What's New in Chanhassen: Major Development Updates

Shovels went into the ground on August 31 at the corner of Highway 212 and Powers Boulevard for the new Chanhassen Community Center, an $82.47 million project that residents voted to help fund back in November 2024. Hoodline covered the project ahead of the groundbreaking. It is the kind of milestone a city waits years for. The retail portion of the same Avienda development is still taking shape, including questions about how its plans will reflect the walkable-village concept.

Together, they tell you something the median home price never will: different parts of the same development can move forward at different paces.

The Community Center Moves Ahead

The Chanhassen Community Center broke ground on August 31 on the southeast corner of the Avienda development. When it opens in September 2028, the 183,850-square-foot facility will include two ice sheets and a turf fieldhouse, the exact amenities voters approved when they passed a 0.5% local option sales tax back in 2024. That tax, which took effect in April 2025, is projected to raise about $40 million over 20 years toward the project, with non-resident shoppers estimated to cover roughly 45% of that revenue. The rest of the financing comes from park dedication fees and 30-year taxable lease revenue bonds through the city's Economic Development Authority.

None of that was guaranteed to survive contact with 2026 construction costs. Minnesota saw roughly 6% year-over-year construction inflation this year, and project architects had to find close to $7 million in savings through value engineering just to keep the ice sheets and fieldhouse intact. They found it. On August 10, the City Council approved the second major bid package, moving the project into full construction after receiving 145 bids across 44 scopes of work, averaging more than three bids per category. That's the kind of contractor interest a city hopes for and rarely gets in this economy.

As Hoodline reported, Mayor Elise Ryan said she was looking forward to the day "our residents have that opportunity to walk in those doors for the first time."

Even the name took some deliberation. Earlier this year, staff recommended dropping an earlier working title in favor of something plainer: Chanhassen Community Center, chosen specifically to signal that the building belongs to the whole community rather than to a brand. The council agreed. It's a small detail, but it tells you how carefully this project has been steered, right down to what it's called.

Avienda's Retail Plans Take Shape

Here's where it gets interesting. The community center sits inside Avienda, the 118-acre planned development along Powers Boulevard that was originally pitched as a walkable mix of shopping, dining, and housing. The community center is now under construction, while the retail plans continue to take shape.

In January 2026, developers told the council that construction had started on a 412-unit apartment building from Dorn Companies, and that they'd signed a lease with a grocer for a 65,000-square-foot store that includes a wine and spirits section and four fuel pumps. Councilmembers raised concerns that the plan, as presented, appeared more auto-oriented than Avienda's walkable-destination concept.

The council raised these concerns again when the developer brought an updated sketch plan in June 2026, and the council and developer agreed that a formal "visioning session" was needed before the project could move forward. That session happened July 8, 2026. The council came away encouraged that the plan was headed in the right direction, but still wanted more refinement. Then, on August 13, the developer hosted an open house at City Hall so residents could see the latest version and weigh in directly, ahead of an expected new site plan review this fall.

Avienda is already under construction, including the community center, while the retail plan remains under review. The final form of the development is still taking shape.

Meanwhile, Downtown Is Just Building

A few minutes away, at West 78th Street and Market Boulevard, there's no visioning session happening because the plan already survived one. That's the site of the old Country Inn & Suites and the shuttered Chanhassen Cinema, both demolished in early 2025 to make way for a Roers Companies redevelopment called Harlow and Bennett.

Together, the two buildings will bring roughly 310 market-rate apartments and nearly 15,000 square feet of ground-floor commercial space for restaurants, retail, or services, tucked behind 408 structured underground parking stalls, some of which will be open to the public. Building heights vary across the site, from one story up to six, which is a deliberate design choice meant to keep the block feeling walkable rather than imposing.

Here's how the corridor lines up over the next two years:

Three major builds, three different timelines, all within a short drive of each other. Downtown's project has cleared zoning review, while Avienda's retail plans remain under review.

The Season Turns at the Dinner Theatre

Not everything changing in Chanhassen this fall is concrete and steel. Chanhassen Dinner Theatres, just down the block from the Harlow and Bennett site at 501 West 78th Street, wraps its first staging of Guys and Dolls in more than 35 years on September 26. Previews for Annie begin October 2, opening the venue's fall and holiday season.

President and Artistic Director Tamara Kangas Erickson has a personal stake in this one. She appeared in Chanhassen's very first production of Annie back in 1983, at age 12, and says the show shaped her decision to go into theater in the first place. Now she's directing it. The venue itself has been doing this since 1968, and has welcomed more than 13 million visitors over 57-plus years, which makes it one of the more durable institutions in a town that's otherwise rebuilding around it.

New Tables Worth Trying

The restaurant scene has been quietly filling in too, alongside all this construction.

• Moe's Char House has built a genuine local following around its Wednesday night meat raffle, held every week from 5 to 7 p.m., alongside half-price jumbo wings from 4 to 9 p.m. It's the kind of recurring, unglamorous tradition that tells you a place has actually settled into a community rather than just opened in one.
• Mo' Bettahs Hawaiian Style Food and Izakaya Kazama have both shown up on recent best-new-restaurant lists for the area, adding some variety to a dining scene that's historically leaned casual and familiar.
• The Copperfield rounds out the newer names worth keeping an eye on if you haven't made it in yet.

None of this is dramatic on its own. Taken together, it's a sign that Chanhassen's everyday texture, the where-do-we-eat-tonight layer of life here, is filling in at roughly the same pace as its skyline.

Why Any of This Matters If You Already Live Here

You don't need to be buying or selling anything to care how this plays out. The next two years will help determine whether the drive along Powers Boulevard feels like a genuine downtown extension or is more oriented toward car travel and parking. It will decide what's walkable from the new community center once your kids are old enough to bike there on their own, and whether the block that used to hold a cinema turns into somewhere you'd actually stop for dinner before a show.

We've been watching this corridor take shape for a while now, partly because it's impossible not to, and partly because these are the details that end up mattering to neighbors long after the ribbon-cuttings are over. If you're curious how any of these projects might touch your own corner of Chanhassen, or just want to talk through what you're seeing change around town, Nicole Stone Real Estate is always happy to grab coffee and compare notes. Schedule a Free Consultation whenever you're ready, no pressure, no pitch required.

This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.