State of the City of Chanhassen

Mayor Tom Furlong

May 15, 2008

Minnesota Landscape Arboretum, Chanhassen, Minnesota

Sponsored by the Chanhassen Chamber of Commerce

By Mayor Tom Furlong

The city of Chanhassen is a community for life. By providing for today’s needs and planning for tomorrow’s, we can ensure that our high quality of life is maintained on for future generations.  With this as the our foundation, it is the city of Chanhassen’s primary focus to provide public goods and services necessary to meet the needs of our residents and businesses in the most cost effective and efficient manner possible. That is simply what is expected of all levels of government. Here in Chanhassen we have found that we can best achieve this goal by focusing on delivering and planning for those core public services that we can most efficiently provide, while seeking opportunities to work together with other levels of government effectively. As such, we can provide for the needs of our residents and businesses today, and plan for meeting needs in the future.  In the city of Chanhassen we enjoy a high quality of life, strong school systems, vibrant local economy, and active religious and civic groups.  In 2005 and again last year, the city of Chanhassen was nationally recognized as a great place to live and raise a family. Money magazine ranked Chanhassen in its “Best Places to Live” survey in 2005, and in 2007 Family Circle magazine recognized Chanhassen in their first ever listing of the “Top Ten Towns to Raise a Family.” These recognitions are clearly a source of pride for everyone associated with the city. Still, we recognized that they are a result of years of dedicated and committed service by many different groups within the city, and that they recognize the efforts of our residents; city, school, and county elected officials and employees; our many successful civic and religious organizations; business leaders and others, all of whom have helped inspire and implement a common vision and set of values, the results of which we all enjoy today.It’s clear that these results do not just happen. As such, I’d like to share with you some of the many results of our efforts over the last year or so in providing for today’s needs, and what we are doing to plan for tomorrow’s.   

Transportation

With the opening of new Highway 212 through Chanhassen in December of last year, the transportation system in our city changed forever. Since its opening, we have already noticed a reduction in congestion along Highway 5 and a change in driving patterns in the city. And while the change in traffic patterns may have had an effect on some businesses along Highway 5, we are confident that the continuing development and growth in Chanhassen will offset these factors over time.The new Highway 212 construction project included upgrading and expanding Highway 101 between Highway 5 and new Highway 212 and portions of Lyman Boulevard between Highway 101 and Powers Boulevard. This summer, the first phase of additional Lyman Boulevard improvements will begin. This project, which is jointly funded by Carver County, the cities of Chanhassen and Chaska, with additional financial support being provided by School District 112, will reconstruct the section of Lyman Blvd between Galpin Boulevard and Audubon Road into a four-lane, divided urban section capable of supporting anticipated traffic demand in the area. Construction is due to start next month and be completed by July 2009 in time for the opening of the Chanhassen High School. In order to meet this schedule, however, the project plan includes the closing portions of Lyman Boulevard for periods of time. While we recognize that this will be inconvenient and potentially frustrating for some drivers, the county and cities believe that this plan is the most prudent to follow. Also this summer, the city will be reconstructing some local roads near downtown.  Laredo Drive and a number of adjacent city streets just north of our downtown near the Post Office, First Station and Chanhassen Elementary school will be reconstructed and utility services replaced. These utilities and streets were installed when this neighborhood was first developed back in the 1960s. The project will include improvements to the streets, water and sewer lines and storm water management system. This area of our city was developed before our current storm water management plans were in place. As such, storm water run off in this area, especially those areas that drain into Lotus Lake, is not managed and treated as well as it is in other newer parts of our city. As part of this reconstruction project, the city of Chanhassen will be taking steps to improve the storm water management in portions of the project area by redirecting runoff through a series of rain water retention areas and ponds toward Kerber Pond. The effect of these improvements is expected to reduce the rate and quantity, and increase the quality of storm water that flows to Lotus Lake.

The Laredo Drive road project is the result of our long-term pavement management planning system through which we economically manage pavement infrastructure throughout the city.

Looking forward, the realignment and turn back of Highway 101 South between Lyman Boulevard and the Minnesota River is the city’s top priority. If you’ve ever driven it, you will know that this road has many steep grades and blind curves. Realignment and improvements to this roadway are critical to improving safety and mobility, and to the development of property in southern Chanhassen. Public transportation is an integral part of our city’s transportation system. The cities of Eden Prairie, Chaska and Chanhassen jointly formed Southwest Transit a number of years ago to provide public transit services in our three cities. Over the years, Southwest Transit has become nationally recognized for consistently providing high quality, exceptional transit service to our residents and businesses. The downtown Chanhassen Park & Ride has been at capacity for quite some time. SW Transit has received a grant from federal transportation funds to construct a parking ramp and transit station in downtown Chanhassen near its current site by the Chanhassen Dinner Theater. This facility will support the increasing demand for SW Transit services and bring more people to our downtown on a daily basis. In February of this year, following the completion of new Highway 212 through Chanhassen, Southwest Transit opened the Southwest Village transit station. This mixed use, transit-oriented development will also include neighborhood commercial businesses and residential homes when it is fully developed.   

Utilities

Municipal utility services also play an important factor in meeting the needs of our residents. Last summer, after the combination of mechanical failures with some of the city’s wells and low water tables resulting from the drought limited the city’s ability to supply water, an emergency lawn watering ban was put in place for two weeks. Compliance by residents and businesses was tremendous, and the demand for water dropped within a day or two to normal winter usage rates. While the ban was lifted as soon as the repairs were made, the water table for two of our wells has yet to replenish. Consultants working on the city’s behalf have concluded that these wells are now unreliable and recommended their replacement. Last fall, the City Council and staff worked quickly to develop a comprehensive plan to replace the lost capacity from the dry wells and increase the overall reliability of our municipal water supply.Implementation of the plan is now well under way. Two new drills are being drilled to replace the two that have gone dry. Two other wells are being lowered farther down into their existing aquifers to increase reliability and production. Also, an older well that has not been used for years will be redeveloped in order to add additional capacity to our system. These efforts are on track to be completed in June, ensuring that our system will meet the expected summer usage demand of our residents and businesses.  As these system capacity improvements are necessary to support irrigation water demand during the summer months, they were funded through the addition of a third rate tier in our water utility billing system; thereby, we sought to better match the costs of our system capacity expansion with those residents and businesses creating the demand. In 2007, the city opened it first fresh water treatment plant near the pedestrian bridge along Highway 5. This plant was constructed to improve the aesthetic and overall quality of our municipal water system, and is designed to service approximately two-thirds of our fully developed water service area. The treatment plant, which was the largest, most expensive public building project in our city’s history, was completed on time and on budget. It has met or exceeded expectations, and solved water-related problems for many of our businesses and residents. In anticipation of future needs, the city has already acquired land near Galpin Boulevard and Lake Lucy Road for a second treatment plant, which is scheduled for construction in 2012.  While it remains our priority to build and manage a municipal water supply system that will meet the current and future needs of the our residents and businesses, the events of this last summer raised awareness about water usage in our city. So, in addition to our acting quickly to address the necessary water system improvements, the city designed a new water conservation program called Water Wise. Through a matching grant program and the cooperation with the Minnesota Pollution Control Agency, the city is offering educational programs, irrigation audits, and rebate programs to our residents this year. The goal of Water Wise is to increase water conservation awareness and practice through education, and thereby better allow the city to meet the daily and discretionary water needs of our citizens.  Water conservation may require us to change our habits. For lawn irrigation, something as simple as watering our lawns every fourth day or even once a week rather than every other day would reduce our irrigation watering demand by 50 percent or more. It would also be healthier for the lawns as their root system would more fully develop, thereby making them more resistant to drought and other problems. Avoid lawn watering during late morning and afternoon hours. Watering lawns before 10 a.m. and after 5 p.m. is also a good practice to follow as it reduces evaporation, increases water retention, and reduces stress on the city’s water system.  Not only would these changes go a long way toward reducing our overall water consumption, but they would also reduce individual utility bills and the overall costs to the city for the water system. Many resources are available through the city’s Web site if you are interested in learning more about water conservation in your home or business.  

 Parks & Trails

Our city park and trail system is one of the primary contributors to our high quality of life. Chanhassen residents are proud of our 11 lakes, extensive system of regional, community and neighborhood parks, a comprehensive trail system, and other unique features, such as the Minnesota Landscape Arboretum.  Over the years, we have developed and continue to invest in our park system to meet the growing demand for park and recreation uses.  A new Lake Ann picnic shelter will be opening soon. This shelter, designed to accommodate groups from 100 – 400 people, will provide more opportunities for large groups to gather at and enjoy the other features of the premier park in our city.  Family reunions, graduation parties, church gatherings and business outings will all benefit from this addition.  Demand for athletic fields continues to grow. This spring the Lake Ann ball fields will be able to host more games with the addition of field lighting on all of the ball fields previous unlit. City staff and the council saw this addition as a very cost effective way to expand field capacity and recreation opportunities. In partnership with Carver County, the city of Shorewood and the Shorewood Park foundation, the city of Chanhassen provided funding for the first off-lease dog park in the area. Opened last fall at the Minnewashta Regional Park, the 18-acre off-leash dog park has provided new recreational opportunities for residents and their pets.Our extensive city trail system that includes 80 miles of trails that connect neighborhoods to parks, schools, commercial and civic destinations, and connects to the trail systems in adjacent communities continues to grow and expand. The city works with developers and on our own to build new trails and connecting trails consistent with the citywide trail plan each year. Additionally, we are happy to report that the city of Chanhassen and Carver County were successful in receiving a $1  million grant toward the construction of a 2.6 mile bicycle and pedestrian trail in Chanhassen along Highway 41. The project includes a new trail on the east side of Highway 41 from Minnetonka Middle School West to Longacres Drive, and a connecting trail and underpass under Highway 41 into the Minnewashta Regional Park. This new trail segment will be a significant enhancement to our trail system and connect the middle school and neighborhoods along Highway 41 to the regional park.Our city is home to a variety of natural areas including lowland forests, deciduous woodlands, restored prairies, wetlands, lakes, rivers and streams. The city, in conjunction with other agencies, has made a significant investment over the years to maintain and improve these natural habitats for the benefit and enjoyment of citizens.  Additionally, the DNR recently reached an agreement with the property owners to acquire 100 acres surrounding the Seminary Fen and Assumption Creek, which together represent one of the most pristine natural areas in Chanhassen. A non-profit task force is working to raise funds and build a veterans monument in City Center Park. The city’s and their combined vision is to honor those men and women from Chanhassen who have served, are serving, or will serve in all of the branches of the U.S. military. The Veterans Monument will provide a place for people to reflect upon their service, honor their memory and teach our children the importance of our military and the effort necessary to keep our country free and secure. Whether serving as a place for quiet reflection or the center of activity at a Memorial Day or Veteran’s Day celebration, the Chanhassen Veterans Memorial will hold a special place in our city. I invite everyone to the Veterans Monument’s groundbreaking and picnic on Memorial Day, May 26, 5 p.m. in City Center Park. If you would like to donate to the monument project please contact Gary Boyle from the American Legion at (952) 210-6080. 

Public Safety

Chanhassen is a great place to live, work and raise a family in large part because it is a very safe community. Providing for the public’s safety is a core service provided by all levels of government. Protecting people and their property strengthens our society and is a fundamental requirement in order to maintain our freedoms and liberties, and to pursue happiness. The city of Chanhassen enjoys one of the lowest crime rates in the Twin City metropolitan area. Policing services in Chanhassen are provided by contract through the Carver County Sheriff’s Office. Rather than funding our own stand-alone police department, this policing contract enables us to share resources, reduce costs and maximize efficiencies through the elimination of duplicate management and support staff, training, and equipment. In 2008, the city of Chanhassen increased our total contract personnel with the Sheriff’s office to fourteen by adding an Investigator and new patrol deputy to our previous contract for service.  The Chanhassen Fire Department has served our city for over 40 years.  Currently, 45 members make up the all-volunteer fire department.  We have two fire stations, one near downtown and the second on Minnewashta Parkway near Highway 7. In anticipation of continued growth and development in the southern part of our city, planning is under way for a third station on Lyman Boulevard near new Highway 212 and Highway 101 in order to ensure proper response times thoughout the city .  

Crime prevention is an important aspect of public safety and helps to keep our residents safe and feeling safe. Safety camp is provided each summer for children going into third grade.  National Night Out in August has more than 40 neighborhoods participating. This tremendous event couldn’t be possible without the support and participation of the Fire Department, Carver County Sheriff’s Office, Carver County Posse and many other volunteers.  This year the city of Chanhassen hosted the first of an annual series of public safety seminars meant to education residents about a variety of safety issues. At this year’s seminar various experts provided parents with helpful strategies when talking to their children about personal safety; information about predatory offenders in Minnesota; and crime prevention reminders. We look forward to seeing this program grow in the coming years.

Finances

Whether it’s maintaining or expanding our transportation system, supporting our utility services, building upon our park and trail system or funding our public safety needs, financial management and planning is a critical function. The city of Chanhassen utilizes a variety of long-range planning tools to assist us in meeting the financial demands in the current year budget cycle while considering the financial affects in future years of the decisions we make today. The city’s financial position is strong and healthy.  We enjoy an AA- bond rating, a rating that is enjoyed by only the top 5 percent of cities in Minnesota.  In 2008, our total levy increased to $9.8 million, up 2.7 percent over the 2007 levy of $9.6 million. Even with this overall levy increase of approximately $200,000, we were able to increase our police services contract, fund our capital investment plan, set aside new levy dollars for new road projects and meet our other needs. Yet, the city 2008 property taxes paid by the average property owner are expected to be the same as or 1 percent lower than their 2007 property taxes. Over the last several years, we have managed our finances and levy in a manner that has resulted in annual decreases in our tax rate. From a tax rate of over 39 percent in 2003, our 2008 tax rate is below 24 percent. Further, this rate compares favorably to a number of surrounding cities.  This tax rate reduction is a direct result of our concentrated effort to limit our levy increase to be near or below the real growth in our tax base. This policy takes inflationary increases in assessed values off the table when discussing the levy. As such, even during this period of property value stagnation or reductions, by continuing to adhere to this policy, I believe that we will be able to sustain our current policies and continue to provide for the needs of our residents and businesses.  So why do we do all of this? Road reconstruction, expanding and improving our utility services, improving storm water quality, expanding and enhancing our park system, maintaining a strong public safety services, and focusing on strong fiscal management?  The answer is simple – to enhance our already high quality of life.  Our aim is to keep Chanhassen a nationally recognized best place to live, work and raise a family and to enhance and strengthen our local economy. For in so doing, businesses will choose to locate or expand here and with them expanding job opportunities.  People will seek to live here; thereby protecting home values. We see these factors being manifested in new business and residential development. So what are we seeing in Chanhassen?  In 2005, Life Time Fitness opened its new Chanhassen Fitness Center. This last February, the company opened its new 100,000-square-foot corporate office bringing 450 new jobs to Chanhassen. A mirror image of corporate office is planned as a future addition to their corporate campus. Once completed, the overall development of offices and health club will encompass 309,000 square feet IDI Distributors, one of the leading distributors of insulation products in the nation, will be located at 8301 Audubon Road. This 55,200-square-foot, two-story office/warehouse building with a future 16,272-square-foot expansion is on 6.99 acres. MAMAC Systems manufactures thermal control products and is located on Century Boulevard in the Arboretum Business Park. This 51,800-square-foot office/warehouse building will include two phases of 35,000 and 16,800 square feet of building area each on 12.22 acres

Kraus Anderson Realty Corporation will begin construction this summer on their Crossroads of Chanhassen located on 14.90 acres at the northwest corner of Highway 101 and Lyman Boulevard.  This mixed-use development will include a gas-convenience store with car wash, bank, restaurant, liquor store/deli, office, and retail space for a total 71,500 square feet. 

We are also seeing other investments in Chanhassen. School District 112 is building the new Chanhassen High School along Lyman Blvd between Audubon Road and Galpin Boulevard. This new high school will serve grades 9 – 12 and have the capacity for 2,000 students. Due to open in the fall of 2009, the Chanhassen Storm will be an immediately welcomed addition to our city and in the surrounding communities.  Additionally, the new Carver County Government Services Center held a ground breaking ceremony on Tues, May 20. Located on Kerber Boulevard, south of West 78th Street next to M&I Bank, the Carver County Government Center will provide state-of-the-art service levels for residents in and around Chanhassen. We are grateful to the Carver County commissioners and staff for seeing this project through, knowing that it will provide an expanded level of services for our residents while increasing trips to our downtown.  As we move forward, we see new developments throughout the southern part of our city. A regional shopping mall is being considered near the intersection of new Highway 212 and Powers Boulevard. Utility services will be expanded south of new Highway 212 creating opportunities for new office, commercial and residential developments in the coming years.  Overall, even though we have seen a decline in new home construction just as the rest of the region and country have experienced, we continue to plan for and provide diverse housing offerings from apartments and starter homes to lake estates and retirement communities. Home values in Chanhassen range from the low hundred thousands to the millions. Fortunately, Chanhassen has not experienced the same decline in home prices as has been seen throughout much of the metro area during the recent housing slow down. Our approach to housing reflects our belief that Chanhassen is a community for life.But quality of life is more than roads, utilities, and other city services. It is really about the people and the many events that occur throughout the year that make this city a home to more than 24,000 men, women and children. This summer alone, there will be many events in which we can participate. Again this year our free music in the park series “Lunchtime Lyrics and Twilight Tunes” will take place in City Center Park on Thursdays beginning June 12 and runs through Aug. 7. This year marks the 25th anniversary of Chanhassen’s two-day Fourth of July celebration. Plans are under way to make this year’s celebration one to remember.  August 1 is the annual Chanhassen Day at the Minnesota Landscape Arboretum, at which all Chanhassen residents are invited to experience all that the Arboretum has to offer without admission for the day. These are just some of a number of reasons to stay in town and experience all that Chanhassen has to offer this summer, for these are the events that maintain Chanhassen’s small-town feel, our way of life.  That is why we say we are a community for life, providing for today’s needs and planning for tomorrow’s. Money and Family Circle magazines only confirmed what many of us have known for a long time:  there are a lot of good places to live, work and raise a family, but there are none better than Chanhassen. 

On behalf of the City Council and entire city staff, we thank you for the honor and privilege to serve all of you. We are truly grateful each and every day to be part of such a great city.