Staff

DiMaggio, Samantha
Economic Development Manager
- (952) 227-1148
- sdimaggio@chanhassenmn.gov

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Plans and Policies

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Overview

Chanhassen is celebrated for its unique history, diverse entertainment options, beautiful parks, extensive trail systems, and a strong housing market. A recent strategic plan highlighted the importance of embracing diversity in new developments, creating innovative spaces, and ensuring that redevelopment aligns with the city's vision of being a safe, welcoming community. This vision includes engaged residents, abundant natural amenities, vibrant businesses, and valued services that make Chanhassen a community for life.

Sewer (SAC) and Water (WAC) Availability Charge Policy

The Sewer (SAC) and Water (WAC) Availability Charge policy is designed to manage and finance the infrastructure required for wastewater services. The Chanhassen City Council has implemented a new policy to support local businesses by offering credits on Sewer Access Charges (SAC) and Water Access Charges (WAC) for businesses opening in existing commercial buildings. Effective June 24, 2024, this policy reduces financial barriers, encouraging investment in the city.

The Metropolitan Council Environmental Services (MCES) charges $2,485 per SAC unit, while the city's SAC and WAC fees are $2,480 and $9,190 per unit, respectively. The new policy waives fees for the first five SAC/WAC units for businesses renovating existing buildings, saving $11,670 per unit. However, MCES charges remain unchanged.

Business Subsidy Policy

The City of Chanhassen's Business Subsidy Policy sets clear criteria and guidelines for providing financial assistance to businesses. This assistance can take various forms, including loans, grants, tax abatements, Tax Increment Financing (TIF), and other subsidies. The goal is to ensure these subsidies serve specific public purposes, such as increasing the tax base, creating jobs, or fostering economic development.

Key Elements of the Policy:

Purpose: The policy aims to establish criteria for granting business subsidies, including financial assistance through TIF, tax abatements, or other programs offered by the city or the Minnesota Department of Employment & Economic Development (DEED).
Types of Subsidies: The policy outlines various types of business subsidies, such as loans, grants, tax abatements, TIF, guarantees of payment, contributions of property or infrastructure, preferential use of government facilities, and land contributions.
Eligibility Criteria: To qualify for subsidies, businesses must meet specific criteria, including maintaining good standing with the city in terms of licenses, fees, and code compliance. Additionally, at least one-third of the full-time equivalent positions created or retained within the city must pay at least 200% of the State of Minnesota Minimum Wage at the time the subsidy is awarded.
Application Process: Businesses seeking subsidies must submit a Business Subsidy Application along with the required fee. The city reviews the application for completeness and alignment with policy goals. A public hearing is then scheduled to gather citizen feedback before deciding on the subsidy request.
Subsidy Agreement: If a subsidy is approved, the business must enter into an agreement with the city. This agreement will outline the subsidy amount, public purposes, measurable goals, financial obligations if goals are not met, and a commitment to continue operations in the area for at least five years after receiving the benefit.
Compliance and Reporting: The policy includes provisions for monitoring and reporting the outcomes of the subsidies. If a business fails to meet job and wage goals within two years, it must repay the assistance plus interest. The city may extend the compliance period by up to one year after holding a public hearing.
Public Hearings: Before granting a subsidy, the city must hold a public hearing to ensure transparency and allow for public input.
Amendments and Deviations: The city retains the right to amend the policy or deviate from it on a case-by-case basis, provided that the reasons for any deviations are documented and reported to DEED.

The City of Chanhassen's Business Subsidy Policy is designed to provide structured financial support to businesses while ensuring accountability and public benefit, thereby promoting economic growth.

Three Year Economic Development Plan

The City of Chanhassen's Three-Year Economic Development Plan outlines a strategic approach to guide the city's growth and development over the next three years. This plan focuses on enhancing economic resilience, supporting local businesses, and promoting sustainable development.

Key Elements of the Plan:

Purpose and Background:
- Developed following an operational study by the consulting group Raftelis, which assessed the city's current conditions and identified areas for improvement.
- Provides direction for the new Economic Development Manager role and establishes a path for future success.
Current Economic Conditions:
- Summarizes Chanhassen's current economic status, including population, employment, and housing statistics.
- Highlights the city's strengths, such as a highly educated community and quality of life, as well as challenges like high housing costs and limited workforce housing.
SWOT Analysis:
- Conducts a regional Strengths, Weaknesses, Opportunities, and Threats (SWOT) analysis to identify factors influencing economic development.
- Strengths include a well-educated population and strong local support, while weaknesses include high land and development costs.
Strategic Action and Implementation Plan:
- Outlines specific strategies to promote a healthy local economy, sustainable infrastructure, and thoughtful growth.
- Strategies include creating a business-friendly environment, attracting high-wage jobs, retaining affordable housing, and promoting mixed-use developments.
Performance Evaluation Framework:
- Provides a framework for evaluating the success of economic development initiatives, with clear timelines and reporting mechanisms.
Economic Resilience Plan:
- Emphasizes economic resilience, defined as the ability to anticipate risks, limit impacts, and recover quickly from disturbances.
- Strategies include promoting public and private investments, supporting entrepreneurship, and encouraging industry diversification.
Community Development:
- Aims to strengthen community ties by celebrating local businesses and encouraging residents to shop locally.
- Initiatives include promoting events like Small Business Saturday and fostering connections among business owners.

Goals and Objectives:

Healthy Local Economy:
- Support businesses at all stages of development and attract employers who require a highly educated workforce.
Community for Life:
- Ensure diverse housing options and preserve naturally occurring affordable housing (NOAH).
Sustainable Infrastructure:
- Develop and maintain infrastructure to meet current and future needs, including clear policies on development fees.
Thoughtful Growth:
- Encourage the redevelopment of underutilized parcels and enhance pedestrian connectivity.
Community Development:
- Foster a supportive environment for local businesses and increase community engagement through events and initiatives.

The City of Chanhassen's Three-Year Economic Development Plan serves as a detailed roadmap for fostering economic growth, enhancing community resilience, and ensuring sustainable development through strategic actions and comprehensive planning.