06-23-2025 CC WS1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
June 23, 2025
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember von Oven, Councilmember
Kimber, Councilmember Schubert, Councilmember McDonald
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Patrick Gavin, Communications Manager;
Jerry Ruegemer, Parks Director; Breanne Rothstein, Planning Consultant; Rachel Arsenault,
Associate Planner; Jenny Potter, City Clerk; Samantha DiMaggio, Economic Development
Manager; Kelly Grinnell, Finance Director
PUBLIC PRESENT: Faith Xiong, MnDOT Project Manager; Veronica Richfield, KLJ
Engineering Project Manager; Josh McKinney, MeasureGroup; Ryan Sailer, Headwaters
Development; Melodie Bridgeman, Carver County CDA
Highway 7 Corridor Update
Charlie Howley, Public Works Director/City Engineer, introduced Faith Xiong, MnDOT Project
Manager, and Veronica Richfield, KLJ Engineering Project Manager, to give an overview of the
Highway 7 Corridor Study. The study focuses on the 18-mile stretch between Hopkins Crossroad
and the western Hennepin County line in St. Bonifacius. Prompted by a 2021–2022 road safety
audit, the study aims to identify long-term transportation needs and explore improvement options
for all users. Council members received an overview of the project’s progress, goals, and risks,
particularly the challenge of aligning future improvements with an FY2029 MnDOT pavement
project.
Two leading alternatives for Segment 1 (St. Bonifacius to TH 41) were presented: a roundabout
corridor with raised medians and intersection upgrades and an “improved intersections only”
approach using a mix of designs like ¾ intersections, signalized RCIs and a Green T (a modified
T-intersection that prioritizes mainline traffic flow while still allowing side-road access). Each
alternative was evaluated for traffic flow, crash reduction, cost and pedestrian safety.
Roundabouts, for example, showed strong safety benefits but raised concerns about travel
distance and public acceptance.
MnDOT is also evaluating options for a continuous bike/pedestrian trail along Segment 1, with a
preliminary recommendation to offset the trail from the roadway where feasible. Segment 2 (TH
41 to I-494) focuses on safer pedestrian crossings, including potential grade separations near
Minnetonka High School.
Chanhassen City Council feedback will help shape MnDOT’s upcoming implementation plan
and final recommendations, expected later this summer following additional public engagement.
City Council Work Session Minutes – June23, 2025
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6440 Hazeltine Blvd Development Proposal Discussion
Rachel Arsenault, Associate Planner, gave an overview of the 5.5-acre site where Headwaters
Development is exploring the possibility of a multi-family residential project. The site is
currently zoned Residential Single Family (RSF) but is guided for Residential Medium Density
in the city’s 2040 Comprehensive Plan, which supports a net density of 4–8 units per acre.
Rezoning would be required, with potential zoning districts including R-4 Mixed Low Density,
RLM Residential Low & Medium Density, or R-8 Mixed Medium Density. The developer’s
proposed concept includes 44 units, which aligns with the density range supported by the Comp
Plan.
Josh McKinney from MeasureGroup, and Ryan Sailer from Headwaters Development shared
their initial thoughts and ambitions for the site, which is located near Lake Minnewashta and
directly across Highway 41 from Minnetonka Middle School West. While no formal action was
taken, the City Council emphasized that traffic flow and access management would need to be a
major consideration as the concept moves forward.
Discuss 75,000 grant to Carver County CDA to acquire and rehab 6721 Hopi Road
The City Council discussed a funding request from the Carver County Community Development
Agency (CDA) for $75,000 in Local Affordable Housing Aid (LAHA) to support the acquisition
and rehabilitation of a single-family home at 6721 Hopi Road. The proposal represents a
partnership between the city, Habitat for Humanity, the CDA, and private donors to establish
Chanhassen’s first Community Land Trust (CLT) home.
The 1926-built, three-bedroom home would undergo approximately $95,000 in renovations.
With all funding sources secured—including $75,000 from the city—the home could be sold to a
low-to-moderate-income household (earning at or below 80% of the Area Median Income) for
$235,000, well below market value. The home would enter the Carver County CLT and remain
affordable for at least 99 years through a ground lease.
This was the first formal presentation of the project to the council. Melodie Bridgeman from the
CDA attended to provide additional information and answer questions. Councilmembers voiced
support for this project while also emphasizing the need to consider how future LAHA funds can
be used strategically to expand housing affordability across a broader range of neighborhoods in
Chanhassen.
Excess ROW at Lyman Blvd and Hwy 101
Laurie Hokkanen, City Manager, gave information to the City Council regarding a potential
acquisition of excess right-of-way (ROW) on the north side of Lyman Boulevard, west of
Highway 101. Kraus-Anderson, who is the property owner of the Crossroads development
immediately adjacent, has expressed interest in purchasing the excess ROW currently owned by
City Council Work Session Minutes – June23, 2025
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Carver County to support the development of a specialty grocery store and accompanying
parking at the Crossroads Shopping Center. Because Carver County can sell the land directly to
the city, the process is more efficient if the city acts as the intermediary.
Mayor Ryan recessed the work session at 6:54 P.M.
Mayor Ryan reconvened the work session at 7:44 P.M.
Preliminary 2026 Budget & Levy Discussion #1
The City Council held a work session to begin its first discussion of the City’s preliminary 2026
budget and property tax levy. This marks the beginning of the annual budgeting process, which
will continue through the fall and culminate in final adoption in December. No formal action was
taken, but staff sought early feedback from the City Council as departments begin preparing their
detailed budget requests.
Initial projections for the General Fund indicate an anticipated expenditure increase of 4–5%,
primarily driven by labor-related costs. The preliminary budget includes a 3% cost-of-living
adjustment for employees, a 3% step increase for eligible staff, and estimates a 15% increase in
maximum health insurance premiums. The budget also accounts for new state mandates,
including the implementation of the Minnesota Paid Leave Law, and results from the recent
staffing study.
Other notable cost drivers include a 6.1% increase in the Sheriff’s contract, $33,000 for the 2026
elections, and $10,000 for wildlife population management. The operating impact of the new
City Hall and Senior Center is also being factored in; however, staff expects no overall cost
increase. No major changes to other city service levels are expected.
Looking ahead, the Council was reminded that the next work session on the budget will be held
on August 11, 2025. At that point, staff will present a more detailed draft budget and levy based
on department submissions and Council direction.
Mayor Ryan adjourned the work session at 8:13 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk