Loading...
02-10-2026 EDC Agenda PacketA.5:30 P.M. - CALL TO ORDER B.APPROVAL OF AGENDA Commissioners may add or delete items at this time. C.APPROVAL OF MINUTES C.1 Approve Economic Development Commission Minutes of November 18, 2025. D.VISITOR PRESENTATIONS E.DISCUSSION / GENERAL BUSINESS ITEMS E.1 Review the 2025 Economic Development Annual Report F.DIRECTOR'S REPORT G.ADJOURNMENT AGENDA CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION TUESDAY, FEBRUARY 10, 2026 LAKE SUSAN CONFERENCE ROOM, 7700 MARKET BLVD 1 Economic Development Commission Item February 10, 2026 Subject Approve Economic Development Commission Minutes of November 18, 2025. Section APPROVAL OF MINUTES Item No: C.1 Prepared By Kate Vogt, Admin Support Specialist File No: SUMMARY BACKGROUND DISCUSSION RECOMMENDATION Staff recommends that the Economic Development Commission approve the November 18, 2025 Commission minutes. ATTACHMENTS Economic Development Commission Minutes dated November 18, 2025 2 CHANHASSEN ECONOMIC DEVELOPMENT COMMISSION REGULAR MEETING November 18, 2025 Vice-Chair Bame called the meeting to order at 5:44 p.m. MEMBERS PRESENT: David Benedict, John Kroll, Nick Gardino, Luke Bame MEMBERS ABSENT: Eric Anderson STAFF PRESENT: Samantha DiMaggio, Economic Development Manager PUBLIC PRESENT: APPROVAL OF AGENDA: APPROVE ECONOMIC DEVELOPMENT COMMISSION AGENDA DATED NOVEMBER 18, 2025 Commissioner Kroll moved, and Commissioner Gardino seconded to approve the Agenda of the Economic Development Commission meeting dated November 18, 2025, as presented. All voted in favor, and the motion was carried unanimously with a vote of 4 to 0. APPROVAL OF MINUTES: APPROVE ECONOMIC DEVELOPMENT COMMISSION MINUTES DATED OCTOBER 14, 2025 Commissioner Gardino moved, and Commissioner Benedict seconded to approve the Minutes of the Economic Development Commission meeting dated October 14, 2025, as presented. All voted in favor, and the motion was carried unanimously with a vote of 4 to 0. VISITOR PRESENTATIONS: Melodie Bridgeman, Director of Community Development, Carver County Community Development Agency. Commissioner Benedict left the meeting at 7:06 pm. DISCUSSION/GENERAL BUSINESS ITEMS: ADJOURNMENT: Commissioner Kroll moved, and Commissioner Gardino seconded to adjourn the meeting. All voted in favor, and the motion was carried unanimously with a vote of 3 to 0. The Economic Development Commission meeting was adjourned at 7:18 p.m. Submitted by Samantha DiMaggio Economic Development Manager 3 Economic Development Commission Item February 10, 2026 Subject Review the 2025 Economic Development Annual Report Section DISCUSSION / GENERAL BUSINESS ITEMS Item No: E.1 Prepared By Sam DiMaggio, Economic Development Manager File No: SUMMARY The 2025 Economic Development Report outlines the activities of the Economic Development Commission (EDC) and any interactions with local businesses and their staff. BACKGROUND DISCUSSION RECOMMENDATION Staff recommends that the Economic Development Commission review the Annual Report. ATTACHMENTS 4th_Quarter_ED_Report.Year_End.2025.pdf 4 Economic Development 2025 - Annual Report 1 EXECUTIVE SUMMARY As 2025 concluded, Chanhassen’s economy reflected steady engagement and continued interest in growth despite a slower overall economy and limited available land. Staff met regularly with business owners, entrepreneurs, developers, and property owners to address challenges related to commercial space, financing, and workforce needs, including an increase in entrepreneurship following corporate downsizing. Interest in market-rate and 55-plus housing remained strong, while limited commercial rental availability and softer demand for office uses shaped development activity. Businesses emphasized the importance of visibility, community connection, being employers of choice, and the need for additional workforce housing options. Looking ahead to 2026, key considerations include the reuse of older manufacturing and industrial spaces coming onto the market but do not align with modern space requirements, continued requests for flexibility in allowable uses as developers adapt to market conditions, and ongoing constraints related to land availability. Workforce housing will remain a critical issue tied to business recruitment and retention. Staff will continue working with Carver County CDA to explore opportunities to utilize Local Affordable Housing Aid funds to support affordable housing initiatives and strengthen the long-term economic vitality of the community, consistent with the city’s motto, A Community for Life. NEW CHANHASSEN BUSINESSES Cheesecake Funk (2419 MN-7) Copeland (1264 Park Rd) Drive Coffee Roasters (2915 Water Tower Pl) FinishWorks (1664 Lake Dr West) GVT Tire & Auto (275 W 79th St) Hope Breakfast Bar (464 Lake Drive, Suite 100) Jump Start Adventure Park (18812 Lake Dr E) Lean Kitchen CO. (7860 Century Blvd) OG Coffee & Wine Bar (600 Market Street, Suite 110) Pro Nail & Lounge (464 Lake Drive, Suite 110) Ruby’s Family Restaurant (7824 Market Blvd) Superior Step ABA (7955 Stone Creek Dr, Ste 120) Voyageur Saunas (2973 Water Tower Place) Xcel Energy Service Center (1900 Coulter Blvd) Xfinity Store by Comcast (464 Lake Drive, Suite 130) ENGAGEMENT BY STAKEHOLDER GROUP Q1 Q2 Q3 Q4 TOTAL YTD Businesses 2 3 5 13 23 Non-Profits 1 1 3 3 8 Entrepreneurs 1 2 2 1 6 Brokers/Developers 5 6 3 4 18 TOTAL STAKEHOLDER MEETINGS 9 12 13 21 55 5 Economic Development 2025 - Annual Report 2 SUMMARY OF FORMAL AND INFORMAL BUSINESS VISITS Q4 Staff met with business owners and prospective entrepreneurs to discuss challenges related to securing space and financing, including individuals impacted by corporate downsizing who are now considering entrepreneurship, a trend expected to continue into the new year. Staff also reminded new businesses of the local option sales tax. Continued interest in market-rate and 55+ housing remains strong, while the limited availability of commercial rental space continues to challenge both existing and prospective businesses. Staff also worked with businesses and property owners near parcels listed for sale or under development, providing timely and accurate information on city projects while clarifying to businesses and tenants that staff does not determine the financial feasibility of private investments. Q3 We spoke with several developers who are exploring opportunities to make the highest and best use of their parcels in ways that align with existing PUD and zoning requirements while also enhancing the value of the city’s commercial districts. We also met with apartment developers to review proposed projects, ensuring they meet zoning, building, and fire requirements, reflect current market conditions, and remain financially feasible within developers’ budgets. During these discussions, staff shared potential funding options that may be available to support their projects. In addition, several developers with office-guided have expressed challenges due to the current lack of market demand for office space. Others with excess land are evaluating options to add onto existing properties or repurpose their sites, and many have requested flexibility in allowable uses as they explore alternative development opportunities. Q2 The businesses visited this quarter consistently expressed a desire to strengthen their visibility and reputation within the community. Many are interested in marketing themselves both to residents and to other businesses, aiming to demonstrate their value as contributors to the local economy and as engaged community partners. They want to be known not only for the products or services they provide, but also for their role in supporting a thriving and connected community. Employers also emphasized the importance of being recognized as “employers of choice.” They want to attract and retain a talented workforce by creating positive work environments, offering competitive opportunities, and maintaining a strong presence in the marketplace. A common theme that emerged was the need for affordable housing options for employees. Business leaders recognize that accessible housing is directly tied to workforce stability, recruitment, and retention, and they see it as a critical factor in sustaining both their businesses and the overall economic vitality of Chanhassen. Q1 Staff have been working with local property owners and developers on the potential growth and expansion of their properties within the City of Chanhassen, helping them maximize the use of their land and buildings. In addition, a growing number of developers have reached out to staff seeking available properties or assistance with sites they already own locally. Recently, staff sent introductory letters to 29 Chanhassen businesses and their corresponding property owners—those with either Chaska or Excelsior mailing addresses—to inform them of the new Local Option Sales Tax that took effect on April 1, 2025. Since this may have been the first point of contact with the city for some recipients, the letters also introduced key departments and resources available to support them. Additionally, staff supported the Engineering Department with business outreach to 50 local businesses in connection with the Market Boulevard project and the outreach meeting held on February 14, 2025. 6 Economic Development 2025 - Annual Report 3 BUSINESS FEATURED IN THE LOCAL VIDEO SERIES Q1 The OG Coffee and Wine Bar (Julie Jost) Q2 Federal Package (Melissa Niebes), Na’s Thia Café (Na Monthisane & Christina Kirksey), and Golf Zone (Brian Colvin). Q3 Lakewinds (Renee Winslet), and Campfire MN (Kori Redepenning) Q4 Quantum Controls (Haley Schubert & Wendy Eggers) and Cheesecake Funk (Vanessa Drews) REQUESTED ASSISTANCE (via email or in-person meeting) Q1 Q2 Q3 Q4 TOTAL YTD Business Planning 0 2 0 0 2 eCommerce 1 0 0 0 1 Funding (Grants, TIF, etc.) 0 4 0 10 14 Human Resources 0 2 0 1 3 Marketing and Sales 3 13 7 32 55 Market Research 1 0 3 0 4 Mentoring 1 0 3 14 18 Non-Profit Issues 0 4 0 1 5 Product Development 0 0 0 1 1 Property Development 43 65 21 20 149 Regulatory Compliance 0 4 0 0 4 Site Location 24 21 9 29 83 Start-up Assistance 7 3 7 13 30 Strategic Planning 0 6 0 11 17 Tax Planning 0 0 1 0 1 TOTAL 89 124 48 132 393 7 Economic Development 2025 - Annual Report 4 BUSINESS ENGAGEMENTS Q1 Dandy Lion Coffee, Hansen Hometech, Kraus Anderson, and Phillips Edison & Company. Q2 Holiday Inn Express & Suites Chanhassen by IHG, Hope House, and IWCO. Q3 Buhl Investors, Jump Start Adventure Park, Xcel Energy, and Xfinity/Comcast. Q4 Cheesecake Funk, Comcast Xfinity, Erhart Farm, the Garden by the Woods, GNC of Chanhassen, and Trouvaille Memory Care Suites. AGENDAS OF THE ECONOMIC DEVELOPMENT AUTHORITY Patrick Gavin – City of Chanhassen Communications Manager Steve Curtis – President Southwest Metro Chamber of Commerce Vinita Patil – Acumen Business Solutions- Commercial Real Estate & Hospitality Investment Specialist Erik Hansen – Chief Executive Officer SouthWest Transit Tamara Kangas Erickson – President & Artistic Director – Chanhassen Dinner Theatres Lisa Wadsen – Senior Real Estate Manager Kwik Trip Charlie Hansen Local Entrepreneur & Owner Dandy Lion Coffee Melodie Bridgeman – Director of Community Development, Carver County Community Development Agency SAC PROGRAM BUSINESS UTILIZATION Business Type of Business Total Assessed City Credits Value of Waiver Q1 Driven Coffee Roasters (2915 Water Tower Pl) Light Manufacturing 1 1 $12,080 Q2 Lil Metros Daycare (7580 Quattro Drive) Employee Daycare 1 1 $12,080 Q3 Liora Nails & Spa (500 W. 79th Street, Suite 100) Nail Salon 1 1 $12,080 Q4 Jump Start Adventure Park (18812 Lake Drive E) Recreation 7 5 $60,400 8 Economic Development 2025 - Annual Report 5 Year-Over-Year Trends TOP 5 REQUESTED ASSISTANCE (via email or in-person meeting) 2023 2024 2025 Property Development Site Location Property Development Site Location Property Development Site Location Strategic Planning Marketing and Sales Marketing and Sales Start-up Assistance Strategic Planning Start-up Assistance Business Operations/ Workforce Development Start-up Assistance Mentoring SAC PROGRAM BUSINESS UTILIZATION Year Businesses Assisted Total City Credits Total Value of Waivers 2024 Hospitality (1), Professional Services (1), and Light Manufacturing (1) 7 $116,700 2025 Light Manufacturing, Professional Services, Recreation, and Employee Daycare Facility. 8 $96,640 NEW CHANHASSEN BUSINESSES 2023 2024 2025 10 9 13 9