Restaurants in the Neighborhood Business (BN) District


The Neighborhood Business (BN) district lists standard restaurants and fast-food restaurants without a drive-through as part of a shopping center as conditional uses. This creates an unnecessary barrier for restaurants wishing to locate in the BN district.


The BN district is intended to be located near residential neighborhoods and to accommodate neighborhood-scale commercial uses and for this reason it is the most restrictive of the City’s commercial districts. Currently one area of the City is zoned BN and five Planned Unit Developments Use the BN zoning as their underlying zoning standard. While the base BN zoning classifies restaurants as conditional uses, all of the Planned Unit Developments (PUD) list them as a permitted use. To date, no restaurant located in a BN district or PUD with BN as the underlying zoning has caused a complaint. Given the fact that conditional use permits (CUP) require a public hearing and City Council approval, staff believes the requirement creates an unnecessary barrier and delay for restaurants looking to locate in this zoning district. 

The following sections of the Chanhassen City Code are subject to changes:

  • Chapter 20, Article IV Conditional Use Permits lists the administrative process and general issuance standards for Conditional Use Permits.
  • Section 20-296, Fast-Food Restaurants lists the specific requirements for issuing a Conditional Use Permit for a fast food restaurant.
  •  Chapter 20, Article XVI “BN” Neighborhood Business District lists the intent of and the permitted and conditional uses allowed in the BN district.

Related Resources

Issue Paper


Date Meeting Type Action
May 17, 2022 Planning Commission Approved
June 13, 2022 City Council TBD