11-24-2025 CC WS1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
November 24, 2025
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; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Eric Maas, Planning Director; Patrick
Gavin, Communications Manager; Kelly Grinnell, Finance Director
PUBLIC PRESENT:
Hwy 7 Corridor Study Update
Charlie Howley, Public Works Director/City Engineer, introduced Ryan Wilson and Faith Xiong
from MnDOT.
The City Council received an update on MnDOT’s Highway 7 Corridor Study. The study covers
Highway 7 from I-494 to western Carver County, with Chanhassen’s stretch from Minnewashta
Parkway to Highway 41, which is included in Segment 1.
MnDOT outlined its recommended approach for Segment 1, which features roundabouts at key
intersections, a concrete median barrier to reduce severe crashes and turning conflicts and a
continuous multi-use trail along the corridor. Roundabouts are under consideration at County Road
92, County Road 44, County Road 13, Minnewashta Parkway and Highway 41, with a three-
quarter intersection at Eureka Road. MnDOT noted that these changes would address the project’s
main needs: safety, mobility and better pedestrian and bike connectivity. Most of these safety
improvements are not currently funded as part of MnDOT’s planned project in 2029.
Staff also reviewed public feedback from the current engagement period, which remains open
through November 30. More than 500 comments and nearly 300 in-person conversations have
been collected. Common themes include concerns about median access changes and construction
impacts, as well as mixed opinions on roundabouts and the trail. There is strong support for
improvements at Eureka Road.
Council members stressed the importance of consistent community engagement as the project
moves forward and emphasized the need for clear communication from MnDOT so residents
remain educated, informed and involved throughout each stage of planning and design.
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MnDOT will finalize public comments at the end of the month and prepare a final report in
December 2025, with additional design work and engagement to follow.
Final Review of 2026 Budgets, 2026-2030 CIP, and Property Tax Levy
Kelly Grinnell, Finance Director, reviewed the final draft of the 2026 operating budgets, the 2026–
2030 Capital Improvement Plan and the proposed property tax levy. This followed several months
of workshops where staff refined cost projections and aligned each fund with the city’s long-term
goals. Ms. Grinnell’s presentation comes ahead of the formal adoption, which will take place at
the December 15 Truth in Taxation meeting.
Ms. Grinnell reported that the 2026 general fund budget is balanced at $16.96 million. Revenues
are supported by higher permit activity and increased police and fire state aid, while key cost
drivers include wage and benefit adjustments, a 15 percent health insurance increase and a rise in
the county policing contract.
The presentation also covered special revenue, capital project and enterprise funds. Staff noted
that the enterprise fund rate increases adopted last year will continue in 2026, but the stormwater
and sewer funds still show negative trends in later years. The City Council asked staff to monitor
those funds closely and consider long-term strategies to strengthen overall financial health.
Ms. Grinnell discussed the levy options. The preliminary levy adopted in September was 7.2
percent and included a $35,000 contingency, which was suggested to be allocated to the park
renovation fund. Removing that contingency would reduce the levy to 6.9 percent. A comparison
of nearby cities showed Chanhassen’s proposed levy toward the lower end in comparison to
neighboring similarly sized cities and well below the statewide average. A median-value home at
$501,600 would see an annual increase of about $75 annually under a 6.9 percent levy.
After discussion, the Council selected Option A, removing the $35,000 contingency and lowering
the levy from 7.2 percent to 6.9 percent. Council will revisit the long-term outlook of the park
renovation fund at a future workshop next year.
With this adjustment, the city remains on track to adopt a balanced budget for 2026.
Lake Ann Park Preserve Update
Jerry Ruegemer, Parks Director, gave an update on the Lake Ann Park Preserve project. Mr.
Ruegemer reviewed recent archaeological findings, Minnesota State Historic Preservation Office
(SHPO) responses and the construction schedule planned for 2026. The city submitted its Phase I
and Phase II survey reports, project alignment plans and required SHPO forms on August 8.
Mr. Ruegemer summarized SHPO’s findings across three sites. Sites 21CRO186 and 21CRO187
were cleared to proceed because both lacked the historical context needed for National Register
eligibility, and the planned work will not disturb sensitive areas. Site 21CRO188 needs more
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review since the planned trail crosses an area with known archaeological material. SHPO asked
the city either to reroute the trail or conduct additional data recovery.
To address this, the city and the 106 Group developed a revised plan that places clean fill over the
existing surface so the trail can be built without digging into artifact layers. This cap and fill
approach was submitted to SHPO on October 28 and a determination is pending.
Mr. Ruegemer stated that roughly $1.39 million has been spent to date, funded through ARPA, a
DNR grant, and assigned balances. About $3.3 million in total funding is available, leaving the
project in a positive position once the remaining trail and parking lot work is complete.
Bid documents will be updated and split this winter. The parking lot and north trail section will be
advertised in December 2025 with an award expected in January 2026. Tree clearing is planned
for February followed by spring and summer construction. If approved by SHPO, the south trail
segment will be added.
Mayor Ryan recessed the work session at 6:56
Mayor Ryan reconvened the work session at 9:52
Sign Code Discussion
Eric Maass, Planning Director outlined recommended changes to outdated definitions and
explained amendments needed to align the code with federal law, including First Amendment
requirements that prevent regulating signs based on content. This will require shifting several rules
toward size, placement, and design rather than message.
The presentation included data on temporary sign permits. Only 28 permits were issued between
2023 and 2025, with most tied to recurring banners or a single parcel. Given the low volume, staff
recommended removing the permit requirement while keeping all existing lawful standards.
Mr. Mass reviewed areas where the zoning code and Downtown Design Guidelines need
alignment, including projecting signs, awning signs, and options for canopy signage. The City
Council discussed which sign types should remain allowed and where additional standards may
support long-term downtown character.
Mr. Maass also shared how much sign area downtown businesses currently use compared to what
is allowed, noting most use less than 6 percent of their available wall area. This prompted
discussion about whether to adjust maximums now in anticipation of future redevelopment or wait
to revisit them as specific projects come forward.
The City Council expressed their support for projecting signs on the first floor for but did not desire
to allow for large projecting signs on upper floors. The City Council shared initial impressions
and discussed the pros and cons of updating the ordinance in advance of expected downtown
growth.
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Mayor Ryan adjourned the work session at 10:55 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk