07-13-2026 CC WSCity Council Work Session Minutes – July 13, 2026
1
CHANHASSEN CITY COUNCIL
WORK SESSION
MINUTES
July 13, 2026
Mayor Ryan called the work session to order at 5:30 P.M.
COUNCIL MEMBERS PRESENT: Mayor Ryan, Councilmember McDonald,
Councilmember Kimber, Councilmember Schubert, Councilmember von Oven
COUNCIL MEMBERS ABSENT:
STAFF PRESENT: Laurie Hokkanen, City Manager; Matt Unmacht, Assistant City Manager;
Charlie Howley, Public Works Director/City Engineer; Eric Maass, Community Development
Director; Kelly Ginnell, Finance Director; Andrew Heger, Fire Chief; Patrick Gavin,
Communications Manager; Jerry Ruegemer, Park & Recreation Director
PUBLIC PRESENT:
Chanhassen Community Center Discussion
Members of the project team, including BKV Group, RJM Construction and Sports Facilities
Companies attended to present design options and review the budget.
The project team presented a revised base project cost of approximately $80.9 million for the
183,850-square-foot facility. The figures include construction, land, design and engineering,
furniture, fixtures and equipment and a $2.4 million construction contingency. The revised base
design also restores the larger second-floor terrace outside the community rooms.
City Council members expressed support for moving forward with a project budget of up to $82.5
million. That amount would include operable partitions in the dance studio and party room, a wood
gym floor, an interior connection walkway in Ice Arena 1, a service elevator, a rubber sports
surface on the walking track and the higher-end motorized Skyfold partition in the community
rooms rather than the Modernfold option. The budget also carries a $575,000 allowance for
additional fireproofing at the arena and field house roof structures if it is required through the
ongoing code review.
Kelly Grinnell, Finance Director, presented an updated financing approach that was central to the
council’s willingness to consider a budget above the previously discussed $80 million figure. The
proposed funding plan includes approximately $2.5 million in park dedication fees, $40 million in
20-year local option sales tax bonds and taxable Economic Development Authority lease revenue
bonds for the remaining amount. By extending the lease revenue bonds from 20 to 30 years, the
city can accommodate the higher project cost without increasing the property tax impact previously
projected for residents. The plan does not eliminate the property tax contribution anticipated for
City Council Work Session Minutes – July 13, 2026
2
the center. Rather, it keeps the estimated impact for a $600,000 home at approximately $17 per
month.
Ms. Grinnell also reported that the half-percent local sales tax generated more than $3 million
during its first year, exceeding projections and potentially allowing the sales tax bonds to be repaid
approximately two-and-a-half years early. The financing projection continues to assume
approximately $10 million over 30 years from the future sale of the existing Recreation Center, a
partnership with a school or hockey organization and naming rights. The $2.5 million awarded
through the state bonding bill is also not currently included in the financing plan while staff
determines whether the requirements associated with accepting the funding would create
additional project costs.
The City Council did not direct staff to include the Tier 2 alternates in the current project
framework. Those items include a roof over the community room terrace, radiant heating for Ice
Arena 1 spectator area, enhanced exterior precast finishes and an entry marquee. The larger terrace
itself remains included, but the additional roof over it does not. A second Zamboni and parking
entrance monument sign could be considered later, while a geothermal system would require a
separate future decision. If the additional roof-structure fireproofing is not required, the project
cost would decrease rather than automatically redirecting the money to other alternates.
City Council members reached a general consensus supporting the $82.5 million project
framework. Staff and the project team will return Aug. 10 with a comprehensive project and award
recommendation, including proposed subcontractor awards that must be approved at that meeting
to preserve the current bids. If approved, subcontract negotiations, site mobilization, a
groundbreaking ceremony and initial construction work would begin in August, with substantial
completion anticipated in summer 2028.
City Council Roundtable
Tree Farm and Heritage Tree Ordinance
The City Council discussed a request from the Earhart family to reconsider how the city’s tree
preservation requirements would apply to the tree nursery on their property if the remaining land
is developed. City Staff explained that the recently adopted Heritage Tree Ordinance establishes
additional regulations for trees measuring at least 25 inches in diameter, but that provision does
not affect trees actively managed as nursery stock as they would not grow to that size. A separate
ordinance change lowered the threshold for significant trees from 12 inches to 5 inches, meaning
trees of that size would need to be inventoried when a subdivision application is submitted and
could count toward canopy preservation and replacement requirements if removed.
The City Council discussed whether the city should establish an exemption for certified tree farms.
City Staff noted that the property’s existing conceptual development plan could be used to identify
trees located within future roads or building areas and relocate them to portions of the property
expected to remain undisturbed. Staff could also explore a planned unit development if the
eventual project presents circumstances warranting flexibility. The City Council ultimately agreed
City Council Work Session Minutes – July 13, 2026
3
that a citywide ordinance amendment was not necessary for this individual property and supported
continued communication between staff and the landowner to address the issue through future
development planning.
Recreational Vehicle Storage in Residential Driveways
The City Council discussed a resident request to allow recreational vehicles to be stored in
residential driveways. When the city last reviewed its residential storage regulations, it allowed
certain trailers and boats to remain in driveways but did not extend the same allowance to
recreational vehicles. Several City Council members said they did not see a meaningful reason to
treat the two categories differently and expressed support for reconsidering the restriction. They
supported moving the request forward for a more detailed review and potential ordinance
amendment. That future discussion will address specific requirements such as vehicle length,
seasonal or time restrictions and other standards governing where and how recreational vehicles
could be stored.
Fire Services Task Force
The City Council supported developing a Fire Services Task Force to help plan for the Chanhassen
Fire Department’s future staffing, facilities and financial needs. Mayor Elise Ryan said the city
has increasingly discussed those issues during the past year, but the scope and long-term cost
require more sustained analysis than can be accomplished through periodic council work sessions.
The task force would likely meet monthly and develop short- and long-term recommendations that
could later be brought to the full council for more focused discussion and decisions. The City
Council emphasized the value of involving residents and other outside perspectives, drawing
comparisons to the community-based process used for the city’s parks task force. The group would
also help participants better understand fire service standards, response expectations and potential
alternative service models. City Staff will further develop the task force’s scope, membership and
meeting structure before bringing a formal proposal back to the council.
Mayor Ryan adjourned the work session at 6:57 P.M.
Submitted by Laurie Hokkanen
City Manager
Prepared by Jenny Potter
City Clerk