Drive past the Avienda site at Highway 212 and Powers Boulevard this month and you'll see framing crews on apartment buildings, silt fence around a stormwater pond, and dirt moved for a community center that broke ground on August 31. The retail portion remains in planning. The grocery-anchored plaza, restaurants and the "gathering space" have appeared in plans since 2022.
That distinction between construction underway and proposed plans may matter if you're weighing a home near this site. The county's preliminary 2026 valuation data shows the city's median home value climbing to roughly $524,400, with residential property values up 4.3 percent over the previous year and total property values across the city gaining about $400 million, according to figures shared at the June 22 City Council meeting. The 118-acre "regional destination lifestyle center" still has its final retail plan under review.
Project Components and Current Status
Here are the project's reported components and milestones as of this month:
- 412 luxury apartment units, under construction by Dorn Companies, after the City Council approved the final plat for Avienda Apartments in September 2025 and considered the development contract that October.
- A 39-lot townhome plat (Avienda Townhomes), replatted in 2024 to meet mechanical code requirements on venting.
- A 65,000-square-foot grocery store lease, reported to the Council in January 2026, that includes a wine and spirits component and four fuel pumps.
- The Chanhassen Community Center, a 183,850-square-foot facility on the site's southeast corner, with construction ramping up this fall and an anticipated opening in September 2028.
Everything else, the "traditional layout anchored by a grocery store and organized around a central gathering space with retail, dining and service uses" that the developer pitched in March, is still working its way through revisions. A site plan update was expected to reach the Planning Commission this September and the City Council in October, per the city's own project page.
How the Sales Tax Relates to the Retail Plan
Here's the part that doesn't show up in a listing description. The community center now rising on Avienda's southeast corner isn't funded the way most municipal buildings are. In November 2024, Chanhassen voters approved a 0.5% local option sales tax over 20 years, projected to raise $40 million toward roughly half the facility's construction cost. The tax took effect in April 2025, and by one estimate reported through Carver County Local News, non-resident shoppers are expected to cover about 45 percent of that revenue.
The sales-tax structure is one factor in discussions about Avienda's retail plan. A sales tax that leans on outside shoppers only works if the retail around it actually pulls outside shoppers in, which rewards a grocery anchor and drive-through-friendly convenience over a boutique, foot-traffic-only village green. Back in January 2026, the same meeting where developers reported the apartment construction start and the signed grocery lease, council members pushed back on the direction of the retail concept, with the city's own recap describing concern about a shift "away from the original vision of a high-end, walkable destination toward a more auto-oriented, commercial development."
At a later June work session, the developer said that current market conditions make certain commercial and entertainment uses hard to attract. A grocery lease has been reported; a walkable restaurant row remains part of the evolving plan.
Recent Retail Plan Revisions
The plan's recent revisions unfolded over several months. In March 2026, the developer submitted a revised sketch plan built around the grocery store and a central gathering space, with the city flagging stormwater challenges as a real design constraint. In June, the council reviewed an updated sketch and asked for a "visioning session" to discuss the plan further. That session happened in July, and the developer came back with a stronger central gathering area organized around a proposed regional stormwater pond, plus talk of restaurants and connections to the future community center. Council members said the direction was better but still needed refinement.
The plan went through three rounds of revision in five months. Buyers considering a home near the site should distinguish the proposed walkable concept from the components currently under construction or approved; as of September 2026, the retail plan had not completed its Planning Commission review.
What This Means If You're Comparing Chanhassen to Other Western Suburbs
Avienda's current planning status is one factor to consider when comparing Chanhassen with other western suburbs. The city's own Community Benchmarks Report, presented alongside the June valuation numbers, found that Chanhassen's property tax rate has stayed essentially flat for five years despite rising average home values, a comparison the city drew against similar Minnesota communities. The tax-rate comparison is separate from Avienda's current development status.
The apartments and townhomes are real supply, arriving on a known timeline, adjacent to a community center with an anticipated opening in September 2028. The retail mix remains under discussion.
| What's confirmed | What's still in concept |
|---|---|
| 412 apartment units under construction (Dorn Companies) | Walkable restaurant and retail mix |
| 39-lot townhome plat | Final architectural character of the plaza |
| Grocery lease with four fuel pumps | Balance of drive-throughs vs. pedestrian space |
| Community center groundbreaking, Aug. 31, 2026 | Site plan approval (Planning Commission review expected September 2026) |
If you're comparing Chanhassen against Chaska, Minnetonka, or Plymouth on the strength of "there's a big mixed-use project coming," the currently reported components at Avienda include a grocery lease, four fuel pumps and an apartment complex, while other retail elements remain subject to change. That's not a reason to walk away. It's a reason to buy for what's actually there, and let anything else be a bonus rather than the deciding factor.
A Few Questions Worth Asking Before You Write an Offer Near This Site
When will the Avienda retail actually open? No firm date exists yet. The site plan for the retail portion was still moving through Planning Commission and City Council review as of September 2026, and construction on any approved retail would follow that approval, separate from the community center's 2028 target.
Will the community center change traffic patterns nearby? Almost certainly, once it opens. A 183,850-square-foot public facility funded in part by a tax designed to capture non-resident spending is built to draw people from outside city limits, which is worth factoring into how you think about a home's proximity to Powers Boulevard.
Should I wait to buy near Avienda until the retail plan is finalized? That depends on what you're buying for. If the appeal is the confirmed pieces, the community center, the new apartment and townhome supply, the flat tax rate the city has held for five years, there's no reason to wait on a plan that's still being revised. If the appeal is specifically the walkable lifestyle-center vision from the original renderings, it's worth watching how the September and October 2026 city reviews land before deciding how much of that vision to count on.
Chanhassen's next few months of council meetings will tell you more about this corner than any listing sheet can. If you're weighing a home near Avienda, or trying to figure out how a still-forming development should factor into what you offer, The Fowke Weber Team can walk through the confirmed timeline with you and help you separate what's built from what's still being negotiated. Get in touch when you're ready to talk specifics.
This article is general information, not legal, tax or financial advice. Consult a qualified professional about your situation.
