Wayzata has long been a destination city, attracting visitors with its thriving restaurant scene, lakeside charm, and business-friendly environment. But as the community grows, so do the demands on public services, infrastructure, and public safety.
At the first-ever Wayzata Business Council meeting on March 20, 2025, City Manager Jeff Dahl and Mayor Andrew Mullin addressed local business leaders, outlining the city’s economic trajectory, current development projects, and the financial challenges that come with success. The event was hosted by the Wayzata West Metro Chamber of Commerce, although membership was not required for attendance.
Development and the Evolving Landscape of Wayzata
City Manager Jeff Dahl provided an overview of key developments shaping Wayzata’s business district. From long-anticipated projects breaking ground to pending proposals, he underscored the impact of ongoing growth.
In discussing the Promenade commercial space, Dahl stated, “We expect some of those vacancies to fill up,” highlighting the progress on long-vacant spaces.
Dahl also briefly summarized key developments underway in Wayzata:
- Wells Fargo Redevelopment – A transformative project adding 70 residential units, including townhomes and apartments along Superior Boulevard.
- The Wazi Condominiums – A smaller three-story mixed-use project at Rice and Broadway, offering four condominiums and office space.
- 201 Lake Street – A 30-unit condo development replacing the old Coldwell Banker Burnet building, led by developer Lowell Zitzloff.
- Moments of Wayzata – A modern senior living facility set to replace Meridian Manor, addressing the need for updated housing options for older residents.
- Lamborghini Dealership – A major proposal at Wayzata Boulevard and Central Avenue, replacing a long-abandoned gas station with a high-end showroom.
Dahl emphasized that while new developments enhance Wayzata’s vibrancy, they also place increased demand on public works, police presence, and infrastructure maintenance.
“We’ve got Panoway, we’ve got successful business development happneing, a lot of new restaurants, and a lot of people with the pandemic and unrest in the central cities. We have seen a shift of activity from Minneapolis to other area like Wayzata. We are popular, and people want to be here,” he explained.
“It’s not without a cost, because of the activity, our public works crews are out more often cleaning.” To manage these growing demands, city leaders have been forced to examine new revenue streams—one of which may be a local food and beverage sales tax.
The Financial Reality: Rising Costs & Tax Pressures
Mayor Andrew Mullin took the stage to provide historical context on Wayzata’s financial challenges that began in 2008.
Mullin reflected on his 17 years in and out of local politics, recalling how the city deliberately sought to attract independent restaurants and create a welcoming environment for visitors.
Mullin stated, “…the two things we focused on to revitalize downtown were the Panoway project, which started as a small initiative, and attracting independently owned restaurants by making it easy for them to set up here, open their doors, and create inviting spaces with beautiful patios and great food.”
That strategy has undeniably succeeded, but it has also led to rising costs in maintaining public safety and infrastructure.
With property tax levies up 40% over the past four years, commercial property owners—who pass these costs on to tenants—are feeling the squeeze.
Mullin addressed how the increasing need for public safety funding has grown, “…the current trend in generating revenue to fund police services is not sustainable.”
Why a Sales Tax?
To help alleviate this financial strain, Wayzata is considering a food and beverage sales tax, which would capture revenue from visitors rather than solely taxing property owners and businesses.
Mullin acknowledged concerns but pointed to Excelsior’s existing local area sales tax as an example, noting that it has not deterred customers or hurt businesses there.
The mayor used his own property assessment to highlight the issue, noting that under the proposed food and beverage tax, he would need to spend $30,000 in downtown Wayzata to match his annual and recurring $144 property tax increase.
“For context, at a half percent, $100 is fifty cents… and for a $10,000 wedding bill, it’s fifty dollars,” he said. “So we don’t think it’s significant pass-through to the person visiting or buying food and beverage in Wayzata.”
Mullin also clarified that the city cannot impose this tax at this time, “We currently have no ability to implement it. The legislature will not allow any city to impose a sales tax on its own at this time, and we don’t yet know how it will unfold.”
While the plan is not yet approved, Wayzata leaders are actively engaging businesses to gather input before moving forward.
Next Steps & Business Input
Mullin made it clear that city leadership wants to hear from business owners before taking any further action.
“We owe it to you to hear your concerns,” he told the crowd. “If 6Smith and the Hotel Landing and Red Cow and CoV and who else is here in the food and beverage [industry]… if I don’t hear from you, I’m going to be disappointed.” He also indicated he has reached out personally to each restaurant in town.
With additional town halls and business forums planned, Wayzata officials aim to ensure that any revenue solution benefits both the city and its business community—without placing an undue burden on the very entrepreneurs who have made Wayzata a success.
