Chaska Begins Construction on $47 Million Municipal Services Building
By Brian Bateman
Chaska has entered the construction phase of a new $47 million Municipal Services Building at Chaska Creek Boulevard and Creek Road. The facility is planned to bring the city’s Public Works, Water and Sewer, and Electric Department operations together under one roof.
Construction began in the early summer of 2026, with the project’s construction phase identified as starting June 1. The city’s current operational target is early 2028. Until then, residents should not expect the new building to be open or substantially complete.
A consolidated city-services facility
The building is intended to support future city services by consolidating departments responsible for public works, water and sewer operations, and electric services. That means the project will eventually provide a new central facility for work that affects streets, utilities and other municipal operations in Chaska.
The site is part of the city’s Building Improvement Program. The City Council approved acquisition of the property at Chaska Creek Boulevard and Creek Road in September 2024, beginning the process that led to the current construction project.
Contracts moved forward after bids exceeded estimates
In March 2026, the City Council approved construction contracts for the Municipal Services Building. The action followed bids that exceeded the city’s initial estimates.
City staff identified cost-saving measures and additional funding to keep the project moving. Carver County Local News reported the total project cost as $47 million. The city’s current project page does not state a final current contract total, so the reported project cost should not be treated as a confirmed final contract figure.
The council’s March 16 highlights described an earlier schedule that anticipated construction in spring 2026 and substantial completion in fall 2027. The city’s current project page now lists early 2028 as the target for operations. Those milestones are different: the earlier date referred to substantial completion, while the newer date refers to the facility becoming operational.
What comes next
Construction is the next major step for the project. The building is expected to become operational in early 2028, according to the current city project schedule.
For residents, the project represents a major municipal capital investment and is expected to change where city utility and public-works services are carried out. Construction activity at the Chaska Creek Boulevard and Creek Road site may also affect traffic around the work area while the building is being constructed. The approved sources do not establish that the project will increase utility rates.
Sources
- Municipal Services Building, City of Chaska / Chaska Fire Department
- Chaska Council Approves $47 Million Municipal Services Building, Carver County Local News
- City Council Highlights 3/16/26, City of Chaska
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