Chanhassen voters approved $80 million for a community center, but designs are already over budget

Early designs for the Chanhassen Bluffs Community Center came in over budget and without some key amenities. Now officials want to know if the project is still viable.

The Minnesota Star Tribune
July 20, 2025 at 1:00PM
A rendering of a new community center in Chanhassen, shared with voters before the 2024 election. (BKV Group /City of Chanhassen)

Chanhassen sold voters on a new sales tax to build a community center with two sheets of ice, a restaurant and other amenities.

But early proposals came in over budget and missing some key features. Now, elected officials have asked designers to hit “reset” and come back with other options – or let them know if the project isn’t viable.

“I would rather have egg on our face and say we couldn’t do it under the budget that we promised our residents than say we’re increasing the levy and we have less amenities,” Mayor Elise Ryan said in a council work session earlier this month.

Just over half of Chanhassen voters in November signed off on a plan to impose a 0.5% sales tax to help cover the costs of building the Chanhassen Bluffs Community Center in a new development at Hwy. 212 and Powers Boulevard.

In the run-up to the election, officials told residents they expected the facility would cost about $80 million and include two sheets of ice, a restaurant, an indoor walking track and an indoor playground, among other amenities. It would be funded using the new tax, the property levy and money from the sale of the existing recreation center, among other sources.

In a public meeting earlier this month, members of design firm BKV Group and RJM Construction presented council members with multiple options for the project. An $81 million version wouldn’t have a second sheet of ice or turf in a fieldhouse. A $93 million version would replace the restaurant with a community room that could accommodate weddings and other events.

Members of the project team told the council they needed to present new options for the design because the costs of site work, which includes paving parking lots, curb and gutter work and “earth work,” came in higher than expected.

Paul Michell, government managing partner for BKV Group, said in a follow-up email to the Minnesota Star Tribune that he couldn’t yet comment on why the costs were higher.

“The complete team is working to understand all the issues and are all working together to address those issues,” he wrote.

During the meeting earlier this month, council members said they would struggle to justify the proposals to voters, about 55% of whom approved of the new tax.

Some also questioned whether the center would be able to cover the costs of its operations if it didn’t have a second ice sheet to attract tournaments.

“I question the viability of the whole thing if you take away one of the rinks,” Council Member Jerry McDonald said during the meeting.

“I’m having a hard time accepting this,” he added.

The City Council in May gave staff the go-ahead to use about $13 million to buy the land for the center and begin design work.

Chanhassen City Manager Laurie Hokkanen said the city has until Sept. 2 to close on the deal or ask for an extension. She said the project team will regroup and hopes to have more updates for council members in the coming weeks.

about the writer

about the writer

Liz Navratil

Reporter

Liz Navratil covers communities in the western Twin Cities metro area. She previously covered Minneapolis City Hall as leaders responded to the coronavirus pandemic and George Floyd’s murder.

See Moreicon