Shovels went into the ground today 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. It is the kind of milestone a city waits years for. But drive one block over, to the retail portion of the same Avienda development, and you will find a very different conversation still unresolved: whether the walkable village Chanhassen was promised is actually what gets built.
Both stories are happening on the same corner, at the same time, and they tell you something the median home price never will. Chanhassen isn't just growing. It's arguing with itself about what kind of growth it wants, and today's groundbreaking is the half of that argument that's already been settled.
The Chanhassen Community Center broke ground today, 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.
Mayor Elise Ryan put it simply when the bid package cleared: she's 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.
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 civic half of that vision is now literally under construction. The retail half is still being fought over.
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 didn't hide their concern. The plan, as presented, looked less like the "high-end, walkable destination" residents were promised and more like a conventional, car-dependent shopping center.
That concern didn't go away. When the developer brought an updated sketch plan back in June 2026, the council raised the same issues again, and both sides agreed 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.
So the fight isn't whether Avienda gets built. It's already being built, on the same block where the community center just broke ground. The fight is over what kind of place it becomes once it's finished, and that question is still open as of this month.
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:
| Project | Location | Opens |
|---|---|---|
| Harlow (east building) | West 78th St & Market Blvd | December 2026 |
| Bennett (west building) | West 78th St & Market Blvd | September 2027 |
| Chanhassen Community Center | Avienda, Hwy 212 & Powers Blvd | September 2028 |
Three major builds, three different timelines, all within a short drive of each other. Downtown's version of this story has already cleared its zoning fights. Avienda's hasn't.
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.
The restaurant scene has been quietly filling in too, alongside all this construction.
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.
You don't need to be buying or selling anything to care how this plays out. The next two years will decide whether the drive along Powers Boulevard feels like a genuine downtown extension or a stretch of parking lots punctuated by a gas station. 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.
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