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01.27.2026 PRC MinutesCHANHASSEN PARK AND RECREATION COMMISSION REGULAR MEETING MINUTES JANUARY 27, 2026 Chair Leisen called the meeting to order at 6:01 p.m. MEMBERS PRESENT: Rob Swanson; Kristin Fulkerson; Michael Leisen; Sean Morgan; Emily Nagel; Kurt Scheppmann; Nora Nashawaty; Clara Christenson, youth. MEMBERS ABSENT: None. STAFF PRESENT: Jerry Ruegemer, Park and Recreation Director; and Priya Wall, Recreation Manager. PUBLIC PRESENT: None. APPROVAL OF AGENDA: Commissioner Fulkerson moved, Commissioner Swanson seconded to approve the agenda as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. PUBLIC ANNOUNCEMENTS: None. VISITOR PRESENTATIONS: None. APPROVAL OF MINUTES: 1. Approve Park & Recreation Minutes dated December 9, 2025 Commissioner Nagel moved, Commissioner Christenson seconded to approve the minutes of the Park and Recreation Commission meeting dated December 9, 2025, as presented. All voted in favor and the motion carried unanimously with a vote of 8 to 0. GENERAL BUSINESS: 1. Sports Facilities Companies: Review Management Options for Chanhassen Bluffs Community Center The Park and Recreation Commission relocated to Lake Susan conference room at 6:06 p.m. Jim Arnold, Sports Facilities Companies, reviewed the services his company provides. He provided an overview of their services for other venues. He discussed the concepts to concreate Park and Recreation Commission Minutes – January 27, 2026 2 process for each individual venue. He explained the reason why communities outsource for sports facilities management. Commissioner Nagel asked what facilities they manage in Minnesota. Mr. Arnold answered that they manage the Waconia Ice Center and the Safari Island Community Center. Mr. Arnold reviewed their public model and the roles of Chanhassen and Sports Facilities Companies. He reviewed the financial reporting that Sports Facilities Companies follows. Chair Leisen asked if their contract included a management fee. Mr. Arnold confirmed it was a monthly management fee and 2 percent gross income. Chair Leisen asked how the KPIs and their fees are aligned. Mr. Arnold answered that the City requests directions, and the company often goes that way. They ensure they are profitable before following the direction. He clarified that the 2 percent gross income was not tied to revenue, because there are high expenses. Chair Leisen asked about the management fee. Mr. Arnold answered that the fee was $25,000 a month. Commissioner Nashawaty asked when the management fee started. Mr. Arnold responded that the contract would start in pre-opening. The expense is $360,000 as a flat fee, but they decided on a flat fee of $180,000 for Chanhassen. He said once the building receives the permit for occupancy, the management fee starts. Mr. Arnold discussed the importance of recruiting a general manager early. He discussed the pre- opening team that would assist the city with operations. He reviewed the Sports Facilities Companies' support center network. He summarized the different tools they use, which are included in the management fee. These tools include the hub integration and facility management. They also use technology such as PlayEasy, AwayTeam, and SportsNext. He discussed how the AwayTeam technology can help coordinate local sponsorships. He summarized the goal to be a true community center that would provide additional opportunities aside from working out. Chair Leisen asked for facilities that were similar and what separated the top performers from the lower performers. Mr. Arnold answered that the engagement piece created a difference. The top performers wanted to get top engagement from the community in non-traditional ways. Commissioner Nashawaty asked if there was a plan for membership-based usage or if the residents would pay per use. Mr. Arnold responded that they wanted to have membership, but still provide an opportunity for those who would want to use the center. Mr. Ruegemer said that they were considering day-pass options. Park and Recreation Commission Minutes – January 27, 2026 3 Mr. Arnold said they could run a variety of membership or punch-pass option models and complete research to understand the impacts. Commissioner Morgan asked if any amenities were open to the public. Mr. Arnold said they were considering different options for the portions of the building that were free to access. He said it was a city-driven decision. Jerry Ruegemer, Park and Recreation Director, said they were considering what components were attractive for membership. They were developing the model currently. Commissioner Fulkerson said she appreciated the punch-card option for developmental ice access at another ice rink. Commissioner Nashawaty asked about what happened to pension plans for city employees. Mr. Arnold answered that there was no clear standard. He discussed the W-2 savings opportunities for the city, but also confirmed the case-by-case basis. Mr. Ruegemer said that Jodi Sarles would be the general manager, but she desired to remain a city employee. Other new employees would be employed through Sports Facilities Companies. He stated that they had five to six part-time facility supervisor employees. Commissioner Morgan asked about how many employees the facility would need. Mr. Arnold answered that they would have ten full-time employees and several administrative employees. He said that there could be approximately 150 employees, including part-time opportunities. Commissioner Swanson asked what would happen if a city employee and a Sports Facilities Companies employee did not interact well. Mr. Arnold answered that the city has ultimate say over the employees. Chair Leisen asked if they pitched any facilities in Minnesota. Mr. Arnold answered that the only facilities they manage in Minnesota were acquired through acquisition. They had completed feasibility studies, but they had not pursued management opportunities for other facilities in Minnesota. The Park and Recreation Commission returned to the Council Chambers at 7:13 p.m. Mr. Ruegemer discussed the benefits of tying in Sports Facilities Companies’ experience with running a larger facility to help focus on success. Commissioner Scheppmann asked about the City Council’s feedback on the partnership. Mr. Ruegemer answered that the City Council was in favor of starting the exploratory process, but it was not a short process and would involve lawyer review. Park and Recreation Commission Minutes – January 27, 2026 4 Commissioner Swanson asked if they partnered with other cities on similar recreation centers. Mr. Ruegemer responded that the conversation was high-level, but they did not discuss specific communities. Commissioner Fulkerson encouraged receiving feedback from the staff of other recreation centers to understand the relationship dynamic. 2. Park and Recreation Commission Strategic Planning Mr. Ruegemer summarized the strategic initiatives discussed in 2025. He noted that Strategic Planning was to assist staff with a proactive approach and clear direction. Chair Leisen requested that Commissioner Morgan provide additional information about strategic planning. Commissioner Morgan stated that a strategic plan was to empower commissioners toward an area they were passionate about. He discussed that the staff could use commissioners as a tool to help them maximize their inputs. Chair Leisen said that the subcommittees were not to be a big-time commitment, but an opportunity for additional experience. He requested that Commissioner Morgan help guide the process. Commissioner Nagel volunteered for anything that focused on the civic campus launch. Commissioner Nashawaty said she would be interested in helping with the civic campus launch. Mr. Ruegemer said that programs, events, or elements that they would like to see at the community center would be helpful. Commissioner Scheppmann asked about a skate school option, which could be a good example of how a certain passion could help the community get the needs they desire. Commissioner Fulkerson expressed interest in helping with the ideas of figure skating. Chair Leisen suggested that Commissioner Scheppmann help figure out the balance of events. Commissioner Fulkerson discussed details of figure skating opportunities. Mr. Ruegemer responded that it would be important to note that the community center would be a regional draw for all activities, including hockey and figure skating. Park and Recreation Commission Minutes – January 27, 2026 5 Mr. Ruegemer asked about competing music. Commissioner Fulkerson answered that one skater would have the right-of-way when they are completing their programs. Commissioner Morgan stated he would be interested in knowing about the timing process as they move towards phase two of the project, so it would be a value add. Priya Wall, Recreation Manager, said they would consider it internally based on the construction schedule. Mr. Ruegemer said that they could develop the package and incorporate the date later. Chair Leisen said they would move forward with the two subcommittees. Youth Commissioner Christenson expressed interest in helping with the civic campus sub- committee. Mr. Ruegemer answered that the information could be communicated in the Commission Member Presentations section. He requested consent to bring in Kelly Grinnell, Finance Director, to discuss the budget process to prioritize the playground replacement schedule. Youth Commissioner Christenson asked if there was a decision about the park they visited a while ago. Mr. Ruegemer responded that there was a moratorium on any type of improvements. They will not be reinvesting in active components in that park. REPORTS: 1. 2026 February Festival Preview Ms. Wall provided a summary of activities for the February Festival. February Festival is scheduled for February 7th from 12 to 3 p.m. on Lake Ann. She reviewed the different community sponsors who helped with the event. Commissioner Scheppmann asked if anything was driving the increased sponsorships. Ms. Wall answered that the title sponsors were often larger organizations, but the city built strong relationships with the sponsors, and those returning sponsors are high. Mr. Ruegemer credited Ms. Wall for creating positive partnerships. COMMISSION MEMBER COMMITTEE REPORTS: None. COMMISSION MEMBER PRESENTATIONS: None. ADMINISTRATIVE PRESENTATIONS: Park and Recreation Commission Minutes – January 27, 2026 6 Mr. Ruegemer reviewed the progress at Lake Ann Park Preserve. They received approval to move forward with the north trail between Lake Ann and Lake Lucy and the parking lot at Greenwood Shores. He said that the two projects were out to bid currently. Commissioner Morgan asked about the scope of the project. Mr. Ruegemer answered that they were attempting to get the project approved in February. The tree clearing had to occur before nesting. Commissioner Morgan asked if the cost estimate included the extension to Lake Lucy Road. Mr. Ruegemer responded that the cost estimate included redoing the existing portion. Commissioner Nashawaty asked for clarification on the cap-and-fill. Mr. Ruegemer answered that the idea was not to go sub-grade for the trail. He said that he was trying to gather information about the next step for trail options since they could not do a cap-and-fill. Mr. Ruegemer discussed the need to understand the expectations for phase three of the project. He said they would bring questions back to the Park and Recreation Commission and request feedback. He stated that they would clear trees before April 1st and work on the trail after the frost clears out. He said dealing with external agencies created different challenges with the project, so he did not have a clear timeline. He reviewed the Chanhassen Bluffs Community Center and noted that the name was changed to the Chanhassen Community Center so it would be easily identifiable. He stated that Commissioner Swanson and Commissioner Nashawaty were up for reappointment if they would like to reapply. He suggested gathering staff in March since the gathering in December was canceled. ADJOURNMENT: Commissioner Scheppmann moved, Commissioner Nashawaty seconded to adjourn the meeting. All voted in favor and the motion carried unanimously with a vote of 8 to 0. The Park and Recreation Commission meeting was adjourned at 8:13 p.m. Submitted by Jerry Ruegemer Park and Recreation Director