65-935359.v6 195 F-4 CH135-65-935359.v6 196 G-1 CH135-65-935359.v6 EXHIBIT G TO CONTRACT FOR PRIVATE DEVELOPMENT FORM OF ASSESSMENT AGREEMENT and ASSESSOR’S CERTIFICATION By and among THE CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY and ROERS CHANHASSEN BENNETT APARTMENTS OWNER LLC and COUNTY ASSESSOR FOR CARVER COUNTY, MINNESOTA This Document was drafted by: KENNEDY & GRAVEN, Chartered (RHB) 150 South Fifth Street Suite 700 Minneapolis, MN 55402 (612) 337-9300 197 G-2 CH135-65-935359.v6 THIS ASSESSMENT AGREEMENT, dated as of this ___ day of __________, 2024, by and between the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota (the “EDA”), and Roers Chanhassen Bennett Apartments Owner LLC, a limited liability company under the laws of Delaware (the “Owner”). WITNESSETH: WHEREAS, on or before the date hereof, the EDA and the Owner have entered into a Contract for Private Development (the “Agreement”) concerning the property legally described on Exhibit A hereto, (the “Development Property”); and WHEREAS, pursuant to the Agreement, the Owner will construct a project consisting of two buildings, including approximately 184 multifamily rental housing units, 11,853 sq. ft. of commercial space and 338 structured parking stalls (the “Minimum Improvements”); and WHEREAS, the EDA and the Owner desires to establish a minimum market value for the Development Property and the Minimum Improvements to be constructed thereon, pursuant to Minnesota Statutes, section 469.177, Subd. 8; and WHEREAS, the EDA and the County Assessor for Carver County, Minnesota have reviewed the Plans for the Minimum Improvements which the Owner has agreed to construct on the Development Property pursuant to the Agreement. NOW, THEREFORE, the parties to this Assessment Agreement, in consideration of the promises, covenants and agreements made herein and in the Agreement by each to the other, do hereby agree as follows: 1. The Minimum Market Value for the Development Property with the Minimum Improvements shall be $58,996,000. The parties agree that this Minimum Market Value shall be placed against the Development Property as of January 2, 2026, for taxes payable beginning in 2027 notwithstanding any failure to start or complete construction of such Minimum Improvements by that date. 2. The Minimum Market Value herein established shall be of no further force and effect and this Assessment Agreement shall terminate on the Termination Date. The Termination Date has the meaning given to it under the Agreement. 3. This Assessment Agreement shall be promptly recorded by the Owner with a copy of Minnesota Statutes, section 469.177, Subd. 8 set forth in Exhibit B hereto. The Owner shall pay all costs of recording this Assessment Agreement. 4. Neither the preambles nor the provisions of this Assessment Agreement are intended to, nor shall they be construed as, modifying the terms of the Agreement. Unless the context indicates clearly to the contrary, the terms used in this Assessment Agreement shall have the same meaning as the terms used in the Agreement. 198 G-3 CH135-65-935359.v6 5. This Assessment Agreement shall inure to the benefit of and be binding upon the parties and their successors and assigns. 6. Each of the parties has authority to enter into this Assessment Agreement and to take all actions required of it and has taken all actions necessary to authorize the execution and delivery of this Assessment Agreement. 7. In the event any provision of this Assessment Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, such holding shall not invalidate or render unenforceable any other provision hereof. 8. The parties hereto agree that they will, from time to time, execute, acknowledge and deliver, or cause to be executed, acknowledged and delivered, such supplements, amendments and modifications hereto, and such further instruments as may reasonably be required for correcting any inadequate, or incorrect, or amended description of the Development Property, or for carrying out the expressed intention of this Assessment Agreement. 9. Except as provided in Section 8 hereof, this Assessment Agreement may not be amended nor any of its terms modified except by a writing authorized and executed by all parties hereto. 10. This Assessment Agreement may be simultaneously executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument. 11. This Assessment Agreement shall be governed by and construed in accordance with the laws of Minnesota. ********* 199 G-4 CH135-65-935359.v6 CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY By: ________________, President And by: ___________________, Executive Director STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument as acknowledged before me this ____ day of ____________, 2024, by _____________, the President of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public STATE OF MINNESOTA ) ) ss. COUNTY OF ___________ ) The foregoing instrument as acknowledged before me this ____ day of ____________, 2024, by _____________, the Executive Director of the Chanhassen Economic Development Authority, a public body corporate and politic under the laws of Minnesota, on behalf of the Economic Development Authority. ____________________________________ Notary Public 200 G-5 CH135-65-935359.v6 ROERS CHANHASSEN BENNETT APARTMENTS OWNER LLC ___________________________ Tom Cronin, Authorized Signatory STATE OF __________ ) ) SS. COUNTY OF ________ ) The foregoing instrument was executed before me this _____ day of _______________, 2024, by Tom Cronin, the Authorized Signatory of Roers Chanhassen Bennett Apartments Owner LLC, a Delaware limited liability company, on behalf of the company, ____________________________________ Notary Public 201 G-6 CH135-65-935359.v6 CERTIFICATION BY ASSESSOR The undersigned, having reviewed the plans and specifications for the improvements to be constructed and the market value assigned to the land upon which the improvements are to be constructed, and being of the opinion that the minimum market value contained in the foregoing Agreement appears reasonable, hereby certify as follows: The undersigned Assessor being legally responsible for the assessment of the described property, hereby certifies that the market value assigned to such land and improvements at the property, legally described on Exhibit A attached hereto, shall be not less than Fifty-Eight Million Nine Hundred Ninety-Six Thousand Dollars ($58,996,000) as of January 2nd, 2026, for taxes payable beginning in 2027, until termination of this Agreement. __________________________________________ County Assessor for Carver County, Minnesota STATE OF MINNESOTA ) ) ss. COUNTY OF CARVER ) The foregoing instrument was acknowledged before me this ______ day of __________, 2024, by __________________________, the County Assessor, Carver County, Minnesota. __________________________________________ Notary Public 202 G-7 CH135-65-935359.v6 EXHIBIT A TO ASSESSMENT AGREEMENT The Development Property is legally described as follows: PIDS: 25-11-90-030 (west building) 25-11-90-010 (west building) 25-11-90-040 (west building) 25-11-80-020 (west building) 203 G-8 CH135-65-935359.v6 EXHIBIT B TO ASSESSMENT AGREEMENT Section 469.177, subd. 8. Assessment Agreements. An authority may enter into a written assessment agreement with any person establishing a minimum market value of land, existing improvements, or improvements to be constructed in a district, if the property is owned or will be owned by the person. The minimum market value established by an assessment agreement may be fixed, or increase or decrease in later years from the initial minimum market value. If an agreement is fully executed before July 1 of an assessment year, the market value as provided under the agreement must be used by the county or local assessor as the taxable market value of the property for that assessment. Agreements executed on or after July 1 of an assessment year become effective for assessment purposes in the following assessment year. An assessment agreement terminates on the earliest of the date on which conditions in the assessment agreement for termination are satisfied, the termination date specified in the agreement, or the date when tax increment is no longer paid to the authority under section 469.176, subdivision 1. The assessment agreement shall be presented to the county assessor, or city assessor having the powers of the county assessor, of the jurisdiction in which the tax increment financing district and the property that is the subject of the agreement is located. The assessor shall review the plans and specifications for the improvements to be constructed, review the market value previously assigned to the land upon which the improvements are to be constructed and, so long as the minimum market value contained in the assessment agreement appears, in the judgment of the assessor, to be a reasonable estimate, shall execute the following certification upon the agreement: The undersigned assessor, being legally responsible for the assessment of the above described property, certifies that the market values assigned to the land and improvements are reasonable. The assessment agreement shall be filed for record and recorded in the office of the county recorder or the registrar of titles of each county where the real estate or any part thereof is situated. After the agreement becomes effective for assessment purposes, the assessor shall value the property under section 273.11, except that the market value assigned shall not be less than the minimum market value established by the assessment agreement. The assessor may assign a market value to the property in excess of the minimum market value established by the assessment agreement. The owner of the property may seek, through the exercise of administrative and legal remedies, a reduction in market value for property tax purposes, but no city assessor, county assessor, county auditor, board of review, board of equalization, commissioner of revenue, or court of this state shall grant a reduction of the market value below the minimum market value established by the assessment agreement during the term of the agreement filed of record regardless of actual market values which may result from incomplete construction of improvements, destruction, or diminution by any cause, insured or uninsured, except in the case of acquisition or reacquisition of the property by a public entity. Recording an assessment agreement constitutes notice of the agreement to anyone who acquires any interest in the land or improvements that is subject to the assessment agreement, and the agreement is binding upon them. 204 CH135\65\959614.v1 1 CHANHASSEN ECONOMIC DEVELOPMENT AUTHORITY RESOLUTION NO. __________ A RESOLUTION AUTHORIZING EXECUTION OF TWO CONTRACTS FOR PRIVATE DEVELOPMENT REGARDING TAX INCREMENT DISTRICT NO. 13 BE IT RESOLVED by the Chanhassen Economic Development Authority as follows: Section 1. Recitals. 1.01.The Chanhassen Economic Development Authority (the “EDA”) previously adopted a resolution entitled “A Resolution Adopting a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area and the Tax Increment Financing Plan for Tax Increment Financing District No. 13”. 1.02.The City Council of the City of Chanhassen (the “City”) previously held a public hearing and adopted a resolution entitled “Resolution Adopting a Modification to the Redevelopment Plan for the Downtown Chanhassen Redevelopment Project Area and Approving a Tax Increment Financing Plan for Tax Increment Financing District No. 13”. 1.03.To promote redevelopment within the Redevelopment Project Area and TIF District No. 13, the EDA has negotiated a Contract for Private Development with Roers Chanhassen Bennett Apartment Owners LLC for a project consisting of a six-story building including approximately 184 multi-family rental housing units, 11,853 gross square feet of commercial space, 388 structural parking spaces and the extension of Laredo Drive North (the “West Building). 1.04.The EDA has also negotiated a contract for Private Development with Roers Chanhassen Harlow Apartments Owner LLC for a project consisting of a five-story building including approximately 126 multi-family rental housing units, 3,029 square feet of commercial space, 68 structured parking stalls and 63 surface parking stalls (the “East Building”). Section 2. Approval of Contracts for Private Development. 2.01.The Contracts for Private Development for the West Building and the East Building are approved. The EDA President and Executive Director are hereby authorized and directed to execute the Contracts on behalf of the EDA. 2.02.The Executive Director and EDA staff are also authorized and directed to take any and all actions necessary or convenient to carry out the intent of this resolution. 205 CH135\65\959614.v1 2 Passed and adopted by the Chanhassen Economic Development Authority on this24th day of June, 2024. ___________________________ Elise Ryan, President ATTEST: __________________________________ Laurie Hokkanen, Executive Director Yes No Absent 206 Economic Development Authority –June 24, 2024 Applicant: Roers Companies Market Street Addition Tax Increment Financing (TIF) Assistance Request 207 TIF Financing Agreement –Summary City Council -Priorities Achieved Inclusion of a requirement labor law compliance. “Lookback” provision included if there is a sale that would reduce or eliminate future TIF proceeds paid to the Developer. Laredo Drive extension to Market Street. Use Restrictions –no standalone liquor, tobacco, or cannabis business allowed to operate within the development during the term of the TIF contract (16 years). SAC/WAC Payments –Developer responsible for paying all SAC/WAC fees associated with commercial tenant space build out. 208 Resolution for Consideration: Economic Development Authority Action The city’s Economic Development Authority (EDA) considers a resolution to approve entering into two agreements to provide tax increment financing assistance to redevelop the Market Street Addition site. 209 TIF District 13: Process to date •Roers submitted application requesting financial assistance December 12, 2023. •Economic Development Commission (EDC) recommended approval January 9, 2024. •Formal notice provided to Carver County and School District February 9, 2024. •No comments/concerns received to date. •February 20, 2024 -Planning Commission reviewed the proposed TIF District Plan and found it consistent with the City’s Comprehensive Plan. •City Council held a Public Hearing March 11th on the proposed TIF District Plan. •April 15, 2024, the City Council and Economic Development Authority (EDA) approved the creation of TIF District 13 and adopted the TIF District Plan. •Tonight, the EDA is being asked to consider approving two agreements establishing the terms for providing tax increment financing assistance for the proposed project. 210 TIF District 13 –Adopted TIF Plan TIF Plan Purpose: assistance to redevelop designated downtown property. •Roers Project Site –demolition and site improvements to support mixed use housing and commercial redevelopment, including extension of Laredo drive TIF Plan Term: 2026-2041 as qualifications are met BUDGETED POTENTIAL SOURCES Project Tax Increment Receipts 14,372,772$ Interest Earnings 718,638 TOTAL 15,091,410$ POTENTIAL USES Property Acquisition 1,000,000$ Site Improvements/Preparation 2,000,000 Utilities 2,500,000 Other Qualifying Improvements 2,946,419 Administrative Costs (up to 10%)1,437,277 PROJECT COSTS TOTAL 9,883,696$ Interest Expenses 5,207,714 PROJECT AND INTEREST COSTS TOTAL 15,091,410$ TIF Plan Budget: •Forecasted incremental taxes of $15 million •Provides capacity to repay or reimburse up to $9.88 million in project costs (present value) •Plus, $5.2 million for interest on any TIF Notes, Bonds or Interfund Loan financing used for the project costs 211 Project Financial Analysis •Construction of 310 units of rental housing, 14,880 sq. ft. of rentable commercial space, and supporting site improvements. •$127.4 million Total Development Budget •Plus, approximately $1.5 million to extend Laredo Drive Category East Building West Building Total Acquisition Costs 5,000,000 12,500,000 17,500,000 14% Construction Costs 28,824,162 49,911,615 78,735,777 62% Professional Services 1,621,000 2,709,000 4,330,000 3% Financing Costs 6,326,802 11,980,219 18,307,021 14% Developer Fee 2,589,614 4,821,732 7,411,346 6% Reserves / Startup 514,000 651,000 1,165,000 1% Total Project Estimate:44,875,578 82,573,566 127,449,144 ESTIMATED PROJECT COSTS 212 Financial Analysis – “But For” Finding •Private Funding – Residential and Commercial Net Operating Income must support mortgage payments and returns necessary for a $127 million investment •Analysis of Developer’s Private Financing Sources: •Net Operating Income can provide 120% debt service coverage to leverage a mortgage of $79.9 million. •Remaining Cashflow provides return for equity investment. •Initially only ~ 3%; anticipated to grow to market levels in future •Initial Financial analysis suggests approximate $12.7 million funding gap •$6.8 million TIF Note and remainder filled by private subordinated “Mezzanine” Debt East Building West Building Total Total Project Costs:44,875,578 82,573,566 127,449,144 Debt - Supportable Mortgage 31,412,904 48,500,000 79,912,904 63% Equity 8,742,673 26,103,566 34,846,239 27% Remaining Gap:4,720,001 7,970,000 12,690,001 10% ESTIMATED PROJECT FUNDING SOURCES 213 Financial Analysis – “But For” Finding •Private Funding – Residential and Commercial Net Operating Income must support mortgage payments and returns necessary for a $127 million investment •Analysis of Developer’s Private Financing Sources: ESTIMATED PROJECT FUNDING SOURCES East Building West Building Total Percent Total Project Costs $44,875,578 $82,573,566 $127,449,144 Debt – Supportable Mortgage $31,412,904 $48,500,00 $79,912,904 63% Equity $8,742,673 $26,103,566 $34,846,239 27% Indicated Gap:$4,720,001 $7,970,000 $12,690,001 10% Private Mezzanine Debt $5,890,001 $5,890,001 4.6% Tax Increment Financing $6,800,000 $6,800,000 5.4% Final Gap:$0.00 •Without assistance, the analysis suggests approximate $12.7 million funding gap $6.8 million TIF Note and remainder filled by subordinated “Mezzanine” Debt 214 Financial Assistance – Comparison Projects •Amount of TIF Assistance in line with projects from other Metro-area Redevelopment sites Comparison Redevelopment Projects Developer Project City Completed Redevelopment Description Public Assistance % of Project T D C Assessor's EMV Public Assistance Notes Roers Roers Victoria Apartments Victoria In progress 125 housing units; 8,700 rsf Retail 3,230,000 7.1%#27,138,000 TIF capped at 15 years Roers Roers CG Apartments Cottage Grove In progress 144 housing units (37 affordable)1,960,000 4.5%#32,400,000 TIF capped at 15 years Elevage Elevage Apartments Vadnais Heights In progress 176 housing units 5,700,000 9.0%#43,120,000 TIF capped at 17 years Sherman Beltline St. Louis Park In progress 298 housing units; 22,000 rsf Retail 12,427,822 11.8%#79,775,000 TIF capped at 16 years Rueter Walton Maison Green Edina 2023 196 housing units; 3,400 rsf Retail 5,100,000 6.0%#54,801,100 TIF capped at 70% Available Roers Savor Apartments West St. Paul 2022 200 housing units; 1,700 rsf Retail 5,100,000 11.4%#27,300,000 TIF capped at 18 years Roers Axle Apartments Fridley 2022 262 housing units; 10,000 rsf Commercial 8,100,000 15.7%#34,750,000 TIF capped at 26 years United / Roers Venue (TIF 11)Chanhassen 2019 134 housing units; 18,000 rsf Commercial 1,360,000 4.6%#24,340,000 < 7 years Roers Proposed - TIF 13 Chanhassen TBD 310 multifamily units; 14,882 rsf Commercial 6,800,000 5.4%95,967,000 TIF capped at 16 years 215 TIF Financing Agreement – Summary of Terms Roers is seeking two agreements – one for each building that comprises the project Terms for “Contract for Private Development”: •Developer acquires and develops the site (Country Inn & Suites and Chanhassen Cinema) •Responsible for meeting the anticipated requirements established within the site plan approvals •Responsible for obtaining all funding to be used for the project •Commence construction by December 31, 2024, complete by December 31, 2026 •Responsible for compliance with Labor Laws •Provide final cost certification upon completion of each building 216 TIF Financing Agreement – Summary of Terms Terms for “Contract for Private Development” (continued): •EDA certifies and administers TIF District •Issues Pay-As-You -Go TIF Note to reimburse developer’s final costs after completion •Up to $2,911,000 TIF Note for East Building payable from 95% of its increment from the TIF District •Up to $3,900,000 TIF Note for West Building payable from 75% of its increment from the TIF District •Both TIF Notes subject to “Lookback” adjustments at both project stabilization and sale to determine if remaining gap assistance continues to satisfy original underwriting. 217 TIF Financing Agreement – Summary of Terms Terms for “Contract for Private Development” (continued) •Laredo Drive extension •North portion of proposed extension included as part of the minimum improvements delivered by the developer for the West building’s agreement •Southern portion of proposed extension requires additional Right Of Way acquisition by City. •EDA currently retaining 25% of TIF from West Building to fund the Southern portion of the roadway’s acquisition and improvement costs. •If City of Chanhassen acquires the right of way interest by December 31, 2025, then Roers will fund and construct Laredo South as part of its project and a portion of the retained TIF will be made available to reimburse the costs •The City would recoup the cost of right of way acquisition through future TIF payments up to $400,000. •TIF Note for west building would be increased by up to $1.1 million which would be payable from up to 95% of the West Building’s available increment. •If not, the EDA can make available the 25% retained TIF to the City to fund Laredo South as a public improvement project. 218 TIF Financing Agreement – Summary City Council - Priorities Achieved Inclusion of a requirement labor law compliance. “Lookback” provision included if there is a sale that would reduce or eliminate future TIF proceeds paid to the Developer. Laredo Drive extension to Market Street. Use Restrictions – no standalone liquor, tobacco, or cannabis business allowed to operate within the development during the term of the TIF contract (16 years). SAC/WAC Payments – Developer responsible for paying all SAC/WAC fees associated with commercial tenant space build out. 219 Questions? Requested Action •“Motion to adopt the resolution approving the Chanhassen Economic Development Authority entering into two contracts for Tax Increment Financing assistance for the Market Street Addition redevelopment. •Requirements: •Developer finances and completes the project •EDA provides Pay-as-you-go TIF assistance for Private Funding Gap •Subject to verification of actual project costs after completion 220 Additional Technical Slides for Reference if needed 221 What is Tax Increment Financing? Tax Increment is a financing tool designed to encourage certain types of development that would not reasonably be expected to occur without public assistance. Part of an Economic Development strategy •Encourage community reinvestment and enhance community objectives •Example: Downtown revitalization and redevelopment Solves a financial gap in project funding •Created by a combination of: •High Costs (land, demolition, site improvements, fees, construction, etc.), and •Limited market revenues to substantiate the amount of private investment 222 17 Pay -go •Most common •Limits risk to City •City agrees to make TIF Available for project •Developer uses pledge to obtain private funding Revenue Bond •Monetize future increment through underwriter •City issues tax-exempt or taxable bonds After construction & paying taxes, or Up-front GO Bond •Less common; most risk •Leveraged when there’s a major issue to address or cost-effective •Example: fund public infrastructure supporting development Tax Increment Financing – Funding Options TIF captures new tax capacity created by development within a defined district. It segregates the local taxes derived from the captured tax capacity for use in financing eligible project costs for a limited period of time. Methods of financing: 223 18 Tax Increment Financing Example Blue: prior property value continues to be part of general tax base Red: Increased value is “Captured” and local taxes remitted to City to be used to assist project Orange: Full value reverts to general tax base at end of TIF District Base Tax Capacity Remains With City County School District Full Tax Capacity to All JurisdictionsCaptured Tax Capacity Created by Development Potentially used for eligible development project costs and repaying City obligationsProject Starts Under Construction Full Project Value on Tax Rolls TIF District Ends 224 TIF District 13: Project Qualification Roers is seeking financial assistance to redevelop the following properties: •Country Inn & Suites •Chanhassen Cinema (vacant since 04/2023) Required Analysis – Site meets conditions for Renovation and Renewal District •Coverage Test •100% of the area of the proposed TIF district is occupied by buildings, streets, utilities or paved driveways. Exceeds the 70% minimum coverage required by statute. •Building Condition Test •50% (1 of 2 buildings) in the proposed TIF district is structurally substandard to a degree requiring substantial renovation or clearance. Exceeds the 20% required by statute. •100% (1 of 1 buildings) remaining buildings exhibits existing conditions warranting renovation or clearance defined by statute. Exceeds the 30% required by statute. •Distribution Test •Individual buildings are reasonably distributed throughout the area of the proposed TIF district. Meets statute requirement. 225 City Council Item June 24, 2024 Item Invitation to the Annual 4th of July Celebration File No.Item No: D.1 Agenda Section PUBLIC ANNOUNCEMENTS Prepared By Priya Tandon, Recreation Manager Reviewed By SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY I am thrilled to invite the community to the City of Chanhassen's largest community event of the year - the 41st Annual 4th of July Celebration! The celebration will be held on July 2, 3, and 4 at City Center Park and Lake Ann Park. The event is presented by the City of Chanhassen, in partnership with the Rotary Club of Chanhassen and the SouthWest Metro Chamber of Commerce, and sponsored by Xfinity, Nicolet National Bank, SERVPRO, and local Community Event Sponsors. Highlights include the annual carnival, street dance, local food vendors, beer garden, kids' activities, fireworks, and parade, this year with a new route. For more information and a full schedule of events, visit us at ChanhassenMN.gov/4th. BACKGROUND DISCUSSION 226 BUDGET RECOMMENDATION ATTACHMENTS 2024 Schedule of Events 227 TUESDAY, JULY 2 Kiddie Parade Ride Decorating 10 AM-2 PM | KIDDYWAMPUS CHANHASSEN STORE | FREE Sponsored by kiddywampus Chanhassen Family Night at the Carnival Sponsored by SERVPRO of Chaska/Chanhassen 3-10 PM | CITY CENTER PARK | FEES VARY 3-8 PM rides $3 | 8-10 PM rides $4-$6 each | Games and food fees vary. Kids’ Musical Performance Featuring Tricia and the Toonies Sponsored by Nicolet National Bank 4:30-5:30 PM | CITY CENTER PARK | LARGE TENT | FREE Join Tricia and the Toonies for a unique blend of high-energy music, comedy, colorful puppet characters, and lots of audience participation! Face Painting 4:30-8 PM | CITY CENTER PARK | $3-$15 WEDNESDAY, JULY 3 Minnesota Twins Youth Baseball Clinic SESSION I: 9-10:30 AM | SESSION II: 10:30 AM-12 PMCHANHASSEN HIGH SCHOOL | FREE Learn the fundamentals of hitting, fielding, and throwing! Both sessions are open to all children, ages 6-12. Pre-registration required, sign-up online at ChanhassenMN.gov/4th. Kiddie Parade Ride Decorating Sponsored by kiddywampus Chanhassen 10 AM-2 PM | KIDDYWAMPUS CHANHASSEN STORE | FREE Water Wars 3-10 PM | CITY CENTER PARK | $5 PER BUCKET Midwest Carnival Rides & Concessions 3-11 PM | CITY CENTER PARK | FEES VARY 3-5 PM rides $4-$6 each, 5-11 PM UNLIMITED ride wristbands for $25 (games & food not included). Business Expo Presented by the SouthWest Metro Chamber of Commerce 4-6 PM | CITY CENTER PARK | SMALL TENT | FREE Local businesses and vendors showcase products and services. Businesses can register online now at ChanhassenMN.gov/4th. Merchandise Sales 4-8 PM | CITY CENTER PARK | FEES VARY Kiddie Games 4-8 PM | CITY CENTER PARK | $0.25/GAME Sponsored by Nicolet National Bank Llama Experience 4-8 PM | CITY CENTER PARK | FREE Presented by the Rotary Club of Chanhassen Permanent Jewelry Studio SLVR Chaska 4-9 PM | CITY CENTER PARK | FEES VARY Little Charity Book Truck 4-9 PM | CITY CENTER PARK | FEES VARY Taste of Chanhassen Presented by the Rotary Club of Chanhassen 4-11 PM | CITY CENTER PARK | FEES VARY Food available for purchase from your favorite Chanhassen restaurants and food trucks. No outside food or drinks allowed. Beer Garden Presented by the Rotary Club of Chanhassen 4-11 PM | CITY CENTER PARK | FEES VARY Beer and seltzer available for purchase. No outside food or drinks allowed. Face Painting, Wacky Hair, & Airbrush Tattoos 4:30-8 PM | CITY CENTER PARK | $3-$15 Live Music Featuring Up South Band 5:15-7:15 PM | CITY CENTER PARK | LARGE TENT | FREE Country music’s greatest hits and Up South Band originals. This band will get you dancing and the good times rolling! No outside food or drinks. Kiddie Parade Sponsored by Nicolet National Bank & kiddywampus 5:30-6 PM | CHANHASSEN ELEMENTARY EAST PARKING LOT | FREE Decorate your wagons, bikes, or strollers! ROUTE: Laredo Drive and Chan View Drive ending at City Hall. Traffic control provided; adults MUST accompany children. Tae Kwon Do Demo 6 PM | CITY CENTER PARK | FREE Chalk It Up Drawing Contest Sponsored by Nicolet National Bank 6-8 PM | CITY CENTER PARK | HOCKEY RINK | FREE Weather permitting. Compete as individuals or groups in three age categories to present a chalk drawing creation. Prizes at 8 PM for most difficult and most creative; some chalk provided. Register day-of at the hockey rink. 3rd Lair Summer Skateboard Series Sponsored by Nicolet National Bank7 PM | CITY CENTER PARK | SKATE PARK | FREE All ages and abilities; limited to 75 skaters. Registration begins at 6 PM. SCHEDULE OF EVENTS July 3 Continued Street Dance Featuring Johnny Holm Band 8-11 PM | CITY CENTER PARK | LARGE TENT | FREE No outside food or drinks allowed. THURSDAY, JULY 4 Adult Fishing Contest 7-10 AM | LAKE ANN PARK | $25 Catch and release. Limited to 50 participants. Prizes for the top three lon- gest Northern and Bass, and door prizes. Pre-registration required. Rules and regulations online at ChanhassenMN.gov/4th. Classic Car Show Presented by the Rotary Club of Chanhassen 10 AM-1 PM | CITY CENTER PARK | WEST PARKING LOTS | FREE Face Painting 10 AM-4 PM | CITY CENTER PARK | $3-$15 Taste of Chanhassen Presented by the Rotary Club of Chanhassen 10 AM-5 PM | CITY CENTER PARK | FEES VARY Food available for purchase from your favorite Chanhassen restaurants and food trucks. No outside food or drinks allowed. Beer Garden Presented by the Rotary Club of Chanhassen 10 AM-5 PM | CITY CENTER PARK | FEES VARY Beer and seltzer available for purchase. No outside food or drinks allowed. Midwest Carnival Rides & Concessions 10 AM-6 PM | CITY CENTER PARK | FEES VARY 10 AM-3:30 PM rides $4-$6 each; 3:30-6 PM all rides $3. Kids’ Fishing Contest Sponsored by Nicolet National Bank 10:30-11:30 AM | LAKE ANN PARK | FISHING PIER | FREE Trophies and prizes awarded for largest, longest, and smallest fish, in age categories 5-9 and 10-15. Pre-register at ChanhassenMN.gov/4th. Medallion Hunt Sponsored by Nicolet National Bank11 AM | LAKE ANN PARK | FREE Clues posted every 20 minutes at the Lake Ann Beach concession stand. $200 prize package for the winner of the hunt. Sand Sculpture Contest Sponsored by Nicolet National Bank 11 AM-12 PM | LAKE ANN PARK | BEACH | FREE Prizes awarded for most creative and most difficult in age categories: 10 & under, 11-15, and 16+. Compete as an individual or as a group. Register day-of at the beach. Bingo! Presented by the Chanhassen Commission on Aging and Beyond the Yellow Ribbon (Chanhassen) 11 AM-1 PM | CITY CENTER PARK | SMALL TENT | FREE Free Bingo with prizes! All donations and proceeds from Bingo support Semper Fi Flo. Your generous donation will provide support of Semper Fi Flo’s important mission to enrich the lives of military families. CITY CENTER PARK DOWNTOWN LAKE ANN PARK Live Music Featuring American Bootleg 11:45-1:45 PM | CITY CENTER PARK | LARGE TENT | FREE A can’t miss musical performance of classic songs. Llama Experience Presented by the Rotary Club of Chanhassen 12:15-1:30 PM | CITY CENTER PARK | FREE 4th of July Parade & Historic Plane Flyover Produced by the Rotary Club of Chanhassen 2:30 PM | DOWNTOWN CHANHASSEN | FREE To register a float, visit ChanhassenMN.gov/4th Fireworks Display Presented by the City of Chanhassen & Community Event Sponsors 10 PM | LAKE ANN PARK | FREE Food concessions available at the Lake Ann Beach stand until 10 PM. The trail between Lake Ann Park & Greenwood Shores Park will be closed from 12-11 PM on Thursday, July 4 in preparation for the fireworks display. PRODUCED BY THE ROTARY CLUB OF CHANHASSEN 2:30 PM | DOWNTOWN CHANHASSEN ROUTE MAP ON PAGE 6 FOURTH OF JULYPARADE PRESENTED BY CITY OF CHANHASSEN AND COMMUNITY EVENT SPONSORS 10 PM | LAKE ANN PARK Trail between Lake Ann Park & Greenwood Shores Park closed 12-11 PM on July 4 for preparation. FIREWORKS SPECTACULAR FREE NEW ROUTE NEW ROUTE 228 City Council Item June 24, 2024 Item Xfinity Sponsorship Recognition File No.Item No: D.2 Agenda Section PUBLIC ANNOUNCEMENTS Prepared By Priya Tandon, Recreation Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY The City of Chanhassen would like to recognize and thank Xfinity for generously supporting the City of Chanhassen's 4th of July Celebration. Xfinity will be sponsoring the Street Dance and performance stage as part of this year's celebration and has donated $8,000 towards these events. Events taking place on the stage include a children's musical performance by Tricia and the Toonies on July 2, performances by Up South and Johnny Holm Band at the July 3 Street Dance, and a performance by American Bootleg on July 4. Over 25,000 people will enjoy these events throughout the celebration. Thank you, Xfinity, for making these events possible for the Chanhassen community! BACKGROUND DISCUSSION 229 BUDGET RECOMMENDATION ATTACHMENTS 230 City Council Item June 24, 2024 Item Approve City Council Work Session Minutes dated May 13, 2024 File No.Item No: E.1 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Work Session Minutes dated May 13, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 231 City Council Work Session Minutes dated May 13, 2024 232 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES May 13, 2024 Mayor Ryan called the work session to order at 5:30 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald, Councilmember Kimber, and Councilmember von Oven COUNCIL MEMBERS ABSENT: Councilmember Schubert STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager; Charlie Howley, Public Works Director/City Engineer; Eric Maass, Planning Director; Jerry Ruegemer, Parks Director; Kelly Grinnell, Finance Director; Samantha DiMaggio, Economic Development Manager, Erik Henricksen, Project Engineer, George Bender, Assistant City Engineer PUBLIC PRESENT:Erik Hansen, SW Transit CEO, Larry Koch, Prudy Busch, Jim Boetcher, Bonnie Nelson, Edward Goff, and unknown resident Interviews - Riley Purgatory Bluff Creek Watershed Board of Managers The City Council held interviews with five candidates to the RPBCWD Board of Managers. Mayor Ryan asked each candidate to introduce themselves and they did so. Candidates were: Larry Koch, Prudy Busch, Jim Boetcher, Bonnie Nelson, and Ed Goff. Councilmember McDonald asked the candidates how they would balance the interests of stakeholders. Councilmember von Oven asked the candidates about the ideas they have for engaging residents and promoting awareness and engagement. Councilmember Kimber asked the candidates to share their ideas for improving the effort to protect and improve the quality of Chanhassen’s water resources. Mayor Ryan asked what each candidate would envision their relationship with the city as a Board Manager. SouthWest Transit Update SouthWest Transit CEO Erik Hansen shared a presentation. Topics included ridership, the newly adopted Strategic Plan, the future of SouthWest Transit, and the need for sustainable revenue. Mr. Hansen shared that in 2023, ridership remained at half of pre-pandemic levels; ridership has grown 9% in 2024. SouthWest Transit has a good public perception among those who have an awareness of the organization/service. Top pick-up locations in Chanhassen include Target, MAMAC Systems, Powers Ridge Senior Living, Chanhassen Goodwill, and Chanhassen Village Apartments. Event service has been popular, with trips to events like Twins game, Chanhassen High School state tournament games, concerts, and the State Fair. SouthWest Transit has only been allocated 2% of the newly imposed state sales tax and is seeking a more stable funding formula. That would allow SouthWest Transit to explore other needs, like additional evening and weekend service. Councilmember McDonald and Councilmember Kimber serve on the Southwest Transit Board to represent Chanhassen. Mr. Hansen thanked city staff for their help with introductions, planning, and visioning. Mayor Ryan thanked Mr. Hansen for his service and efforts, as did Councilmember McDonald and Councilmember Kimber. Mayor Ryan also noted how important the availability of transit is to Chanhassen’s senior population. Councilmember von Oven asked questions about funding sources, uses, and passenger subsidies. 233 City Council Work Session Minutes – May 13, 2024 2 Civic Campus Budget Update City Manager Laurie Hokkanen shared an update on the Civic Campus budget. Ms. Hokkanen noted value management items that would be implemented in order to maintain the project budget, including reductions in AV technology in City Hall, a change to the fire suppression system in the IT closet, and light fixture changes. Ms. Hokkanen noted that bids will consider awarding bid package #2 on May 20, 2024. Mayor Ryan recessed the meeting at 6:55 p.m. Mayor Ryan resumed the meeting at 8:01 p.m. Streets Funding Discussion Engineering staff Erik Henricksen, George Bender, and Charlie Howley gave a presentation about the Pavement Management Program and Assessment Policy, noting that the City Council had made this discussion a priority for 2024 in response to ongoing resident and City Council concerns about road conditions and future planning. Staff provided an overview of the work and city approach since the Franchise Fee was adopted in November 2019. Councilmember McDonald said that he wanted Engineering to recommend the best approach to pavement management. He said he was very interested in considering a change to the city’s assessment policy, including a 0% or 20% assessment. He also noted that the City Council would need to understand the impacts to the budget and the ability to complete road work and suggested exploring not assessing for mill and overlay projects. Councilmember von Oven said that he thought the assessment policy was as fair as it could be but wanted to continue to press to provide residents as advance notice and time to plan for assessments as possible and would like to see if even more notice than the current one-year is possible. Councilmember Kimber expressed interest in the concept of a flat fee and shared that he would like to consider not assessing new sidewalks or trails as part of road projects. Mayor Ryan asked staff what it would take to get the very roads done in terms of cost and timing and shared that she does not believe having roads in very poor condition is acceptable for our city. She also noted she would not support an increase to the franchise fee. The City Council expressed support for reducing the interest rate charged to as low as possible to cover the city’s cost. Staff indicated they would use the feedback to further research and refine suggestions and return to a future work session, likely in June or July. The City Council discussed the current assessment on the 2024 Street Project, specifically a proposal to reduce the assessment to single-family property owners. Mr. Howley and Ms. Hokkanen explained that residents are told that the preliminary assessment amount is generally within plus or minus 10% for the final assessment. In this case, the assessment was much more. The City Council directed staff to process a new assessment amount 10% greater than the preliminary assessment amount and noted that this was an unusual circumstance. Mr. Howley also committed to re-looking at the Chapel Hill Academy assessment. Staff shared that commercial and residential projects will not be packaged together in the future due to the additional complexity. 234 City Council Work Session Minutes –May 13, 2024 3 Chanhassen Bluffs Sports Complex –Discussion Ms. Hokkanen provided an overview of the latest work on the Chanhassen Bluffs Sport Complex/Community Center. Ms. Hokkanen shared design concepts prepared by the BKV Group, including a two-phase concept to reduce initial construction costs. Finance Director Kelly Grinnell presented levy impacts for two build scenarios. The City Council discussed the pros and cons of phasing the project. Councilmember Kimber noted that projects do not get cheaper over time. Councilmember McDonald said that the phasing made the project less of a community center and more of a special-purpose facility. Consensus was reached that the project should not be phased, and the Council provided direction to staff to pursue the levy smoothing option to mitigate any levy spikes. Interviews -Riley Purgatory Bluff Creek Watershed Board of Managers The City Council resumed discussing the Riley Purgatory Bluff Creek Watershed District nomination. Each member shared their list of three preferred nominees. Consensus existed on Bonnie Nelson. Councilmember von Oven disclosed that he is Andrew Aller's neighbor. Councilmember von Oven stated that it is important that the city have a strong relationship with the watershed district. Mayor Ryan noted that the city’s practice is to appoint new members if a member has already served two terms and qualified applicants exist. The City Council directed the City Manager to forward to Carver County the following nominees: Bonnie Nelson (preferred candidate), Andrew Aller, and Edward Goff, and to notify all candidates of their status and thank them for their interest. Mayor Ryan adjourned the meeting at 10:07 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 235 City Council Item June 24, 2024 Item Approve City Council Work Session Minutes dated June 10, 2024 File No.Item No: E.2 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Work Session Minutes dated June 10, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 236 City Council Work Session Minutes dated June 10, 2024 237 CHANHASSEN CITY COUNCIL WORK SESSION MINUTES June 10, 2024 Mayor Ryan called the work session to order at 5:25 p.m. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, and Councilman Kimber, Councilman von Oven COUNCIL MEMBERS ABSENT: Councilman McDonald STAFF PRESENT: Laurie Hokkanen, City Manager;Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Parks Director; Samantha DiMaggio, Economic Development Manager, Matt Unmacht, Assistant City Manager PUBLIC PRESENT:Jeff Oman, Kraus Anderson Chanhassen Bluffs Community Center Laurie Hokkanen, City Manager gave the council an update on the communications plan that is being put in place for the Chanhassen Bluff s Community Center. The communication campaign goals are to emphasize community, ensure clarity and provide education.The campaign will focus on getting residents to vote. The Council was asked to look at a color scheme and logo for the communication campaign and make a recommendation. The council looked at the possible logo and color schemes and liked the Chanhassen dark green most. There were some concerns about the leaf on the logo. Ms. Hokkanen will provide new logo ideas for the council. Future Laredo Drive extension concept plans Charlie Hawley, Public Works Director/City Engineer,showed several possible plans for updating Market Boulevard and Laredo Drive. The Council agreed that one large roundabout seemed too big for the area and preferred one of the plans with either one roundabout but changing turn lanes or two smaller roundabouts. The council asked if Kraus Anderson (KA) had been presented with the options and if they had any input. Mr. Hawley responded that staff had met with KA and presented the options. KA has yet to give feedback on any preference that they have but the meeting was a positive one. Mayor Ryan adjourned the meeting at 6:55 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 238 City Council Item June 24, 2024 Item Approve City Council Minutes dated June 10, 2024 File No.Item No: E.3 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the City Council Minutes dated June 10, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS City Council Minutes dated June 10, 2024 239 CHANHASSEN CITY COUNCIL REGULAR MEETING MINUTES JUNE 10, 2024 Mayor Ryan called the meeting to order at 7:00 p.m. The meeting was opened with the Pledge of Allegiance. COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilwoman Schubert, Councilman von Oven, and Councilman Kimber. COUNCIL MEMBERS ABSENT: Councilman McDonald. STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works Director/City Engineer; Jerry Ruegemer, Parks and Recreation Director; Jenny Potter, City Clerk, Matt Unmacht, Assistant City Manager. PUBLIC PRESENT: Derek Gearman, 7590 Dogwood Road PUBLIC ANNOUNCEMENTS: None. CONSENT AGENDA: Councilman von Oven moved, Councilwoman Schubert seconded that the City Council approve the following consent agenda items 1 through 22 pursuant to the City Manager’s recommendations: 1. Approve City Council Special Work Session Minutes dated April 29, 2024 2. Approve City Council Minutes dated May 13, 2024 3. Approve City Council Work Session Minutes dated May 20, 2024 4. Approve City Council Minutes dated May 20, 2024 5. Receive Park and Recreation Commission Minutes dated April 23, 2024 6. Receive Commission on Aging Minutes dated April 19, 2024 7. Approve Claims Paid dated June 10, 2024 8. Approve a Massage Therapy Business License for Natasha-Kristin Reilly located at 8951 Crossroads Boulevard, Suite 302 (My Salon Suite) 9. Approve Nominations to the Riley Purgatory Bluff Creek Watershed District 240 City Council Minutes – June 10, 2024 2 10. Joint Powers Agreement for Building Inspections Services Required for State Delegated Projects 11. Joint Powers Agreement with Carver County for Data Access 12. Approve an Encroachment Agreement between City of Chanhassen and Elizabeth V. Lewis and Daniel N. Lewis 13. Approve an Encroachment Agreement between City of Chanhassen and Doreen C. Beckman 14. Approve Contract for Annual Sanitary and Storm Sewer Televising with American Environmental 15. Approve Joint Powers Agreement with Hennepin County for Local Assessment Services 16. Award Contract for South Lotus Lake Park Trail Project 17. Award Contract for West 96th Street Asphalt Repairs 18. Award Design Contract for Proposed Sanitary Sewer Lift Station #33 19. Award Contract for the East Water Treatment Plant Fill Station Improvement Project 20. Metronet Settlement Agreement 21. Resolution 2024-36: City support of 82nd Street 60% Layout 22. Resolution 2024-37: Accept 2024 Community Events Sponsorship Donations from Area Businesses All voted in favor, and the motion carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS. None. PUBLIC HEARINGS. 1. Approve On-Sale Beer & Wine Liquor License for SAI Ram, LLC doing business as Thaliwala located at 7850 Market Boulevard Jenny Potter, City Clerk, presented the request for the on-sale beer & wine liquor license for SAI Ram, LLC. Mayor Ryan opened the public hearing. There were no public comments. 241 City Council Minutes – June 10, 2024 3 Mayor Ryan closed the public hearing. Councilwoman Schubert moved, Councilman Kimber seconded that the Chanhassen City Council approve an On-Sale Beer and Wine Liquor License for SAI Ram, LLC doing business as Thaliwala located at 7850 Market Boulevard. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. 2. Resolution 2024-38: Approve Vacation of a Portion of Public Drainage and Utility Easement between 970 & 1010 Pleasant View Road Charlie Howley, Public Works Director, presented information about the public drainage and utility easement request between 970 and 1010 Pleasant View Road. He reviewed the current lot maps and requested lot lines. Mayor Ryan opened the public hearing. There were no public comments. Mayor Ryan closed the public hearing. Councilman Kimber moved, Councilman von Oven seconded that the Chanhassen City Council adopt a resolution approving the vacation of portions of the public drainage and utility easement, between Lots 1 and 2, Block 1, Beddor Addition, according to the recorded plat thereof, Carver County, Minnesota. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. 3. Resolution 2024-39: Approve Vacation of a Portion of Public Drainage and Utility Easement between 7550 & 7560 Dogwood Road Charlie Howley, Public Works Director, presented information about the public drainage and utility easement request between 7550 and 7560 Dogwood Road. He reviewed the current existing easement and explained the location of the new lot line. Mayor Ryan opened the public hearing. Derek Gearman, 7590 Dogwood Road, stated he had a drainage easement on his property and asked if there were any environmental impact on existing easements with the proposed adjustments. Mayor Ryan closed the public hearing. Mr. Howley answered that in this case, there is no relationship to surrounding public drainage and utilities. 242 City Council Minutes – June 10, 2024 4 Councilman von Oven moved, Councilwoman Schubert seconded that the Chanhassen City Council adopt a resolution approving the vacation of portions of the public drainage and utility easement, between Lots 4 and 5, Block 1, Getsch Addition, according to the recorded plat thereof, Carver County, Minnesota. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. GENERAL BUSINESS. None. COUNCIL PRESENTATIONS. None. ADMINISTRATIVE PRESENTATIONS. None. CORRESPONDENCE DISCUSSION. 1. Comcast Chanhassen Expansion News Release Councilwoman Schubert moved, Councilman Kimber seconded to adjourn the meeting. All voted in favor, and the motion carried unanimously with a vote of 4 to 0. The City Council meeting was adjourned at 7:11 p.m. Submitted by Laurie Hokkanen City Manager Prepared by Jenny Potter City Clerk 243 City Council Item June 24, 2024 Item Receive Planning Commission Minutes dated May 7, 2024 File No.Item No: E.4 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Planning Commission minutes dated May 7, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Planning Commission minutes dated May 7, 2024 244 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES MAY 7, 2024 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chairman Eric Noyes, Ryan Soller, Edward Goff, Steve Jobe, Katie Trevena, Jeremy Rosengren. MEMBERS ABSENT: Perry Schwartz. STAFF PRESENT: Rachel Arsenault, Associate Planner; Eric Maass, Community Development Director. PUBLIC PRESENT: None. PUBLIC HEARINGS: None. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED APRIL 16, 2024 Commissioner Goff moved, Commissioner Jobe seconded to approve the Chanhassen Planning Commission summary minutes dated April 16, 2024 as presented. All voted in favor, and the motion carried unanimously with a vote of 6 to 0. COMMISSION PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: 1. REVIEW R-8 AND R-12 ZONING DISTRICT LOT STANDARDS Eric Maass, Community Development Director, presented background information on the R-8 Zoning District and the R-12 Zoning District. He reviewed the current standards for each zoning district for the minimum lot area, minimum lot frontage, and minimum lot depth. He provided example projects to demonstrate the planned unit development and the current base R-8 zoning. He explained the draft revised standards for the R-8 Zoning District and the R-12 Zoning District. Chairman Noyes asked if there were two R-8 areas and how developed they currently were or if there was an expected redevelopment. Mr. Maass answered that there were two R-8 areas and that he did not expect any redevelopment, 245 Planning Commission Minutes – May 7, 2024 2 but there could be areas eligible for the R-8 district in the comprehensive plan that are not currently zoned in this way. Chairman Noyes asked if the examples provided meet the draft revised standards for the R-8 Zoning District. Mr. Maass answered that the example projects would be short on the lot depth but explained that the lot depth is impacted by how deep and long the buildings are. Chairman Noyes stated that it would be helpful for the examples to meet the draft revised standards. He asked if there would be a tax difference between zoning of planned unit development, R-8 zoning district, or R-12 zoning district. Mr. Maass responded that there would still be the same number of units, but it reserves planned unit development as a specific tool to utilize when appropriate, rather than to do away with the minimum lot areas. Chairman Noyes suggested if there was real planned unit development data to show how they could exist as R-8 zoning district or R-12 zoning district. Mr. Maass stated that the intention was to not rezone existing planned unit developments but limit more in the future. Commissioner Jobe asked for clarification about the square footage for the R-12 zoning area. Mr. Maass answered that the square footage is the lot area rather than the home being built. Currently the minimum lot width is 150 feet which would then require that for an attached townhome that the townhome be 150 feet wide. This is not realistic and should be amended. Commissioner Soller asked if the intention is to zone more land as an R-8 in the near future to conform with the comprehensive plan and what the immediate action would be from these two changes. Mr. Maass answered that they are not looking to rezone additional property to R-8 or R-12. The immediate action would be to amend the ordinance so that properties which are currently guided and eligible for R-8 zoning could be developed without the need for variances or to be rezoned into a Planned Unit Development. Commissioner Soller asked if the rezoning happens when there is an attached proposal along with it. Mr. Maass confirmed this information and provided an example of the lot south of Trouvaille Memory Care Suites. Commissioner Soller asked if the rezoning requests come before the Planning Commission. 246 Planning Commission Minutes – May 7, 2024 3 Mr. Maass confirmed this information and that they require a public hearing at the Planning Commission. Commissioner Soller asked if there have been instances of rezoning land in the city over the last two years. Mr. Maass explained that if the Planning Commission has approved a planned unit development, there has been a rezoning. Commissioner Rosengren asked if the West Park Project had been R-8 zoning district and the lot depth was not a minimum of 50 feet, if there would have been a need to change the design or a variance. Mr. Maass stated that if they had not come through a planned unit development, they would have needed to seek a variance and explain what is unique about the property that does not allow them to meet the standard. Commissioner Rosengren asked if the proposed changes to the R-8 and the R-12 zones did not match the provided examples and would there be continued difficulties. He encouraged creating a change that would be easier for projects to fit. Commissioner Soller questioned if the burden to rezone a land is different if the end point is an R-8 zoning district or a planned unit development. He asked if it would lower the scrutiny of these project approvals. Mr. Maass answered that it would not be difficult but would rather be more straightforward. A planned unit development would still be available if someone had a unique property development and the city saw the benefit. Commissioner Soller asked if there was a conflict with the comprehensive plan, it would be a barrier. The comprehensive plan would have to change before the zoning could change. Mr. Maass commented that they are not looking to change the density for the R-8 or R-12 zoning districts. Chairman Noyes asked if other zoning definitions needed to be considered further. Mr. Maass answered that there were likely additional parts of the city code requiring review but at this time staff is only suggesting revisions to the R-8 and R-12 zoning districts. Commissioner Trevena commented that it would be helpful in future presentations to utilize a map to graphically show what areas are zoned or guided for eligibility for R-8 or R-12 zoning. Commissioner Soller asked if this would be discussed further in June. He asked if the main high points of the conversation had been addressed. 247 Planning Commission Minutes – May 7, 2024 4 Mr. Maass stated that it would be a scheduled public hearing for the June 4 meeting if the Planning Commission wanted to move forward. He answered that the request for diagram examples of the development proposals was helpful, and they can prepare this for the next meeting. CORRESPONDENCE DISCUSSION: None. OPEN DISCUSSION: Mr. Maass stated that the Planning Commission could cancel the regular meeting for May 21 and instead hold a work session to discuss items in the 2024 Planning Department Work Plan. Chairman Noyes stated that it would be helpful to meet and hold these discussions and requested to leave the agenda up to the staff. Commissioner Soller requested a draft agenda a week ahead of time so they can review it and be prepared. Mr. Maass stated that the city staff will provide the adequate information needed before the meeting. ADJOURNMENT: Commissioner Rosengren moved, Commissioner Soller seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 6 to 0. The Planning Commission meeting was adjourned at 6:33 p.m. Submitted by Eric Maass Community Development Director 248 City Council Item June 24, 2024 Item Receive Economic Development Commission Minutes dated May 14, 2024 File No.Item No: E.5 Agenda Section CONSENT AGENDA Prepared By Kate Vogt, Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Economic Development Commission minutes dated May 14, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 249 Economic Development Commission Minutes dated May 14, 2024 250 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING May 14, 2024 Vice Chair Zurek called the meeting to order at 5:30 p.m. MEMBERS PRESENT: Chair Eric Anderson, Vice Chair Duke Zurek, Chris Freeman, Stacy Goff, Cohen Lee MEMBERS ABSENT: Luke Bame STAFF PRESENT: Samantha DiMaggio, Economic Development Manager; Laurie Hokkanen, City Manager PUBLIC PRESENT: APPROVAL OF AGENDA: APPROVE ECONOMIC DEVELOPMENT COMMISSION AGENDA DATED February 13, 2024 Commissioner Zurek moved, and Commissioner Lee seconded to approve the Agenda of the Economic Development Commission meeting dated February 13, 2024, as presented. All voted in favor and the motion was carried unanimously with a vote of 5 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED February 13, 2024 Commissioner Zurek moved, and Commissioner Lee seconded to approve the Minutes of the Economic Development Commission meeting dated February 13, 2024, as presented. All voted in favor and the motion was carried unanimously with a vote of 5 to 0. VISITOR PRESENTATIONS: 1. Updates on Civic Campus, Chanhassen Bluffs Recreational Facility, and Avienda. DISCUSSION/GENERAL BUSINESS ITEMS: 1. Election of 2024 Chair and Vice Chair a. Election of Chair Commissioner Zurek nominated Commissioner Anderson for Chair, and Commissioner Goff seconded. All voted in favor and the motion was carried unanimously with a vote of 5 to 0. 251 Economic Development Commission – January 9, 2024 2 b. Election of Vice Chair Commissioner Freeman nominated Commissioner Anderson for Vice Chair, and Commissioner Goff seconded. All voted in favor and the motion was carried unanimously with a vote of 5 to 0. At this time Commissioner Zurek excused himself, leaving the meeting. 2. Review and Adopt Economic Development Commission Bylaws Commissioner Freeman moved, and Commissioner Goff seconded to approve the Bylaws of the Economic Development Commission for 2024, as presented. All voted in favor and the motion was carried unanimously with a vote of 4 to 0. ADJOURNMENT: Commissioner Freeman moved, and Commissioner Lee seconded to adjourn the meeting. All voted in favor and the motion was carried unanimously with a vote of 4 to 0. The Economic Development Commission meeting was adjourned at 6:43 p.m. Submitted by Samantha DiMaggio Economic Development Manager 252 City Council Item June 24, 2024 Item Receive Environmental Commission Minutes dated May 8, 2024 File No.Item No: E.6 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Environmental Commission minutes dated May 8, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS 253 Environmental Commission minutes dated May 8, 2024 254 Chanhassen Environmental Commission (EC) 6:00 pm May 8, 2024 Members Present: Scott Grefe, Kaisa Buckholz, Billy Cripe, Paget Pengelly, Sidney Lindmark, John Stutzman, Ryan Farnan Members Absent: Leslie Elhadi Staff Present: Jamie Marsh, Environmental Resource Specialist Visitors: Linda Paulson, Resident Call to Order The meeting was called to order at 6:01 p.m. Minutes Commissioner Stutzman moved to approve the meeting minutes dated April 10, 2024 with no changes; Commissioner Buckholz seconded. The minutes were approved with a 7-0 vote. Visitor Presentations Resident Linda Paulsen shared her interest in finding places in Chanhassen that accept wine corks for recycling. Commissioner Buckholz will look into options. Ms. Paulsen also shared the helpful advice she received from Jamie Marsh, Environmental Resource Specialist, that recyclables shouldn’t be taped together to ensure that the recycling facilities can sort them properly. Arbor Day Recap Commissioners, residents, and staff turned out on May 4 to Meadow Green Park to plant 24 trees. The conditions were very soggy after so much rain, but there was a good turnout. Manuel Jordan, the Arborist, presented how to best plant a tree, which the commissioners found helpful. Commissioners discussed using the games that weren’t needed at the July 3 expo. The bare root trees are much more affordable; this allowed the city to plant more trees for less money than last year. The Lions donated trees as well. Communications Calendar The Commissioners updated the social media calendar to schedule posts about Emerald Ash Borer (EAB), lake quality, and invasive plant species. July 3 Trade Fair Planning The business expo table at Chanhassen 4th of July Celebration is reserved on July 3 from 4:00 to 6:00 p.m. The Commissioners organized a set-up/ early shift from 3:30 to 5:00 p.m., and a 255 second half plus tear-down from 5:00 to 6:30 p.m. They will utilize games and a Master Gardener. Ms. Marsh is looking into a rain barrel for a possible giveaway. They will have a QR code to sign up for Chan-happenings. Environmental Academy The Commissioners discussed possible topics, dates and locations for this year’s Environmental Academy events to continue with the theme of invasive species. Tentatively, the plan is to schedule August 22 to teach about the green features that will be implemented at the new Civic Campus. On September 26, participants will learn to identify invasive species at a city park, utilizing a picnic shelter as a meeting place and going to look at invasive species on site. The last session will be at the Environmental Center on October 24. The plan is to leave aquatic invasive species as a backup plan. Update 2024 Summer Work Plan Ms. Marsh reviewed the current work plan, and the Commission added additional items to the upcoming June and July meetings. New Commission T-Shirts The Commissioners discussed t-shirts versus work shirts. They have a lot of public-facing events, so some type of shirt is helpful to identify themselves. They are looking into options and will revisit in June. Commission Presentations Chair Grefe shared some updates from the April 22 Solid Waste Management Stakeholder meeting. The group’s goal, with the Minnesota Pollution Control Agency, is to reduce what goes in the landfill and find ways to facilitate that goal. Commissioner Cripe discussed the Green Steps initiative to support shopping locally. Mr. Cripe met with Buy Chanhassen to discuss options. He’d like to highlight why and how construction sites use silt fencing to protect the environment. Utilizing fencing at the Civic Campus construction site to host physical signs that have links to educational videos and promote local businesses could be an opportunity to meet another Green Steps initiative. Upcoming Items and Events Ruth Slivken from the Commission on Aging is coordinating the planting of a pollinator garden on May 18 at 1:00 p.m. at the Lake Place Apartments. Any commissioners wishing to volunteer at this event can let Jamie know. Adjournment Commissioner Cripe moved to adjourn the meeting; Commission Paget seconded a motion to adjourn. The vote was 7-0 and the meeting adjourned at 8:00 p.m. 256 Minutes prepared by Amy Weidman, Senior Administrative Support Specialist Minutes Submitted by Jamie Marsh, Environmental Resource Specialist 257 City Council Item June 24, 2024 Item Receive Planning Commission Minutes dated June 4, 2024 File No.Item No: E.7 Agenda Section CONSENT AGENDA Prepared By Amy Weidman, Senior Admin Support Specialist Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the Planning Commission minutes dated June 4, 2024." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Planning Commission minutes dated June 4, 2024 258 CHANHASSEN PLANNING COMMISSION REGULAR MEETING MINUTES JUNE 4, 2024 CALL TO ORDER: Chairman Noyes called the meeting to order at 6:00 p.m. MEMBERS PRESENT: Chair Eric Noyes, Steve Jobe, Perry Schwartz, Ed Goff, Ryan Soller, Jeremy Rosengren, Katie Trevena. MEMBERS ABSENT: None. STAFF PRESENT: Rachel Arsenault, Associate Planner; Rachel Jeske, Planner; Eric Maass, Community Development Director. PUBLIC PRESENT: Bryan Harjes HKGi Vernelle Clayton Manager, Market Square and Colonial Square Heidi Armstrong Resident on Kerber Boulevard Bob Seward 8031 Cheyenne Avenue TJ Hart 8670 Chanhassen Hills Drive Reuben Kelzenberg Resident on Iroquois Street PUBLIC HEARINGS: 1. REVIEW DESIGN STANDARDS FOR THE CENTRAL BUSINESS DISTRICT Community Development Director Eric Maass introduced Bryan Harjes, HKGi, to review the downtown design guidelines and design standards. Mr. Harjes presented an overview of the design standards for the downtown area of Chanhassen. He explained the different design standards for the area defined as downtown. These design standards include landscaping, building materials, and lighting. Mr. Maass highlighted the second requirement of exterior materials. He stated that they wanted standards that provided flexibility for an architectural design that made sense with the building. Mr. Harjes explained the design goals of streets along with the overall design. He detailed the differences between the downtown mixed-use design guidelines and the downtown west guidelines. Mr. Maass commented that the design guidelines provide a framework for private development in Chanhassen. The street guidelines provide standards for how the city will design its streets. 259 Planning Commission Minutes – June 4, 2024 2 There are no plans to reconstruct West 78th Street because of this planning project. The treatment of the intersection of Market Boulevard would adhere to these guidelines. Mr. Harjes presented slides to showcase the existing conditions of West 78th Street. Mr. Maass stated that the city considered the level of service for West 78th Street if the westbound land was dropped to a single lane. Mr. Harjes continued explaining the West 78th Street complete streets design and the 80-foot right of way. Mr. Maass commented that creating a bump out at the intersection would possibly allow the opportunity to create more on-street parking or large planter boxes. Mr. Harjes reviewed information about the various widths of right-of-way in the different areas of downtown. Chairman Noyes asked how future street changes relate to traffic signals or roundabouts. Mr. Maass stated that the specific intersection control would be determined in the feasibility portion of a road project. Mr. Harjes commented that roundabouts need more space to accommodate. There were concerns about additional acquisitions. They considered a smaller roundabout on Market Boulevard and different traffic control measures for other intersections. Commissioner Schwartz asked for the city’s philosophy on controlling traffic in specific intersections. Mr. Maass responded that the city’s goal is to balance the needs of each mode of transportation. The consideration of traffic needs has impacted the discussion between downtown mixed-use and downtown west. Commissioner Schwartz asked if the city planned to install parking meters for on-street parking. Mr. Maass responded that the city had not discussed parking meter installation. Mr. Schwartz asked about Excelsior’s experience installing parking meters downtown, and he commented that there would be increased traffic, but often parking meters annoy people. Mr. Maass stated that the City Council has discussed this project multiple times and parking meters have never been a consideration. Commissioner Goff asked if the multi-use trail was always on the north. Mr. Harjes commented that on West 78th Street, the multi-use would always be on the north side, and on Market Boulevard, it would be on the east side. 260 Planning Commission Minutes – June 4, 2024 3 Mr. Maass displayed a side-by-side image of West 78th Street and Market Boulevard. Commissioner Goff suggested including directions on the figures. Commissioner Soller asked why it was critical to include design guidelines for West 78th Street when any projects would be completed quite a few years in the future Mr. Maass responded that this document is intended to guide development now and into the future. He explained the differences between the design guidelines and the city code. These design guidelines would influence future discussions. Commissioner Soller commented that this is a guide for the future, but engineers ten years from now might not be held to these guidelines. He asked if the document would be evolving and if it could be amended. Mr. Maass answered that the guidelines could be amended through a process that would include Planning Commission review, a public hearing, and City Council approval. Commissioner Schwartz asked if a part of the document would be implemented into the comprehensive plan. Mr. Maass responded that planning studies are often referenced in comprehensive plans. Commissioner Soller stated that structured parking seems to be the most preferred in development. He asked if that guideline would persuade or prevent development. He acknowledged that this was a guideline but would guide the vision for downtown development. Mr. Maass stated that it would provide clarity to prospective developers, and they would know the expectations from the start before investing time, money, or effort into a project. Commissioner Goff asked if a developer went against the guidelines and if they would need a variance. Mr. Maass answered that they would not need a variance, but the guidelines show a preference. This document would be helpful for those looking for financial assistance to make a project viable. Commissioner Schwartz asked if the document had been shared with prospective developers to get their thoughts on the guidelines. Mr. Maass commented that the guidelines were shared with architects since they often design the buildings. He provided an example of revisions that resulted from comments from the architects. Commissioner Trevena asked if there was any differentiation for structured parking for the different types of buildings in the downtown district. 261 Planning Commission Minutes – June 4, 2024 4 Mr. Maass responded that the idea is to limit surface parking as much as possible. If there is surface parking, it is encouraged to be located in the rear or on the side. Commissioner Jobe asked if there was a limit on the size of trucks allowed. Mr. Maass stated that they require fire apparatus accessibility, which accounts for the large truck traffic that would need to access the sites. Commissioner Schwartz asked if they anticipated having indoor access to the building from structured parking. Mr. Maass responded that this would be dependent on the project. He explained that most projects with public structured parking would be on the first floor and would be accessible to the business or the sidewalk. Commissioner Schwartz asked how many levels of structured parking there would be. Mr. Maass answered that this would be dependent on the needs of the project. Commissioner Soller stated that the access from the commercial area to the Central Business District was non-existent. He asked if there was anything in the plans to connect these areas for pedestrians or bicycles. Mr. Maass demonstrated the two crossings over the railroad into downtown. Commissioner Soller commented that to do pedestrian or bicycle crossing, you would have to go all the way to Market Boulevard or Great Plains. He asked whether connectivity to the district was important. Mr. Maass used the map to show where the pedestrian overpass was located and explained how it could create options for bike paths in the future. Commissioner Schwartz expressed concerns about the safety of the pedestrian pathway being next to the bicycle pathway. Mr. Maass responded that there was not enough right-of-way to have two separate trails. He stated that they were trying to accommodate bump-outs, through lanes, and different plants, which did not leave room for two separate pathways. Chairman Noyes opened the public hearing. Vernelle Clayton, who manages Market Square and Colonial Square in Chanhassen, suggested that when promoting the downtown district, it is not just West 78th Street. She requested providing signage for additional streets beside West 78th Street. She stated most individuals drive 262 Planning Commission Minutes – June 4, 2024 5 to the grocery store or appointments. She commented that retail succeeds based on the number of cars that pass by the stores and voiced concerns about limiting traffic downtown. Heidi Armstrong, a resident of Kerber Boulevard, asked what created this initiative to change, as she appreciated the small-town feel of Chanhassen. Ms. Armstrong stated that Chanhassen does not have many problems and voiced concerns about the tax impacts of these large changes. Chairman Noyes summarized the discussion of the meeting, which focused on creating guidelines, not a specific project. Mr. Maass stated that the downtown development guidelines create standards for the Central Business District, and he explained the current guidelines in place in the city. He agreed the downtown is a special place, which prompted the creation of the guidelines so when or if projects come forward, the requirements are clear. Chairman Noyes clarified that there were no specific projects proposed downtown, but these would create outlines for when projects do occur. Bob Seward, 8031 Cheyenne Avenue, asked whether it was accurate that another 500-unit apartment building was being constructed. Mr. Maass explained that there was not a project that was building 500 multi-family homes but clarified that there was a redevelopment project with the Country Inn and Suites that included multi-family housing. Mr. Seward voiced concerns about the traffic in Chanhassen with the redevelopment of additional housing. He believed that there was drag racing occurring often on Highway 5 and that police presence was limited. He expressed concerns that this would continually get worse. TJ Hart, 8670 Chanhassen Hills Drive, provided an overview of positive attributes of the design standards for the Central Business District. He encouraged the potential implementation of reduced lane widths to ten feet for safety standards. He commented that two lanes encourage faster travel and a curb-out in those areas would be more appropriate for the flow of traffic and pedestrian crossing. He stated that the off-street parking mandates in the city code would be difficult for smaller developers or businesses. Reuben Kelzenberg, Iroquois, asked if it was a dead issue for Market Boulevard to line up with Laredo Drive. He stated that it seems surprising that everything must be rebuilt. He encouraged limiting street parking on West 78th Street to allow for easy snowplowing and traffic navigation. Chairman Noyes closed the public hearing. Commissioner Schwartz stated that many residents seem to be surprised about projects. He suggested that the city makes efforts to communicate changes. He encouraged residents to reach out about changes to better understand what was happening. 263 Planning Commission Minutes – June 4, 2024 6 Chairman Noyes commented at a March Planning Commission meeting, they reviewed the different communication types and frequency for projects in the city. Commissioner Trevena explained that the Chanhassen website provides additional information about ongoing projects in the city. She encouraged the citizens to be active. Commissioner Soller voiced support for the future vision and what the guidelines might create. He emphasized that these guidelines are for a long period. These projects are subject to market forces. He stated that these guidelines are to make traffic efficient but asked for additional input about this information. Mr. Maass commented that West 78th Street does not have a complete sidewalk. He clarified that businesses are crucial downtown. He explained the value of allowing for multiple means of transportation downtown. Chairman Noyes stated that it is difficult because these are guidelines for a specific subsection of Chanhassen. It might be appropriate to slow traffic in certain areas of Chanhassen, but not throughout the city. Commissioner Jobe stated that the comment about on-street parking was valid. Commissioner Trevena commented that overall, she is in favor of the guidelines but voiced concern about the structured parking from a developer’s standpoint. She stated that structured parking was expensive to maintain over time. Commissioner Schwartz said that it was a great move for the city to create the guidelines to help establish a vision for the city. He voiced concerns that business owners outside of the Central Business District might be concerned with the money and focus on West 78th Street. He encouraged the city to continue to help other businesses grow and succeed. Chairman Noyes stated that there are no quick solutions but explained the necessity for the long- term plan to continue to develop. Commissioner Goff expressed favor for the plan. He stated that the guidelines were the first step. If the plan does not work, a future planning commission will need to figure out the next steps. Commissioner Soller provided positive feedback about revitalizing downtown in new ways. He stated that other locations should not be neglected with signage. Commissioner Schwartz stated there had been previous discussions of extending the signage to different areas of Chanhassen to create a cohesive welcome to the city. Commissioner Soller stated that residents could submit public comments that could be read if they had additional thoughts to share. 264 Planning Commission Minutes – June 4, 2024 7 2. ORDINANCE XXX: AMENDING LOT REQUIREMENTS AND SETBACKS IN THE R-8 AND R-12 ZONING DISTRICTS Community Development Director Eric Maass presented an overview of the R-8 Zoning District and the R-12 Zoning District. He explained the future land use map from the 2040 Comprehensive Plan. He reviewed the R-8 Zoning District’s proposed standards and current standards. He reviewed the R-12 Zoning District’s proposed standards and current standards. Commissioner Jobe asked about lot cover with the multi-family units. Mr. Maass clarified that they are considering the impervious area in the overall lot. Commissioner Jobe asked about stormwater runoff on these properties. Mr. Maass stated that all these properties need to consider how to manage their stormwater runoff accordingly. Commissioner Schwartz asked if this ordinance would prevent developers from building homes with a zero-foot front setback. Mr. Maass stated that there was a 25-foot setback, which is approximately the size of a car. He stated there could not be a building with a 0-foot setback unless they wanted to pursue a PUD. There could be row homes, but there would need to be a yard. Commissioner Schwartz questioned whether it would allow developers to impact the width of private streets. Mr. Maass stated that private streets are required to be 50 feet wide and would not be changed with this ordinance. Chairman Noyes asked who changes the zoning of a location in Chanhassen and asked how it would be used by the city. Mr. Maass explained that the city is required to update its comprehensive plan every ten years. This determines the land use guidance, which would help guide the zoning. Properties can be rezoned if they align with the land use guidance. There are only a handful of properties eligible. Chairman Noyes asked what the potential for properties to be developed is, and how many residents would be impacted. Mr. Maass stated that city utilities impact which properties can be developed. He provided examples of properties that could be developed for medium density. He commented that the zoning designation would not change for any one property. Chairman Noyes clarified that this ultimately changes the design of the properties. 265 Planning Commission Minutes – June 4, 2024 8 Mr. Maass responded that this would facilitate the option of straight zoning for this type of development. Commissioner Soller asked for clarification regarding the minimum lot area. He asked if it was 1,500 square feet of a minimum lot area per dwelling unit and if the setback would be in addition to this. Mr. Maass explained the minimum lot frontage and lot area. He clarified that individuals could not go below the required lot area or above the maximum lot coverage. He said that the higher- density district would have greater lot coverage as a percentage because of the units being put in the same amount of land. Commissioner Soller asked if today the maximum lot coverage is 35 percent and if there was no increase from 35 to 50 percent, would that still create the need for PUDs. Mr. Maass stated that 35 percent of 1,500 square feet is 525 square feet of impervious lot cover. This would be approximately a small garage. The increase of max lot coverage would allow a reasonable-sized structure on a property. They can average the lot coverage over a development and the HOA-managed green space and stormwater ponds can alleviate the lot cover of the impervious area. Chairman Noyes commented that these developments would have common walls due to the nature of the development. This is where the density argument comes in. Chairman Noyes opened the public hearing. There were no public comments. Chairman Noyes closed the public hearing. Commissioner Jobe moved, Commissioner Schwartz seconded that the Chanhassen Board of Appeals and Adjustments recommends that the City Council adopt the ordinance amending lot requirements and setbacks in the R-8 and R-12 zoning districts. All voted in favor and the motion carried unanimously with a vote of 7 to 0. APPROVAL OF MINUTES: 1. APPROVAL OF PLANNING COMMISSION MINUTES DATED MAY 7, 2024 Commissioner Goff moved, Commissioner Rosengren seconded to approve the Chanhassen Planning Commission summary minutes dated May 7, 2024 as presented. All voted in favor, and the motion carried unanimously with a vote of 7 to 0. CITY COUNCIL ACTION UPDATE: Planning Director Maass updated the Commissioners on recent council actions, noting the construction and site preparation would begin tomorrow. 266 Planning Commission Minutes – June 4, 2024 9 ADJOURNMENT: Commissioner Schwartz moved, Commissioner Goff seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 7 to 0. The Planning Commission meeting was adjourned at 8:11 p.m. Submitted by Eric Maass Planning Director 267 City Council Item June 24, 2024 Item Approve Claims Paid dated June 24, 2024 File No.Item No: E.8 Agenda Section CONSENT AGENDA Prepared By Danielle Washburn, Assistant Finance Director Reviewed By Kelly Grinnell SUGGESTED ACTION "The Chanhassen City Council Approves Claims Paid dated June 24, 2024." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY BACKGROUND DISCUSSION The following claims are submitted for review and approval on June 24, 2024: Total Claims $427,717.42 BUDGET RECOMMENDATION 268 ATTACHMENTS Payment Summary Payment Detail 269 Accounts Payable Checks by Date - Summary Vendor Name Check Date Void Checks Check Amount Aaron Stark 06/05/2024 0.00 29.00 ASSOC OF MINN VOLUNTEER FIREFIGHTERS BENEFIT 06/05/2024 0.00 1,636.00 CCP NI MASTER TENANT 4 LLC 06/05/2024 0.00 6,329.13 CENTURYLINK 06/05/2024 0.00 1,092.77 Heritage Shade Tree Consultants, Inc 06/05/2024 0.00 17,781.25 MN DEPT OF HEALTH 06/05/2024 0.00 23.00 MN DEPT OF HEALTH 06/05/2024 0.00 23.00 MN VALLEY ELECTRIC COOP 06/05/2024 0.00 6,680.35 Nokomis Energy, LLC 06/05/2024 0.00 5,136.98 VERIZON WIRELESS 06/05/2024 0.00 6,061.16 Akeem Adewusi 06/06/2024 0.00 150.00 American Family Life Assurance Company of Columbus 06/06/2024 0.00 124.80 AMERICAN TIRE DISTRIBUTORS INC 06/06/2024 0.00 557.13 Blackburn Manufacturing Company 06/06/2024 0.00 497.70 Brandon Bartz 06/06/2024 0.00 50.00 Carver County 06/06/2024 0.00 1,350.00 CENTURY FENCE COMPANY 06/06/2024 0.00 19,850.00 Cleaning Solutions Services 06/06/2024 0.00 8,597.20 COMPUTER INTEGRATION TECHN. 06/06/2024 0.00 709.80 Connie Bunkelman 06/06/2024 0.00 150.00 DALCO ENTERPRISES, INC. 06/06/2024 0.00 1,679.07 Daniel Rademacher 06/06/2024 0.00 1,080.00 David Dassenko 06/06/2024 0.00 50.00 ERS Testing LLC 06/06/2024 0.00 150.17 FleetPride, Inc. 06/06/2024 0.00 670.32 Global Equipment Company Inc 06/06/2024 0.00 566.09 Go Gymnastics 06/06/2024 0.00 1,800.00 GREAT LAKES COCA-COLA DISTRIBUTION LLC 06/06/2024 0.00 1,038.83 GS DIRECT INC 06/06/2024 0.00 207.23 Guard Guys, LLC 06/06/2024 0.00 197.45 HAWKINS CHEMICAL 06/06/2024 0.00 7,320.45 HOISINGTON KOEGLER GROUP 06/06/2024 0.00 12,306.31 Innovative Office Solutions LLC 06/06/2024 0.00 113.74 Jason Erickson 06/06/2024 0.00 50.00 Joan Tam 06/06/2024 0.00 30.00 KENNEDY & GRAVEN, CHARTERED 06/06/2024 0.00 1,044.00 Lennar 06/06/2024 0.00 750.00 MACQUEEN EQUIPMENT 06/06/2024 0.00 1,156.47 Midwest Aqua Care, Inc 06/06/2024 0.00 4,080.00 Minnesota Equipment 06/06/2024 0.00 540.46 MN DEPT OF LABOR AND INDUSTRY 06/06/2024 0.00 10.00 MOSS & BARNETT 06/06/2024 0.00 16,498.14 NAPA AUTO & TRUCK PARTS 06/06/2024 0.00 382.68 NYSTROM PUBLISHING COMPANY INC 06/06/2024 0.00 1,798.63 Page 1 of 3 270 Vendor Name Check Date Void Checks Check Amount O'Reilly Automotive Inc 06/06/2024 0.00 116.80 PRAIRIE RESTORATIONS INC 06/06/2024 0.00 1,500.00 SCOTT COUNTY TREASURER 06/06/2024 0.00 1,425.00 Shred-N-Go Inc 06/06/2024 0.00 1,450.00 SiteOne Landscape Supply 06/06/2024 0.00 166.43 TimeSaver Off Site Secretarial, Inc 06/06/2024 0.00 334.00 US Home Corporation 06/06/2024 0.00 1,500.00 WM MUELLER & SONS INC 06/06/2024 0.00 3,188.97 CenturyLink 06/12/2024 0.00 64.00 IUOE Local #49 06/12/2024 0.00 700.00 Marco Inc 06/12/2024 0.00 1,010.00 Matt Unmacht 06/12/2024 0.00 477.20 Metronet Holdings, LLC 06/12/2024 0.00 55.95 MJ PRODUCTIONS 06/12/2024 0.00 750.00 MN NCPERS LIFE INSURANCE 06/12/2024 0.00 144.00 NOVEL SOLAR THREE, LLC 06/12/2024 0.00 9,757.81 Priya Tandon 06/12/2024 0.00 250.00 A TO Z RENTAL CENTER 06/13/2024 0.00 62.00 Abdo LLP 06/13/2024 0.00 5,500.00 Affordable Egress Windows and Basements 06/13/2024 0.00 500.00 Anika Perkins 06/13/2024 0.00 500.00 ARAMARK Refreshment Services, LLC 06/13/2024 0.00 1,205.15 BUDGET EXTERIORS 06/13/2024 0.00 64.00 BY THE WOODS 06/13/2024 0.00 500.00 Carver County 06/13/2024 0.00 500.00 Chanhassen Medical Arts Building I & II 06/13/2024 0.00 12.60 Cintas Corporation No. 2 06/13/2024 0.00 120.74 CROWN COLLEGE 06/13/2024 0.00 650.00 CUB FOODS 06/13/2024 0.00 26.31 DAKOTA SUPPLY GROUP 06/13/2024 0.00 3,624.78 Davis Equipment Corporation 06/13/2024 0.00 103.97 DEM-CON LANDFILL 06/13/2024 0.00 1,832.45 Dinges Fire Company 06/13/2024 0.00 1,723.25 Diversified Drainage 06/13/2024 0.00 76,510.10 Earl F Andersen Inc 06/13/2024 0.00 1,655.95 ECM PUBLISHERS INC 06/13/2024 0.00 193.44 Enterprise FM Trust 06/13/2024 0.00 25,320.86 EPIC EVENT RENTAL 06/13/2024 0.00 1,192.67 Ferguson Waterworks #2518 06/13/2024 0.00 3,910.96 Festival Production Services 06/13/2024 0.00 1,300.00 Great Plains Fire 06/13/2024 0.00 1,743.98 GREEN MEADOWS INC 06/13/2024 0.00 84.13 HENNEPIN COUNTY FIRE CHIEF'S ASSN 06/13/2024 0.00 850.00 Innovative Office Solutions LLC 06/13/2024 0.00 59.15 Loch Monster Plumbing, LLC 06/13/2024 0.00 2,777.34 Marc S. Mutchler 06/13/2024 0.00 750.00 MCDONALD CONSTRUCTION 06/13/2024 0.00 2,620.00 Metropolitan Council, Env Svcs 06/13/2024 0.00 105,786.45 MN DEPT OF LABOR AND INDUSTRY 06/13/2024 0.00 8,790.89 MTI DISTRIBUTING INC 06/13/2024 0.00 1,144.58 NEWMAN SIGNS INC 06/13/2024 0.00 2,508.10 Pioneer Athletics 06/13/2024 0.00 2,070.40 Pollard Water 06/13/2024 0.00 7,268.87 Page 2 of 3 271 Vendor Name Check Date Void Checks Check Amount POWER SYSTEMS LLC 06/13/2024 0.00 55.31 POWERPLAN OIB 06/13/2024 0.00 215.74 PRAIRIE RESTORATIONS INC 06/13/2024 0.00 530.00 Reem Danial 06/13/2024 0.00 189.00 SCENIC HEIGHTS ELEMENTARY 06/13/2024 0.00 270.00 Sun Life Financial 06/13/2024 0.00 3,744.70 Terence Kenneth Kubista 06/13/2024 0.00 200.00 TruGreen Processing Center 06/13/2024 0.00 2,144.00 Tytann Blacktopping, LLC 06/13/2024 0.00 100.00 USA BLUE BOOK 06/13/2024 0.00 103.62 Vertex Unmanned Solutions, LLC 06/13/2024 0.00 1,599.00 WM MUELLER & SONS INC 06/13/2024 0.00 1,743.46 WS & D PERMIT SERVICE 06/13/2024 0.00 120.00 Report Total: 0.00 427,717.42 Page 3 of 3 272 AP Check Detail User: dwashburn Printed: 6/13/2024 10:32:25 AM Last Name Acct 1 Amount Check Date Description A TO Z RENTAL CENTER 101-1220-4290 62.00 6/13/2024 Trailer rental for Toys for Tots drive. 62.00 6/13/2024 A TO Z RENTAL CENTER 62.00 Abdo LLP 101-1130-4301 5,500.00 6/13/2024 Audit Services-Fiscal Year 2023 5,500.00 6/13/2024 Abdo LLP 5,500.00 Adewusi Akeem 700-7204-4901 50.00 6/6/2024 Toilet Rebate Adewusi Akeem 700-7204-4901 100.00 6/6/2024 Clothes Washer Rebate 150.00 6/6/2024 Adewusi Akeem 150.00 Affordable Egress Windows and Basements 101-0000-2073 500.00 6/13/2024 Erosion escrow 7006 Cheyenne Trl -Receipt #589230 500.00 6/13/2024 Affordable Egress Windows and Basements 500.00 American Family Life Assurance Company of Columbus 101-0000-2008 124.80 6/6/2024 May premium 124.80 6/6/2024 AP - Check Detail (6/13/2024)Page 1 of 23 273 Last Name Acct 1 Amount Check Date Description American Family Life Assurance Company of Columbus 124.80 AMERICAN TIRE DISTRIBUTORS INC 101-1550-4120 248.76 6/6/2024 Tires AMERICAN TIRE DISTRIBUTORS INC 101-1550-4120 308.37 6/6/2024 Tires 557.13 6/6/2024 AMERICAN TIRE DISTRIBUTORS INC 557.13 ARAMARK Refreshment Services, LLC 101-1120-4110 461.00 6/13/2024 Front Desk/ Building Coffee Order ARAMARK Refreshment Services, LLC 101-1120-4110 127.26 6/13/2024 Fire Station Coffee Order ARAMARK Refreshment Services, LLC 101-1120-4110 306.79 6/13/2024 Public Works Coffee Order ARAMARK Refreshment Services, LLC 101-1120-4110 310.10 6/13/2024 Senior Center Coffee Order 1,205.15 6/13/2024 ARAMARK Refreshment Services, LLC 1,205.15 Bartz Brandon 700-7204-4901 50.00 6/6/2024 Water Wise Rebate- Irrigation Controller 50.00 6/6/2024 Bartz Brandon 50.00 Blackburn Manufacturing Company 701-0000-4150 246.35 6/6/2024 locating flags Blackburn Manufacturing Company 700-0000-4150 251.35 6/6/2024 locating flags 497.70 6/6/2024 Blackburn Manufacturing Company 497.70 BUDGET EXTERIORS 101-1250-3301 64.00 6/13/2024 Refund - 1572 Bluebill Trl P2024-01347 64.00 6/13/2024 BUDGET EXTERIORS 64.00 AP - Check Detail (6/13/2024)Page 2 of 23 274 Last Name Acct 1 Amount Check Date Description Bunkelman Connie 700-7204-4901 150.00 6/6/2024 Water Wise Rebate- Dishwasher and Irrigation Controller 150.00 6/6/2024 Bunkelman Connie 150.00 BY THE WOODS 101-0000-2073 500.00 6/13/2024 Erosion escrow 88 Olympic Cir -Receipt #588410 500.00 6/13/2024 BY THE WOODS 500.00 Carver County 101-1160-4326 625.00 6/6/2024 Internet + Dark Fiber CH FD1 FD2 PW Carver County 700-1160-4326 725.00 6/6/2024 Dark Fiber WWTP W3 W7 W8 LS24 EWTP 1,350.00 6/6/2024 Carver County 101-1210-4300 250.00 6/13/2024 Carver County 101-1210-4300 250.00 6/13/2024 500.00 6/13/2024 Carver County 1,850.00 CCP NI MASTER TENANT 4 LLC 101-1350-4320 2,670.13 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 700-7019-4320 1,596.04 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 101-1550-4320 341.67 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 701-0000-4320 1,164.57 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 101-1120-1193 109.26 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 101-1600-4320 26.20 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 101-1540-4320 320.85 6/5/2024 Electric Charges CCP NI MASTER TENANT 4 LLC 700-0000-4320 100.41 6/5/2024 Electric Charges 6,329.13 6/5/2024 CCP NI MASTER TENANT 4 LLC 6,329.13 CENTURY FENCE COMPANY 101-1550-4300 4,850.00 6/6/2024 Ornamental Rail Install - Powers Blvd/Lake Dr W CENTURY FENCE COMPANY 420-1310-4710 15,000.00 6/6/2024 Ornamental Rail Install - Powers Blvd AP - Check Detail (6/13/2024)Page 3 of 23 275 Last Name Acct 1 Amount Check Date Description 19,850.00 6/6/2024 CENTURY FENCE COMPANY 19,850.00 CENTURYLINK 101-1170-4310 843.64 6/5/2024 Telephone & Communication Charges CENTURYLINK 101-1350-4310 30.84 6/5/2024 Telephone & Communication Charges CENTURYLINK 101-1160-4325 125.77 6/5/2024 Telephone & Communication Charges CENTURYLINK 701-0000-4310 6.17 6/5/2024 Telephone & Communication Charges CENTURYLINK 101-1120-4310 49.34 6/5/2024 Telephone & Communication Charges CENTURYLINK 700-0000-4310 6.17 6/5/2024 Telephone & Communication Charges CENTURYLINK 101-1550-4310 30.84 6/5/2024 Telephone & Communication Charges 1,092.77 6/5/2024 CenturyLink 700-0000-4310 32.00 6/12/2024 Telephone & Communication Charges CenturyLink 701-0000-4310 32.00 6/12/2024 Telephone & Communication Charges 64.00 6/12/2024 CenturyLink 1,156.77 Chanhassen Medical Arts Building I & II 101-0000-2033 12.60 6/13/2024 Refund: Overcharged 4/26/23 Snow Plowing Invoice 12.60 6/13/2024 Chanhassen Medical Arts Building I & II 12.60 Cintas Corporation No. 2 101-1312-4510 120.74 6/13/2024 first aid kit supplies 120.74 6/13/2024 Cintas Corporation No. 2 120.74 Cleaning Solutions Services 101-1170-4511 3,198.15 6/6/2024 Cleaning services-May 2024 Cleaning Solutions Services 101-1190-4511 420.00 6/6/2024 Window Cleaning -Chanhassen Library Cleaning Solutions Services 101-1312-4511 514.19 6/6/2024 Cleaning services-May 2024 Cleaning Solutions Services 101-1190-4511 30.00 6/6/2024 Extra Carpet Cleaning -Chanhassen Library Cleaning Solutions Services 101-1190-4511 4,049.23 6/6/2024 Cleaning services-May 2024 AP - Check Detail (6/13/2024)Page 4 of 23 276 Last Name Acct 1 Amount Check Date Description Cleaning Solutions Services 701-0000-4511 64.27 6/6/2024 Cleaning services-May 2024 Cleaning Solutions Services 101-1220-4511 257.09 6/6/2024 Cleaning services-May 2024 Cleaning Solutions Services 700-0000-4511 64.27 6/6/2024 Cleaning services-May 2024 8,597.20 6/6/2024 Cleaning Solutions Services 8,597.20 COMPUTER INTEGRATION TECHN.101-1160-4211 496.60 6/6/2024 Office365 Monthly Backup Service - June COMPUTER INTEGRATION TECHN.101-1160-4211 213.20 6/6/2024 O365 Add on Licenses 709.80 6/6/2024 COMPUTER INTEGRATION TECHN. 709.80 CROWN COLLEGE 101-1220-4370 650.00 6/13/2024 EMT reoccurring training 650.00 6/13/2024 CROWN COLLEGE 650.00 CUB FOODS 101-1220-4165 11.34 6/13/2024 Charge Account-Napkins CUB FOODS 101-1220-4290 14.97 6/13/2024 Charge Account-Water 26.31 6/13/2024 CUB FOODS 26.31 DAKOTA SUPPLY GROUP 700-0000-4550 1,332.94 6/13/2024 gate valve supplies DAKOTA SUPPLY GROUP 700-0000-4550 2,291.84 6/13/2024 hydrant extension 3,624.78 6/13/2024 DAKOTA SUPPLY GROUP 3,624.78 DALCO ENTERPRISES, INC.101-1120-4110 1,679.07 6/6/2024 Rest Room Supplies AP - Check Detail (6/13/2024)Page 5 of 23 277 Last Name Acct 1 Amount Check Date Description 1,679.07 6/6/2024 DALCO ENTERPRISES, INC. 1,679.07 Danial Reem 101-1539-4343 189.00 6/13/2024 Zumba instruction 189.00 6/13/2024 Danial Reem 189.00 Dassenko David 700-7204-4901 50.00 6/6/2024 Water Wise Rebate- Irrigation Controller 50.00 6/6/2024 Dassenko David 50.00 Davis Equipment Corporation 101-1550-4120 103.97 6/13/2024 Groomer Teeth 103.97 6/13/2024 Davis Equipment Corporation 103.97 DEM-CON LANDFILL 101-1320-4150 1,832.45 6/13/2024 street sweeping 1,832.45 6/13/2024 DEM-CON LANDFILL 1,832.45 Dinges Fire Company 101-1220-4144 1,723.25 6/13/2024 Laser Extinguisher for Pub Ed 1,723.25 6/13/2024 Dinges Fire Company 1,723.25 Diversified Drainage 410-4410-4751 76,510.10 6/13/2024 Lake Ann Park Preserve AP - Check Detail (6/13/2024)Page 6 of 23 278 Last Name Acct 1 Amount Check Date Description 76,510.10 6/13/2024 Diversified Drainage 76,510.10 Earl F Andersen Inc 101-1320-4155 1,655.95 6/13/2024 street signs 1,655.95 6/13/2024 Earl F Andersen Inc 1,655.95 ECM PUBLISHERS INC 101-1110-4336 40.30 6/13/2024 Affidavit of Publication ECM PUBLISHERS INC 101-1120-4336 28.21 6/13/2024 ECM PUBLISHERS INC 101-1120-4336 84.63 6/13/2024 ECM PUBLISHERS INC 101-1420-4336 40.30 6/13/2024 193.44 6/13/2024 ECM PUBLISHERS INC 193.44 Enterprise FM Trust 400-0000-4811 329.81 6/13/2024 401 - 23 Chev Silv #26RPBZ Enterprise FM Trust 400-0000-4810 580.09 6/13/2024 408 - 22 Chev Silv #25G89X Enterprise FM Trust 400-0000-4811 143.54 6/13/2024 605 - 22 Ford Rang #25G25M Enterprise FM Trust 400-0000-4810 672.24 6/13/2024 416 - 23 Chev Silv #25XGMC Enterprise FM Trust 400-0000-4810 560.10 6/13/2024 204 - 23 Chev Tahoe #25WDVL Enterprise FM Trust 400-0000-4810 677.38 6/13/2024 134 - 23 Chev Silv #25WNKR Enterprise FM Trust 400-0000-4810 529.86 6/13/2024 430 - 24 Chry Paci #275N63 Enterprise FM Trust 400-0000-4811 317.65 6/13/2024 430 - 24 Chry Paci #275N63 Enterprise FM Trust 400-0000-4811 316.10 6/13/2024 204 - 23 Chev Tahoe #25WDVL Enterprise FM Trust 400-0000-4811 112.30 6/13/2024 412 - 22 GMC Sier #25H28F Enterprise FM Trust 400-0000-4810 1,157.11 6/13/2024 801 - 24 Chry Paci #2754MQ Enterprise FM Trust 400-0000-4811 235.03 6/13/2024 502 - 23 Chev Blazer #25XQVB Enterprise FM Trust 400-0000-4810 398.19 6/13/2024 606 - 22 Ford Rang #25G23Z Enterprise FM Trust 400-0000-4810 688.33 6/13/2024 201 - 22 GMC Yuko #25MPSN Enterprise FM Trust 400-0000-4810 562.27 6/13/2024 214 - 22 Chev Silv #25G5D2 Enterprise FM Trust 400-0000-4811 344.65 6/13/2024 501 - 23 Chev Silv #26RL44 Enterprise FM Trust 400-0000-4811 162.15 6/13/2024 201 - 22 GMC Yuko #25MPSN Enterprise FM Trust 400-0000-4811 143.16 6/13/2024 214 - 22 Chev Silv #25G5D2 Enterprise FM Trust 400-0000-4810 488.95 6/13/2024 412 - 22 GMC Sier #25H28F Enterprise FM Trust 400-0000-4810 646.60 6/13/2024 401 - 23 Chev Silv #26RPBZ AP - Check Detail (6/13/2024)Page 7 of 23 279 Last Name Acct 1 Amount Check Date Description Enterprise FM Trust 400-0000-4811 331.75 6/13/2024 505 - 23 Chev Silv #26RP8Z Enterprise FM Trust 700-0000-4811 73.35 6/13/2024 305 - 22 Chev Silv #25G5QR Enterprise FM Trust 400-0000-4811 256.84 6/13/2024 134 - 23 Chev Silv #25WNKR Enterprise FM Trust 400-0000-4810 677.39 6/13/2024 132 - 23 Chev Silv #25WNCN Enterprise FM Trust 400-0000-4810 673.76 6/13/2024 403 - 23 Chev Silv #25XGMK Enterprise FM Trust 400-0000-4811 316.10 6/13/2024 202 - 23 Chev Tahoe #25WDVJ Enterprise FM Trust 400-0000-4810 746.12 6/13/2024 602 - 24 Chev Equi #27MF9K Enterprise FM Trust 400-0000-4811 147.97 6/13/2024 606 - 22 Ford Rang #25G23Z Enterprise FM Trust 400-0000-4811 261.12 6/13/2024 416 - 23 Chev Silv #25XGMC Enterprise FM Trust 400-0000-4810 639.73 6/13/2024 505 - 23 Chev Silv #26RP8Z Enterprise FM Trust 400-0000-4810 603.34 6/13/2024 203 - 23 Chev Silv #26RPC3 Enterprise FM Trust 700-0000-4811 76.74 6/13/2024 307 - 23 Chev Equinox #262P8K Enterprise FM Trust 400-0000-4810 538.43 6/13/2024 405 - 22 Chev Silv #25G5QQ Enterprise FM Trust 400-0000-4810 671.93 6/13/2024 420 - 23 Chev Silv #25XGMS Enterprise FM Trust 400-0000-4704 50.00 6/13/2024 602 - 24 Chev Equi #27MF9K Delivery Enterprise FM Trust 400-0000-4811 261.01 6/13/2024 420 - 23 Chev Silv #25XGMS Enterprise FM Trust 400-0000-4811 261.74 6/13/2024 419 - 23 Chev Silv #25XGMJ Enterprise FM Trust 701-0000-2317 291.92 6/13/2024 305 - 22 Chev Silv #25G5QR Enterprise FM Trust 400-0000-4810 1,749.46 6/13/2024 130 - 24 GMC Sier #27NF7M Enterprise FM Trust 400-0000-4810 387.57 6/13/2024 001 - 22 Ford Esca #26M3MH Enterprise FM Trust 400-0000-4810 484.60 6/13/2024 502 - 23 Chev Blazer #25XQVB Enterprise FM Trust 700-0000-2317 181.47 6/13/2024 307 - 23 Chev Equinox #262P8K Enterprise FM Trust 400-0000-4810 438.24 6/13/2024 605 - 22 Ford Rang #25G25M Enterprise FM Trust 701-0000-2317 181.48 6/13/2024 307 - 23 Chev Equinox #262P8K Enterprise FM Trust 400-0000-4810 654.15 6/13/2024 402 - 23 Chev Silv #25XGMF Enterprise FM Trust 700-0000-2317 291.93 6/13/2024 305 - 22 Chev Silv #25G5QR Enterprise FM Trust 701-0000-4811 76.73 6/13/2024 307 - 23 Chev Equinox #262P8K Enterprise FM Trust 400-0000-4810 587.28 6/13/2024 411 - 22 Chev Silv #25G8CL Enterprise FM Trust 400-0000-4811 339.56 6/13/2024 203 - 23 Chev Silv #26RPC3 Enterprise FM Trust 400-0000-4810 516.11 6/13/2024 501 - 23 Chev Silv #26RL44 Enterprise FM Trust 400-0000-4811 281.54 6/13/2024 402 - 23 Chev Silv #25XGMF Enterprise FM Trust 400-0000-4811 158.34 6/13/2024 408 - 22 Chev Silv #25G89X Enterprise FM Trust 400-0000-4811 256.85 6/13/2024 132 - 23 Chev Silv #25WNCN Enterprise FM Trust 400-0000-4811 128.82 6/13/2024 140 - 22 Chev Silv #25G5J6 Enterprise FM Trust 400-0000-4811 261.71 6/13/2024 403 - 23 Chev Silv #25XGMK Enterprise FM Trust 400-0000-4811 147.96 6/13/2024 411 - 22 Chev Silv #25G8CL Enterprise FM Trust 701-0000-4811 73.36 6/13/2024 305 - 22 Chev Silv #25G5QR Enterprise FM Trust 400-0000-4810 560.10 6/13/2024 202 - 23 Chev Tahoe #25WDVJ Enterprise FM Trust 400-0000-4810 673.84 6/13/2024 419 - 23 Chev Silv #25XGMJ Enterprise FM Trust 400-0000-4810 580.40 6/13/2024 140 - 22 Chev Silv #25G5J6 Enterprise FM Trust 400-0000-4811 200.85 6/13/2024 405 - 22 Chev Silv #25G5QQ Enterprise FM Trust 400-0000-4811 163.76 6/13/2024 001 - 22 Ford Esca #26M3MH AP - Check Detail (6/13/2024)Page 8 of 23 280 Last Name Acct 1 Amount Check Date Description 25,320.86 6/13/2024 Enterprise FM Trust 25,320.86 EPIC EVENT RENTAL 101-1600-4300 749.32 6/13/2024 Folding Chairs - Memorial Day Program EPIC EVENT RENTAL 101-1600-4130 443.35 6/13/2024 Concert Series stage 1,192.67 6/13/2024 EPIC EVENT RENTAL 1,192.67 Erickson Jason 700-7204-4901 50.00 6/6/2024 Water Wise Rebate- Irrigation Controller 50.00 6/6/2024 Erickson Jason 50.00 ERS Testing LLC 101-0000-2033 30.03 6/6/2024 Cancelled Permit - 9001 River Rock Dr N ERS Testing LLC 101-0000-2033 30.03 6/6/2024 Cancelled Permit - 9280 River Rock Dr N ERS Testing LLC 101-0000-2033 30.03 6/6/2024 Permit Cancelled - 9092 River Rock Dr N ERS Testing LLC 101-0000-2033 30.05 6/6/2024 Cancelled Permit - 9062 River Rock Dr N ERS Testing LLC 101-0000-2033 30.03 6/6/2024 Cancelled Permit - 9052 River Rock Dr N 150.17 6/6/2024 ERS Testing LLC 150.17 Ferguson Waterworks #2518 700-0000-4250 2,590.00 6/13/2024 water meters Ferguson Waterworks #2518 700-0000-4550 1,320.96 6/13/2024 curb box supplies 3,910.96 6/13/2024 Ferguson Waterworks #2518 3,910.96 Festival Production Services 101-1600-4300 1,300.00 6/13/2024 Audio & Deck System-Memorial Day event AP - Check Detail (6/13/2024)Page 9 of 23 281 Last Name Acct 1 Amount Check Date Description 1,300.00 6/13/2024 Festival Production Services 1,300.00 FleetPride, Inc.101-1220-4140 670.32 6/6/2024 batteries 670.32 6/6/2024 FleetPride, Inc. 670.32 Global Equipment Company Inc 101-1370-4120 566.09 6/6/2024 hoist motor 566.09 6/6/2024 Global Equipment Company Inc 566.09 Go Gymnastics 101-1538-4343 641.25 6/6/2024 Littles Go Gymnastics 101-1537-4343 1,158.75 6/6/2024 Minis and Tinys 1,800.00 6/6/2024 Go Gymnastics 1,800.00 GREAT LAKES COCA-COLA DISTRIBUTION LLC 101-1540-4130 1,038.83 6/6/2024 Concession Stand Startup Purchase 1,038.83 6/6/2024 GREAT LAKES COCA-COLA DISTRIBUTION LLC 1,038.83 Great Plains Fire 201-0000-4705 1,743.98 6/13/2024 Rocky Bunker Boots 1,743.98 6/13/2024 Great Plains Fire 1,743.98 GREEN MEADOWS INC 101-0000-2033 -12.60 6/13/2024 Invoice #227768 Credit AP - Check Detail (6/13/2024)Page 10 of 23 282 Last Name Acct 1 Amount Check Date Description GREEN MEADOWS INC 101-1220-1193 96.73 6/13/2024 Lawn Mowing-320 Lake Drive E 84.13 6/13/2024 GREEN MEADOWS INC 84.13 GS DIRECT INC 101-1120-4110 207.23 6/6/2024 Plotter paper x2 207.23 6/6/2024 GS DIRECT INC 207.23 Guard Guys, LLC 101-1120-4352 197.45 6/6/2024 background checks 197.45 6/6/2024 Guard Guys, LLC 197.45 HAWKINS CHEMICAL 700-7019-4160 7,260.45 6/6/2024 Azone 15 east water treatment HAWKINS CHEMICAL 700-7043-4160 60.00 6/6/2024 west water treatment chemicals 7,320.45 6/6/2024 HAWKINS CHEMICAL 7,320.45 HENNEPIN COUNTY FIRE CHIEF'S ASSN 101-1220-4370 850.00 6/13/2024 Blue Card class for Bartels & Anderson 850.00 6/13/2024 HENNEPIN COUNTY FIRE CHIEF'S ASSN 850.00 Heritage Shade Tree Consultants, Inc 101-1420-4300 8,156.25 6/5/2024 Heritage Shade Tree Consultants- April Heritage Shade Tree Consultants, Inc 101-1420-4300 9,625.00 6/5/2024 Consultant- May Invoice 17,781.25 6/5/2024 AP - Check Detail (6/13/2024)Page 11 of 23 283 Last Name Acct 1 Amount Check Date Description Heritage Shade Tree Consultants, Inc 17,781.25 HOISINGTON KOEGLER GROUP 101-1420-4300 3,506.31 6/6/2024 Downtown design guidelines HOISINGTON KOEGLER GROUP 101-0000-2076 520.00 6/6/2024 Roers redevelopment parking study HOISINGTON KOEGLER GROUP 414-4011-4303 8,280.00 6/6/2024 Chanhassen Civic Campus Improvements 12,306.31 6/6/2024 HOISINGTON KOEGLER GROUP 12,306.31 Innovative Office Solutions LLC 101-1120-4110 39.08 6/6/2024 11x17 paper Innovative Office Solutions LLC 101-1120-4110 74.66 6/6/2024 Tissues 113.74 6/6/2024 Innovative Office Solutions LLC 101-1120-4110 59.15 6/13/2024 Paper Pencils 59.15 6/13/2024 Innovative Office Solutions LLC 172.89 IUOE Local #49 701-0000-2004 78.89 6/12/2024 Union Dues - June 2024 IUOE Local #49 700-0000-2004 201.11 6/12/2024 Union Dues - June 2024 IUOE Local #49 101-0000-2004 420.00 6/12/2024 Union Dues - June 2024 700.00 6/12/2024 IUOE Local #49 700.00 KENNEDY & GRAVEN, CHARTERED 101-1420-4300 1,044.00 6/6/2024 Roers TIFF. Going to recoup costs. 1,044.00 6/6/2024 KENNEDY & GRAVEN, CHARTERED 1,044.00 Kubista Terence Kenneth 101-1560-4343 200.00 6/13/2024 Brittish History classes AP - Check Detail (6/13/2024)Page 12 of 23 284 Last Name Acct 1 Amount Check Date Description 200.00 6/13/2024 Kubista Terence Kenneth 200.00 Lennar 101-0000-2075 750.00 6/6/2024 Landscape Escrow- 7206 Purple Parkway 750.00 6/6/2024 Lennar 750.00 Loch Monster Plumbing, LLC 101-1550-4151 2,777.34 6/13/2024 test backflow 2,777.34 6/13/2024 Loch Monster Plumbing, LLC 2,777.34 MACQUEEN EQUIPMENT 701-0000-4120 1,156.47 6/6/2024 SWITCHES AND LIGHTS 1,156.47 6/6/2024 MACQUEEN EQUIPMENT 1,156.47 Marco Inc 101-1170-4410 757.50 6/12/2024 Copier Lease Marco Inc 700-0000-4410 101.00 6/12/2024 Copier Lease Marco Inc 720-0000-4410 50.50 6/12/2024 Copier Lease Marco Inc 701-0000-4410 101.00 6/12/2024 Copier Lease 1,010.00 6/12/2024 Marco Inc 1,010.00 MCDONALD CONSTRUCTION 101-0000-2073 2,620.00 6/13/2024 Erosion escrow 371 Joanna Dr -Receipt #517533 2,620.00 6/13/2024 AP - Check Detail (6/13/2024)Page 13 of 23 285 Last Name Acct 1 Amount Check Date Description MCDONALD CONSTRUCTION 2,620.00 Metronet Holdings, LLC 700-7043-4310 55.95 6/12/2024 Telephone & Communication Charges 55.95 6/12/2024 Metronet Holdings, LLC 55.95 Metropolitan Council, Env Svcs 101-1250-3816 -1,068.55 6/13/2024 May 2024 SAC Metropolitan Council, Env Svcs 701-0000-2023 106,855.00 6/13/2024 May 2024 SAC 105,786.45 6/13/2024 Metropolitan Council, Env Svcs 105,786.45 Midwest Aqua Care, Inc 101-1550-4300 2,740.00 6/6/2024 Lake Treatments - Lake Ann Midwest Aqua Care, Inc 101-1550-4300 1,340.00 6/6/2024 Lake Treatments (Lotus) 4,080.00 6/6/2024 Midwest Aqua Care, Inc 4,080.00 Minnesota Equipment 101-1320-4120 540.46 6/6/2024 hyd. couplers 540.46 6/6/2024 Minnesota Equipment 540.46 MJ PRODUCTIONS 101-1620-4345 750.00 6/12/2024 6/13 Summer Concert Series performance 750.00 6/12/2024 MJ PRODUCTIONS 750.00 MN DEPT OF HEALTH 700-0000-4370 23.00 6/5/2024 water operator examination-McLellan MN DEPT OF HEALTH 700-0000-4370 23.00 6/5/2024 water operator examination-Dodge AP - Check Detail (6/13/2024)Page 14 of 23 286 Last Name Acct 1 Amount Check Date Description 46.00 6/5/2024 MN DEPT OF HEALTH 46.00 MN DEPT OF LABOR AND INDUSTRY 101-1220-4510 10.00 6/6/2024 Pressure Vessel 10.00 6/6/2024 MN DEPT OF LABOR AND INDUSTRY 101-1250-3818 -179.41 6/13/2024 May 2024 Surcharge MN DEPT OF LABOR AND INDUSTRY 101-0000-2022 8,970.30 6/13/2024 May 2024 Surcharge 8,790.89 6/13/2024 MN DEPT OF LABOR AND INDUSTRY 8,800.89 MN NCPERS LIFE INSURANCE 101-0000-2037 144.00 6/12/2024 June premium 144.00 6/12/2024 MN NCPERS LIFE INSURANCE 144.00 MN VALLEY ELECTRIC COOP 101-1350-4320 43.22 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 34.57 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 187.95 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 5,422.04 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 101-1350-4320 88.50 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 701-0000-4320 693.62 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 700-0000-4320 162.65 6/5/2024 Electric Charges MN VALLEY ELECTRIC COOP 101-1600-4320 47.80 6/5/2024 Electric Charges 6,680.35 6/5/2024 MN VALLEY ELECTRIC COOP 6,680.35 MOSS & BARNETT 210-0000-1193 14,638.14 6/6/2024 Comcast Franchising-April 2024 MOSS & BARNETT 210-0000-4300 1,860.00 6/6/2024 Cable TV Admin-April 2024 AP - Check Detail (6/13/2024)Page 15 of 23 287 Last Name Acct 1 Amount Check Date Description 16,498.14 6/6/2024 MOSS & BARNETT 16,498.14 MTI DISTRIBUTING INC 101-1550-4120 979.46 6/13/2024 mower parts MTI DISTRIBUTING INC 101-1550-4120 75.39 6/13/2024 hose MTI DISTRIBUTING INC 101-1550-4120 89.73 6/13/2024 mower parts 1,144.58 6/13/2024 MTI DISTRIBUTING INC 1,144.58 Mutchler Marc S.101-1620-4345 750.00 6/13/2024 6/6 Summer Concert Series Performance 750.00 6/13/2024 Mutchler Marc S. 750.00 NAPA AUTO & TRUCK PARTS 101-1550-4120 382.68 6/6/2024 Parks Trimmer Line 382.68 6/6/2024 NAPA AUTO & TRUCK PARTS 382.68 NEWMAN SIGNS INC 101-1320-4155 2,508.10 6/13/2024 street signs 2,508.10 6/13/2024 NEWMAN SIGNS INC 2,508.10 Nokomis Energy, LLC 700-0000-4320 68.24 6/5/2024 Electric Charges Nokomis Energy, LLC 700-7043-4320 4,454.56 6/5/2024 Electric Charges Nokomis Energy, LLC 701-0000-4320 68.24 6/5/2024 Electric Charges Nokomis Energy, LLC 101-1312-4320 545.94 6/5/2024 Electric Charges 5,136.98 6/5/2024 AP - Check Detail (6/13/2024)Page 16 of 23 288 Last Name Acct 1 Amount Check Date Description Nokomis Energy, LLC 5,136.98 NOVEL SOLAR THREE, LLC 701-0000-4320 3,307.03 6/12/2024 Electric Charges NOVEL SOLAR THREE, LLC 700-0000-4320 6,320.25 6/12/2024 Electric Charges NOVEL SOLAR THREE, LLC 101-1350-4320 130.53 6/12/2024 Electric Charges 9,757.81 6/12/2024 NOVEL SOLAR THREE, LLC 9,757.81 NYSTROM PUBLISHING COMPANY INC 101-1120-4110 1,798.63 6/6/2024 City of Chanhassen Envelopes 1,798.63 6/6/2024 NYSTROM PUBLISHING COMPANY INC 1,798.63 O'Reilly Automotive Inc 101-1310-4140 49.14 6/6/2024 Ceramic Pads O'Reilly Automotive Inc 101-1370-4260 -26.45 6/6/2024 Neck Light O'Reilly Automotive Inc 700-0000-4140 94.11 6/6/2024 Ceramic Pads Brake Pads 116.80 6/6/2024 O'Reilly Automotive Inc 116.80 Perkins Anika 101-0000-2073 500.00 6/13/2024 Erosion escrow 3921 Maple Shores Dr -Receipt #592958 500.00 6/13/2024 Perkins Anika 500.00 Pioneer Athletics 101-1550-4150 2,070.40 6/13/2024 Field Striping Paint (Restock) 2,070.40 6/13/2024 Pioneer Athletics 2,070.40 Pollard Water 700-0000-4550 7,268.87 6/13/2024 RPZ meters for contractor AP - Check Detail (6/13/2024)Page 17 of 23 289 Last Name Acct 1 Amount Check Date Description 7,268.87 6/13/2024 Pollard Water 7,268.87 POWER SYSTEMS LLC 101-1320-4120 55.31 6/13/2024 seal kit 55.31 6/13/2024 POWER SYSTEMS LLC 55.31 POWERPLAN OIB 101-1320-4120 215.74 6/13/2024 filters 215.74 6/13/2024 POWERPLAN OIB 215.74 PRAIRIE RESTORATIONS INC 101-1550-4574 1,500.00 6/6/2024 Prairie Restoration- Century Blvd. and Preserve 1,500.00 6/6/2024 PRAIRIE RESTORATIONS INC 101-1550-4574 530.00 6/13/2024 WWTP IPM Maintenance 530.00 6/13/2024 PRAIRIE RESTORATIONS INC 2,030.00 Rademacher Daniel 720-7207-4150 1,080.00 6/6/2024 removing nuisance beavers 1,080.00 6/6/2024 Rademacher Daniel 1,080.00 SCENIC HEIGHTS ELEMENTARY 101-0000-2021 20.87 6/13/2024 Scenic Heights Elementary Watercraft Refund SCENIC HEIGHTS ELEMENTARY 101-1540-3635 249.13 6/13/2024 Scenic Heights Elementary Watercraft Refund 270.00 6/13/2024 AP - Check Detail (6/13/2024)Page 18 of 23 290 Last Name Acct 1 Amount Check Date Description SCENIC HEIGHTS ELEMENTARY 270.00 SCOTT COUNTY TREASURER 101-1220-4370 1,425.00 6/6/2024 Facility Rental for Live Burn Training 1,425.00 6/6/2024 SCOTT COUNTY TREASURER 1,425.00 Shred-N-Go Inc 720-7201-4360 1,450.00 6/6/2024 Spring Paper Shredding Event 1,450.00 6/6/2024 Shred-N-Go Inc 1,450.00 SiteOne Landscape Supply 101-1550-4151 166.43 6/6/2024 Valve boxes (restock) 166.43 6/6/2024 SiteOne Landscape Supply 166.43 Stark Aaron 101-1766-4341 29.00 6/5/2024 Adult Summer Softball Umpire 29.00 6/5/2024 Stark Aaron 29.00 Sun Life Financial 700-0000-2015 90.64 6/13/2024 LTD -June 2024 Sun Life Financial 101-0000-2011 656.54 6/13/2024 Life Insurance-June 2024 Sun Life Financial 700-0000-2037 108.28 6/13/2024 Life Insurance-June 2024 Sun Life Financial 701-0000-2015 56.55 6/13/2024 LTD -June 2024 Sun Life Financial 720-0000-2015 38.26 6/13/2024 LTD -June 2024 Sun Life Financial 700-0000-2011 44.42 6/13/2024 Life Insurance-June 2024 Sun Life Financial 701-0000-2037 108.28 6/13/2024 Life Insurance-June 2024 Sun Life Financial 101-0000-2011 127.89 6/13/2024 Life Insurance-June 2024 Cobra Sun Life Financial 701-0000-2011 27.17 6/13/2024 Life Insurance-June 2024 Sun Life Financial 101-0000-2015 1,296.60 6/13/2024 LTD -June 2024 Sun Life Financial 720-0000-2011 19.34 6/13/2024 Life Insurance-June 2024 Sun Life Financial 101-0000-2037 1,170.73 6/13/2024 Life Insurance-June 2024 AP - Check Detail (6/13/2024)Page 19 of 23 291 Last Name Acct 1 Amount Check Date Description 3,744.70 6/13/2024 Sun Life Financial 3,744.70 Tam Joan 720-7202-3640 30.00 6/6/2024 Refund garden plot 30.00 6/6/2024 Tam Joan 30.00 Tandon Priya 101-0000-1027 250.00 6/12/2024 4th of July T -shirt change 250.00 6/12/2024 Tandon Priya 250.00 TimeSaver Off Site Secretarial, Inc 101-1125-4300 334.00 6/6/2024 City Council Meeting minutes 334.00 6/6/2024 TimeSaver Off Site Secretarial, Inc 334.00 TruGreen Processing Center 101-1550-4300 2,144.00 6/13/2024 Fertilizer and Weed Treatments 2,144.00 6/13/2024 TruGreen Processing Center 2,144.00 Tytann Blacktopping, LLC 101-1310-3343 50.00 6/13/2024 Driveway Permit Refund of Duplicate #PDR24-053 Tytann Blacktopping, LLC 101-1310-3343 50.00 6/13/2024 Driveway Permit Refund of Duplicate #ENG2023-0352 100.00 6/13/2024 Tytann Blacktopping, LLC 100.00 Unmacht Matt 101-1120-4381 477.20 6/12/2024 Flight AP - Check Detail (6/13/2024)Page 20 of 23 292 Last Name Acct 1 Amount Check Date Description 477.20 6/12/2024 Unmacht Matt 477.20 US Home Corporation 101-0000-2075 750.00 6/6/2024 Landscape Escrow-1914 Visionary Ct US Home Corporation 101-0000-2075 750.00 6/6/2024 Landscape Escrow- 7149 Pearl Dr. 1,500.00 6/6/2024 US Home Corporation 1,500.00 USA BLUE BOOK 701-0000-4150 103.62 6/13/2024 manhole lifter 103.62 6/13/2024 USA BLUE BOOK 103.62 VERIZON WIRELESS 101-1370-4310 89.48 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1220-4310 1,874.88 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1320-4310 296.62 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1312-4310 128.66 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1540-4310 40.01 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 720-0000-4310 393.73 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1600-4310 249.31 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1120-4310 755.55 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1530-4310 41.22 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 701-0000-4310 141.20 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 700-0000-4310 318.18 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1520-4310 51.99 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1110-4310 40.01 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1160-4310 138.66 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1250-4310 580.85 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1420-4310 164.87 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1310-4310 237.99 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1170-4310 46.22 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1550-4310 430.51 6/5/2024 Telephone & Communication Charges VERIZON WIRELESS 101-1125-4310 41.22 6/5/2024 Telephone & Communication Charges AP - Check Detail (6/13/2024)Page 21 of 23 293 Last Name Acct 1 Amount Check Date Description 6,061.16 6/5/2024 VERIZON WIRELESS 6,061.16 Vertex Unmanned Solutions, LLC 101-1220-4120 1,599.00 6/13/2024 Tactical Command Case for Drone 1,599.00 6/13/2024 Vertex Unmanned Solutions, LLC 1,599.00 VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 101-1220-4300 1,636.00 6/5/2024 Insurance for firefighters 1,636.00 6/5/2024 VOLUNTEER FIREFIGHTERS BENEFIT ASSOC OF MINN 1,636.00 WM MUELLER & SONS INC 101-1320-4157 895.59 6/6/2024 pothole patching WM MUELLER & SONS INC 101-1320-4157 847.23 6/6/2024 pothole patching WM MUELLER & SONS INC 101-1320-4157 651.00 6/6/2024 pothole patching WM MUELLER & SONS INC 101-1320-4157 795.15 6/6/2024 pothole patching 3,188.97 6/6/2024 WM MUELLER & SONS INC 700-0000-4550 574.48 6/13/2024 asphalt patch for water main break WM MUELLER & SONS INC 700-0000-4550 291.06 6/13/2024 asphalt for watermain break WM MUELLER & SONS INC 101-1320-4157 637.05 6/13/2024 pothole patching WM MUELLER & SONS INC 101-1320-4157 240.87 6/13/2024 pothole patching 1,743.46 6/13/2024 WM MUELLER & SONS INC 4,932.43 WS & D PERMIT SERVICE 101-1250-3301 120.00 6/13/2024 Cancelled job - 8131 Dakota Ln 120.00 6/13/2024 AP - Check Detail (6/13/2024)Page 22 of 23 294 Last Name Acct 1 Amount Check Date Description WS & D PERMIT SERVICE 120.00 427,717.42 AP - Check Detail (6/13/2024)Page 23 of 23 295 City Council Item June 24, 2024 Item Economic Development Commission Appointment File No.Item No: E.9 Agenda Section CONSENT AGENDA Prepared By Sam DiMaggio, Economic Development Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council appoints David Benedict for the Economic Development Committee to fill a position due to resignation for a term ending March 31, 2025." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends the City Council make the appointment. 296 ATTACHMENTS 297 City Council Item June 24, 2024 Item Receive First Quarter Economic Development Activity Report File No.Item No: E.10 Agenda Section CONSENT AGENDA Prepared By Sam DiMaggio, Economic Development Manager Reviewed By SUGGESTED ACTION "The Chanhassen City Council receives the First Quarter 2024 Economic Development Report." Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY The staff has compiled a quarterly report which highlights a summary of the activities of the Economic Development Department. BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends the City Council receive and approve the First Quarter 2024 Economic Development 298 Report. ATTACHMENTS First Quarter 2024 299 2024 Economic Development Activity 1st Quarter 1 MEETING TYPE 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER TOTAL YTD Businesses 6 6 Non-Profits & Government 4 4 Entrepreneurs 2 2 Brokers/Developers 6 6 TOTAL INDIVIDUAL MEETINGS 18 18 ON-SITE VISITS 1st Quarter Thaliwala, Positive Presence, Sharlene Downs State Farm Insurance, the Bernard Group, and Nicolet Bank. 2nd Quarter 3rd Quarter 4th Quarter SUMMARY OF BUSINESS VISITS 1st Quarter While working on growth and establishment in the community, local businesses are managing hurdles like marketing strategies, employee dynamics, high interest rates, and other obstacles. 2nd Quarter 3rd Quarter 4th Quarter NEW CHANHASSEN BUSINESSES / CONNECTIONS 1st Quarter The Great Frame Up 2nd Quarter 3rd Quarter 4th Quarter 300 2024 Economic Development Activity 1st Quarter 2 TOP FIVE REQUESTED ASSISTANCE 1ST QUARTER 2ND QUARTER 3RD QUARTER 4TH QUARTER TOTAL YTD Property Development 9 9 Site Location 6 6 Strategic/Business Planning 4 4 Start-up 2 2 Grants, general 1 1 301 City Council Item June 24, 2024 Item Approve an Encroachment Agreement between City of Chanhassen and Philip Manley File No.N/A Item No: E.11 Agenda Section CONSENT AGENDA Prepared By Stacy Osen, Administrative Support Specialist Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves an encroachment agreement allowing Philip Manley to construct and install a fence on the subject property that encroaches into the city's easement area at 940 Penamint Court." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY N/A BACKGROUND The property owner of 940 Penamint Court (Philip Manley) desires to construct and install a fence located on the subject property. The property is legally described in Exhibit A. This fence will encroach into the city's easement areas which has an active underground pubic storm sewer pipe within it, and therefore is requesting an Encroachment Agreement (EA). DISCUSSION The attached EA is based on the city's standard template, has been reviewed by the City Attorney's 302 office, and is signed by the property owner. Upon City Council approval and execution, the EA will be recorded against the property. BUDGET N/A RECOMMENDATION Staff recommends City Council approve the Encroachment Agreement. ATTACHMENTS 940 Penamint Ct -EA 6.24.24 303 (reserved for informotion) ENCROACHMENT AGREEMENT AGREEMENT made this /0 day of J*rc ,2024, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City"), and PHILIP MANLEY, a single person ("Owner"). 1. BACKGROUND. Owner is the fee owner of certain real property located in the City of Chanhassen, County of Carver, State of Minnesota,legally described as follows: Parcel ID No. 25.1980150 Lot 6, Block 1, CHAPARRAL (torrens) having a street address of 940 Penamint Court, Chanhassen, Minnesota 55317 ("Subject Property"). The City owns easements for drainage and utility purposes over portions of the Subject Property ("Easement Areas"). Owner desires to construct a fence on the Subject Property that encroaches on the City's Easement Areas as depicted on the attached Exhibit "A" (consisting of two pages). 2. ENCROACHMENT AUTHORIZATION. The City hereby approves the encroachment in its Easement Areas on the Subject Property for the fence conditioned upon I231262v2 304 removable fence panels in areas where the fence encroaches on existing utilities and/or installation of gates having a clear span the width of the easement for City access to its Easement Areas. Further conditions of encroachment approval are as follows o The fence must allow water to pass under it so as not to impede overland water flow during rain events. o The fence must be above the 9l .4 water elevations. o The fence must be installed at least 5' away from the end of the flared end on the N. side. o The fence may be installed within l" of the property line, as long as it meets pipe offset detail. o The City shall have no responsibility to maintain the fence located in the Easement Areas. o Owner must maintain the fence located on the Subject Property. o Owner are fully responsible and liable for any and all damage caused to the fence because of it being constructed in the Easement Areas. Further, Owner agrees that the fence shall be constructed consistent with all applicable federal, state and local laws and regulations. 3. HOLD HARMLESS AND INDEMNITY. In consideration of being allowed to encroach in the Easement Areas, Owner, for himself, his heirs, successors and assigns, hereby agree to indemnify and hold the City harmless from any damage caused to the Subject Property, including the fence and removal of fence panels and/or gates in the Easement Areas, caused in whole or in part by the encroachment into the Easement Areas. 4. TERMINATION OF AGREEMENT. The City may terminate this Agreement at any time if it is reasonably necessary for the City to occupy the Easement Areas for drainage or utility purposes and the fence is inconsistent with the City's use of the easement. Prior to termination, the City will give the then owner of the Subject Property thirty (30) days advance written notice, except that no notice period will be required in the case of an emergency condition as determined solely by the City and this Agreement may then be terminated immediately. The property owner shall remove that portion of the fence to the extent it impacts the Easement Areas 2231262v2 305 to the effective date of the termination of this Agreement. If the owner fails to do so, the City may remove the fence to the extent it impacts the Easement Areas and charge the cost of removal back to the owner for reimbursement. 5. RECORDING. This Agreement shall run with the land and shall be recorded against the title to the Subject Property. CITY OF CHANHASSEN By (sEAL)Elise Ryan, Mayor And Laurie Hokkanen, City Manager STATE OF MTNNESOTA COUNTY OF CARVER The foregoing instrument was acknowledged before me this day of 2024, by Elise Ryan and by Laurie Hokkanen, respectively the Mayor and City Manager of the City of Chanhassen, a Minnesota municipal corporation, on behalf of the corporation and pursuant to the authority granted by its City Council. Notary Public ) )ss. ) J231262v2 306 PROPERTY OWNER: STATE OF MINNESOTA COUNTY OF [6nte,( The foregoing instrument was acknowledged before me this tO day of 2024, by Philip Manley, a single Notary AMY K. WEIDMAN Notary Public-Minnesota My Comml.sbn Explree Jan 31, 2027 DRAFTED BY: CaMpsrLL KNUTSoN, Profes sional Associatio n Grand Oak Office Center I 860 Blue Gentian Road, Suite 290 Eagan, Minnesota 55121 Telephone: (65 1) 452-5000 AMP/mew ) )ss. ) 4231262v2 307 EXHIBIT ..A" Page I of2 t fba.rtrl r*od iub rrt f* arrlwtlan anlT l*s flrnot": si*t Jnl ola*Bltilt {3 tbnot.' Frrorod ol(y.ridr -.*- IbJEtla !r,rf|rr?d *rfx* dirn6r Ehrrtlx {att[ al.rtd ProFae{ Io! af 8l6ct .*ALL. tto3ct il f*rr{G floor 7:3*-Z** hryl*{d :.spsr Fluar .*.W* F}.rca: t. ,'!qIt Da rBvtl t* 91ra Gllt a{hfl6a{! :- laa! b E f .rre farr !!a Grd g8tr i*r6rrr t.{s0.1 J Uly Da rratSc.l ffr{r t' d !x prwsq r}1,. r. mg I n +.€fi tE glFr OlEd ted 'y11,i., -i- f ,1 td. Fence 0p,€t typa{Hl Storm s€s?r pape l , jt\ ^.tr{. 9a ^ Fence typrcal Feace Iq v t6 ror I 5231262v2 ,/..-J .: : : \ r/ U trlill il!. *.$ , It 308 Page 2 of 2 FENCE STRUCTURE OUTER DIAMETER PIFE OUTER S]AMTIER LINE OFFSET 5'$TRUCTURE QFFSHT FTNCE MIN. 1 '' INSIDE PROPERW LINE 1O'O&U EA$EMENI LINES PROPERTY LINE FENCH OFFSET FROM STRUCTURE AND PIPING 6231262v2 r.r, -'I I I i 309 City Council Item June 24, 2024 Item Adopt City Sewer Access Charge (SAC) and Water Access Charge (WAC) Waiver Policy and Credit Program File No.Item No: E.12 Agenda Section CONSENT AGENDA Prepared By Eric Maass, Community Development Director Reviewed By Laurie Hokkanen SUGGESTED ACTION Staff recommends that the City Council adopt the policy and program as presented. Motion Type Simple Majority Vote of members present Strategic Priority Operational Excellence SUMMARY The City Council established a review of the City's Sewer Availability Charge (SAC) and Water Availability Charge (WAC) programs as a priority for 2024. City Staff from community development, finance, engineering, and building collaborated in a review of our current policies and practices as it relates to SAC and WAC charges in the community. BACKGROUND The Metropolitan Council Environmental Services (MCES) manages wastewater for the entire metro region. The MCES then charges an SAC for access to that utility as a means to finance the large-scale infrastructure that is installed to manage wastewater for the entire metro area. The 2024 rate per SAC unit charged by the MCES is $2,485.00. Similar to MCES, the city charges SAC and WAC fees as a means to finance the utility infrastructure that the city installs and maintains related to sanitary sewer and potable water. The 2024 rate per City WAC unit is $9,190 and the City SAC per unit is $2,480.00. The city also charges a surcharge of $75.00 per MCES SAC unit. 310 The Metropolitan Council requires that a "SAC Determination" be completed associated with building permit applications. Based on the specifics of the building or business tenant such as the number of toilets, sinks, etc., the MCES provides the applicant their "SAC Determination". The city then simply uses the same number of MCES SAC units for the number of City SAC and WAC units to charge. The city is the entity that charges the applicant for both the MCES and the City SAC/WAC units. DISCUSSION City Staff are proposing that the city adopt the attached policy related to city SAC and WAC fees. That policy is summarized below. To promote private investment in existing commercial buildings, the city will waive the first five (5) city "SAC" and "WAC" units determined by the MCES determination. This is a fee savings of $11,670.00 per waived SAC/WAC. This would not alter any charges levied by the MCES for SAC. BUDGET The City's Utility Rate Studies have only utilized anticipated green field development (new development) and potential major redevelopment when estimating revenue generation needed to fund the city's ongoing operational expenses and Capital Improvement Plan (CIP) expenses. They have not included any estimates for SAC/WAC on remodels. As a result, forgoing charging the first five city SAC/WAC fees when an existing commercial or industrial building is being renovated or repurposed for a new tenant does not impact the city's long-term financial needs as it relates to funding our annual operations or CIP. RECOMMENDATION The EDC reviewed the proposed SAC and WAC waiver policy and credit program and recommended approval. ATTACHMENTS Sewer and Water Access Charges Waiver Policy and Credit Program 311 1 June 13, 2024 SEWER (SAC) & WATER (WAC) AVAILABILITY CHARGE POLICY Adopted: June 24, 2024 I.INTRODUCTION The Metropolitan Council Environmental Services (MCES) is the wastewater provider for the seven-county metro area. MCES charges a fee when a residence or business connects to the regional wastewater (sewer) system, this fee is referred to as a Sewer Access Charge (SAC). The SAC fee recoups the capital invested to build and maintain the MCES wastewater system. The MCES charges the SAC unit fee to the city, which captures this fee during the permitting (building, sewer connection, or plumbing). A review of the sewer capacity also occurs when a company expands or changes use, creating a higher demand for the system. The total SAC charge is based on the maximum wastewater flow generated by the type of business. II.CITY SAC AND WAC WAIVER POLICY The City of Chanhassen also charges local water (Water Access Charge – WAC) and sanitary sewer services (Sewer Access Charge - SAC) fees to property owners connecting to the city’s systems. The city provides up-front investment into water and sewer infrastructure and then pays off that infrastructure over time in part through SAC and WAC fee revenue. Chanhassen mirrors the MCES unit determination for local SAC/WAC charges. With the adoption of this policy, if any existing Commercial or Industrial building is renovated in Chanhassen and has an increase in SAC/WAC, the city will waive the first five (5) city SAC/WAC Charges. III.CHANHASSEN SAC AND WAC SITE-SPECIFIC AND COMMUNITY-WIDE CREDIT PROGRAMS As redevelopment occurs within the city, in certain circumstances, there will be an opportunity for excess charges to be claimed and designated as community-wide credit. When a redeveloped property’s new use requires lower wastewater capacity than what was demanded previously, if SAC was previously paid on the property, net credits will occur, or, a non-conforming grandparent demand will apply. Where the SAC was previously paid to MCES, the city can take the net credit community-wide or leave it site-specific. Through the adoption of this policy, the city will begin to collect community-wide credits to aid small businesses choosing to start a new business, expand their current business, or wish to relocate their business to Chanhassen. 312 2 June 13, 2024 If site-specific credits remain unused after five years, the credits will be available community- wide. If the credit is from a non-conforming grandparent demand, net credits will remain site- specific for five years to allow for the new use’s growth, after which the credits expire. If SAC credits generated on a site were used elsewhere by the community (i.e., community - wide) or a different business used the site-specific credits, those credits are no longer available to offset the current SAC charges on the original site . A.USAGE OF SITE-SPECIFIC CREDITS If a property is being redeveloped, SAC may have already been paid. If this is the case, SAC credits may exist for the site and can be used to discount or eliminate any SAC fees. MCES will verify whether a property has available credits. If site-specific credits remain unused after five years, the credits will be available community-wide. If after five years, the original property requires additional SAC units, the property will be eligible to apply for community-wide credits. B.USAGE OF COMMUNITY-WIDE CREDITS Community-wide credits will be used to retain current small businesses or attract new small businesses to Chanhassen. 1.A small business may apply for credits if they are one of the following business types: Retail, food, beverage-based, entertainment, and manufacturing. Eligible businesses must: a.Open a new business within the city, or b.Expand existing operations that require additional SAC. 2.Applications for this program shall only be accepted before the issuance of a building permit. Applications will not be accepted for reimbursement of previously paid-for credits. 3.The maximum number of credits that any one applicant may apply for administratively is five (5) credits or 80% of the total number of credits needed, whichever is smaller. 4.Potential applicants should consult with city staff before application to determine the availability of credits. 5.The city will maintain a record of community-wide credits. This includes maintaining a record of community-wide credits available and a record of businesses which have benefitted from this program. Records shall be kept within the Finance Department. C.GENERAL TERMS AND CONDITIONS 1.Any applicant not in good standing with the city, concerning licenses, fees, or other specific charges, will not be considered for this program. 2.Residential purposes are not eligible and will not be considered. 313 3 June 13, 2024 3. Community-wide credit applications won’t be accepted if credits aren’t available. Information contained in the application for assistance will become a matter of public record except for those items protected under Minn. Stat. 13.591. 4. An officer of the city will not have a personal financial interest or personally benefit financially from the business to be assisted. 5. The City of Chanhassen and the EDC reserve and retain the right to deny an application. 6. All SAC credit recipients shall be required to indemnify the city, the Economic Development Commission, and any officers acting on their behalf. D. APPLICATION PROCESS All applications for credits through this program will be accepted on a first -come, first-served basis. Upon submission of an application, city staff will review the application to ensure complete information is provided. If additional information is needed, staff will request the needed information. Applications for up to five (5) credits shall be processed and are eligible to be approved administratively by the City Manager and Economic Development Manager. Applications that seek above the five (5) credit maximum shall only be approved by the Economic Development Commission. E. TERMS Community-Wide Credit: A SAC credit that the community uses anywhere within the community to offset current SAC payments that would otherwise be due. Grandparent Demand: A potential non-conforming credit benefit to a community that allows the use of wastewater capacity on a site even without payment of SAC for the site, if and where it can be shown that the demand had been in existence and connected to the metropolitan disposal system before January 1, 2009, and into 2009. SAC Unit: One SAC unit equals 274 gallons of maximum potential daily wastewater flow. A freestanding, single-family residence is charged one SAC unit, a base unit. Other types of buildings pay a SAC fee based on the maximum potential demand on the wastewater system. Site-Specific Credit: A SAC credit restricted to future use only for the benefit of the specific site or campus for which a community paid SAC. Site-specific credits can be used anywhere within the same building but may not be moved to a different building on the same site. Demolitions are indicative only of potential credits, not actual credits. Small Business: A business with fewer than 50 employees, operating a retail, food, beverage-based, entertainment, and manufacturing business. 314 City Council Item June 24, 2024 Item Adopt Local Housing Incentive Account Deferred Loan Program File No.Item No: E.13 Agenda Section CONSENT AGENDA Prepared By Sam DiMaggio, Economic Development Manager Reviewed By SUGGESTED ACTION Staff recommends that the City Council adopt the policy as presented. Motion Type Simple Majority Vote of members present Strategic Priority Development & Redevelopment SUMMARY The City of Chanhassen was awarded $300,000 in Local Housing Incentive Account (LHIA) Funds in 2006. These funds were originally awarded to Sand Companies for their development of a residential property that provided affordable housing. In 2023, Sand Companies sold the property before the resale limitation was met, which then required them to repay the funds to the City of Chanhassen. With the assistance of the Metropolitan Council, staff has developed the attached program and compliance criteria which would establish the ways in which the $300,000 which was repaid to the city could be redeployed within the community. The Economic Development Commission reviewed the policy during their June 11, 2024 meeting and is recommending approval of the program as outlined. BACKGROUND Local Housing Incentive Account (LHIA) grants support the production and preservation of affordable rental and ownership housing to help municipalities meet their negotiated Livable Communities Act 315 (LCA) housing goals. Grant funds cover gap financing costs such as land/property/structure acquisition, demolition, site preparation (such as water, sewer, roads), general construction/structural additions, alterations and rehabilitation, interior and exterior finishing, roofing, electrical, plumbing, heating, and ventilation. Soft costs, such as architect's fees and travel expenses, are ineligible. DISCUSSION BUDGET N/A RECOMMENDATION The EDC reviewed the proposed Local Housing Incentive Account Deferred Loan Program and recommended approval as proposed. ATTACHMENTS LHIA Deferred Loan Program 2024 316 Local Housing Incen?ve Account Deferred Loan Program Adopted: June 24, 2024 PURPOSE These funds aim to incen?vize owners of Naturally Occurring Affordable Housing (NOAH), new or exis?ng affordable rental proper?es (apartments), that are unsubsidized by any federal program, to maintain lower rents compared to the regional housing market. The guidelines outlined below will determine eligibility and criteria for future deferred loans. The funds must be used for purposes consistent with Minnesota Statutes sec?on 473.25(a), and should address at least one of the following criteria: Preserving exis?ng affordable housing stock. Providing workforce housing choices. Exhibi?ng strong implementa?on partnerships. Iden?fying significant leveraged resources. Demonstra?ng a high degree of readiness. Achieving comprehensive community support. Complying with the missions of the funding partners. Using land efficiently. Loca?ng developments within walking distance of public transit sta?ons and stops. FUNDING SOURCE The Metropolitan Council originally awarded the City of Chanhassen $300,000 from the Metropolitan Livable Communi?es Fund, Local Housing Incen?ves Account, on February 14, 2006. Any repayment of these funds will be used towards this deferred loan fund program. ELIGIBLE USES Certain projects, applicants, ac?vi?es, and costs are eligible for deferred loan funds: Gap financing costs, including land acquisi?on. Property (structure) acquisi?on. Demoli?on. Site prepara?on or rehabilita?on of water, sewer, or roads General construc?on or structural addi?ons, altera?ons, or rehabilita?on. Interior and exterior finishing. Roofing. Electrical, plumbing, hea?ng or ven?la?on. 317 INELIGIBLE USES Certain applicants, projects, ac?vi?es, and so? costs are ineligible for deferred loan funds: Administra?ve overhead. Bonds and insurance. Legal fees. Permits. Travel. Grant or bid prepara?on costs. LOAN TERMS AND CONDITIONS The city shall make available to eligible applicants a deferred loan for purposes consistent with Minnesota Statutes sec?on 473.25(a). 1. Loan amount of $6,250 per unit, or otherwise nego?ated loan amount, that meets the income requirement of 60% Area Median Income (AMI). The AMI Guidelines will be updated annually. 2024 Area Median Income Guidelines Minneapolis-St. Paul-Bloomington, MN-WI HUD Metro FMR Area AMI Persons in Family 1 2 3 4 5 6 7 8 60%$52,150 $59,600 $67,050 $74,500 $80,500 $86,450 $92,400 $98,350 2. As affordable units turn over, the property owner is responsible for verifying the incomes of new renters in affordable units at the ?me of move-in. o The property owner does not need to verify the income of exis?ng residents, as they are exempt from verifying their incomes. 3. The borrower will maintain residents’verifica?on informa?on and will submit this informa?on to the city, which will complete an annual progress report to the METC un?l the loan term is complete. 4. The loan will be set at zero-percent interest and structured as a deferred loan. 5.Total borrower contribu?on for the project must equal 50% of the total costs for the project. 6. From the date of closing on the deferred loan through the date on which the loan is repaid or the resale limita?on date, whichever is later, the 60% AMI per un?l affordability requirement is required. o The repayment terms will be nego?ated between the city and the borrower but will not exceed fi?een (15) years. 7. The loan term will be ?ed to the resale limita?on of no more than fi?een (15)years. This limita?on is placed on the property to protect the public investment in the project and to ensure that a propor?on of the affordability gap provided by the public investment in the form of a deferred loan is recaptured for reuse in conjunc?on with other affordable housing efforts and does not become a windfall for any purchaser who might sell the property before the predetermined resale limita?on period. o If the property is sold before the expira?on of the resale limita?on period, the funds will be recaptured by the city and used towards another eligible housing project. 318 City Council Item June 24, 2024 Item Approve Pay Equity Report File No.Item No: E.14 Agenda Section CONSENT AGENDA Prepared By Matt Unmacht, Assistant City Manager Reviewed By SUGGESTED ACTION Staff recommends that the Chanhassen City Council approve the attached 2024 Pay Equity Implementation Report and direct staff to submit the report to the Minnesota Office of Management and Budget. Motion Type Simple Majority Vote of members present Strategic Priority Operational Excellence SUMMARY BACKGROUND In 1984, the Minnesota Legislature passed the Local Government Pay Equity Act. The basic intent of the law is to ensure that men and women performing similar jobs are compensated in an equal manner. Local governments were given until December 31, 1991 to comply with the law and were required to file reports with the Department of Employee Relations (DOER) by January 31, 1992. All jurisdictions were then placed on a three-year reporting cycle for future reports. Attached is a compliance report that was provided by a representative from the State's Office of Management and Budget based on inputs supplied by the City of Chanhassen. Staff has been informed by that representative that based on her review the city would be in compliance with the Local 319 Government Pay Equity Act. DISCUSSION BUDGET RECOMMENDATION Staff recommends that the Chanhassen City Council approve the attached 2024 Pay Equity Data and direct staff to submit the report to the Minnesota Office of Management and Budget. ATTACHMENTS Compliance Job Entry List 320 Compliance Report Jurisdiction:Chanhassen Report Year:2024 7700 Market Blvd.Case:3 - MMB Data Upload (Shared (Jur and MMB)) P.O. Box 147 Chanhassen, MN 55317 Contact:Matt Unmacht Phone:(952) 227-1118 E-Mail:munmacht@chanhasse nmn.gov The statistical analysis, salary range and exceptional service pay test results are shown below. Part I is general information from your pay equity report data. Parts II, III and IV give you the test results. For more detail on each test, refer to the Guide to Pay Equity Compliance and Computer Reports. I. GENERAL JOB CLASS INFORMATION Male Classes Female Classes Balanced Classes All Job Classes # Job Classes 35 20 2 57 # Employees 53 21 8 82 Avg. Max Monthly Pay per employee 8462.57 8262.61 8270.02 II. STATISTICAL ANALYSIS TEST A. Underpayment Ratio = 80.95238 * Male Classes Female Classes a. # At or above Predicted Pay 18 8 b. # Below Predicted Pay 17 12 c. TOTAL 35 20 d. % Below Predicted Pay (b divided by c = d)48.57 60.00 *(Result is % of male classes below predicted pay divided by % of female classes below predicted pay.) B. T-test Results Degrees of Freedom (DF) = 72 Value of T = 1.531 a. Avg. diff. in pay from predicted pay for male jobs = 3 b. Avg. diff. in pay from predicted pay for female jobs = -551 III. SALARY RANGE TEST = 108.57 (Result is A divided by B) A. Avg. # of years to max salary for male jobs = 9.77 B. Avg. # of years to max salary for female jobs = 9.00 IV. EXCEPTIONAL SERVICE PAY TEST = 0.00 (Result is B divided by A) A. % of male classes receiving ESP = 0.00 * B. % of female classes receiving ESP = 0.00 *(If 20% or less, test result will be 0.00) Page 1 of 1 6/20/2024 2:39:50 PM 321 Job Class Data Entry Verification ListCase:MMB Data UploadChanhassenLGID:567Job NbrClass TitleNbrMalesNbrFemalesNon-BinaryClassTypeJobsPointsMin MoSalaryMax Mo SalaryYrs to Max SalaryYrs ofServiceExceptional Service Pay4Admin Support Specialist010F1174571.655789.959.000.005Eng Support Specialist010F1415039.566384.379.000.002Accounting Technician-UB100M1414798.686079.369.000.007PW Support Specialist010F1415039.566384.379.000.009Senior Admin SupportSpec010F1415039.566384.379.000.0011Support Staff020F1414798.686079.369.000.0013Park Operator600M1564798.686703.2418.000.0015St/Surface Wtr Operator500M1564798.686703.2418.000.0017Utility Operator500M1564798.686703.2418.000.001Accountant010F1734798.686079.369.000.008Water Production Tech100M1765556.007037.719.000.003Mechanic200M1765556.007037.719.000.006Utility Technician100M1765556.007037.719.000.0010Financial Analyst010F2036805.498621.689.000.0016Street Mntn Foreman100M2136805.498621.689.000.0014Park Maintenance Foreman100M2136805.498621.689.000.0012Eq Superintendent100M2138337.4610562.649.000.0018Surface Wtr Mntn Foreman100M2136805.498621.689.000.0019W/S Maintenance Foreman100M2136805.498621.689.000.0020Water Production Foreman100M2136805.498621.689.000.0021Firefighter320B2275290.856703.249.000.0022City Clerk010F2286361.848058.459.000.0023GIS Specialist100M2286361.848058.459.000.0024Building Inspector200M2336805.498621.689.000.0025Fire Captain210B2335944.197531.629.000.0026Mechanical Inspector200M2336805.498621.689.000.0027Assistant Fire Chief100M2388337.4610562.649.000.0028Ast Finance Director010F2389004.6711406.619.000.0029Communication Specialist010F2384798.686079.369.000.0030Digital Comm Specialist100M2384798.686079.369.000.0031IT Technician010F2385556.007037.719.000.0032Planner010F2385556.007037.719.000.00Page 1 of 26/20/2024 2:58:54 PM322 Job Class Data Entry Verification ListCase:MMB Data UploadChanhassenLGID:567Job NbrClass TitleNbrMalesNbrFemalesNon-BinaryClassTypeJobsPointsMin MoSalaryMax Mo SalaryYrs to Max SalaryYrs ofServiceExceptional Service Pay33Recreation Supervisor100M2385556.007037.719.000.0034Facilities Maint Sup100M2525290.856703.249.000.0035Associate Planner010F2756805.498621.689.000.0036Building Official100M2828337.4610562.649.000.0037Environmental Res Spec.010F2825556.007037.719.000.0038Water Resources Technician100M2825556.007037.719.000.0039Rec Center Manager010F2896805.498621.689.000.0040Recreation Manager010F2896805.498621.689.000.0041Sr Ctr Coordinator010F2895556.007037.719.000.0042Engineering Tech III300M3235556.007037.719.000.0043MIS Coordinator100M3239004.6711406.619.000.0044Project Engineer100M3237793.309871.179.000.0045Water Resources Engineer100M3238337.4610562.649.000.0046Economic Development Mgr010F3428337.4610562.649.000.0047PC Support Technician100M3426805.498621.689.000.0048Assist City Engineer100M3939004.6711406.619.000.0049Park Superintendent100M3938337.4610562.649.000.0050PubWks OperationsManager100M4069004.6711406.619.000.0051Assistant City Manager100M4179725.6012319.909.000.0052Finance Director010F47910697.8113552.069.000.0053Community Dvlpment Dir100M51110697.8113552.069.000.0054Fire Chief100M55110697.8113552.069.000.0055Park & Rec Director100M55110697.8113552.069.000.0056City Engineer/PW Direct100M59811767.0714907.279.000.0057City Manager010F109614238.3318037.069.000.00Job Number Count: 57Page 2 of 26/20/2024 2:58:54 PM323 City Council Item June 24, 2024 Item Approve a Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District for the public storm water management BMP infrastructure related to the 2024 City Pavement Rehabilitation Project # 24-01. File No.2024 City Pavement Rehabilitation Project # 24-01 Item No: E.15 Agenda Section CONSENT AGENDA Prepared By Joe Seidl, Water Resources Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council approves entering into a Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District for the public storm water management infrastructure related to the 2024 City Pavement Rehabilitation Project # 24-01." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY Approval of a Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District (RPBCWD) as part of the 2024 City Pavement Rehabilitation Project # 24-01. The city is constructing public storm water management infrastructure improvements as a part of the project. A signed Maintenance Agreement is required by the Watershed District as part of the permit. BACKGROUND The Maintenance Agreement acts to ensure that the public storm water management system(s) installed are properly inspected and maintained. The City of Chanhassen is required to maintain its own stormwater infrastructure as part of the MS4 permit requirements it has with the MPCA. The City of Chanhassen already has a program to maintain stormwater infrastructure throughout the city, and 324 therefore this agreement does not impact the city's standard operation procedures. DISCUSSION N/A BUDGET N/A RECOMMENDATION Staff recommends approving the Maintenance Agreement with Riley Purgatory Bluff Creek Watershed District. ATTACHMENTS 2024-013 Operation Maintenance Agreement 325 1 MAINTENANCE AGREEMENT Between the Riley Purgatory Bluff Creek Watershed District and City of Chanhassen This Maintenance Agreement (Agreement) is made by and between the Riley Purgatory Bluff Creek Watershed District, a watershed district with purposes and powers set forth at Minnesota Statutes chapters 103B and 103D (RPBCWD), and City of Chanhassen, a statutory city and body corporate and politic of the State of Minnesota (City). Recitals and Statement of Purpose WHEREAS pursuant to Minnesota Statutes section 103D.345, RPBCWD has adopted and implements the Wetland and Creek Buffers Rule, the Waterbody Crossings and Structures Rule and the Stormwater Management Rule; WHEREAS under the Stormwater Management Rule, certain land development activity triggers the requirement that the landowner record a declaration establishing the landowner’s perpetual obligation to inspect and maintain stormwater-management facilities; WHEREAS in each case, a public landowner, as an alternative to a recorded instrument, may meet the maintenance requirement by documenting its obligations in an unrecorded written agreement with the RPBCWD; WHEREAS in accordance with the RPBCWD rules and as a condition of permit 2024-013, the City’s perpetual obligation to maintain stormwater facilities must be memorialized in a maintenance agreement specifying requirements and restrictions; WHEREAS City and the RPBCWD execute this Agreement to fulfill the condition of permit no. 2024-013, and concur that it is binding and rests on mutual valuable consideration; THEREFORE City and RPBCWD agree as follows that City, at its cost, will inspect and maintain the stormwater facilities as shown in the site plan attached to and incorporated into this Agreement as Exhibit A in perpetuity as follows: 1. STORMWATER FACILITIES a. Raingardens, infiltration basins and filtration basins. Raingardens, infiltration basins and filtration basins will be inspected annually to ensure continued 326 2 live storage capacity at or above the design volume. Invasive vegetation, excess sediment and debris will be removed as needed and healthy plant growth will be maintained to ensure that the facilities continue to perform per design. b. Proprietary stormwater facilities. Proprietary stormwater facilities will be inspected at least annually and maintained as specified or recommended by the manufacturer and/or installer as described in Exhibit C. c. Stormwater Reuse System. To comply with RPBCWD permit 2024-013, City must develop plans and specifications for a stormwater reuse system providing stormwater-management performance comporting with the analysis and terms described in the RPBCWD engineer’s final report dated 5/9/2024 and attached hereto as Exhibit B. The compliant stormwater-reuse system must be placed into operation on or before October 15, 2026. City is obligated to submit plans and specifications for the reuse system to RPBCWD for review and approval, and to amend this maintenance agreement with inspection and maintenance protocols for the stormwater-reuse system submitted by City to RPBCWD for review and approval, and to amend this agreement to include such specifics. 2. Reporting. City will submit to the RPBCWD annually a brief written report that describes stormwater facility maintenance activities performed under this declaration, including dates, locations of inspections and the maintenance activities performed. 3. Indemnification. City will defend, indemnify and hold harmless RPBCWD, its officers and board members, employees and agents from any and all actions, costs, damages and liabilities of any nature, including but not limited to damage structures from flooding, arising from the noncompliant elevation of the stormwater facilities shown in Exhibit A and labeled BMP RG-WT-1 and BMP SF-RG-1. 4. This Agreement may be amended only in a writing signed by the parties. 5. The recitals are incorporated as a part of this Agreement. IN WITNESS WHEREOF, the parties hereto have executed this Agreement. RILEY PURGATORY BLUFF CREEK WATERSHED DISTRICT By Date: President, Board of Managers 327 City of Chanhassen By: Date: Elise Ryan, Mayor By: Date: Laurie Hokkanen, Manager 3 328 4 EXHIBIT A – STORMWATER FACILITIES DRAWINGS 329 500 76TH STREET WT-RG-1 GRADING EXHIBIT 330 SS500 76TH STREET GP-RG-1 GRADING EXHIBIT 331 SSGP-RG-2 GRADING EXHIBIT 332 SSSF-RG-1 GRADING EXHIBIT 333 5 EXHIBIT B – RPBCWD ENGINEER’S FINAL REPORT DATED MAY 8, 2024 334 18681 Lake Drive East Chanhassen, MN 55317 952-607-6512 www.rpbcwd.org protect. manage. restore. Riley Purgatory Bluff Creek Watershed District Permit Application Review Permit No: 2024-013 Considered at Board of Managers Meeting: May 8, 2024 Received complete: April 8, 2024 Applicant: City of Chanhassen Representative: Kimley Horn – Adam Tjaden Project: The applicant proposes a combination of street reconstruction and rehabilitation for the roadways in the Chan View neighborhood. Stormwater management will be provided by a regional reuse system, four biofiltration basins, two rain gardens, and an existing manufactured treatment device (EcoStorm 3) to provide volume control, water quality, and rate control. Location: South of Santa Fe Trail, north of Chan View, west of Laredo Drive and east of Great Plains Boulevard in Chanhassen, MN. Reviewer: Scott Sobiech, P.E., Barr Engineering Co. Potential Board Variance Action Manager Zeigler moved and Manager Crafton seconded adoption of the following resolution based on the permit report that follows, the presentation of the matter at the May 8, 2024, meeting of the managers and the managers’ findings, as well as the factual findings in the permit report that follows: Resolved that the variance requests for Permit 2024-013 from compliance with Rule J, subsection 3.6b and the need to provide stormwater management within the permit term are approved, based on the facts and analysis provided by the RPBCWD engineer below and placed in the record at the May 8, 2024 meeting of the managers, and the managers’ findings in the record of the May 8 meeting, and subject to the following conditions: 1. The additional design elements (draintile with cleanouts, basin liner including physical membrane, emergency overflow) to mitigate impacts to groundwater mounding must be incorporated into the design of the rain gardens (SF-RG-1 and WT-RG-1). 2. The applicant must provide written indemnification of the RPBCWD, in a form approved by RPBCWD legal counsel and signed by a representative with authority to bind the city, from all claims and causes of action arising from the noncompliance with the RPBCWD low-floor criteria. 3. The applicant must ensure the proposed regional reuse system is put into operation before October 15, 2026 or submit a permit modification with other stormwater management features to bring the project into compliance. 4. The applicant must submit evidence of contacting the land owners adjacent to the proposed stormwater facilities to inform them of the proposed rain garden design, low floor analysis, variance, and flood/inundation risk. Upon vote, the resolutions were adopted, 5-0 335 Page 2 of 19 Proposed Board Action Manager Zeigler moved and Manager Crafton seconded adoption of the following resolutions based on the permit report that follows and the presentation of the matter at the May 4, 2022 meeting of the managers: Resolved that the application for Permit 2024-013 is approved, subject to the conditions and stipulations set forth in the Recommendations section of the attached report; Resolved that on determination by the RPBCWD administrator that the conditions of approval of the permit have been affirmatively resolved, the RPBCWD president or administrator is authorized and directed to sign and deliver to the applicant, Permit 2024-013 on behalf of RPBCWD. Upon vote, the resolutions were adopted, 5-0 [VOTE TALLY]. Applicable Rule Conformance Summary Rule Issue Conforms to Rule? Comments C Erosion Control Plan See comment. See rule-specific permit condition C1 related to providing name and contact information for the individual responsible for erosion control. J Stormwater Management Rate Yes Volume See Comment See stipulation #5 related in infiltration testing during construction. Water Quality See Comment See Rule Specific Permit Condition J1 related to providing updated plans Low Floor Elev. No See Rule K variance request Maintenance See Comment See Rule Specific Permit Condition J2 and J3 related to maintenance agreement execution Chloride Management See Comment See stipulation #6 related in providing a chloride management plan prior to close-out. Wetland Protection N/A K Variances and Exceptions See comment. See variance request related to low floor elevation and timing of stormwater management construction. L Permit Fee N/A Governmental Entity M Financial Assurance N/A Governmental Entity 336 Page 3 of 19 Background The applicant proposes a combination of street reconstruction and rehabilitation for roughly three miles of roadways in the Chan View neighborhood located the northern portion of the Rice Marsh Lake watershed and southwestern portion of the Lotus Lake watershed. The project site is bounded by Santa Fe Trail to the north, Chan View to the south, Laredo Drive to the east (no work on Laredo Drive as part of this project), and Great Plains Boulevard to the west as shown in the adjacent figure. Stormwater management will be provided by a regional reuse system, four biofiltration basins, two rain gardens, and an existing manufactured treatment device (EcoStorm 3) to provide volume control, water quality, and rate control. Under existing and proposed conditions, the existing manufactured treatment device (EcoStorm 3) will treat runoff in the northwest corner of the site from Del Rio Drive. The water resources within the project site or downgradient of the proposed activities are summarized in Table 1. Table 1 Water resource impacted by project Table 1. Water Resources potential impacts by proposed project Water Resource Projected resource impacts Lotus Lake Lotus Lake (public water basin 10000600) receives discharge from the site Relevant project site information is provided in Table 2. Table 2 Relevant Project Information Total Project Total Site Area (acres) 8.33 Existing Site Impervious (acres) 6.23 Post Construction Site Impervious (acres) 6.41 New (Increase) in Site Impervious Area (acres) 0.18 Disturbed impervious surface (acres) 4.56 Exempt Rehabilitated Impervious Surface and sidewalks (acres) 1.85 Regulated Impervious Surface (acres) 4.56 Total Disturbed Area (acres) 7.0 The following materials were reviewed in support of the permit request: 1. Permit application dated March 8, 2024 (Notified applicant on March 18, 2024 that submittal was incomplete, materials completing the application received April 8, 2024) 337 Page 4 of 19 2. Galpin Stormwater Management Report dated March 8, 2024 (revised March 29, 2020) 3. Downtown Chanhassen Regional Stormwater Framework dated March 2024 (Revised April 2024) 4. Construction Drawings (188 sheets) dated February 29, 2024 5. Geotechnical/Pavement Evaluation Report by Bruan Intertec dated January 31, 2024 (attached to SWM Report) 6. Double ring infiltrometer testing results dated January 4, 2024 (attached to SWM Report) 7. Electronic HydroCAD models for existing and proposed conditions received March 9, 2024 (revised March 29, 2024 and April 19, 2024) 8. Electronic MIDS modeling received March 9, 2024 (revised April 19, 2024) 9. Residential Rain Garden locations and Representative MIDS modeling received April 19, 2024 10. Electronic SHSAM modeling received April 10, 2024 11. Variance request dated April 11, 2024 12. Response to Comments from Kimley Horn dated March 29, 2024 13. Response to Comments from Kimley Horn dated April 19, 2024 Rule Specific Permit Conditions Rule C: Erosion Prevention and Sediment Control Because the project will involve 7.0 acres of land-disturbing activity, the project must conform to the requirements set forth by the RPBCWD Erosion Prevention and Sediment Control rule (Rule C, Subsection 2.1a). The erosion control plans prepared by Kimley Horn includes installation of silt fence, sediment control logs, stabilized construction entrances, inspection, staging areas, riprap at flared ends, placement of a minimum of 6 inches of topsoil with a minimum 5% organic matter, decompaction of areas compacted during construction, and retention of native topsoil onsite to the greatest extent possible. To conform to RPBCWD Rule C requirements, the following revisions are needed: C1. The Applicant must provide the name, address and phone number of the individual who will remain liable to the District for performance under this rule and maintenance of erosion and sediment- control measures from the time the permitted activities commence until vegetative cover is established. Rule J: Stormwater Management Because the project will alter more than 7.0 acres of surface area, conformance with RPBCWD’s Stormwater Management Rule (Rule J) is required. The project entails construction and reconstruction that altogether amounts to 6.41 acres of linear impervious surface entirely within linear corridors and independent of a larger development or redevelopment; therefore, stormwater management for this linear project must be provided in accordance 338 Page 5 of 19 with the criteria of Subsection 3.2 (Rule J, Subsection 2.4). The 6.41 acres of impervious surface includes 1.5 acres of pavement rehabilitation and sidewalks less than 10 feet wide and bordered downgradient by pervious surface which are exempt from RPBCWD’s stormwater management rule (Rule J, Subsection 2.2c and 2.2d). Therefore, the requirements of Rule J apply to 4.91 acres of proposed new and reconstructed impervious surface within the site. Stormwater management will be provided by a regional reuse system, four biofiltration basins (two of which have elevated driantile to promote infiltration), two rain gardens, and an existing manufactured treatment device (EcoStorm 3) to provide volume control, water quality, and rate control. Rate Control In order to meet the rate control criteria listed in Subsection 3.1.a, the 2-, 10-, and 100-year post development peak runoff rates must be equal to or less than the existing discharge rates at all locations where stormwater leaves the site. The applicant used HydroCAD to simulate runoff rates for pre- and post-development conditions for the 2-, 10-, and 100-year frequency storm events using a nested rainfall distribution, and a 100-year frequency, 10- day snowmelt event. The existing and proposed 2-, 10-, and 100-year frequency discharges from the site are summarized in Table 3. Except for the slight increased discharge leaving the site at RM 3-6 Laredo, the proposed project is in conformance with RPBCWD Rule J, Subsection 3.1.a. Because the proposed discharge increase leaving the site at RM 3-6 Laredo is less than 0.05 cubic feet per second (cfs) which is within the accuracy of the modeling, the RPBCWD engineer finds the proposed project conforms with RPBCWD Rule J, Subsection 3.1.a. Table 3.Rate control summary: Modeled Discharge Location1 2-Year Discharge (cfs) 10-Year Discharge (cfs) 100-Year Discharge (cfs) 10-Day Snowmelt (cfs) Ex Prop Ex Prop Ex Prop Ex Prop RM 3-6P 18.5 17.8 29.9 28.1 56.0 54.6 3.0 3.0 RM 3-6 Laredo 0.3 0.3 0.44 0.48 0.82 0.86 <0.1 <0.1 LL 6-2 GP 4.0 3.0 6.7 6.3 12.8 12.4 0.6 0.6 LL 6-2 76th 1.2 1.2 1.9 1.9 3.6 3.6 0.2 0.2 LL 1-25 SF 3.3 1.7 5.4 3.6 10.4 7.9 0.5 0.2 LL 1-25 77th 2.0 2.0 3.4 3.4 6.5 6.5 0.3 0.3 1 LL indicates discharges toward Lotus Lake and RM indicates discharges to a regional wet detention pond to be used for rainwater harvest. Stormwater leaving the regional wet detention pond is conveyed to Rice Marsh Lake. Volume Abstraction Subsection 3.2c of Rule J requires the abstraction onsite of the larger of 0.55 inches of runoff from the new and fully reconstructed linear impervious surfaces or 1.1 inches from the net increase in linear impervious 339 Page 6 of 19 area. In this case 0.55 inches of runoff from the new and fully reconstructed impervious surfaces – 9,101 cubic feet – is the larger volume. An abstraction volume of 9,101 cubic feet is required from the 4.56 acres of new and reconstructed linear impervious surface on the site. The applicant is proposing four biofiltration basins (two of which have elevated draintile to promote infiltration), and two rain gardens to provide the required abstraction volume. Pretreatment for the biofiltration basins and rain gardens will be provided using an engineered settling bay constructed with splash blocks. Soil boring information collected by Braun Intertec at 42 locations across the site indicate the soils are predominately sandy lean clay under varying depth of lean clay fill. The subsurface investigation information summarized in the table below supports a determination that groundwater is at least 3 feet below the bottom of the proposed biofiltration stormwater facilities (Rule J, Subsection 3.1.b.2.a). Proposed BMP Nearest Subsurface Investigation Boring is within footprint? Groundwater Elevation (feet) BMP Bottom Elevation (feet) Separation (feet) WT-RG-1 P-3 Yes Redoximorphic conditions observed at el. 984.3 ft 987.5 3.2 GP- RG-1 B-4 No - In Street Adjacent to BMP No groundwater observed at boring bottom (approx. el 977 ft) 987 10 GP- RG-2 B-4 No - In Street Adjacent to BMP No groundwater observed at boring bottom (approx. el 977 ft) 984.5 7.5 SF- RG-1 P-5 No - In Street Adjacent to BMP Redoximorphic conditions observed at el. 975 ft 978.4 3.4 Braun Intertec performed 5 double ring infiltrometer tests at the site in January 2024. The testing revealed infiltration rates of 0.0-1.43 in/hr at the proposed biofiltration basins. Four of the five tests yielded no infiltration but were collected when ground temperatures were below freezing. The fifth test displayed atypical results of increasing infiltration over time and was also collect with ground temperatures at freezing. While these results suggest the infiltration capacity of the underlying soils on this site is limited and are suspect due to the temperature conditions during testing, the close proximity of existing homes with low floor below the proposed basin bottoms present additional restrictions for infiltrating stormwater at WT-RG-1 and SF-RG-1. The engineer concurs that the clay soils have limited infiltration capacity, there are areas of seasonally high groundwater indicated by redoximorphic soils, and the close proximity of existing homes indicate the site is restricted and stormwater runoff volume can be managed in accordance with subsection 3.3 of Rule J. For restricted sites, subsection 3.3 of Rule J requires rate control in accordance with subsection 3.1.a and that abstraction and water quality protection be provided in accordance with the following sequence: 340 Page 7 of 19 (a) Abstraction of 0.55 inches of runoff from site impervious surface determined in accordance with paragraphs 2.3, 3.1 or 3.2, as applicable, and treatment of all runoff to the standard in paragraph 3.1c; or (b) Abstraction of runoff onsite to the maximum extent practicable and treatment of all runoff to the standard in paragraph 3.1c; or (c) Off-site abstraction and treatment in the watershed to the standards in paragraph 3.1b and 3.1c. Because the project area is primarily clay soils with limited to no infiltration capacity, there are areas of seasonally high groundwater indicated by redoximorphic soils, and the close proximity of existing homes with low floors lower than the indicated seasonally high ground water, the engineer concurs the standard in Subsection 3.3a of Rule J cannot practicably be achieved from runoff from regulated impervious and the Applicant is providing abstraction of 399 cubic feet of runoff from the regulated impervious surface, which the engineer finds to be the maximum extent practicable (see Table 4) and the proposed activity conforms to Rule J, Subsection 3.3b. Table 4. Volume abstraction summary Subwatershed Required Abstraction Depth (inches) Required Abstraction Volume (cubic feet) Provided Abstraction Depth (cubic feet) Provided Abstraction Volume (cubic feet) Lotus Lake 0.55 1,796 0.11 373 Rice Marsh Lake 0.55 7,305 <0.01 36 Because of the biofiltration BMP locations within the boulevard and the cold temperatures during the infiltration testing, the applicant was unable to excavate to the required depths to conduct infiltration tests at the BMP bottoms prior to construction. The engineer concurs with the applicant’s design infiltration rates of 0.06 inches per hour based on the guidelines provided in the Mn Stormwater Manual. Based on the design infiltration rate, the engineer concurs that the proposed infiltration systems will draw down within 48 hours (Rule J, subsection 3.1b.3). Per Rule J, Subsection 3.1.b.2.c measured infiltration capacity of the soils at the bottom of the infiltration systems must be provided. The applicant must submit documentation verifying the infiltration capacity of the soils and that the volume control capacity is calculated using the measured infiltration rate at biofiltration basin GP- RG-1 and GP- RG-2. If infiltration capacity is less than 0.06 inches per hour, or there is inadequate separation to groundwater, design modifications to achieve compliance with RPBCWD requirements will need to be submitted (in the form of an application for a permit modification or new permit). Water Quality Management Subsection 3.1.c of Rule J (made applicable by 3.2c) requires the Applicant to provide for at least 60 percent annual removal efficiency for total phosphorus (TP), and at least 90 percent annual removal efficiency for total suspended solids (TSS) onsite or within the same subwatershed as the land-disturbing activities, as 341 Page 8 of 19 well as no net increase in pollutant loading from existing conditions. The Applicant is proposing the following stormwater management facilities to treat runoff from the site: 1. Lotus Lake Subwatershed a. Biofiltration Basin GP-1 b. Biofiltration Basin GP-2 c. Biofiltration Basin SF-1 d. Two Rain Gardens e. Existing manufactured treatment device (EcoStorm 3) 2. Rice Marsh Lake Subwatershed a. Biofiltration Basin WT-1 b. Regional Reuse System within the same subwatershed Because the city proposes to use an off-site regional reuse system to provide water quality within the same subwatershed for the portion of the project site within the Rice Marsh Lake subwatershed, the applicant provided the Downtown Chanhassen Regional Stormwater Framework report to support the analysis. (This is the same analysis framework discussed at the Board of Managers January 25, 2024 workshop.) Downtown Chanhassen Regional Stormwater Framework outlines the city’s use of a regional reuse system to provide abstraction beyond that required for compliance with subsection 3.3b discussed above and water quality treatment for the Chan View Street Reconstruction (RPBCWD Permit 2024-013), Chanhassen Civic Campus reconstruction (RPBCWD Permit 2024-023, currently under review) and Market Boulevard improvements (future application, expected 2025). The following image shows the areas associated with the above referenced permits are tributary area to the proposed regional reuse system. Approximate Irrigation Area for SW Reuse 342 Page 9 of 19 To qualify for approval, a stormwater-management plan must provide for compliance with RPBCWD stormwater-management criteria in conjunction with implementation of the permitted work. Here, the city plans to construct the reuse system with the Market Boulevard improvements project anticipated for 2025, while the proposed road redevelopment proceeds in 2024 with some site restoration in 2025. The regional reuse system will likely not be implemented prior to completion of the work that is the subject of permit application 2024-013, which represents a shortfall from compliance with all relevant criteria, The applicant is requesting a variance to allow delayed compliance with the RPBCWD stormwater requirements. (Because the regional reuse system is intended to support stormwater compliance with select parcels and right of way projects rather than all parcels within the study region, the regional stormwater management approach in Rule J, subsection 4 is not applicable.) The applicant provided proof of concept drawings demonstrating that the stormwater for reuse from the roads proposed to be reconstructed under the project would be collected in the existing stormwater pond located in the NW quadrant of Highway 5 and Market Boulevard. The reuse water would be pumped under Market Boulevard right of way to irrigate the existing ballfields located north of Chanhassen City Hall, the Chan View Neighborhood Permit 2024-013 Existing Pond Used for Regional Reuse System Market Boulevard Recon Future Permit Chanhassen Civic Campus Permit 2024-023 343 Page 10 of 19 planned Chanhassen Civic Campus, and potentially the boulevards along Market Boulevard (see below image showing irrigation areas). The applicant submitted 18 Modified Philip & Dunne(MPD) infiltration test result collected within the proposed irrigation areas to support the determination of the selected irrigation rate. The testing results indicate the infiltration rates of the surface soils range between 0.006 inches per hour to 16.1 inches per hour with an average rate of 1.71 inches per hour, which is indicative of a sandy soil. Seven of the 18 tests yielded no viable results using the MPD methodology and were excluded from the average. Reviewing the data collected at these 7 locations indicate the water level in the MPD unit typically dropped less than 0.24- 2.96 cm over a roughly 3 hour duration, suggesting a lower infiltration rate. The engineer concurs with the applicant use of the MIDS model to estimate the pollutant reduction by irrigating the areas shown on the above image. Table 5 summarizes how the irrigation rate influences the pollutant reduction provided by the proposed reuse system. 344 Page 11 of 19 Table 5. Influence of Irrigation Rate on Pollutant Reduction Irrigation (inches) Abstraction Volume (cubic feet) TSS (lbs/yr) TP (pbs/yr) 1.0 19,809 1,571 8.6 1.65 33,595 2,784 15.3 2.0 40,992 3,230 17.8 1Abstraction volume maximized based on irrigating 8.5 acres with an equivalent of 0.37 inches three times per week. 2 95% of the MIDS estimated reduction to allow for a factor of safety. The applicant intends to reuse as much water as the conditions will allow while maintaining the areas in useable condition and requested approval of a 1.65 inch per week irrigation rate based on surface infiltration testing in the irrigation areas. The MIDS model estimates abstraction volume based on the amount of water that is used for irrigation over a three-day period (timeframe is the typical time between rainfall event in Minneapolis). Rather than irrigating 0.22 inches three times per week has suggested by the MIDS calculator, the applicant will need to irrigate an equivalent of 0.37 inches three times per week to maximize the abstraction volume provided by the system. Because of the infiltration testing conducted in the irrigation area, the engineer concurs with the use of a 1.65 inch per week irrigation rate to produce an available abstraction volume of 33,595 cubic feet and provide 15.3 pounds per year of total phosphorus reduction and 2,784 pounds per year of total suspended solids reduction. Because the required pollutant reductions for the regulated loads in the Rice Marsh Lake subwatershed (see Table 6) are less than the total produced by the reuse system, there may be excess pollutant reduction available for the applicant to use to demonstrate compliance for other permit applications(depending on actual irrigation rates achieved). If the monitored irrigation rates are less than 1.65 inches per week, design modifications to demonstrate compliance with RPBCWD requirements will need to be submitted to RPBCWD for review and approval in the form of a permit modification. Application of any extra pollutant reduction or volume abstraction used on other permits by this application will be analyzed under a separate permit application. Approval of permit 2024-013 by the Board of Managers does not constitute future approval of other permits. MIDS water quality models and a SHSAM models were developed to estimate the TP and TSS loading from the watersheds and the removal capacity of the proposed BMPs. The results of this modeling are summarized in Table 6 and Table 7 below. The results show the proposed project will remove sufficient TSS and TP to achieve an overall pollutant reduction in accordance with the required annual removals (Rule J, Subsection 3.2c). 345 Page 12 of 19 Table 6. Annual TSS and TP removal summary: Subwatershed Pollutant of Interest Regulated Site Loading (lbs/yr) Required Load Removal (lbs/yr)1 Provided Load Reduction (lbs/yr) Lotus Lake Total Suspended Solids (TSS) 351 316 (90%) 324 (92.3%) Total Phosphorus (TP) 1.93 1.16 (60%) 1.2 (62.2%) Rice Marsh Lake2 Total Suspended Solids (TSS) 1,340 1,206 (90%) 1,206 (90%) Total Phosphorus (TP) 7.38 4.43 (60%) 4.43 (60%) 1Required load reduction is calculated based on the criteria in Rule J, Subsection 3.1c and the new and reconstructed impervious area site loading. 2Pollutant removals reflect the proposed BMPs only and exclude the treatment provided by the existing regional pond used to collect runoff for reuse. Table 7. Summary of net change in TSS and TP leaving the site Subwatershed Pollutant of Interest Existing Loading (lbs/yr) Proposed Load after Treatment (lbs/yr) Change (lbs/yr) Lotus Lake Total Suspended Solids (TSS) 349 27 -322 Total Phosphorus (TP) 1.92 0.73 -1.19 Rice Marsh Lake1 Total Suspended Solids (TSS) 1,328 134 -1,194 Total Phosphorus (TP) 7.31 2.95 -4.36 1Pollutant removals reflect the proposed BMPs only and exclude the treatment provided by the existing regional pond and the enhanced removals that could occur by increased detention resulting from water withdrawals from the pond for irrigation purposes. Because the final layout and configuration of two proposed rain gardens used to comply with RPBCWD criteria in the Lotus Lake watershed are being coordinated with the adjacent land owners through the city’s rain garden initiative program, the applicant will need to provide final details during construction confirming the design is consistent with RPBCWD approvals (i.e, pollutant reductions and low floor separation). Because the proposed stormwater reuse system requires consistent use at a specified rate to meet District water quality requirements via abstractions, performance monitoring for the site will be required to ensure that the project provides the proposed volume abstraction. While the models were updated to reflect design revisions during the review process, to conform to RPBCWD Rule J requirements, the following revisions are needed: J1. The applicant must provide updated drawings to ensure the proposed stormwater facilities are constructed in a manner consistent with the submitted modeling. J2. The maintenance and operations agreement must also include a stormwater reuse monitoring and reporting plan that includes protection of the greenspace to be irrigated and metering of the volume of reuse, as well as maintenance specifics provided by the manufacturer(s) or installer(s) for the proprietary system. Low floor Elevation No structure may be constructed or reconstructed such that its lowest floor elevation is less than 2 feet above the 100-year event flood elevation according to Rule J, Subsection 3.6. In addition, a stormwater- management facility must be constructed at an elevation that ensures that no adjacent habitable building will be brought into noncompliance with a standard in this subsection 3.6. Because the project does not propose to construct or reconstruct structures that have low-floor elevations, subsection 3.6a does not 346 Page 13 of 19 impose requirement on the project. However, the project will construct stormwater management facilities in proximity to existing habitable structures. The low floor elevations of the proposed houses and the 100- year high water elevation of the biofiltration basins are summarized in Table 8. Because the low floor elevations of the existing structures are below the 100-year high water elevation of the adjacent stormwater facility, an alternative low floor analysis was conducted as outlined in Rule J, Appendix J.1 – Low-Floor Elevation Assessment. The results of the low floor analysis using Appendix J1 Plot 2: Minimum Depth to Water Table for No Further Evaluation is summarized in Table 8. The results demonstrate the provided separation is greater than the minimum required, thus meeting the habitable structure requirements in Rule J, Subsection 3.6 except for the structures at 502 76th street and 7554 Great Plains Blvd, which the applicant is requesting a variance from the low floor criteria. (see Rule K analysis below) Table 8. Low Floor Evaluation of Existing Structures Structure Address Stormwater Facility 100-year Event Flood Elevation of Feature (feet) Lowest Floor Elevation of Building (feet) Freeboard Provided (feet) Distance from Building to Adj. Facility (ft) Seasonal Water Table Elevation (ft) Minimum Allowable Depth to Water Table (ft) Provided Depth from Low Floor Elevation to Water Table (ft) 502 76th St. WT-RG -1 990.58 984.2 -6.38 15 984 6 0.2 400 76th St. GP-RG-1 990.71 986 -4.71 70 977 2 9 7601 Great Plains Blvd. GP-RG-1 990.71 986.2 -4.51 100 977 1 9.2 401 Santa Fe Tr. GP-RG-2 988.37 982 -6.37 65 977 2 5 7561 Great Plains Blvd. GP-RG-2 988.37 983 -5.37 135 977 0.5 6 7554 Great Plains Blvd. SF-RG-1 982.44 975.6 -6.84 80 975 1.6 0.6 400 Santa Fe Tr. SF-RG-1 982.44 979.5 -2.94 135 975 0.5 4.5 Maintenance Subsection 3.7 of Rule J requires the submission of maintenance plan. All stormwater management structures and facilities must be designed for maintenance access and properly maintained in perpetuity to assure that they continue to function as designed. J3. Because the applicant proposes reliance on irrigating greenspace on ISD 112 property, as part of the maintenance and operating agreement the applicant must provide information demonstrating the necessary property rights to use the greenspace into perpetuity for irrigation. J4. Permit applicant must provide a draft maintenance, inspection, and operating plan for review and approval by RPBCWD. As a public entity, the city of Chanhassen may comply with this requirement by entering into a maintenance agreement with the RPBCWD. The agreement must also include a 347 Page 14 of 19 stormwater reuse monitoring and reporting plan that includes protection of the greenspace to be irrigated and metering of the volume of reuse. Chloride Management Subsection 3.8 of Rule J requires the submission of chloride management plan that designates the individual authorized to implement the chloride management plan and the MPCA-certified salt applicator engaged in implementing the plan. To close out the permit, Permit applicant must provide a chloride management plan that designates the individual authorized to implement the chloride management plan. Wetland Protection Because the proposed activities discharge to Lotus Lake and a downstream stormwater pond, Rule J, subsection 3.10 does not impose requirements on the project. Rule K: Variances and Exceptions The applicant requested the following two variances from the Rule J. • Subsection 3.6b for the placement of a stormwater management facility. • Allowing the stormwater management compliance to be deferred until the Market Boulevard project occurs in 2025, likely after the close-out of this permit 2024-013. The attached variance request letter submitted on behalf of the applicant cites several facts related to the development in support of the request. Rule K requires the Board of Managers to find that because of unique conditions inherent to the subject property the application of rule provisions will impose a practical difficulty on the Applicant. Assessment of practical difficulty is conducted against the following criteria: 1. how substantial the variation is from the rule provision; 2. the effect of the variance on government services; 3. whether the variance will substantially change the character of or cause material adverse effect to water resources, flood levels, drainage or the general welfare in the District, or be a substantial detriment to neighboring properties; 4. whether the practical difficulty can be alleviated by a technically and economically feasible method other than a variance. Economic hardship alone may not serve as grounds for issuing a variance if any reasonable use of the property exists under the terms of the District rules; 5. how the practical difficulty occurred, including whether the landowner, the landowner's agent or representative, or a contractor, created the need for the variance; and 6. in light of all of the above factors, whether allowing the variance will serve the interests of justice. It is the applicant’s obligation to address these criteria to support a variance request (see attached variance memo). Following is the RPBCWD engineer’s assessment of information received relevant to the applicant’s variance requests. Variance Request #1 The applicant requested a variance from the requirements of subsection 3.6b of the stormwater management rule (Rule J) which states stormwater-management facility must be constructed at an elevation that ensures that no adjacent habitable building will be brought into noncompliance with the low 348 Page 15 of 19 floor elevation criteria. For purposes of the Board of Managers’ consideration, the following factors were analyzed based on Rule K. • The applicant is proposing to construct two biofiltration basins (WT-RG-1 and SF-RG-1) on city property or within right of way to provide rate control at the site boundaries and water quality treatment of runoff prior to discharging downstream. The proposed location of these two basins results in the low floor of the structures at 502 76th St. and 7554 Great Plains Blvd. to be in noncompliance with subsection 3.6b, the freeboard criteria, as summarized below. Structure Address Stormwater Facility 100-year Event Flood Elevation of Feature (feet) Lowest Floor Elevation of Building (feet) Freeboard Provided (feet) Distance from Building to Adj. Facility (ft) Seasonal Water Table Elevation1 (ft) Minimum Allowable Depth to Water Table (ft) Provided Depth from Low Floor Elevation to Water Table (ft) 502 76th St. WT-RG -1 990.58 984.2 -6.38 15 984 6 0.2 7554 Great Plains Blvd. SF-RG-1 982.44 975.6 -6.84 80 975 1.6 0.6 1 Groundwater was not observed in the borings so the evidence of redoximorphic soils conditions was used to determine the seasonal high groundwater elevation. • With regard to variance criteria 2 and 3 – Because the proposed project will reduce the site discharge and pollutant loading leaving the site relative to existing conditions, as discussed in the Rule J analysis, the proposed project is not reasonably likely to cause off-site adverse impacts to governmental services. Because the existing low floor elevations of the adjacent structures are only slightly above the seasonal high groundwater level, infiltration of stormwater in these stormwater facilities has the potential to be detrimental to the neighboring properties unless the proposed mitigation measure of sealing the bottom of the basins is implemented. • Technical measures incorporated into the project plan to alleviate the practical difficulty (variance criterion 4) include the incorporation of underdrains below the biofiltration basins and the a clay liner to prevent runoff from infiltrating, thus minimizing the potential impacts to the adjacent structures. The 100-year flood elevation for both basins is contained on city property or within the right of way. The applicant dismissed relocating the stormwater facilities because of the need to provide rate control and water quality treatment for the project. The applicant also dismissed converting the biofiltration basins to self-contained, manufactured treatment devices due to the time for redesign and change order implications. • With regard to variance criterion 5, the applicant has created the circumstances leading to the variances. The engineer makes no determination as to whether there is an adequate technical basis for the managers to rely on to grant the requested variance. If the variance request is granted, the managers may wish to discuss a further condition with legal counsel: K1. The applicant must provide written indemnification of the RPBCWD, signed by a representative with authority to bind the city, from all claims and causes of action arising from the proposed noncompliance with the RPBCWD low-floor criteria. 349 Page 16 of 19 Variance Request #2 The applicant requested a variance to allow the construction of the regional reuse system as part of the Market Boulevard reconstruction project planned to occur in 2025 because design of the roadway reconstruction project is not started. For purposes of the Board of Managers’ consideration, the following factors were analyzed based on Rule K. • Related to variance criteria #1 – The majority of the construction activities associated with permit 2024-013, if approved by the RPBCWD managers, will occur in 2024 – with some final site restoration activities and permit close-out in early to mid-2025. The city is planning to reconstruct Market Boulevard in 2025 and would install necessary infrastructure for the regional reuse system along Market Boulevard while the roadway is being reconstructed. The reuse system would likely be operation in late 2025 or early 2026. This results in roughly a 12-18 month delay between the completion of permit 2024-013 and the startup of the irrigation system. • With regard to variance criteria 2 and 3 – Because the runoff from the site is conveyed in existing storm sewer to the existing stormwater treatment pond in the NW quadrant of Highway 5 and Market Boulevard and the applicant is providing rate control at the site boundary, the project is not likely cause adverse impacts to flood levels or downstream resources in the 12-18 month period before the reuse system is put online. • Technical measures incorporated into the project plan to alleviate the practical difficulty (variance criterion 4) include relying on the treatment capacity of the existing stormwater pond in the NW quadrant of Highway 5 and Market Boulevard and downstream treatment train to provide water quality treatment before runoff enters Rice Marsh Lake. (These systems do not achieve compliance with applicable RPBCWD standards.) • With regard to variance criterion 5, the applicant has created the circumstances leading to the variances by pursuing a regional reuse system to maximize the amount of runoff abstracted. The RPBCWD engineer recommends granting the variance request based on the above analysis. Applicable General Requirements: 1. The RPBCWD Administrator and Engineer shall be notified at least three days prior to commencement of work. 2. Construction must be consistent with the plans, specifications, and models that were submitted by the applicant that were the basis of permit approval. The date(s) of the approved plans, specifications, and modeling are listed on the permit. The grant of the permit does not in any way relieve the permittee, its engineer, or other professional consultants of responsibility for the permitted work. 3. The grant of the permit does not relieve the permittee of any responsibility to obtain approval of any other regulatory body with authority. 350 Page 17 of 19 4. The issuance of this permit does not convey any rights to either real or personal property, or any exclusive privileges, nor does it authorize any injury to private property or any invasion of personal rights, nor any infringement of federal, state, or local laws or regulations. 5. In all cases where the doing by the permittee of anything authorized by this permit involves the taking, using or damaging of any property, rights or interests of any other person or persons, or of any publicly owned lands or improvements or interests, the permittee, before proceeding therewith, must acquire all necessary property rights and interest. 6. RPBCWD’s determination to issue this permit was made in reliance on the information provided by the applicant. Any substantive change in the work affecting the nature and extent of applicability of RPBCWD regulatory requirements or substantive changes in the methods or means of compliance with RPBCWD regulatory requirements must be the subject of an application for a permit modification to the RPBCWD. 7. If the conditions herein are met and the permit is issued by RPBCWD, the applicant, by accepting the permit, grants access to the site of the work at all reasonable times during and after construction to authorized representatives of the RPBCWD for inspection of the work. Findings 1. The proposed project includes the information necessary, plan sheets and erosion control plan for review. 2. The Applicant has requested a variance from compliance with the Rule J criteria related to the location of the proposed biofiltration basins WT-RG-1 and SF-RG-1 relative to the low floor elevation of existing structures. 3. The Applicant has requested a variance to allow the construction of the regional reuse system as part of the Market Boulevard reconstruction project planned to occur in 2025 rather than building the system as part of permit 2024-013. 4. If the variances from Rule J are approved, the proposed project will conform to Rules C and J if the Rule Specific Permit Conditions listed above are met. Recommendation: If the managers grant the variance (with such conditions as the managers may impose), the engineer recommends approval of the permit for a 2-year term, contingent upon: 1. The applicant providing the name and contact information of the general contractor responsible for the site. 2. The applicant must provide updated drawings to ensure the proposed stormwater facilities are constructed in a manner consistent with the submitted modeling, including but not limited to the proposed clay liner at biofiltraton basins WT-RG-1 and SF-RG-1. 3. Demonstration of the necessary property rights to irrigate the greenspace on ISD 112 property. 4. Stormwater management facilities maintenance and operating requirements must be documented in an agreement with RPBCWD. A draft of the agreement and associated exhibits must be provided 351 Page 18 of 19 for RPBCWD review and approval prior to execution. The agreement must also include a stormwater reuse monitoring and reporting plan that includes protection of the greenspace to be irrigated and metering of the volume of reuse, as well as maintenance specifics provided by the manufacturer(s) or installer(s) for the proprietary system. By accepting the permit, when issued, the applicant agrees to the following stipulations: 1. Continued compliance with General Requirements. 2. Per Rule C, Subsection 3.3 the permit holder will be responsible for the inspection, maintenance and effectiveness of all erosion prevention and sediment control facilities, features and techniques. The permittee must inspect all erosion prevention and sediment control facilities and soil stabilization measures to ensure integrity and effectiveness until final site stabilization. 3. Per Rule J Subsection 5.6, upon completion of the site work, the permittee must submit as-built drawings demonstrating that at the time of final stabilization the stormwater management facilities conform to design specifications and functions as intended and approved by the District. As- built/record drawings must be signed by a professional engineer licensed in Minnesota and include, but not limited to: a) the surveyed bottom elevations, water levels, and general topography of all facilities; b) the size, type, and surveyed invert elevations of all stormwater facility inlets and outlets; c) the surveyed elevations of all emergency overflows including stormwater facility, street, and other; d) other important features to show that the project was constructed as approved by the Managers and protects the public health, welfare, and safety. 4. Providing the following additional close-out materials: a) Documentation that constructed stormwater facilities perform as designed. This may include infiltration testing, flood testing, or other with prior approval from RPBCWD b) Documentation that disturbed pervious areas remaining pervious have been decompacted per Rule C Subsection 3.2c criteria 5. Per Rule J, Subsection 3.1.b.ii measured infiltration capacity of the soils at the bottom of the biofiltration BMPs must be provided. The applicant must submit documentation verifying the infiltration capacity of the soils and that the volume control capacity is calculated using the measured infiltration rate. In addition, subsurface soil investigation is needed to verify adequate separation to groundwater (Rule J subsection 3.1.b.2). If infiltration capacity is less than needed to conform with the volume abstraction requirement in subsection 3.3b or there is inadequate separation to groundwater, design modifications to achieve compliance with RPBCWD requirements will need to be submitted (in the form of an application for a permit modification or new permit). 6. To close out the permit, the permit applicant must provide a chloride management plan that designates the individual authorized to implement the chloride management plan and the MPCA- certified salt applicator engaged in implementing the plan at the site. 7. Because the final layout and configuration of two proposed rain gardens used to comply with RPBCWD criteria in the Lotus Lake watershed are being coordinated with the adjacent land owners through the city’s rain garden initiative program, the applicant will need to provide final details 352 Page 19 of 19 during construction confirming the design is consistent with RPBCWD approvals (i.e, pollutant reductions and low floor separation). 353 6 EXHIBIT C – ECOSTORM MANUFACTURER MAINTENANCE PROGRAM 354 355 356 City Council Item June 24, 2024 Item Approve Temporary Modification of the Licensed Premises to serve Beer in the Hackamore Brewing Company Parking Lot Area File No.Item No: E.16 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION “The Chanhassen City Council approves a temporary modification to the licensed premises of Hackamore Brewing Company to include the parking lot area on the east side of the building, as shown in the attached map, for the purpose of serving beer during Outdoor Concerts scheduled for July 13 & 27, 2024 between the hours of Noon and 10:00 p.m." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY Hackamore Brewing Company has submitted a Special Event Permit Application to hold Outdoor Concerts on their property between Noon -10:00 p.m. on the following dates in July: July 13 July 27 As part of the event, the Brewery is requesting the expansion of their licensed premises to include the parking lot area on the east side of the building. City Council approval is required for this request. BACKGROUND 357 Hackamore Brewing Company currently holds a Brewer off-sale and an on-sale and Sunday Brewer Taproom liquor license. The licensed premises currently consists of the building and the outdoor patio. In order to provide an expanded outdoor area for the event and to serve alcohol in the parking lot on July 13 & 27, 2024, Hackamore Brewing Company is requesting that the City Council grant a temporary modification to expand the licensed premises to include the east parking lot area as shown in the attached map. DISCUSSION In order to expand liquor service beyond the current licensed premises, Hackamore Brewing Company is requesting the City Council grant a temporary modification to the licensed premises to include the east parking lot as shown on the attached map with the following conditions: 1. The applicant must apply for and receive a permit through the temporary outdoor event ordinance from the city for the expanded seating area. 2. The applicant must provide a specific diagram of the area in which the temporary modification to the licensed premises is to occur. The diagram must indicate how the area will be physically enclosed and the location of tables, chairs, food and beverage stations, and any other important features. 3. The applicant must submit proof of the necessary liquor liability insurance coverage for the expanded serving area. The applicant has met most of the required conditions for the expanded seating area but has yet to receive approval for the temporary event permit. Staff will still review the complete event permit for compliance before approval. BUDGET RECOMMENDATION Staff recommends that the City Council approve Hackamore Brewing Company's request to expand the licensed premises to include the east portion of the parking lot as shown on the attached map. ATTACHMENTS Location Map Certificate of Liquor Liability Insurance 358 359 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME: CONTACT A/C, No): FAX E-MAILADDRESS: PRODUCER A/C, No, Ext): PHONE INSURED REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: Per accident) Ea accident) N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOSONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY) POLICY EXP( MM/DD/YYYY) POLICYEFFPOLICYNUMBERTYPEOFINSURANCELTRINSR DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE AGGREGATE OCCUR CLAIMS-MADE DED RETENTION $ PRODUCTS - COMP/OP AGG GENERAL AGGREGATE PERSONAL & ADV INJURY MED EXP (Any one person) EACH OCCURRENCE DAMAGE TO RENTED $ PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO- JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY 2/26/2024 Miller-Hartwig Insurance PO Box 1177 Lakeville MN 55044 952-469-5502 952-469-1881 Cincinnati Insurance Co 10677 HACKBRE-01 Security National19879HackamoreBrewingCoLLC 18651 Lake Dr E Chanhassen MN 55317 510651536 A X 1,000,000 X 500,000 5,000 1,000,000 2,000,000 X Y Y ETD 0658673 7/1/2023 7/1/2024 2,000,000 A 1,000,000 X X ETD 0658673 7/1/2023 7/1/2024 A X X 4,000,000ETD06586737/1/2023 7/1/2024 4,000,000 B SWC1477154 2/1/2024 2/1/2025 500,000 500,000 500,000 Micro Brewery and Taproom- Liquor Liability is continuous until cancelled meaning notice will be given for any cancellation,non-renewal,failure to pick up a renewal,or any other policy interruption.Liquor liability coverage is not location specific and covers any patios and off-premises events provided a valid liquor license is in-force. City of Chanhassen 7700 Market Blvd PO Box 147 Chanhassen 55317 360 City Council Item June 24, 2024 Item Approve Temporary Event Permit, July 4 Parade, Rotary Club of Chanhassen File No.Item No: E.17 Agenda Section CONSENT AGENDA Prepared By Priya Tandon, Recreation Manager Reviewed By SUGGESTED ACTION "The Chanhassen City Council approves the Temporary Event Permit from the Chanhassen Rotary Club to host the annual 4th of July Parade on Thursday, July 4 from 2:30-4:30 p.m. in downtown Chanhassen." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY The Chanhassen Rotary Club submitted a Temporary Event Permit Application for the annual 4th of July Celebration Parade. The Parade will be held downtown Chanhassen on July 4 and will run from 2:30-4:30 p.m. The Parade will begin at the intersection of Kerber Boulevard and Santa Vera Drive. The parade will travel south on Kerber Boulevard, turn east on West 78th Street, and end on Market Street, past the entrance to the Chanhassen Dinner Theatre. Float staging will take place on Santa Vera Drive between Powers Boulevard and Kerber Boulevard and on Kerber Boulevard between Saddlebrook Curve and Santa Vera Drive. The Rotary Club of Chanhassen is working closely with the City of Chanhassen and Carver County Sheriff's Office on the traffic management and public safety for this event. 361 BACKGROUND The parade was added to the annual Fourth of July Celebration in 1996, making 2024 the 28th year of the parade. Prompted by traffic safety concerns with the former route and 2024 road projects in the downtown area, a new route was developed for this year's annual Parade. DISCUSSION BUDGET RECOMMENDATION The Chanhassen City Council approves the Temporary Event Permit from the Chanhassen Rotary Club to host the annual 4th of July Parade on Thursday, July 4 from 2:30-4:30 p.m. in downtown Chanhassen. ATTACHMENTS Temporary Event Permit Application Race Addendum (Parade Addendum) 2024 Route Map Certificate of Insurance Rotary Club of Chanhassen 362 1 of 4 CITY OF CHANHASSEN TEMPORARY EVENT PERMIT APPLICATION FORM SECTION TWO: APPLICANT INFORMATION SECTION THREE: PROPERTY OWNER INFORMATION SECTION ONE: EVENT TYPE Applicant Contact: On-Site Contact: Name: Name: Name: Title: Title: Title: Producing Business/ Organization Name: Seasonal Sales ($50)Temporary Outdoor Event ($50)Special Event ($100) Race Addendum (+$50) Seasonal Sales and Temporary Outdoor Event Permits must be submitted at least 10 days prior to the event. Special Event Permits must be submitted at least 60 days prior to the event. Address: Address: (Street, City, State, & Zip) (Street, City, State, & Zip) Phone: Phone: Phone: Cell: Cell: Cell: Email: Email: Email: Business/Organization Website: 363 2 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION FOUR: EVENT INFORMATION Event Title: Event Location: Event Description: Event Date(s): Provisions for parking and security: Number participants/attendees:Number of Employees/Workers: Event Time(s): Event Subtype: Will there be sound amplification equipment? Will merchandise be sold at the event? Narrative Required: (only for Special Event Permit) Will there be signage at the event? Race/Walk (complete and attach race addendum form) If yes, attach additional permit. If yes, please describe: If yes, attach additional permit. Festival No No No Sidewalk sales Promotional event Seasonal produce Christmas TreesConcert Yes Yes Yes Temporary food & beverage sales Other: (Street, City, State, & Zip) Please provide a narrative including the following information: »Description of event »Parking arrangements »Security »Potential impact on public safety, traffic, and other services including proposed mitigation strategy 364 3 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION FOUR: EVENT INFORMATION (CONTINUED) Equipment/Set-Up Insurance Required: Staging/Scaffolding Signage # (include size and location on map) Tents/Canopies # (include size and location on map) Tent Size(s): Lighting Statues or structures Portable restrooms Select all that apply (show all equipment on your attached map). Proof of liability insurance must be provided at city discretion. Please list the outside companies/vendors that you are using for any of the checked boxes above. A complete list of vendors must be submitted prior to your event. Map Required: »Surrounding street names »Directional arrows »Twenty foot (20’) fire lanes »Fencing/Barriers »Street closure points »Barricades »Bleachers »Booths »Generators »Canopies/Tents »Cooking Areas »Generators »Vehicles »Beer gardens »Number and dimension of entrances/exits »Start/Finish lines » Routes with directional arrows »Fire extinguisher locations »Safety and First Aid stations »Parking areas »Special lighting »Trash/Recycling containers Maps are required for the overall event layout as well as any separately fenced areas such as beer/wine gar- dens or contained areas as part of a parade/march route. As a general rule, maps must include the following: SECTION FIVE: FOOD Will food be served at the event? Will food be prepared off-site but served on-site? Will any of the following appliances be used? (Check all that apply) Will food be prepared on-site? Will food be grilled on-site? NOTE: If using any of the cooking methods listed above other than warming ovens, Chanhassen Fire Department Policy #50-2005 Temporary Assemblies and Tents must be followed. If no, skip to next section. If yes, select one: *Size of LP gas tank: No No No Deep fat fryer Warming oven Corn roaster Other: No LP Gas* .lbs Yes Yes Yes Gas griddle (flat top) Yes Charcoal 365 4 of 4 TEMPORARY EVENT PERMIT APPLICATION FORM SECTION SEVEN: NOTICE AND SIGNATURE Applicant: Property Owner: I have familiarized myself with the Chanhassen City Code Chapter 20-964 and subsequent ordinance amendments pertaining thereto, and will abide by the provisions contained therein. I declare that the information I have provided on this application is truthful and I understand that falsification of answers on this application will result in denial of the application. I authorize the City of Chanhassen to investigate and make whatever inquiries are necessary to verify the information provided. Signature: Signature: Date: Date: SECTION SIX: ALCOHOL Will alcohol be served at the event? Is a non-profit organization providing the alcohol services? The sale and service of alcoholic beverages are subject to City of Chanhassen regulations, licensing, and permit requirements. NOTE: Alcohol can only be provided and served by a restaurant holding an on-sale intoxicating liquor license issued by any municipality that also holds a caterer’s permit (MN Statute 340A.404, Subd. 12). If no, indicate the name of the caterer: If yes, indicate the name of the non-profit organization: No No Yes Yes Complete and submit this from and any supplemental documents online on the city’s BS&A portal. A guide is available to help you with the submission process. Payment will be requested after permit review and approval. 366 1 of 2 CITY OF CHANHASSEN TEMPORARY EVENT PERMIT APPLICATION: RACE ADDENDUM - $50.00 SECTION TWO: APPLICANT INFORMATION SECTION ONE: RACE INFORMATION Sponsoring/Producing Organization Name: Organization Website: Name: Name: Applicant Contact: Race Chairman: Name of Race: Date of Race Anticipated Start Time:Anticipated End Time: Mailing Address: Street Address: Starting Point: Ending Point: Race Location: ATTACH MAP SHOWING ROUTE (Street, City, State, & Zip) Phone: Phone: Cell: Cell: Title: Title: Email: Email: 367 2 of 2 SECTION THREE: RACE DETAILS TEMPORARY EVENT PERMIT APPLICATION: RACE ADDENDUM Number of People Participating: (Attach additional document if necessary) How much of the street will the race use? Number of Units in Race: Space Between Units:Race Assembly Time: Trails/Sidewalks One Lane Two Lanes Full Width Full Width & Trails/sidewalk Race Assembly Area: Traffic Management Plan: 368 Parade RouteNEW PRODUCED BY: LIBRARY TARGET CUBFOODS CHANHASSEN DINNER THEATREPOWERS BLVD.W 78TH ST.LAREDO DR.W 76TH ST. W 78TH ST. CHAN VIEW SANTA FE TR. MARKET ST . ParadeStaging Only Parade Staging Only Participant Check-In Road Closure Time00:00 Alternate Traffic Route Participants Only Line Up Area Parade Route Food & Beverage Sales 369 SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS. INSURER(S) AFFORDING COVERAGE INSURER F : INSURER E : INSURER D : INSURER C : INSURER B : INSURER A : NAIC # NAME:CONTACT (A/C, No):FAX E-MAILADDRESS: PRODUCER (A/C, No, Ext):PHONE REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed. If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER. OTHER: (Per accident) (Ea accident) $ $ N / A SUBR WVD ADDL INSD THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $ $ $PROPERTY DAMAGE BODILY INJURY (Per accident) BODILY INJURY (Per person) COMBINED SINGLE LIMIT AUTOS ONLY AUTOSAUTOS ONLY NON-OWNED SCHEDULEDOWNED ANY AUTO AUTOMOBILE LIABILITY Y / N WORKERS COMPENSATION AND EMPLOYERS' LIABILITY OFFICER/MEMBER EXCLUDED? (Mandatory in NH) DESCRIPTION OF OPERATIONS below If yes, describe under ANY PROPRIETOR/PARTNER/EXECUTIVE $ $ $ E.L. DISEASE - POLICY LIMIT E.L. DISEASE - EA EMPLOYEE E.L. EACH ACCIDENT EROTH-STATUTEPER LIMITS(MM/DD/YYYY)POLICY EXP(MM/DD/YYYY)POLICY EFFPOLICY NUMBERTYPE OF INSURANCELTRINSR EXCESS LIAB UMBRELLA LIAB $EACH OCCURRENCE $AGGREGATE $ OCCUR CLAIMS-MADE DED RETENTION $ $PRODUCTS - COMP/OP AGG $GENERAL AGGREGATE $PERSONAL & ADV INJURY $MED EXP (Any one person) $EACH OCCURRENCE DAMAGE TO RENTED $PREMISES (Ea occurrence) COMMERCIAL GENERAL LIABILITY CLAIMS-MADE OCCUR GEN'L AGGREGATE LIMIT APPLIES PER: POLICY PRO-JECT LOC CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY) CANCELLATION AUTHORIZED REPRESENTATIVE ACORD 25 (2016/03) © 1988-2015 ACORD CORPORATION. All rights reserved. CERTIFICATE HOLDER The ACORD name and logo are registered marks of ACORD HIRED AUTOS ONLY Hylant Group Inc 811 Madison Ave Toledo OH 43604 419-259-2710 419-255-7557 Westchester Surplus Lines Insurance Company 10172 A X 2,000,000 X 500,000 X Liquor Liability Included 2,000,000 4,000,000 X Y G73578917003 7/1/2024 7/1/2025 4,000,000 A 2,000,000YG735789170037/1/2024 7/1/2025 XX DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)The Certificate Holder is included as an additional insured where required by written contract or permit subject to the terms and conditions of the general liability policy, but only to the extent bodily injury or property damage is cause in whole or in part by the acts or omissions of the insured. InsuredAll Active US Rotary Clubs & Districts Attn: Risk Management Dept. 1560 Sherman Avenue Evanston, IL 60201-3698 Crystal Gleason Not applicable Not applicable 370 City Council Item June 24, 2024 Item Resolution 2024-XX: Authorizing Continued Participation in the Office of State Auditor (OSA) Performance Measurement Program File No.Item No: E.18 Agenda Section CONSENT AGENDA Prepared By Kelly Grinnell, Finance Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution authorizing continued participation in the OSA Performance Measurement Program." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND The Office of the State Auditor and the Minnesota Council on Local Results and Innovation have developed a voluntary comprehensive performance measurement program as established in Minnesota Statute Section 6.91. There are benefits to the city for participation, including exemption from property tax levy limits (if they are in effect) and a reimbursement of $.14 per capita, which would result in an annual reimbursement of approximately $3,640. The city participated in the program last year and received a reimbursement of $3,624. The City Council is required to adopt and implement ten minimum performance measures (out of 29 371 choices) and report on them annually. The attached report shows the performance measures the city adopted and compares results for 2022 and 2023. The city is currently reporting on 17 of the 29 items and will add items when possible. Staff recommends the City Council adopt the resolution authorizing participation in the Performance Measures Program. DISCUSSION BUDGET RECOMMENDATION ATTACHMENTS Resolution Performance Measurement Program OSA City of Chanhassen 2023 and 2022 Performance Measures 372 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: RESOLUTION AUTHORIZING THE CONTINUED PARTICIPATION IN THE PERFORMANCE MEASUREMENT PROGRAM ESTABLISHED BY THE STATE OF MINNESOTA AND THE COUNCIL ON LOCAL RESULTS AND INNOVATION WHEREAS,benefits to the City of Chanhassen for participation in the Minnesota Council on Local Results and Innovation’s comprehensive performance measurement program are outlined in Minnesota Statute § 6.91 and include eligibility for reimbursement as set by State statute; and WHEREAS, a City participating in the comprehensive performance measurement program is also exempt from levy limits for taxes, if levy limits are in effect; and WHEREAS,the City Council of Chanhassen has adopted and implemented at least 10 of the performance measures, as developed by the Council on Local Results and Innovation, and a system to use this information to help plan, budget, manage, and evaluate programs and processes for optimal future outcomes. NOW THEREFORE LET IT BE RESOLVED THAT,the City Council of Chanhassen will continue to report the results of the performance measures to its citizenry by the end of the year through publication, direct mailing, posting on the city’s/county’s website, or through a public hearing at which the budget and levy will be discussed and public input allowed. BE IT FURTHER RESOLVED,the City Council of Chanhassen will submit to the Office of the State Auditor the actual results of the performance measures adopted by the city/county. Adopted by the Chanhassen City Council this 24th day of June 2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 373 374 375 Performance Measures - City of Chanhassen Category # Measure 2022 Result 2023 Result Notes General 1 Rating of the overall quality of services provided by the City (survey data, provide year completed and total responses) The City is considering whether to conduct a survey in the future 2 Percent change in the taxable property market value 16.7%3.9%From County Tax Capacity worksheets 3 Citizens' rating of the overall appearance of the City (survey data, provide year completed and total responses) The City is considering whether to conduct a survey in the future 4 Nuisance code enforcement cases per 1,000 population 5 Number of library visits per 1,000 population 6 Bond rating AAA - Standard & Poors AAA - Standard & Poors 7 Citizens' rating of the quality of recreational programs and facilities (survey data, provided year completed and total responses) The City is considering whether to conduct a survey in the future 8 Accuracy of post-election audit (% of ballots counted accurately) Police Services 9 Part I and II Crime Rates 2.80%2.00% 10 Part I and II Crime Clearance Rates 53%47% 11 Citizens' rating of safety in their community (survey data, provide year completed and total responses) The City is considering whether to conduct a survey in the future 12 Average police response time 5.72 5.49 Average time it takes to respond to top priority calls from dispatch to officer on scene Fire & EMS Services 13 Insurance industry rating of fire services 4/4Y 4/4Y 2020 FRS from ISO. Scheduled again in 2025 with expectations of 3 or lower 14 Citizens' rating of the quality of fire protection services - ISO Rating (survey data, provide year completed and total response) The City is considering whether to conduct a survey in the future 15 Average fire response time 8:40 9:56 Average time it takes from dispatch to apparatus on scene for calls that are dispatched as a possible fire 16 Fire calls per 1,000 population 1.44 1.54 Number of calls/population X 1,000 = calls per 1,000 population 17 Number of fires with loss resulting in investigation 15 17 18 EMS calls per 1,000 population 28.73 33.61 Number of calls/population X 1,000 = calls per 1,000 population 19 EMS average response time 7:08 6:29 Average time it takes from dispatch for arrival of EMS Streets 20 Average City street pavement condition rating (PCI)73.1 74.7 This is directly reported by Cartegraph, updated daily 21 Citizens' rating of the road conditions in the City (survey data, provide year completed and total response) The City is considering whether to conduct a survey in the future 22 Expenditures for road rehabiliation per paved lane mile rehabilitated (City only roads) $ 754,352 $ 745,696 Total cost for rehabilitation / lane miles rehabilitated-does not include sealcoating expenses 23 Percentage of all City lane miles rehabilitated (City only roads)4.30%4.50%Lanes miles rehabilitated in year / total number of lane miles 24 Average hours to complete road system during snow event 8.1 6.1 25 Citizens' rating of the quality of snowplowing on City streets (survey data, provide year completed and total response) The City is considering whether to conduct a survey in the future Water 26 Citizens' rating of the quality of fire protection services (survey data, provide year completed and total response) The City is considering whether to conduct a survey in the future 27 Operating cost per 1,000,000 gallons of water pumped/produced $ 5,593 $ 4,666 Actual operating expense for water utility / (total gallons pumped / 1,000,000) = cost per million - Includes depreciation Sanitary Sewer 28 Citizens' rating of the dependability and quality of sanitary sewer service (survey data, provide year completed and total response) The City is considering whether to conduct a survey in the future 29 Number of blockages on City system per 100 connections 0.012 None (Number of blockages / number of connections) X 100 = blockages for 100 connections 376 City Council Item June 24, 2024 Item Resolution 2024-XX: Appoint Election Judges for State Primary and General Elections and Approve Rates of Pay File No.Item No: E.19 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution appointing election judges for the 2024 State Primary and General Elections and establishing their rates of pay." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND DISCUSSION State law requires that the City Council adopt a resolution appointing judges for the upcoming elections and establishing their rates of pay. Attached please find a list of people who have agreed to serve in the upcoming State Primary Election on August 13 and the General Election on November 5. Per Minnesota Statute 204B.21, this list was compiled using names submitted by the political parties, and those who have served in the past. Staff received a list of names from the Republican Party and contacted all of them requesting they review the election judge duties and qualifications and apply if they were still interested. More applications were received than needed to staff all the precincts while 377 still maintaining party balance as required by law. The resolution allows staff some flexibility to recruit more judges if needed. The City Council must also establish the rates of pay for the judges. Per Minnesota Statute 204B.31, election judges shall receive at least the prevailing Minnesota minimum wage for each hour spent carrying out their duties at the polling places and in attending training sessions. The current Minnesota Minimum Wage is $10.85 per hour. On January 22, 2024, the City Council adopted Resolution 2024- 06 appointing election judges to the 2024 Presidential Nomination Primary Election on March 5, 2024, and establishing the 2024 rates of pay as shown in the table below. Staff recommends continuing to use the rates of pay established by Resolution 2024-06 for the remaining elections in 2024. Position 2022 Wage 2024 Wage Head Judge $14.00 $16.00 Assistant Head Judge $13.00 $15.00 Election Judge $12.00 $14.00 Student Judge $12.00 $14.00 BUDGET RECOMMENDATION Staff recommends that the City Council adopt a resolution appointing election judges for the 2024 State Primary and General Elections and set the rates of pay as noted above. ATTACHMENTS Resolution 378 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: A RESOLUTION APPOINTING ELECTION JUDGES AND ESTABLISHING THEIR RATES OF PAY FOR THE STATE PRIMARY ELECTION ON AUGUST 13, 2024, AND THE GENERAL ELECTION ON NOVEMBER 5, 2024 WHEREAS, the City of Chanhassen is required by law to adopt a resolution appointing the election judges for the State Primary and General Elections and establishing the rates of pay for such. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen that the election judges for said Elections are as listed on the attached Exhibit A, with the rate of pay established as follows: Position Wage Head Judge $16.00 Asst. Head Judge $15.00 Election Judge $14.00 Student Judge Trainee $14.00 BE IT FURTHER RESOLVED that mileage would be paid to those election judges who travel to pick up election supplies or to deliver election returns to the county auditor at a flat rate of $13; and BE IT FURTHER RESOLVED that staff may recruit additional judges or reassign judges as may be necessary. PASSED AND ADOPTED by the Chanhassen City Council on this 8th day of July2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 379 EXHIBIT A 2024 STATE PRIMARY AND GENERAL ELECTION JUDGES Precinct 1 Mary Frerich, Head Judge Andrew Aller, Asst. Head Judge Sandra Monseth William Brechtel Dorthy Coffey Judith Nybeck David Jones Kathleen Ring Wilma Ruppert Nadine Rutledge Gene Sipprell Rebecca Varone Patricia Williamson Precinct 2 Ken Larson, Head Judge Nancy Crain Vicki Dillon Dorothy Downing Christopher Erickson Jay Johnson JoAnne Porter Julie Terpstra Scott Vergin Precinct 3 Linda Mady, Head Judge Carol Buesgens Peggy Burns Chad Herman Karen Jordan Alisa Lacomy Rebecca Rong Perry Schwartz Steven Syverson Katie Trevena Sheryl Zipf Precinct 4 Shirley Pzynski, Head Judge Grace Tripp, Asst. Head Judge Lisa Bachman Timothy Crain Linda Haight Norma May Mary Moulton Patricia Pekarek Darlene Weisgram Precinct 5 John Price, Head Judge Randy Cantin Mark Edman Michael Nothom Jessica Oiseth Doris Pyle Warren Tyner Wren Wingblade Frank Zimmerman Precinct 6 Carlye Peterson-Bristor, Head Judge Gwen Michael, Asst. Head Judge Nina Gilliam Maureem Kvam Jessica Miller-Sticksel Patrick Nailon Judy Stoffel Gary Van der Water Judith Van der Water 380 City Council Item June 24, 2024 Item Resolution 2024-XX: Appoint Data Practices Responsible Authority File No.Item No: E.20 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution appointing City Clerk Jenny Potter as the City's Data Practices Responsible Authority effective June 24, 2024." Motion Type Simple Majority Vote of members present Strategic Priority Operational Excellence SUMMARY The Minnesota Government Data Practices Act (“MGDPA”), provides that the City Clerk is the Responsible Authority for the collection, use, and dissemination of any set of data on individuals, government data, or summary data, unless another individual has been appointed by the City Council. The MGDPA also requires that the city appoint a compliance official, who is responsible for responding to questions or concerns regarding problems in obtaining access to data or other data practices problems. BACKGROUND City Clerk, Kim Meuwissen has retired and formerly held the position of Responsible Authority. Jenny Potter has taken the City Clerk position and the city desires to appoint her to act as the Responsible Authority pursuant to the MGDPA. Assistant City Manager Matt Unmacht, will continue to act as the Compliance Official. 381 DISCUSSION BUDGET N/A RECOMMENDATION It is recommended that the City Council appoint City Clerk Jenny Potter as the City's Data Practices Responsible Authority effective June 24, 2024. The City Clerk is directed to update Chanhassen's Data Practice policies and Data Request form with this information. ATTACHMENTS Resolution Appointing Responsible Authority for Data Practices 382 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: RESOLUTION APPOINTING COMPLIANCE OFFICER PERTAINING TO GOVERNMENT DATA WHEREAS,Minnesota Statute Chapter 13.01, Minnesota Government Data Practices Act, regulates the collection, creation, storage, maintenance, dissemination, and access to government data in government entities. It establishes a presumption that government data are public and are accessible by the public for both inspection and copying unless there is federal law, a state statute, or a temporary classification of data that provides that certain data are not public; and WHEREAS,the statute defines “Responsible Authority” as the individual designated by the governing body of that political subdivision as the individual responsible for the collection, use, and dissemination of any set of data on individuals, government data, or summary data, unless otherwise provided by state law; and WHEREAS,for statutory or home rule charter cities, the elected or appointed city clerk is the “Responsible Authority”; and WHEREAS,the statute defines “Compliance Official” as the designated employee of the government entity to whom persons may direct questions or concerns regarding problems in obtaining access to data or other data practices problems; and WHEREAS,the “Responsible Authority” or other appropriate authority in every government entity shall appoint or designate an employee of the government entity to act as the entity’s data practices “Compliance Official.” NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Chanhassen, Minnesota, as follows: The City Council shall appoint City Clerk Jenny Potter as the Responsible Authority effective June 24, 2024. Passed and adopted by the Chanhassen City Council this 24 th day of June, 2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 383 City Council Item June 24, 2024 Item Resolution 2024-XX; Call for Public Hearing to Order the Market Boulevard Improvement Project File No.ENG 25-02 Item No: E.21 Agenda Section CONSENT AGENDA Prepared By Charlie Howley, Director of Public Works/City Engineer Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council approves a resolution calling for a public hearing to be held at the July 22, 2024 City Council meeting to consider accepting the Feasibility Study and Ordering the Improvement Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY Market Boulevard is programmed for reconstruction in 2025. Design is underway and the Feasibility Study is scheduled to be presented to the City Council for acceptance at their July 22, 2024 meeting. A public open house was held on Thursday, June 20 at the Public Works facility. A summary of the feedback and comments will be provided with the July 22nd City Council meeting packet. BACKGROUND N/A DISCUSSION 384 N/A BUDGET The project is identified in the CIP as project ST-048. Funding for the project will come from a combination of the Pavement Management Program (PMP) and Utility Enterprise Funds. The PMP portion of the funding will include revenue from Special Assessments, Tax levy, Municipal State Aid Funds, and TIF 11 proceeds (The Venue project). RECOMMENDATION Staff recommends approving the Resolution calling for the public hearing. ATTACHMENTS Resolution - Call Improvement PH for 25-02 Market Blvd CIP ST-048 385 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: A RESOLUTION CALLING FOR A PUBLIC HEARING FOR THE MARKET BOULEVARD IMPROVEMENT PROJECT NO. 25-02 WHEREAS,pursuant to a resolution of the City Council adopted February27, 2023, a feasibility report is currently being prepared by Kimley-Horn, Inc. with reference to the above- referenced project, and this report will be received by the City Council on July 22, 2024, and WHEREAS,the feasibility report will provideinformation regarding whether the proposed project is necessary, cost-effective, and feasible; whether it should best be made as proposed or in connection with some other improvement; the estimated cost of the improvement as recommended; and a description of the methodology used to calculate individual assessments for benefitting parcels. NOW THEREFORE, BE IT RESOLVED bythe Chanhassen City Council: 1. The City Council will receive and consider accepting the feasibility study on July 22, 2024, and consider the improvements of such project in accordance with the report and the assessment of benefitting properties for a portion of the cost of the improvement pursuant to Minnesota Statutes, Chapter 429. 2. A public hearing for the proposed improvements proposed by the Market Boulevard Improvement Project No. 25-02 shall be held on July 22, 2024, in the City Council Chambers of City Hall at 7:00 PM. Passed and adopted by the Chanhassen City Council this 24th day of June 2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 386 This requests information is generated from Final Adopted CIP 2024-2028 CIP 2024-2028 FINAL ADOPT, Adopted Version. Streets - Market Blvd Improvements Overview Request Owner Charlie Howley, PW Director/City Engineer Department Annual Pvmnt Mgmt Contracted Type Capital Improvement Project Number ST-048 Description Market Boulevard between TH5 and West 78th Street in downtown is planned for reconstruction based on need and capacity expansion. Elements of the Downtown Vision Plan will be incorporated. $2.1 M for this project will be repaid by TIF revenue generated from TIF District 21. Per the requirements of the TIF District, the project must be substantially complete by June 2026. Details Type of Project Reconstruction Location 387 Capital Cost Breakdown Capital Cost FY2025 Total Engineering $600,000 $600,000 Construction/Maintenance $4,800,000 $4,800,000 Total $5,400,000 $5,400,000 Capital Cost Total Budget (all years) $5.4M Project Total $5.4M Capital Cost by Year (Adopted) Construction/Maintenance Engineering 2025 $5,400,000.00 $0 $1.5M $3M $4.5M Capital Cost for Budgeted Years (Adopted) TOTAL $5,400,000.00 Construction/Maintenance (89%)$4,800,000.0 Engineering (11%)$600,000.00 388 Funding Sources Breakdown Funding Sources FY2025 Total Streets - PMP Assessments $680,000 $680,000 Utility Fund - Water $400,000 $400,000 Utility Fund - Sewer $350,000 $350,000 Utility Fund - SW Mgmt $850,000 $850,000 Streets - PMP MSA Funds $1,020,000 $1,020,000 Streets - TIF Funding $2,100,000 $2,100,000 Total $5,400,000 $5,400,000 Funding Sources Total Budget (all years) $5.4M Project Total $5.4M Funding Sources by Year (Adopted) Streets - PMP Assessments Streets - PMP MSA Funds Streets - TIF Funding Utility Fund - Sewer Utility Fund - SW Mgmt Utility Fund - Water 2025 $5,400,000.00 $0 $1.5M $3M $4.5M Funding Sources for Budgeted Years (Adopted) TOTAL $5,400,000.00 Streets - PMP Assessments (13%)$680,000.00 Streets - PMP MSA Funds (19%)$1,020,000.00 Streets - TIF Funding (39%)$2,100,000.00 Utility Fund - Sewer (6%)$350,000.00 Utility Fund - SW Mgmt (16%)$850,000.00 Utility Fund - Water (7%)$400,000.00 389 City Council Item June 24, 2024 Item Resolution 2024-XX: Accept a $8,000 Donation from Xfinity File No.Item No: E.22 Agenda Section CONSENT AGENDA Prepared By Priya Tandon, Recreation Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a resolution accepting a $8,000 donation from Xfinity for the 2024 4th of July Celebration Street Dance stage sponsorship." Motion Type Simple Majority Vote of members present Strategic Priority N/A SUMMARY BACKGROUND The 41st annual 4th of July Celebration will be held July 2, 3, and 4 at City Center Park and Lake Ann Park. Xfinity has generously donated $8,000 as this year's Street Dance stage sponsor. DISCUSSION BUDGET RECOMMENDATION 390 "The Chanhassen City Council adopts a resolution accepting a $8,000 donation from Xfinity." ATTACHMENTS Resolution 391 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: A RESOLUTION ACCEPTING A DONATION FROM XFINITY BE IT RESOLVED that the Chanhassen City Council herebyaccepts the $8,000 donation from the Xfinityfor contribution to the 4 th of July Celebration Street Dance stage and performances in 2024. BE IT FURTHER RESOLVED that city staff is hereby directed to prepare a letter to Xfinity thanking them for their contribution. PASSED AND ADOPTED by the Chanhassen City Council this 24 th day of June 2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 392 City Council Item June 24, 2024 Item Resolution 2024-XX: Resolution Providing for the Sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A File No.Item No: E.23 Agenda Section CONSENT AGENDA Prepared By Kelly Grinnell, Finance Director Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council adopts a Resolution Providing for the Sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A." Motion Type Simple Majority Vote of members present Strategic Priority Financial Sustainability SUMMARY On May 20, 2024, the City Council held a public hearing and adopted Resolution No. 2024-35 giving preliminary approval to issue General Obligation Capital Improvement Plans Bonds in an amount not to exceed $34.25 million and adopting the Capital Improvement Plan for this bond issue. The issuance of these bonds is subject to a 30-day reverse referendum. For this to go into effect, a petition signed by voters equal to at least five percent of the votes cast in the last general election would need to be filed with the City Clerk within 30 days after the public hearing, which is June 20, 2024. As of the writing of this report, a petition has not been received. Assuming no petition is received, the next step in the process of issuing the bonds is for the City Council to adopt a presale resolution. The city's bond attorney has drafted the attached presale resolution for Council consideration. The resolution provides for the sale of $24.25 million in General Obligation Capital Improvement Plan Bonds, Series 2024A to finance the acquisition and betterment of 393 a new city hall facility. It is expected the City Council will consider proposals for and award the sale of the bonds at the July 22, 2024, City Council meeting. The city plans to issue an additional $10 million in bonds next year to finance phase II of the Civic Campus project, including the various park amenities and park building. BACKGROUND DISCUSSION BUDGET RECOMMENDATION Staff recommends the City Council adopt Resolution 2024-XX: Resolution Providing for the Sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A. ATTACHMENTS Chanhassen 2024A Presale Resolution PreSaleReport.Chanhassen.2024A.pdf 394 133483067v1 EXTRACT OF MINUTES OF A MEETING OF THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA HELD: JUNE 24, 2024 Pursuant to due call and notice thereof, a regular or special meeting of the City Council of the City of Chanhassen, Carver and Hennepin Counties, Minnesota, was duly held at the City Hall on June 24, 2024, at 7:00 P.M., for the purpose, in part, of authorizing the competitive negotiated sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A. The following members were present: and the following were absent: Member ________________ introduced the following resolution and moved its adoption: RESOLUTION NO. ______________ RESOLUTION PROVIDING FOR THE SALE OF $24,250,000 GENERAL OBLIGATION CAPITAL IMPROVEMENT PLAN BONDS, SERIES 2024A A.WHEREAS, the City Council of the City of Chanhassen, Minnesota (the "City") has heretofore determined that it is necessary and expedient to issue the City's $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A (the "Bonds"), to finance the acquisition and betterment of a new city hall facility to be located in the City; and B.WHEREAS, the City has retained Ehlers & Associates, Inc., in Roseville, Minnesota ("Ehlers"), as its independent municipal advisor for the Bonds in accordance with Minnesota Statutes, Section 475.60, Subdivision 2(9). NOW, THEREFORE, BE IT RESOLVED by the City of Chanhassen, Minnesota, as follows: 1.Authorization. The City Council hereby authorizes Ehlers to assist the City for the sale of the Bonds. 2.Meeting; Proposal Opening. The City Council shall meet at 7:00 P.M. on July 22, 2024, for the purpose of considering proposals for and awarding the sale of the Bonds. 3.Official Statement. In connection with said sale, the officers or employees of the City are hereby authorized to cooperate with Ehlers and participate in the preparation of an official statement for the Bonds and to execute and deliver it on behalf of the City upon its completion. The motion for the adoption of the foregoing resolution was duly seconded by Council Member _______________________ and, after full discussion thereof and upon a vote being taken thereon, the following Council Members voted in favor thereof: 395 133483067v1 2 and the following voted against the same: Whereupon said resolution was declared duly passed and adopted. 396 133483067v1 3 STATE OF MINNESOTA CARVER AND HENNEPIN COUNTIES CITY OF CHANHASSEN I, the undersigned, being the duly qualified and acting City Manager of the City of Chanhassen, Minnesota, DO HEREBY CERTIFY that I have compared the attached and foregoing extract of minutes with the original thereof on file in my office, and that the same is a full, true and complete transcript of the minutes of a meeting of the City Council, duly called and held on the date therein indicated, insofar as the minutes relate to providing for the issuance and sale of $24,250,000 General Obligation Capital Improvement Plan Bonds, Series 2024A. WITNESS my hand on June 24, 2024. __________________________________________ City Manager 397 398 399 400 401 402 City of Chanhassen, Minnesota $24,250,000 General Obligation CIP Bonds, Series 2024A Assumes Current Market Non-BQ "AAA" Rates plus 50bps Structure wrapped around 2016A Bonds Estimated Sources & Uses Dated 08/15/2024 | Delivered 08/15/2024 Sources Of Funds Par Amount of Bonds $24,250,000.00 Total Sources $24,250,000.00 Uses Of Funds Total Underwriter's Discount (0.800%)194,000.00 Costs of Issuance 125,000.00 Deposit to Capitalized Interest (CIF) Fund 489,479.82 Deposit to Project Fund 23,441,520.18 Total Uses $24,250,000.00 Series 2024A GO CIP Bonds | SINGLE PURPOSE | 6/18/2024 | 11:47 AM 403 City of Chanhassen, Minnesota $24,250,000 General Obligation CIP Bonds, Series 2024A Assumes Current Market Non-BQ "AAA" Rates plus 50bps Structure wrapped around 2016A Bonds Estimated Debt Service Schedule Date Principal Coupon Interest Total P+I Fiscal Total 08/15/2024 ----- 08/01/2025 --1,020,241.07 1,020,241.07 - 02/01/2026 --530,761.25 530,761.25 1,551,002.32 08/01/2026 --530,761.25 530,761.25 - 02/01/2027 120,000.00 3.700%530,761.25 650,761.25 1,181,522.50 08/01/2027 --528,541.25 528,541.25 - 02/01/2028 120,000.00 3.700%528,541.25 648,541.25 1,177,082.50 08/01/2028 --526,321.25 526,321.25 - 02/01/2029 120,000.00 3.650%526,321.25 646,321.25 1,172,642.50 08/01/2029 --524,131.25 524,131.25 - 02/01/2030 125,000.00 3.650%524,131.25 649,131.25 1,173,262.50 08/01/2030 --521,850.00 521,850.00 - 02/01/2031 605,000.00 3.650%521,850.00 1,126,850.00 1,648,700.00 08/01/2031 --510,808.75 510,808.75 - 02/01/2032 625,000.00 3.650%510,808.75 1,135,808.75 1,646,617.50 08/01/2032 --499,402.50 499,402.50 - 02/01/2033 645,000.00 3.650%499,402.50 1,144,402.50 1,643,805.00 08/01/2033 --487,631.25 487,631.25 - 02/01/2034 670,000.00 3.650%487,631.25 1,157,631.25 1,645,262.50 08/01/2034 --475,403.75 475,403.75 - 02/01/2035 695,000.00 3.650%475,403.75 1,170,403.75 1,645,807.50 08/01/2035 --462,720.00 462,720.00 - 02/01/2036 720,000.00 3.700%462,720.00 1,182,720.00 1,645,440.00 08/01/2036 --449,400.00 449,400.00 - 02/01/2037 750,000.00 3.800%449,400.00 1,199,400.00 1,648,800.00 08/01/2037 --435,150.00 435,150.00 - 02/01/2038 775,000.00 3.850%435,150.00 1,210,150.00 1,645,300.00 08/01/2038 --420,231.25 420,231.25 - 02/01/2039 805,000.00 3.900%420,231.25 1,225,231.25 1,645,462.50 08/01/2039 --404,533.75 404,533.75 - 02/01/2040 835,000.00 4.350%404,533.75 1,239,533.75 1,644,067.50 08/01/2040 --386,372.50 386,372.50 - 02/01/2041 875,000.00 4.450%386,372.50 1,261,372.50 1,647,745.00 08/01/2041 --366,903.75 366,903.75 - 02/01/2042 915,000.00 4.500%366,903.75 1,281,903.75 1,648,807.50 08/01/2042 --346,316.25 346,316.25 - 02/01/2043 955,000.00 4.550%346,316.25 1,301,316.25 1,647,632.50 08/01/2043 --324,590.00 324,590.00 - 02/01/2044 995,000.00 4.550%324,590.00 1,319,590.00 1,644,180.00 08/01/2044 --301,953.75 301,953.75 - 02/01/2045 1,045,000.00 4.600%301,953.75 1,346,953.75 1,648,907.50 08/01/2045 --277,918.75 277,918.75 - 02/01/2046 1,090,000.00 4.600%277,918.75 1,367,918.75 1,645,837.50 08/01/2046 --252,848.75 252,848.75 - 02/01/2047 1,140,000.00 4.650%252,848.75 1,392,848.75 1,645,697.50 08/01/2047 --226,343.75 226,343.75 - 02/01/2048 1,195,000.00 4.650%226,343.75 1,421,343.75 1,647,687.50 08/01/2048 --198,560.00 198,560.00 - 02/01/2049 1,250,000.00 4.650%198,560.00 1,448,560.00 1,647,120.00 08/01/2049 --169,497.50 169,497.50 - 02/01/2050 1,305,000.00 4.700%169,497.50 1,474,497.50 1,643,995.00 08/01/2050 --138,830.00 138,830.00 - 02/01/2051 1,370,000.00 4.700%138,830.00 1,508,830.00 1,647,660.00 08/01/2051 --106,635.00 106,635.00 - 02/01/2052 1,435,000.00 4.700%106,635.00 1,541,635.00 1,648,270.00 08/01/2052 --72,912.50 72,912.50 - 02/01/2053 1,500,000.00 4.750%72,912.50 1,572,912.50 1,645,825.00 08/01/2053 --37,287.50 37,287.50 - 02/01/2054 1,570,000.00 4.750%37,287.50 1,607,287.50 1,644,575.00 Total $24,250,000.00 -$21,518,714.82 $45,768,714.82 - Yield Statistics Bond Year Dollars $476,346.94 Average Life 19.643 Years Average Coupon 4.5174458% Net Interest Cost (NIC)4.5581724% True Interest Cost (TIC)4.5410771% Bond Yield for Arbitrage Purposes 4.4771811% All Inclusive Cost (AIC)4.5826387% IRS Form 8038 Net Interest Cost 4.5174458% Weighted Average Maturity 19.643 Years Series 2024A GO CIP Bonds | SINGLE PURPOSE | 6/18/2024 | 11:47 AM 404 City of Chanhassen, Minnesota $24,250,000 General Obligation CIP Bonds, Series 2024A Assumes Current Market Non-BQ "AAA" Rates plus 50bps Structure wrapped around 2016A Bonds Estimated Debt Service Schedule and Levy Calculation Date Principal Coupon Interest Total P+I CIF Existing 2016A Combined D/S 105% of Total 02/01/2025 -----436,200.00 436,200.00 458,010.00 02/01/2026 --1,551,002.32 1,551,002.32 (489,479.82)464,200.00 1,525,722.50 1,602,008.63 02/01/2027 120,000.00 3.700%1,061,522.50 1,181,522.50 -465,800.00 1,647,322.50 1,729,688.63 02/01/2028 120,000.00 3.700%1,057,082.50 1,177,082.50 -467,200.00 1,644,282.50 1,726,496.63 02/01/2029 120,000.00 3.650%1,052,642.50 1,172,642.50 -473,400.00 1,646,042.50 1,728,344.63 02/01/2030 125,000.00 3.650%1,048,262.50 1,173,262.50 -474,300.00 1,647,562.50 1,729,940.63 02/01/2031 605,000.00 3.650%1,043,700.00 1,648,700.00 --1,648,700.00 1,731,135.00 02/01/2032 625,000.00 3.650%1,021,617.50 1,646,617.50 --1,646,617.50 1,728,948.38 02/01/2033 645,000.00 3.650%998,805.00 1,643,805.00 --1,643,805.00 1,725,995.25 02/01/2034 670,000.00 3.650%975,262.50 1,645,262.50 --1,645,262.50 1,727,525.63 02/01/2035 695,000.00 3.650%950,807.50 1,645,807.50 --1,645,807.50 1,728,097.88 02/01/2036 720,000.00 3.700%925,440.00 1,645,440.00 --1,645,440.00 1,727,712.00 02/01/2037 750,000.00 3.800%898,800.00 1,648,800.00 --1,648,800.00 1,731,240.00 02/01/2038 775,000.00 3.850%870,300.00 1,645,300.00 --1,645,300.00 1,727,565.00 02/01/2039 805,000.00 3.900%840,462.50 1,645,462.50 --1,645,462.50 1,727,735.63 02/01/2040 835,000.00 4.350%809,067.50 1,644,067.50 --1,644,067.50 1,726,270.88 02/01/2041 875,000.00 4.450%772,745.00 1,647,745.00 --1,647,745.00 1,730,132.25 02/01/2042 915,000.00 4.500%733,807.50 1,648,807.50 --1,648,807.50 1,731,247.88 02/01/2043 955,000.00 4.550%692,632.50 1,647,632.50 --1,647,632.50 1,730,014.13 02/01/2044 995,000.00 4.550%649,180.00 1,644,180.00 --1,644,180.00 1,726,389.00 02/01/2045 1,045,000.00 4.600%603,907.50 1,648,907.50 --1,648,907.50 1,731,352.88 02/01/2046 1,090,000.00 4.600%555,837.50 1,645,837.50 --1,645,837.50 1,728,129.38 02/01/2047 1,140,000.00 4.650%505,697.50 1,645,697.50 --1,645,697.50 1,727,982.38 02/01/2048 1,195,000.00 4.650%452,687.50 1,647,687.50 --1,647,687.50 1,730,071.88 02/01/2049 1,250,000.00 4.650%397,120.00 1,647,120.00 --1,647,120.00 1,729,476.00 02/01/2050 1,305,000.00 4.700%338,995.00 1,643,995.00 --1,643,995.00 1,726,194.75 02/01/2051 1,370,000.00 4.700%277,660.00 1,647,660.00 --1,647,660.00 1,730,043.00 02/01/2052 1,435,000.00 4.700%213,270.00 1,648,270.00 --1,648,270.00 1,730,683.50 02/01/2053 1,500,000.00 4.750%145,825.00 1,645,825.00 --1,645,825.00 1,728,116.25 02/01/2054 1,570,000.00 4.750%74,575.00 1,644,575.00 --1,644,575.00 1,726,803.75 Total $24,250,000.00 -$21,518,714.82 $45,768,714.82 (489,479.82)$2,781,100.00 $48,060,335.00 $50,463,351.75 Significant Dates Dated 8/15/2024 First Coupon Date 8/01/2025 Yield Statistics Bond Year Dollars $476,346.94 Average Life 19.643 Years Average Coupon 4.5174458% Net Interest Cost (NIC)4.5581724% True Interest Cost (TIC)4.5410771% Bond Yield for Arbitrage Purposes 4.4771811% All Inclusive Cost (AIC)4.5826387% Series 2024A GO CIP Bonds | SINGLE PURPOSE | 6/18/2024 | 11:47 AM 405 City Council Item June 24, 2024 Item Resolution No. 2024-XX: Award Construction Contract for the 2024 Trail Improvement Project File No.CIP #TIM-02 Item No: E.24 Agenda Section CONSENT AGENDA Prepared By Alison Albrecht, Public Works Support Specialist Reviewed By Charlie Burke SUGGESTED ACTION "The Chanhassen City Council adopts a resolution approving a Not-To-Exceed Contract of $61,000 to GMH Asphalt Corporation for the 2024 Trail Improvement Project." Motion Type Simple Majority Vote of members present Strategic Priority Asset Management SUMMARY The 2024 Trail Improvement Project includes multiple distinct trail improvement locations within the city; this contract includes the Chanhassen Nature Preserve site and the Stone Creek site. The existing trail in these areas is proposed to be reclaimed and the gravel generated will be reused under the repaved trail (i.e. full-depth reclamation). New bituminous trail will be paved in the same locations to re-establish the trail surface. BACKGROUND N/A DISCUSSION N/A 406 BUDGET The Public Works Department solicited quotes for a full-depth rehabilitation overlay of these two trail improvement sites. Two quotes were returned, as summarized below. GMH Asphalt Corporation was the low quote. Chanhassen Nature Preserve Site GMH Asphalt Corporation $34,484.80 Northwest Asphalt $40,901.50 Stone Creek Site GMH Asphalt Corporation $25,632.75 Northwest Asphalt $30,283.05 The total project budget is $93,000. These two projects combined total $60,117.55. GMH has performed other paving work for the City previously and has completed the work satisfactorily. RECOMMENDATION Staff recommends awarding a contract for the 2024 Trail Improvement Project to GMH Asphalt Corporation. ATTACHMENTS Resolution Quotes Form of Agreement CIP TIM-02 Trails 5-Year CIP 407 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 26, 2024 RESOLUTION NO: 2024-XX MOTION BY: SECONDED BY: A RESOLUTION AUTHORIZING ENTERING INTO A CONTRACT WITH GMH ASPHALT CORPORATION FOR THE 2024 TRAIL IMPROVEMENT PROJECT WHEREAS, the City of Chanhassen wishes to perform improvements to its multi-mobility transportation system; and WHEREAS,the city has identified two (2) sites for system improvements that fit available funding; and WHEREAS, the City obtained competitive quotes for the work; and WHEREAS,the project is feasible, necessary, and cost-effective. NOW, THEREFORE, BE IT RESOLVED that the Chanhassen City Council hereby authorizes entering into a contract with GMH Asphalt Corporation for the 2024 Trail Improvement Project. PASSED AND ADOPTED by the Chanhassen City Council this 24 th day of June 2024. ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 408 409 410 411 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 1 NON-BID CONTRACT FOR PURCHASE OF GOODS AND SERVICES AGREEMENT made this 26th day of June, 2024, by and between the CITY OF CHANHASSEN, a Minnesota municipal corporation ("City") and GMH ASPHALT CORPORATION, a Minnesota Corporation ("Contractor"). IN CONSIDERATION OF THEIR MUTUAL COVENANTS, THE PARTIES AGREE AS FOLLOWS: 1. CONTRACT DOCUMENTS. The following documents shall be referred to as the “Contract Documents,” all of which shall be taken together as a whole as the contract between the parties as if they were set verbatim and in full herein: A. This Agreement. B. Request for Quotes, dated June 5, 2024. C. Contractor’s Quote dated June 17, 2024. In the event of a conflict among the provisions of the Contract Documents, the order in which they are listed above shall control in resolving any such conflicts. Contract Document “A” has the first priority and Contract Document “C” has the last priority. 2. CONTRACTOR OBLIGATIONS. The Contractor shall provide the goods, services and perform the work in accordance with the Contract Documents (“Work”). Contractor shall provide all personnel, supervision, services, materials, tools, equipment and supplies and do all things necessary and ancillary thereto specified in the Contract Documents. 3. CONTRACTOR’S REPRESENTATIONS. A. Contractor has examined and carefully studied the Contract Documents and other related data identified in the Contract Documents. B. Contractor is familiar with and is satisfied as to all federal, state, and local Laws and Regulations that may affect cost, progress, and performance of the Work. C. Contractor has given City written notice of all conflicts, errors, ambiguities, or discrepancies that Contractor has discovered in the Contract Documents, and the written resolution thereof by City is acceptable to Contractor. D. The Contract Documents are generally sufficient to indicate and convey understanding of all terms and conditions for performance and furnishing of the Work. 4. COMPENSATION. Contractor shall be paid by the City for the goods and services described in Paragraph 2 in accordance with the Quote, but not to exceed amount of Sixty-One 412 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 2 Thousand and 00/100 dollars ($61,000.00) which is inclusive of reimbursable expenses. The fee shall not be adjusted even if the estimated number of hours to perform a task, or any other estimate, assumption or matter is wrong or exceeded. Payment shall be made periodically after a service has been completed and within thirty-five (35) days of receipt of an invoice. 5. COMPLETION DATE. The Contractor shall complete the Work on or before October 30th, 2024. 6. WARRANTY. The Contractor shall be held responsible for any and all defects in workmanship and materials and upon notification by the City shall immediately replace or repair the defective workmanship and materials without cost to the City. The Contractor warrants that only new unused materials will be used. The Contractor further warrants to the City that all materials and services furnished under the Contract will be in conformance with Contract Documents and that the goods are of merchantable quality and are fit for the use for which they are sold. These warranties are in addition to any manufacturer's standard warranty, and any warranty provided by law. 7. RIGHTS AND REMEDIES. A. The duties and obligations imposed by the Contract Documents, and the rights and remedies available thereunder shall be in addition to, and not a limitation of, any duties, obligations, rights and remedies otherwise imposed or available by law. B. No action, or failure to act, by the City or the Contractor shall constitute a waiver of any right or duty afforded any of them under the Contract, nor shall any such action or failure to act constitute an approval of, or acquiescence in, any breach there under, except as may be specifically agreed in writing. 8. CHANGES TO WORK. Without invalidating the Contract, the City may, at any time, or from time to time, order additions, deletions or revisions in the work provided under this Agreement; these will be authorized by an amendment to the Contract. Upon approval of an amendment, Contractor shall proceed with the work provided under the amendment. Changes in the Contract Price shall be based upon the prices identified in the Quote provided or negotiated between the parties based on similar work provided in the Proposal. 9. UNAUTHORIZED WORK. Additional work performed without authorization of an amendment of this Contract will not entitle Contractor to an increase in the Compensation or an extension of the Contract. 10. DOCUMENTS. The City shall be the owner of all documents, reports, studies, analysis and the like prepared by the Contractor in conjunction with this contract. 11. COMPLIANCE WITH LAWS AND REGULATIONS. In providing services hereunder, Contractor shall abide by all statutes, ordinances, rules and regulations pertaining to the provisions of goods and services to be provided. This contract may be terminated by the City at any time upon discovery by the City that the Contractor or any of its subcontractors has submitted a false 413 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 3 statement under oath verifying compliance with any of the minimum criteria set forth in Minn. Stat. §16C.285, Subdivision 3, the Responsible Contractor statute. 12. STANDARD OF CARE. Contractor shall exercise the same degrees of care, skill, and diligence in the performance of the services as is ordinarily possessed and exercised by a professional Contractor under similar circumstances. No other warranty, expressed or implied, is included in this Agreement. City shall not be responsible for discovering deficiencies in the accuracy of Contractor’s services. 13. INDEMNIFICATION. To the fullest extent permitted by law, Contractor agrees to defend, indemnify and hold harmless the City, and its employees, officials, and agents from and against all claims, actions, damages, losses and expenses, including reasonable attorney fees, arising out of Contractor’s negligence or its performance or failure to perform its obligations under this Contract. Contractor’s indemnification obligation shall apply to subcontractor(s), or anyone directly or indirectly employed or hired by Contractor, or anyone for whose acts Contractor may be liable. Contractor agrees this indemnity obligation shall survive the completion or termination of this Contract. 14. INSURANCE. Prior to the start of the project, Contractor shall furnish to the City a certificate of insurance showing proof of the required insurance required under this Paragraph. Contractor shall take out and maintain or cause to be taken out and maintained until six (6) months after the City has accepted the public improvements, such insurance as shall protect Contractor and the City for work covered by the Contract including workers’ compensation claims and property damage, bodily and personal injury which may arise from operations under this Contract, whether such operations are by Contractor or anyone directly or indirectly employed by either of them. The minimum amounts of insurance shall be as follows: Commercial General Liability (or in combination with an umbrella policy) $2,000,000 Each Occurrence $2,000,000 Products/Completed Operations Aggregate $2,000,000 Annual Aggregate The following coverages shall be included: Premises and Operations Bodily Injury and Property Damage Personal and Advertising Injury Blanket Contractual Liability Products and Completed Operations Liability Automobile Liability $2,000,000 Combined Single Limit – Bodily Injury & Property Damage Including Owned, Hired & Non-Owned Automobiles Workers Compensation Workers’ Compensation insurance in accordance with the statutory requirements of the State of Minnesota, including Employer’s Liability with minimum limits are as follows: 414 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 4 $500,000 – Bodily Injury by Disease per employee $500,000 – Bodily Injury by Disease aggregate $500,000 – Bodily Injury by Accident The Contractor’s insurance must be “Primary and Non-Contributory”. All insurance policies (or riders) required by this Contract shall be (i) taken out by and maintained with responsible insurance companies organized under the laws of one of the states of the United States and qualified to do business in the State of Minnesota, (ii) shall name the City, its employees and agents as additional insureds (CGL and umbrella only) by endorsement which shall be filed with the City. A copy of the endorsement must be submitted with the certificate of insurance. Contractor’s policies and Certificate of Insurance shall contain a provision that coverage afforded under the policies shall not be cancelled without at least thirty (30) days’ advanced written notice to the City, or ten (10) days’ notice for non-payment of premium. An Umbrella or Excess Liability insurance policy may be used to supplement Contractor’s policy limits on a follow-form basis to satisfy the full policy limits required by this Contract. 15. INDEPENDENT CONTRACTOR. The City hereby retains the Contractor as an independent contractor upon the terms and conditions set forth in this Agreement. The Contractor is not an employee of the City and is free to contract with other entities as provided herein. Contractor shall be responsible for selecting the means and methods of performing the work. Contractor shall furnish any and all supplies, equipment, and incidentals necessary for Contractor's performance under this Agreement. City and Contractor agree that Contractor shall not at any time or in any manner represent that Contractor or any of Contractor's agents or employees are in any manner agents or employees of the City. Contractor shall be exclusively responsible under this Agreement for Contractor's own FICA payments, workers compensation payments, unemployment compensation payments, withholding amounts, and/or self-employment taxes if any such payments, amounts, or taxes are required to be paid by law or regulation. 16. SUBCONTRACTORS. Contractor shall not enter into subcontracts for services provided under this Agreement without the express written consent of the City. Contractor shall comply with Minnesota Statute § 471.425. Contractor must pay Subcontractor for all undisputed services provided by Subcontractor within ten days of Contractor’s receipt of payment from City. Contractor must pay interest of 1.5 percent per month or any part of a month to Subcontractor on any undisputed amount not paid on time to Subcontractor. The minimum monthly interest penalty payment for an unpaid balance of $100 or more is $10. 17. ASSIGNMENT. Neither party shall assign this Agreement, nor any interest arising herein, without the written consent of the other party. 18. WAIVER. Any waiver by either party of a breach of any provisions of this Agreement shall not affect, in any respect, the validity of the remainder of this Agreement. 415 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 5 19. ENTIRE AGREEMENT. The entire agreement of the parties is contained herein. This Agreement supersedes all oral agreements and negotiations between the parties relating to the subject matter hereof as well as any previous agreements presently in effect between the parties relating to the subject matter hereof. Any alterations, amendments, deletions, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties, unless otherwise provided herein. 20. CONTROLLING LAW. This Agreement shall be governed by and construed in accordance with the laws of the State of Minnesota. 21. COPYRIGHT. Contractor shall defend actions or claims charging infringement of any copyright or patent by reason of the use or adoption of any designs, drawings or specifications supplied by it, and it shall hold harmless the City from loss or damage resulting there from. 22. RECORDS/AUDIT. The Contractor shall maintain complete and accurate records of time and expense involved in the performance of services. Pursuant to Minnesota Statutes § 16C.05, Subd. 5, any books, records, documents, and accounting procedures and practices of City and Contractor relevant to the Agreement are subject to examination by City and Contactor, and either the Legislative Auditor or the State Auditor as appropriate. City and Contractor agree to maintain these records for a period of six years from the date of performance of all services covered under this Agreement. 23. MINNESOTA GOVERNMENT DATA PRACTICES ACT. Contractor must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to (1) all data provided by the City pursuant to this Agreement, and (2) all data, created, collected, received, stored, used, maintained, or disseminated by the Contractor pursuant to this Agreement. Contractor is subject to all the provisions of the Minnesota Government Data Practices Act, including but not limited to the civil remedies of Minnesota Statutes Section 13.08, as if it were a government entity. In the event Contractor receives a request to release data, Contractor must immediately notify City. City will give Contractor instructions concerning the release of the data to the requesting party before the data is released. Contractor agrees to defend, indemnify, and hold City, its officials, officers, agents, employees, and volunteers harmless from any claims resulting from Contractor’s officers’, agents’, city’s, partners’, employees’, volunteers’, assignees’ or subcontractors’ unlawful disclosure and/or use of protected data. The terms of this paragraph shall survive the cancellation or termination of this Agreement. 24. TERMINATION. This Agreement may be terminated by City on two (2) days’ written notice delivered to Contractor at the address on file with the City. Upon termination under this provision if there is no fault of the Contractor, the Contractor shall be paid for goods and services rendered and reimbursable expenses until the effective date of termination. If the City terminates the Agreement because the Contractor has failed to perform in accordance with this Agreement, no further payment shall be made to the Contractor, and the City may retain another Contractor to undertake or complete the work identified in this Agreement. 416 FORM OF AGREEMENT - NON-BID CONTRACT FOR GOODS AND SERVICES (with Responsible Contractor language).DOCX 6 Dated:_____________________ CITY OF CHANHASSEN By: Elise Ryan, Mayor And: Laurie Hokkanen, City Manager Dated:_____________________ GMH ASPHALT CORPORATION By: Print Name:_________________________________ Its:________________________________________ 417 418 419 This requests information is generated from Final Adopted CIP 2024-2028 CIP 2024-2028 FINAL ADOPT, Adopted Version. Streets - Trails & Parking Lot Pavement Management Overview Request Owner Charlie Howley, PW Director/City Engineer Department Street Maintenance Type Capital Improvement Project Number TIM-02 Description This project is the annual pavement rehabilitation projects for the City's trails and parking lots. Projects are identied on the 5-Year CIP Pavement Management Plan (PMP) - Trails & Parking Lots. Trail rehab work that occurs as part of a Street Improvement project are typically funded by the PMP Fund as part of that project. 2024 Trail project(s) is estimated at $223,000 and will include: Adding ADA trail from parking lot to playground at South Lotus Lake Park ($85,000) Rehab existing trail from Lake Ann Park Preserve north to Lake Lucy Road ($45,000) Rehab existing trail west from Galpin through Chanhassen Nature Preserve ($93,000) Details Type of Project Refurbishment 420 Capital Cost Breakdown Capital Cost FY2024 FY2025 FY2026 FY2027 FY2028 Total Engineering $20,000 $20,000 $20,000 $20,000 $20,000 $100,000 Construction/Maintenance $211,000 $211,000 $211,000 $230,000 $240,000 $1,103,000 Total $231,000 $231,000 $231,000 $250,000 $260,000 $1,203,000 Capital Cost FY2024 Budget $231,000 Total Budget (all years) $1.203M Project Total $1.203M Capital Cost by Year (Adopted) Construction/Maintenance Engineering 2024 2025 2026 2027 2028 $231,000.00 $231,000.00 $231,000.00 $250,000.00 $260,000.00 $0 $80K $160K $240K Capital Cost for Budgeted Years (Adopted) TOTAL $1,203,000.00 Construction/Maintenance (92%)$1,103,000.00 Engineering (8%)$100,000.00 421 Funding Sources Breakdown Funding Sources FY2024 FY2025 FY2026 FY2027 FY2028 Total Streets - TIM Funds $231,000 $231,000 $231,000 $250,000 $260,000 $1,203,000 Total $231,000 $231,000 $231,000 $250,000 $260,000 $1,203,000 Funding Sources FY2024 Budget $231,000 Total Budget (all years) $1.203M Project Total $1.203M Funding Sources by Year (Adopted) Streets - TIM Funds 2024 2025 2026 2027 2028 $231,000.00 $231,000.00 $231,000.00 $250,000.00 $260,000.00 $0 $80K $160K $240K Funding Sources for Budgeted Years (Adopted) TOTAL $1,203,000.00 Streets - TIM Funds (100%)$1,203,000.00 422 423 City Council Item June 24, 2024 Item Adopt Ordinance XXX: Amending 2024 Fee Schedule File No.Item No: E.25 Agenda Section CONSENT AGENDA Prepared By Jenny Potter, City Clerk Reviewed By Laurie Hokkanen SUGGESTED ACTION "The Chanhassen City Council Adopts Ordinance XXX: Amending 2024 Fee Schedule, and summary ordinance as presented." Motion Type 4/5 Vote Strategic Priority Operational Excellence SUMMARY In reviewing the city's procedures for administering sewer access charges (SAC) and water access charges (WAC), it has been determined that the city does not need to charge a $75.00 surcharge for each SAC unit associated with a building project. Therefore, it is proposed that the $75.00 surcharge per SAC unit be removed from the city's fee schedule. The City Council received information about this proposed change at their work session on May 20, 2024. Additionally, staff is proposing amendments to other parts of the city's fee schedule related to private development. These revisions include eliminating the per lot and per 1,000 square feet fee additions to the base application fee for plats and site plans. It is also proposed to eliminate the $3.00 per address fee. However, to continue offsetting mailing costs for applications that require public hearing notifications, a small fee increase is proposed for those application types. Other amendments to the fee schedule include clarifying rates for encroachment agreements, adding fees for assessment searches and permit investigations, and introducing a new property type for Garden 424 Centers. Additionally, there is a proposed reduction in the percentage of balance for late fees on delinquent utility accounts. BACKGROUND DISCUSSION BUDGET While the proposed SAC/WAC portion of the ordinance would be a fee reduction, the work performed related to SAC/WAC coordination is done alongside the rest of the building permitting process and as a result the building permit fees are adequate to cover the staff time associated with this task. The remainder of proposed fee amendments are expected to be budget neutral. RECOMMENDATION Staff recommends adoption of the proposed ordinance and summary ordinance as presented. ATTACHMENTS Ordinance XXX: Amending 2024 Annual Fee Schedule Ordinance XXX Fee Schedule Summary 425 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING THE CITY FEES AND CHARGES FOR 2024 THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. (A)Policy and Purpose. By the enactment of this Ordinance, the City Council intends to establish fees and charges required by the City Code for the year 2024 and to comply with Minnesota Statutes, 462.353, subd. 4. (B)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Sewer & Water Development Fees” as follows: Residential Development & Commercial, Industrial, and Institutional Development Sanitary Sewer Per Unit $2,480 Sanitary Sewer – Reduced rate (If 30% of the sewer hookup fee was paid at the time of final subdivision approval) Per Unit $1,730 Water Per Unit $9,190 Water – Reduced Rate (If 30% of the water hookup fee was paid at the time of final subdivision approval) Per Unit $6,440 City SAC Charge Per Unit $75 SAC Charge (As established by the Metropolitan Council) Per Unit $2,485 (C)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Development Review Fees” as follows: Comprehensive Plan Land Use Amendment $700600 Conditional Use Permit (does not include site plan review) Single-Family Residence $400325 All Others $600500 Development Contract $500 Amendment to Development Contract $250 Interim Use Permit (escrow and inspection fees are also required as applicable) Single Family Residence $400325 426 2 All Others $600500 Planned Unit Development Major Amendment $750 Minor Amendment $100 Rezoning $600500 Sign Permit Permanent $100 Temporary $35 Sign Plan Review $150 Sign Rental $200 Site Plan Agreement $500 Amendment to Site Plan Agreement $250 Site Plan Review Residential/Commercial/Industrial Districts Plus $10 per 1,000 Square Feet of Building Area $750500 Residential Districts Plus $5 Per Unit $500 Administrative $100 Subdivision Administrative Subdivision $150 Consolidate Lots $150 Create 3 Lots or Less $500 Create Over 3 Lots Plus $15 per lot $1,250000 Final Plat Plus $15 per lot $250 Metes and Bounds Division Plus $50 per lot $300 Variance/Appeal of Administration Decision $200 Zoning Ordinance Amendment $500 (D)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Other Community Development Fees, Continued” as follows: Filing Fees/Attorney Costs for Recording Documents Conditional Use Permit Per Document $50 Deeds Per Document $100 Easements Per Document $85 Interim Use Permit Per Document $50 Metes & Bounds Subdivision Per Document $250 Plats and Related Documents Flat Fee $450 Site Plan Agreement Per Document $85 Vacation Per Document $85 Variance Per Document $50 Wetland Alteration Permit Per Document $50 Flood Zone Information $65 Forestry Dedication Fee Per Tree $750 427 3 Loudspeaker Permit $10 Property Owner’s List Per Property $3 Short-Term Rental License Annual $200 Tax Increment Financing (TIF Application Fee Non-Refundable $3,000 Escrow $15,000 Temporary Outdoor Sales/Events Temporary Outdoor Event Permit $50 Seasonal Sales Permit $50 Special Event Permit $100 Race Addendum $50 Zoning Permit $50 Zoning Letter $65 (E)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Administrative Fees” as follows: Miscellaneous, Continued 2024 Radon Kit Each $8 Returned Chek/ACH Fee $30 Assessment Search $20 Permits 2024 Bow & Arrow Discharge Permit Annual $20 Shotgun Discharge Permit Annual $20 Stable Permit Annual $25 (F)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Permit & Inspection Fees” as follows: Permit & Inspection Fees 2024 Inspection Fees Investigation Fee Per Hour or amount of the permit fee, whichever is less $100 Additional Plan Review Required by Changes, Additions, or Revisions to Plan Per Hour $100 Inspections for Which No Fee is Specially Indicated Per Hour $100 Reinspection Fees Per Hour $100 Use of Outside Consultants for Plan Review or Inspections, or Both Actual Cost --- Other Building Fees State Surcharge .05% of Permit Value --- 428 4 Fee collected on behalf of Minnesota Department of Labor and Industry Moving Building (Permit fee does not include escrow) Each $150 Canceled permits can receive an 80% refund of the city permit fee. State Surcharge fee is non-refundable. (G)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Engineering & Public Works Fees” as follows: Engineering Fees 2024 Certificate of Compliance $25 Copies Small Format (Letter, Legal, Tabloid)Per Page $1 Large Format (22x34 and larger)Per Page $2 Drinking Water Test (Sample collected by city, tested by private lab) Plus Lab Fees $50 Driveway Permit Per Property $50 Encroachment Agreements Application and Recording Fee $200 Escrow Fees (Refundable - Returned Upon Approved Completion of Work) At the discretion of the City Engineer, additional escrow may be collected in the amount equal to 110% of the estimated construction cost of the project. (H)Fees and Charges. The fees and charges for the City for the year 2024 were originally established by Ordinance No. 720 and the City desires to amend the fees listed under “Utility Rates & Fees” as follows: Delinquent Accounts 2024 Late Fees 5%%10 of Balance --- Certification Fee 10% of Balance on Account (Minimum of $10) + County Fee --- Surface Water Management User Fees 2024 Single-Family, Rural Residential, Agriculture, & Undeveloped Per Quarter Per Month $29.82 $9.94 Other Property Types Per Quarter Base Fee Per Month Base Fee $58.02 $19.34 Medium Density Residential Multiply Base Fee by Utility Factor of 2.22 Per Acre --- 429 5 High Density Residential, Industrial, Office, Institutions (Churches, Schools, Government Buildings, Hospitals) Multiply Base Fee by Utility Factor of 3.30 Per Acre --- Business/Commercial Multiply Base Fee by Utility Factor of 4.23 Per Acre --- Parks, Cemeteries, Golf Courses, Arboretum Multiply Base Fee by Utility Factor of 0.46 Per Acre --- Parking Lots as a Principal Use Multiply Base Fee by Utility Factor of 6.14 Per Acre --- Garden Centers Multiply Base Fee by Utility Factor of 2.3 Per Acre --- (I)Application. Where a direct conflict exists between the amount of a fee or charge set by any provision of the City Code and a fee or charge set by this Ordinance, the fee or charge set by this Ordinance applies. Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this 24 th day of June 2024, by the City Council of the City of Chanhassen, Minnesota Jenny Potter, City Clerk Elise Ryan, Mayor (Summary Ordinance Published in the Sun Sailer on July 4, 2024) 430 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA SUMMARY OF ORDINANCE NO.XXX AN ORDINANCE AMENDING THE CITY FEES AND CHARGES FOR 2024 Section 1. (A)Policy and Purpose. By the enactment of this Ordinance, the City Council intends to establish fees and charges required by the City Code for the year 2024 and to comply with Minnesota Statutes, §462.353, subd. 4. (B)Fees and Charges. The fees and charges for the City for the year 2024 are available for inspection by any person during regular office hours at the office of the City Clerk. (C)Application. Where a direct conflict exists between the amount of a fee or charge set by any provision of the City Code and a fee or charge set by this Ordinance, the fee or charge set by this Ordinance applies. Section 2.This ordinance shall be effective June 24, 2024 A printed copy of Ordinance No. XXX is available for inspection by any person during regular office hours at the office of the City Clerk. PASSED, ADOPTED, AND APPROVED FOR PUBLICATION this 24th day of June 2024 by the City Council of the City of Chanhassen, Minnesota. (Published in the Sun Sailor on July 4, 2024) 431 City Council Item June 24, 2024 Item Adopt Ordinance XXX: Amending the Lot Requirements and Setbacks for the R-8 and R-12 Residential Zoning District File No.Item No: E.26 Agenda Section CONSENT AGENDA Prepared By Eric Maass, Community Development Director Reviewed By Eric Maass SUGGESTED ACTION Motion to adopt Ordinance XXX: Amending the Lot Requirements and Setbacks for the R-8 and R- 12 Residential Zoning District and approve the summary ordinance for publication. Motion Type 4/5 Vote Strategic Priority Development & Redevelopment SUMMARY The Planning Commission first reviewed possible revisions to the dimensional standards within the R-8 and R-12 zoning districts at their meeting on May 7, 2024. Staff brought the proposed updates to the attention of the Planning Commission due to staff's concern that the existing dimensional standards did not fit the types of homes proposed to be developed within these respective zoning districts and as a result a project would be required to seek multiple variances or go through a Planned Unit Development (PUD) rezoning process. The proposed ordinance would only amend the zoning regulations for properties already zoned by the city's official zoning map and guided by the city's 2040 future land use map for medium and high density residential. The proposed ordinance does not reguide or rezone any additional property into the categories of medium or high density residential. The Planning Commission held a public hearing on June 4, 2024 on the proposed ordinance amendment with no persons speaking during the public hearing portion of the meeting. The Planning Commission following discussion and considerations of the proposed amendments recommended approval of the ordinance as presented. 432 BACKGROUND The current minimum lot frontage required within the R-8 and R-12 districts is 150 feet. However, the types of homes the districts state are intended to be constructed within those areas are attached townhomes or apartment buildings, it is not conceivable that an attached townhome lot would have a width of 150 feet or be able to meet the current minimum setbacks. The same is true for the current lot area standard which for the R-8 district requires 7,500 square feet per dwelling unit and the R-12 district requires 3,600 square feet per dwelling unit. Those lot areas and corresponding lot widths and minimum setbacks are not realistic when contemplating the construction of attached townhomes in addition to apartment buildings which are housing types included in the stated intents of those zoning districts. DISCUSSION R-8 Residential Zoning District Revisions: Staff proposes reducing the required minimum lot area for the R-8 district from 7,500 square feet for two family dwellings and 5,500 square feet for townhouse or multifamily dwellings to a minimum lot area for the district of 1,800 square feet. This lot area is more appropriate for the type of housing suggested to be built within a property zoned as R-8. The 1,800 square feet also correlates with the proposed revisions to a minimum lot depth of 60 feet and minimum lot width of 30 feet. The proposed revisions to lot area, width, depth, and setbacks are all based on staff review of similar projects at applicable densities within the community that resulted in Planned Unit Development (PUD) designations. The proposed revision to R-8 also includes revisions to the allowable maximum lot cover. The R-8 district is considered a "medium density" residential district. The other zoning district within the "medium density" range is the RLM or Residential Low and Medium Density District. That district currently allows for single-family dwellings to have a maximum lot cover of 35 percent, for two-family dwellings to have a lot cover of 40 percent, and for townhouse or multifamily dwellings to have a maximum lot cover of 50 percent. Staff has drafted the attached ordinance to match the R-8 lot cover maximums to those of the RLM district. All development is required to account for, manage, and mitigate the stormwater generated by its impervious surfaces according to City of Chanhassen ordinances, as well as applicable watershed district rules and regulations. R-12 Residential Zoning District Revisions: Staff proposes reducing the required minimum lot area for the R-12 district from 3,600 square feet per dwelling unit for townhouses or multifamily dwellings to a minimum lot area of 1,500 square feet. This lot area is more appropriate for the type of housing suggested to be built within a property zoned as R-12. The 1,500 square feet also correlates with the proposed revisions to a minimum lot depth of 60 feet and a minimum lot width of 25 feet. The proposed revisions to lot area, width, depth, and setbacks are all based on staff review of similar projects at applicable densities within the community that resulted in Planned Unit Development (PUD) designations. The proposed revision to R-12 also includes revisions to the allowable maximum lot cover and increasing that maximum lot cover from 35 percent of the lot area to 50 percent of the lot area. The R-12 district is considered a "high density" residential district. The other zoning district within the "high density" range is the R-16 district. The R-16 district currently allows for a maximum lot coverage of 50 percent. All development is required to account for, manage, and mitigate the stormwater generated by its impervious surfaces according to City of Chanhassen ordinances, as well as applicable watershed district rules and regulations. BUDGET N/A RECOMMENDATION The Planning Commission held a public hearing on June 4, 2024, and following the public hearing and 433 discussion by the Planning Commission, the Commission voted unanimously on a 7-0 vote to recommend approval of the Ordinance as presented. ATTACHMENTS Ordinance XXX: Amending Lot Requirements and Setbacks in the R-8 and R-12 Residential Zoning Districts Summary Ordinance PH Notice to Sun Sailor - R8 and R12 Zoning District Updates 434 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 20 CHANHASSEN CITY CODE THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 20-655 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: Sec 20-655 Lot Requirements And Setbacks The following minimum requirements shall be observed in an “R-8” District subject to additional requirements, exceptions and modifications set forth in this chapter. (a) The minimum lot area is 1,800 square feet. (2) For a townhouse or multifamily dwelling, 5,500 square feet per dwelling unit. (b) The minimum lot frontage is 30 feet. If located on a cul-de-sac, the lot frontage shall be measured at the front building setback line.T (b) The minimum lot depth is 60 feet (c) The maximum lot coverage is 35 percent for single-family dwelling, 40 percent for a two-family dwelling, or 50 percent for an attached townhouse or multifamily dwelling. (d) The minimum principal structure setbacks are as follows: (1) For front yards, 20 feet, measured from the edge of public or private right of way. (2) For rear yards, 10 feet. (3) For side yards, 20 feet. Side yard setback requirements shall not be applied to a common wall of multi-family dwelling units. (e) The maximum height is as follows: (1) For the principal structure, three stories/35 feet. (2) For accessory structures, one story/15 feet. Section 2. Section 20-675 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: Sec 20-675 Lot Requirements And Setbacks The following minimum requirements shall be observed in an “R-12” District subject to additional requirements, exceptions and modifications set forth in this chapter. (a) The minimum lot area is 1,500 square feet. (1) 435 (b) The minimum lot frontage is 25 feet. If located on a cul-de-sac, the lot frontage shall be measured at the front building setback line. (c) The minimum lot depth is 60 feet (d) The maximum lot coverage is 50 percent. (e) The minimum principal structure setbacks are as follows: (1) For front yards, 20 feet, measured from edge of public or private right of way. (2) For rear yards, 10 feet (3) For side yards, 20 feet. Side yard setbacks shall not be applied to a common wall of multi-family dwelling units. (f) The maximum height is as follows: (1) For the principal structure, three stories/35 feet. (2) For accessory structures, one story/15 feet. Section 3. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ___day of _____, 2024, by the City Council of the City of Chanhassen, Minnesota ______________________________________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor (Published in the _________________________ on ______________________________) 436 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA SUMMARY OF ORDINANCE NO.XXX AN ORDINANCE AMENDING CHAPTER 20, ZONING OF THE CHANHASSEN CITY CODE The purpose of these Code amendments are as follows: Amend Section 20-655 Lot Requirements and Setbacks within the R-8 Residential Zoning District as well as amending Section 20-675 Lot Requirements and Setbacks within the R-12 Residential Zoning District within the City of Chanhassen. This ordinance shall go into effect upon passage of the ordinance by City Council. A printed copy of Ordinance No.XXX is available for inspection by any person during regular office hours at the office of the City Manager/Clerk. PASSED, ADOPTED, AND APPROVED FOR PUBLICATION this 24th day of June, 2024, by the City Council of the City of Chanhassen. (Publish in the Sun Sailor on July 4, 2024) g:\plan\_city code\2024\short-term rentals\summary of ordinance_short term rental ordinance amendment.docx 437 CITY OF CHANHASSEN CARVER & HENNEPIN COUNTIES NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Chanhassen Planning Commission will hold a public hearing on Tuesday, June 4, 2024 at 6:00 p.m. in the Council Chambers in Chanhassen City Hall, 7700 Market Boulevard. The purpose of this hearing is to consider amending Chapter 20, Zoning, concerning lot dimension standards within the R-8 and R-12 zoning districts. The proposed amendment will modify the minimum lot area, lot width, and lot depths required within those zoning districts. The proposed changes are available for public review at City Hall during regular business hours or on the City’s website at www.ChanhassenMN.gov/ProposedOrdinances. All interested persons are invited to attend this public hearing and express their opinions with respect to this proposal. Eric Maass, CommunityDevelopment Director Email: emaass@chanhassenmn.gov Phone: 952-227-1139 (Publish in the Sun Sailor on May 23, 2024) g:\plan\_city code\2024\r-8 and r-12 zoning district lot standards\ph notice to villager - r8 and r12 zoning district updates.docx 438 City Council Item June 24, 2024 Item Adopt Ordinance XXX: Amending Conditional Uses in the Rural Residential (RR) Zoning District. File No.Item No: E.27 Agenda Section CONSENT AGENDA Prepared By Eric Maass, Community Development Director Reviewed By Laurie Hokkanen SUGGESTED ACTION Motion to adopt the ordinance amending conditional uses in the RR zoning district to include "Group homes serving seven to 16 persons" as a conditional use in the Rural Residential (RR) zoning district and approve the summary ordinance for publication. Motion Type 4/5 Vote Strategic Priority Development & Redevelopment SUMMARY The city has received an application requesting an amendment to the city's zoning code that would add "Group homes serving seven to 16 persons" as a conditional use to the Rural Residential (RR) zoning district. The same use is currently a conditional use within the A-2 Agricultural Estate zoning district. If approved, the applicant intends to submit a future land use application for a Conditional Use Permit (CUP) that would allow for the expansion of Hope House which currently serves up to 6 people, as limited by city code. BACKGROUND The A-2 zoning district has a minimum lot size of 2.5 acres which as mentioned above allows for Group Homes serving between 7 and 16 person as a conditional use. The RR zoning District also has a minimum lot size of 2.5 acres. The A-2 zoning district has a stated intent of preserving rural character 439 while respecting development patterns by allowing single-family residential development. The RR zoning district has a stated intent to provide for single-family residential subdivisions intended for large lot developments. Based on the similarities of the minimum lot size and intent of the zoning districts themselves it appears reasonable to add "Group homes serving between 7 and 16 persons as a conditional use" to align with what is allowed as a conditional use in the A2 district. The city's current zoning code allows "Group homes serving six or fewer persons" in both the A2 and RR districts as permitted uses. The Planning Commission held a public hearing on June 18, 2024, with no persons providing public comment during the public hearing. DISCUSSION BUDGET RECOMMENDATION The Planning Commission recommended on a 6-0 vote that the City Council adopt the ordinance amending conditional uses in the RR zoning district as proposed. ATTACHMENTS Ordinance XXX - Amending RR Zoning District Conditional Uses Zoning Ordinance Amendment Application Summary of Ordinance - Group Homes in RR District Public Hearing Notice 440 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 20 CHANHASSEN CITY CODE, THE CITY COUNCIL OF THE CITY OF CHANHASSEN, MINNESOTA ORDAINS: Section 1. Section 20-594 of the City Code, City of Chanhassen, Minnesota, is hereby amended as follows: Sec 20-594 Conditional Uses The following are conditional uses in an “RR” District: (a) Churches. (b) Group homes for seven to 16 persons. (c) Private stables. (d) Recreational beach lots. (e) Towers as regulated by article XXX of this chapter. Section 2. This ordinance shall be effective immediately upon its passage and publication. PASSED AND ADOPTED this ___day of _____, 2024, by the City Council of the City of Chanhassen, Minnesota ______________________________________________________________ Jenny Potter, City Clerk Elise Ryan, Mayor (Published in the _________________________ on ______________________________) 441 6-18-24 7-8-24 7-16-24**5-28 442 443 444 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA SUMMARY OF ORDINANCE NO. XXX AN ORDINANCE AMENDING CHAPTER 20, ZONING OF THE CHANHASSEN CITY CODE The purpose of these Code amendments are as follows: Amend Section 20-594 Conditional Uses within the Rural Residential “RR” Zoning District within the City of Chanhassen to include “Group Homes for seven to 16 persons”. This ordinance shall go into effect upon passage of the ordinance by City Council. A printed copy of Ordinance No. XXX is available for inspection by any person during regular office hours at the office of the City Manager/Clerk. PASSED, ADOPTED, AND APPROVED FOR PUBLICATION this 24th day of June, 2024, by the City Council of the City of Chanhassen. (Publish in the ___________________ on [insert date]) g:\plan\_city code\2024\group homes in rr rural residential\summary of ordinance - group homes in rr district.docx 445 CITY OF CHANHASSEN CARVER & HENNEPIN COUNTIES NOTICE OF PUBLIC HEARING NOTICE IS HEREBY GIVEN that the Chanhassen Planning Commission will hold a public hearing on Tuesday, June 18, 2024, at 6:00 p.m. in the Council Chambers in Chanhassen City Hall, 7700 Market Blvd. The purpose of this hearing is to consider a request for a zoning ordinance amendment that would add “Group homes for seven to 16 persons” as a Conditional Use within the “RR” Rural Residential zoning district. Applicant: Open Hands Foundation/Westwood Community Church. Project documents for this request are available for public review on the city’s website at www.chanhassenmn.gov/government/city-code/proposed-ordinances or at City Hall during regular business hours. All interested persons are invited to attend this public hearing and express their opinions with respect to this proposal. Samantha DiMaggio Economic Development Manager Email: sdimaggio@chanhassenmn.gov Phone: 952-227-1148 (Publish in the Sun Sailor on June 6, 2024) g:\plan\_city code\2024\group homes in rr rural residential\draft ph notice to sun sailor - group homes in rr district.docx 446 City Council Item June 24, 2024 Item Resolution 2024-XX: Adopt Adjusted Final Assessment Roll for the Chan View Area of the 2024 City Pavement Rehabilitation Project. File No.ENG Project No. 24-01 CIP No. ST-012 Item No: G.1 Agenda Section PUBLIC HEARINGS Prepared By George Bender, Assistant City Engineer Reviewed By Charlie Howley SUGGESTED ACTION "The Chanhassen City Council adopts a resolution adopting the adjusted final assessment roll for the Chan View area of the 2024 City Pavement Rehabilitation Project No 24-01. Motion Type 4/5 Vote Strategic Priority Asset Management SUMMARY Conduct a Public (Assessment) Hearing for the 2024 City Pavement Rehabilitation Project No. 24-01. Adopt the adjusted final assessment roll for the Chan View area of the project. BACKGROUND As part of the overall Pavement Management Program (PMP), the city annually plans to rehabilitate a section or sections of public streets across the city. The Five-Year Capital Improvement Plan (CIP) identifies the near-term streets to be rehabilitated. Key dates and items relative to this project: On September 29, 2023, the Engineering Department released a Request for Proposals (RFP) for design and construction services for the 24-01 project. 447 On October 19, 2023, the Engineering Department released a Request for Proposals (RFP) for geotechnical services for the 24-01 project. On October 30, 2023, the City Council approved a Professional Services Agreement with Kimley-Horn, Inc. for design and construction services for the project. On November 13, 2023, the City Council approved a Professional Services Agreement with Braun Intertec for geotechnical exploration and engineering services in association with the 24-01 design contract. On December 11, 2023, the City Council called for a Public Hearing regarding the improvements to be held on January 8, 2024. On January 4, 2024, the Engineering Department hosted an Open House meeting with the impacted properties to discuss the project and respond to questions. On January 8, 2024, the City Council accepted the feasibility study, conducted a public improvement hearing, and authorized the preparation of plans and specifications. On February 26, 2024, the City Council approved the plans and specifications and authorized the advertisement for bids for the project. On March 21, 2024, the Engineering Department hosted a bid opening. On April 10, 2024, the Engineering Department hosted a public open house at the City's Public Works Facility. On April 15, 2024, the City Council called for a Public Hearing regarding the assessments to be held on April 22, 2024. On April 22, 2024, the City Council accepted the bids, awarded a contract to Park Construction Co., and approved adoption of the final assessment rolls for the project. Project information is available on the city's website at: https://www.chanhassenmn.gov/government/projects/street-projects/2024-city-pavement-rehabilitation- project There are currently 3,499 email addresses subscribed to receive project updates. To subscribe, residents and property owners should visit: https://www.chanhassenmn.gov/i-want-to/subscribe DISCUSSION Due to the fact that within the Chan View area the final assessment amounts for the single family properties and Chapel Hill Academy went up significantly from the preliminary figures, Staff reviewed the assessment amounts and adjusted them to reflect only a 10% increase over the preliminary assessment amount for the single family assessments. The assessment amount relative to Chapel Hill Academy was then decreased by the same percentage as the single family properties. Neighborhood Project Area Preliminary Assessment Amount Initial Final Assessment Amount Adjusted Final Assessment Amount Chan View area $4,615.00 $6,275.00 $5,077.00 Del Rio/Santa Fe area $2,984.00 $2,664.00 No Adjustment Stone Creek area $5,136.00 $4,545.00 No Adjustment The special assessment amounts for the mixed-use properties in the Chan View area are as follows: 448 Property Preliminary Assessment Amount Initial Final Assessment Amount Adjusted Final Assessment Amount Private School (Chapel Hill Academy)$23,073.00 $187,073.00 $151,342.00 60-unit multi-family (Heritage Park)$207,653.00 $179,933.00 No Adjustment 12-unit multi-family complexes $41,531.00 $35,987.00 No Adjustment 11-unit multi-family complex $36,916.00 $32,988.00 No Adjustment Laundromat (JZTL Coin Laundry)$27,687.00 $17,993.00 No Adjustment Commercial Strip Mall (Colonial Square)$332,245.00 $112,230.00 No Adjustment A reminder that as part of the April 22, 2024 City Council meeting, any assessment amount over $100,000.00 was approved to be repaid over a period of fifteen (15) years. BUDGET The cost difference between the original assessment roll and this new roll would be covered by the city's PMP Fund. RECOMMENDATION Staff recommends the City Council adopt the resolution adopting the adjusted final assessment rolls for the Chan View area of the 2024 City Pavement Rehabilitation Project No. 24-01. ATTACHMENTS Resolution - Adopt Revised Assessment Roll ST-012 -- 24-01 CIP Sheet 449 1 CITY OF CHANHASSEN CARVER AND HENNEPIN COUNTIES, MINNESOTA DATE: June 24, 2024 RESOLUTION NO:2024-XX MOTION BY: SECONDED BY: A RESOLUTION ADOPTING ADJUSTED FINAL ASSESSMENT ROLL FOR THE 2024 CITY PAVEMENT REHABILITION PROJECT NO. 24-01 WHEREAS,pursuant to proper notice duly given as required by law, the Council has met and heard and passed upon all objections to the proposed assessment for the improvement of the project area contained within the: 2024City Pavement Rehabilitation Project NOW THEREFORE, BE IT RESOLVED by the City Council of Chanhassen, Minnesota: 1.Such proposed assessment, a copy of which is attached hereto and made a part hereof, is hereby accepted and shall constitute the special assessment against the lands named therein, and each tract of land therein included is hereby found to be benefited by the proposed improvement in the amount of the assessment levied against it. 2.Assessment under $5,000.00 shall be payable in equal annual installments extending over a period of eight (8) years, and assessments over $5,000.00 shall be payable in equal annual installments extending over a period of ten (10) years. The first of the installments to be payable on or before the first Monday in January, 2025, and shall bear interest at the rate of 4.5 percent (4.5%) per annum. This assessment will appear on the first property tax statement for 2025. To the first installment shall be added interest on the entire assessment from November 23, 2024 until December 31, 2025. To each subsequent installment, when due, shall be added interest for one year on all unpaid installments. 3.The owner of any property so assessed may, at any time prior to certification of the assessment to the county auditor, pay the assessment on such property, with interest accrued to the date of payment, to the city treasurer, except that no interest shall be charged if the assessment is paid by November 22, 2024; and the owner may, at any time thereafter, pay to the city treasurer the entire amount of the assessment remaining unpaid, with interest accrued to December 31 of the year in which such payment is made. Such payment must be made before November 15 or interest will be charged through December 31 of the next succeeding year. If the property owner decides not to prepay the assessment before the date given above, the rate of interest that will apply shall be 6.5percent (6.5%) per year. 4.The clerk shall forthwith transmit a certified duplicate of this assessment to the county auditor to be extended on the property tax lists of the County. Such assessments shall be collected and paid over in the same manner as other municipal taxes. Passed and adopted by the Chanhassen City Council this 24th day of June, 2024. 450 2 ATTEST: Jenny Potter, City Clerk Elise Ryan, Mayor YES NO ABSENT 451 Streets - 2024 Street Improvements Overview Request Owner Charlie Howley, PW Director/City Engineer Department Annual Pvmnt Mgmt Contracted Type Capital Improvement Project Number ST-012-2024 Description The 5-year Capital Pavement Management Plan identies the planned streets for the next ve years. The Plan is updated every fall to review priorities and needs, but generally intends to keep the overall condition index (OCI) average across all streets at 70 or higher. The City uses a Pavement Management System in Cartegraph to monitor the condition of City streets. While proper preventative maintenance extends the life of the street and is cost effective, a street will eventually deteriorate to a point that major maintenance is required. Rehabilitation projects exited the life of the street. In cases when utilities or poor subgrade needs to be replaced or where streets have deteriorated to a point where rehabilitation will no longer be practical, reconstruction of the street is necessary. A feasibility study is written to consider the merits of the project, scope of work, costs, and assessments. The City has an Assessment Policy that identies what and how much of the project is assessed to beneting properties. The 2024 project is a full reconstruction project. Details Type of Project Reconstruction 452 Capital Cost Breakdown Capital Cost FY2024 Total Engineering $800,000 $800,000 Construction/Maintenance $7,340,000 $7,340,000 Total $8,140,000 $8,140,000 Capital Cost FY2024 Budget $8,140,000 Total Budget (all years) $8.14M Project Total $8.14M Capital Cost by Year Construction/Maintenance Engineering 2024 $8,140,000.00 $0 $2M $4M $6M $8M Capital Cost for Budgeted Years TOTAL $8,140,000.00 Construction/Maintenance (90%)$7,340,000.0 Engineering (10%)$800,000.00 453 Funding Sources Breakdown Funding Sources FY2024 Total Streets - PMP Funds $2,900,000 $2,900,000 Streets - PMP Assessments $1,935,000 $1,935,000 Utility Fund - Water $855,000 $855,000 Utility Fund - Sewer $670,000 $670,000 Utility Fund - SW Mgmt $1,780,000 $1,780,000 Total $8,140,000 $8,140,000 Funding Sources FY2024 Budget $8,140,000 Total Budget (all years) $8.14M Project Total $8.14M Funding Sources by Year Streets - PMP Assessments Streets - PMP Funds Utility Fund - Sewer Utility Fund - SW Mgmt Utility Fund - Water 2024 $8,140,000.00 $0 $2M $4M $6M $8M Funding Sources for Budgeted Years TOTAL $8,140,000.00 Streets - PMP Assessments (24%)$1,935,000.00 Streets - PMP Funds (36%)$2,900,000.00 Utility Fund - Sewer (8%)$670,000.00 Utility Fund - SW Mgmt (22%)$1,780,000.00 Utility Fund - Water (11%)$855,000.00 454 City Council Item June 24, 2024 Item 4th of July Parade Route Letters File No.Item No: K.1 Agenda Section CORRESPONDENCE DISCUSSION Prepared By Priya Tandon, Recreation Manager Reviewed By Laurie Hokkanen SUGGESTED ACTION N/A Motion Type N/A Strategic Priority N/A SUMMARY Letters were sent on Thursday, June 20 to all property owners along the 4th of July parade route to notify them of the parade date, time, route, and staging areas of this year's parade. Letters included a map of this year's route. Letters were also sent to all property owners along the former parade route whose properties are no longer on the route this year. BACKGROUND Prompted by traffic safety concerns with the historical parade route and 2024 road projects in the downtown area, a new route was developed for the Annual Fourth of July Parade. DISCUSSION BUDGET 455 RECOMMENDATION ATTACHMENTS Notification Letter New Route Notification Letter Former Route Route Map 2024 Historical Parade Route 2023 456 June 20, 2024 Dear Property Owner Along the Parade Route: The 4th of July holiday is rapidly approaching and is a very exciting time of the year. Part of the excitement is the annual 4th of July Parade, scheduled for Tuesday, July 4th at 2:30 p.m. Due to road construction occurring on the traditional parade route, there is a new parade route this year. Your property is located within or along the new parade route or float staging area. The map showing the new parade route, staging area, road closures, and times is enclosed. The new route is one of eight potential routes that were considered. The eight potential routes were evaluated on numerous factors, including overlap with construction areas, public safety considerations, impact on the downtown area and residents, and viewing experience for residents and visitors. Santa Vera Drive between Powers Blvd. and Kerber Blvd. will be closed to through traffic and residents from 12:30-4 p.m. for parade float staging. We recognize that this change will affect vehicle access to and from homes for residents in the Santa Vera Drive staging area. Please know that we did not make this decision to close Santa Vera Drive lightly. If you are a resident who will need vehicle access in or out of the staging area during the 12:30-4 p.m. timeframe, please plan on parking in the West Village Center parking lots or on Santa Vera Drive east of Kerber Blvd. If you need assistance accessing your residence during this time, please contact the Carver County Sheriff’s Office non-emergency line at 952-361-1231 and someone will assist you. Additionally, it would be greatly appreciated if all property owners along West 78th Street could turn off their irrigation systems during the parade time frame. Thank you in advance for your cooperation and understanding. Please reach out if you have any questions. Have a safe and enjoyable holiday. Sincerely, Priya Tandon Recreation Manager ptandon@chanhassenmn.gov 952-227-1122 www.chanhassenmn.gov/4th 457 June 20, 2024 Dear Property Owner: The 4th of July holiday is rapidly approaching and is a very exciting time of the year. Part of the excitement is the annual 4th of July Parade, scheduled for Tuesday, July 4th at 2:30 p.m. Due to road construction occurring on the traditional parade route, there is a new parade route this year. Your property is not located along the new parade route or float staging area. The new route is one of eight potential routes that were considered. The eight potential routes were evaluated on numerous factors, including overlap with construction areas, public safety considerations, impact on the downtown area and residents, and viewing experience for residents and visitors. We understand that many individuals have established traditions along the parade route, and we recognize that this change will affect those traditions. Please know that we did not make this decision lightly. We sincerely hope you will continue to participate in the Chanhassen Fourth of July Celebration and find new ways to incorporate it into your traditions. The map showing the new parade route, staging area, road closures, and times is enclosed. Signage will be placed along the former parade route to communicate this change to those looking to view the parade. Thank you in advance for your cooperation and understanding. Please reach out if you have any questions. Have a safe and enjoyable holiday. Sincerely, Priya Tandon Recreation Manager ptandon@chanhassenmn.gov 952-227-1122 www.chanhassenmn.gov/4th 458 Parade RouteNEW PRODUCED BY: LIBRARY TARGET CUBFOODS CHANHASSEN DINNER THEATREPOWERS BLVD.W 78TH ST.LAREDO DR.W 76TH ST. W 78TH ST. CHAN VIEW SANTA FE TR. MARKET ST . ParadeStaging Only Parade Staging Only Participant Check-In Road Closure Time00:00 Alternate Traffic Route Participants Only Line Up Area Parade Route Food & Beverage Sales 459 Pa radeRoute Produced by: Food, water & beer sales Parade InfoLIBRARY Access Point Check-in Tent Restricted Entrance (Participants & Local Traffic Only) Barricade Set-Up Time Restricted Entrance Alternate Traffic Route Participants Only Line Up Area Parade Route 00:00 00:00 Historical Route460