Avienda - PUD Amendment Narrative Revisions 8-14-26 v2HEMPEL
REAL ESTATE
August 14, 2026
Eric Maass
City of Chanhassen
7700 Market Blvd
Chanhassen, MN 55317
Re: Avienda Planned Unit Development (PUD) Amendment, Preliminary Plat
Applications & Early Grading Request
Dear Mr. Maass:
On behalf of Level 7 Development LLC, we are pleased to submit this application for an
amendment to the Avienda Planned Unit Development (PUD). The proposed amendments are
intended to (i) ensure compliance with updated municipal stormwater management
requirements, (ii) respond to evolving commercial market demands, and (iii) allow Level 7 to
deliver a vibrant place to shop, and enjoy great food and services.
To achieve these objectives, we respectfully request approval of the following modifications
to the existing PUD:
1. Fuel Island Use (District 1)
Amend Section C(7) of the PUD to permit fuel islands, defined as an island containing up to
four fuel pumps with up to 8 individual vehicular fuel filling locations, as an accessory use to
the grocery store within District 1. This use is consistent with modern grocery formats, is not
considered a drive through accessory, and enhances convenience for patrons, as well as
eliminates any reason for a freestanding gas station.
2. Stormwater Pond Expansion (District 2)
Amend the master plan to (i) allow the addition of a second primary regional stormwater pond
in the central portion of District 2 and (ii) increase the size of the existing regional stormwater
pond located at the eastern edge of District 2. The central pond will be thoughtfully integrated
with a surrounding pedestrian trail, enhanced landscaping, site lighting, restaurant(s), and a
multi -purpose open plaza to create an amenity that serves both functional and placemaking
purposes
3. Entertainment (District 2 and 3)
Revise Section B — Design Standards second sentence of the District 2 site development
patterns to read: "Including 53 Rowhomes and up to 417 Apartments, and the entertainment
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area as generally depicted on the plan below in the area directly adjacent to the istrict
central pond, including outdoor plaza, outdoor seating, walking trails, and restaurants"; and,
Revise Section C — Development Plans and Regulations, Permitted Uses, Paragraph 1 to read:
"Entertainment: Amusement, recreation, hospitality, food service, outdoor public gathering
space, and entertainment uses."; and; Remove Car Wash as an allowed use from Section B —
Design Standards, site development patterns for District 3; and, Revise Section C —
Development Plans and Regulations, Permitted Uses, Paragraph 8.a. to remove a car wash as
a permitted use by deleting the words "except for one full service cars wash in District 3".
4. Sporting Goods & Entertainment Store Size (District 1)
Amend the Retail Sales standards to add a sporting goods store or entertainment use of up to
60,000 square feet for any single store. Contemporary sporting goods and entertainment
retailers frequently incorporate experiential indoor and outdoor elements —such as climbing
walls, pickleball courts, bowling, batting and golf simulators, and interactive training areas —
which necessitate additional floor area and outdoor space.
5. Mixed -Use Multifamily (District 1)
Amend Section B — Design Standards, site development patterns for District 1 to add at the
end of the second sentence:: "or a unit mixed -use (multi-family/commercial) building that
includes no more than 200 dwelling units and not less than 7,500 sf of commercial use that is
open to the public."
6. Housing (District 1 and 2)
Revise Section C — Development Plans and Regulations, Permitted Uses, Paragraph 6.d. to
read: "Apartment buildings, including mixed use buildings, with up to 417 dwelling units."
7. Signage (District 1 and 2)
Amend Section H.2 to allow up to eight (8) individual tenant panels per off -premise directory
sign, with a maximum combined tenant panel area of 64 square feet per sign. This
modification improves wayfinding and tenant visibility while maintaining controlled sign
scale. Signage design appearance shall remain consistent with the PUD, except for
modification necessary to accommodate the signage panels.
8. Signage (District 3)
Amend Section H to allow a "large off -premise directory sign", directly adjacent to the
southernmost project identification sign at district 3. The large off -premises directory sign
shall be constructed with design intent and materials consistent with the other off -premise
directory signs. The large off premise directory sign shall be dedicated to commercial uses
within district 1 and district 2. The large off premise directory sign shall have a maximum
height of 30 feet and shall contain no more than 8 tenant sign panels. The individual sign
panels shall not exceed 24 square feet, however the anchor commercial tenant as designated
by the developer may combine two sign panels for a total of 48 square feet. The maximum
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combined tenant panel area of the large off premise directory sign is 192 squareEtee . A Lli SAT E
modification provides visibility to the existence of Avienda commercial uses at highway 212.
9. Setback Flexibility (District 1)
Retail Building D requires a decreased setback to 15' to allow for a building depth that meets
market requirements. The position of Building D also allows for increased green space at the
central aisle while still preserving buffer area along Powers Blvd.
10. Flexibility from Buffering and Landscape Standards (District 1 & 2)
The project will exceed the total amount of trees and shrubs required of City landscape
ordinance, however due to the desire for visibility of the Commercial uses (less buffering), we
are requesting a reduction in the quantity requirement of understory trees within the buffer
yards as defined by City ordinance.
11. Shared Parking (District 1 & 2)
The PUD shall include flexibility to utilize shared parking at the developer's discretion. A
reciprocal easement and operating agreement (REOA) was previously recorded and covers
this entire site to govern how parking and common spaces will be used and maintained.
These amendments are carefully calibrated to enhance the engineering validity, functionality,
market viability, and the feasibility of commercial development at Avienda, and each of them
are integral to Avienda being advanced for retail development. We believe the proposed
changes will contribute positively to the long-term success of the development. We
appreciate your review and consideration of this application and look forward to continuing to
work collaboratively with City staff.
Sincerely,
Rick McKelvey
Senior Vice President
Hempel Real Estate
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