Chanhassen's new community center is officially moving into full construction after the City Council approved the project's second major bid package on Monday, clearing years of planning, design work and public input to make way for shovels in the ground. The city says construction activity will ramp up this fall, with a public groundbreaking ceremony scheduled for August 31 and an anticipated opening in September 2028.
The vote marks a significant milestone for a project that has been years in the making, according to the City of Chanhassen, Minnesota Government. Mayor Elise Ryan celebrated the moment, saying she is looking forward to the day “our residents have that opportunity to walk in those doors for the first time.” The 183,850-square-foot facility will rise on the southeast corner of the Avienda Development at the intersection of Highway 212 and Powers Boulevard, according to the City of Chanhassen, putting it along major traffic corridors in the southern part of the city.
A Facility Decades in the Making
The project traces its roots to the city's existing recreation center on Coulter Boulevard, which opened in 1995. Chanhassen's population has since doubled, leaving the 31-year-old facility inadequate to meet current community needs, per BKV Group, the Minneapolis-based firm the city selected in March 2025 to lead design and engineering. BKV Group is partnering with RJM Construction, which is serving as Construction Manager at Risk overseeing pre-construction work and trade bidding.
Once complete, the new center will include two indoor ice sheets, with one designed to double as a 3,500-seat multi-purpose venue, along with an indoor fieldhouse featuring turf and sport courts, a walking track, an indoor playground and fitness studios, according to design details from BKV Group. Those amenities were shaped by public outreach workshops held as the design took form.
Funding Built on a Voter-Approved Sales Tax
The project's financial foundation dates to November 2024, when Chanhassen voters approved a 0.5% local option sales tax over 20 years, projected to generate $40 million toward roughly half the community center's construction costs. Non-resident shoppers are estimated to cover approximately 45% of that tax revenue, according to Carver County Local News. The tax took effect on April 1, 2025.
To cover costs beyond that $40 million, the city's 2026 financing plan draws on roughly $2.5 million in park dedication fees along with 30-year taxable Economic Development Authority lease revenue bonds, according to city officials. Extending the bond term to 30 years was intended to keep annual debt service manageable. In July, the City Council supported expanding the overall project budget cap to $82.5 million to incorporate optional features such as upgraded partition walls, specialized gym flooring and a service elevator.
Cost Pressures Led to a Cut Amenity
Not every amenity residents hoped for made the final design. City officials excluded an indoor swimming pool from the project after studies showed it would require an additional $25 million in upfront construction costs plus an ongoing annual tax levy subsidy of 1% to 2% to operate. Local school districts had declined opportunities to share aquatic operating expenses, a factor that contributed to the pool's removal.
Rising material and labor costs also forced adjustments along the way. Project architects and managers achieved approximately $7 million in post-bid savings through value engineering, aimed at protecting voter-approved amenities like the two ice sheets and turf fieldhouse while offsetting Minnesota's 6% year-over-year construction inflation rate in 2026. Those savings followed early bidding momentum: the City Council unanimously approved Bid Package #1 in April, awarding long-lead contracts for structural concrete, precast concrete wall panels and site utilities after all 15 bids came in at or below cost estimates.
What's Still Ahead
With early design work behind it, the project now heads into a construction phase expected to stretch into 2028. Final membership rates, daily user fees and whether non-resident sales tax contributions ultimately match the projected 45% share remain open questions as the build progresses. For now, Chanhassen residents can mark their calendars for the August 31 groundbreaking as the community center moves from renderings and budget spreadsheets toward an actual building along Highway 212 and Powers Boulevard.
