05-18-2025 CC WSCity Council Work Session Minutes – May 18, 2026
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CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
May 18, 2026
Mayor Ryan called the work session to order at 5:30 p.m.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald,
Councilmember von Oven, Councilmember Kimber, Councilmember Schubert
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: Laurie Hokkanen, City Manager; Charlie Howley, Public Works
Director/City Engineer; Eric Maass, Community Development Director; Patrick Gavin,
Communications Manager; Jerry Ruegemer, Park & Recreation Director; Kelly Grinnell,
Finance Director; Jenny Potter, City Clerk
PUBLIC PRESENT: Tyler See, Abdo; Kit Bennet, Opus Group; Anne Bode, Opus Group; Tom
Bennett, CBRE
2025 Audit Presentation
Kelly Grinnell, Finance Director, Introduced Tyler See from Abdo, the accounting firm that
conducted the city’s 2025 audit. Auditors issued the city an “unmodified opinion,” which is the
highest level of assurance an organization can receive under generally accepted accounting
principles (GAAP), and reported no instances of noncompliance with Minnesota legal
requirements. Auditors also noted there were no findings identified during the audit process.
The presentation highlighted several positive financial indicators, including general fund
revenues finishing nearly $2 million above budget projections in 2025, while expenditures
remained close to budgeted levels. The city also ended the year with its unassigned general fund
balance slightly above the City Council’s policy target for reserves.
Auditors additionally reviewed the city’s utility and enterprise funds, noting that recent
infrastructure and capital investments have impacted reserve levels in some areas. However, Ms.
Grinnell noted that long-term financial planning and utility rate studies project those funds
gradually improving over time.
The presentation also included comparisons to peer cities across Minnesota and Carver County.
Auditors noted that Chanhassen’s tax rate and day-to-day operating expenses generally remain
below average compared to similar communities, while debt-related costs have increased in
recent years due to major capital and infrastructure investments.
Development Sketch Plan Review: 1371 Pioneer Trail
Eric Maass, Community Development Director, had Kit Bennet, Opus Group; Anne Bode, Opus
Group; Tom Bennett, CBRE, introduce themselves. They presented a development concept for
approximately 30 acres of property located generally at 1371 Pioneer Trail in the southwest corner
of the intersection at Highway 212 and Powers Boulevard. The discussion centered around a
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potential light industrial development proposed by Opus, which would require future City Council
consideration of both a Comprehensive Plan amendment and rezoning request, as the property is
currently guided for office-related uses under the city’s 2040 Comprehensive Plan. The work
session was intended to provide preliminary feedback on the concept, including site design, land
use compatibility and infrastructure considerations such as the potential construction of a future
sanitary sewer lift station needed to serve the property.
The conceptual proposal included a roughly 150,000-square-foot building that could accommodate
office, light industrial, and warehouse uses permitted under the city’s Industrial Office Park (IOP)
zoning district. Representatives from Opus and CBRE said they had spent more than a year
studying and marketing the site, noting that demand for traditional office space remains limited
while interest in industrial and flex industrial space continues to be strong. They also shared that a
potential user currently interested in the site is a local food production and distribution company
seeking to relocate operations from Minneapolis to Carver County.
The City Council members generally expressed openness to considering office-industrial uses for
the site, particularly given current market conditions and the limited demand for standalone office
development. However, several council members also raised concerns about traffic impacts, truck
circulation, and the visual appearance of the building due to its visibility from Highway 212 and
proximity to the future Chanhassen Community Center. Council members emphasized the
importance of high-quality architectural design and screening of truck parking and outdoor storage
areas.
The discussion also included questions related to the estimated $4 million sanitary sewer lift station
needed to support future development in the area. City Staff noted the lift station would ultimately
serve multiple surrounding properties, but questions remain regarding timing, financing
responsibilities, and long-term development patterns. Several City Council members expressed
reservations about making major zoning or infrastructure decisions immediately ahead of the city’s
upcoming 2050 Comprehensive Plan update process, suggesting that the broader future of the area
should be evaluated more holistically as part of that effort. As a result, the proposed project
appeared premature.
Guidelines for Public Accuracy Test
Matt Unmacht, Assistant City Manager, and Jenny Potter, City Clerk, presented information
regarding preparations for the city’s upcoming Public Accuracy Test (PAT), a required pre-
election process used to verify that voting equipment is functioning properly and accurately
tabulating ballots ahead of the 2026 primary and general elections. Staff reviewed how the PAT
process works, using test ballots designed to confirm machines properly accept, reject, and count
ballots under different scenarios.
Ms. Potter explained that separate PATs will be conducted ahead of both the August primary and
November general election, with dates coordinated alongside Carver County. The tests will take
place in the City Hall training room and will include all voting equipment used by the city’s six
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precincts, including assistive voting devices. Election judges and staff compare machine-generated
totals against predetermined results to verify accuracy before equipment is approved for election
use.
The City Council also reviewed updated public observation guidelines. Members of the public will
be allowed to observe the tests from a designated roped-off area but may not interfere with election
judges, equipment, or ballots. Staff also shared that, unlike in 2024, the public will be allowed to
take photos and videos during the 2026 PAT process, and the city additionally plans to video record
the testing sessions for transparency purposes. Council members and staff also discussed room
setup, election judge comfort, and general election security planning related to the testing process.
Mayor Ryan adjourned the work session at 6:39 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk