OPENPUBLICA · PUBLIC MEETING RECORD
Record of Proceedings

2025-10-17 Budget Committee Meeting: CPED & Regulatory Services 2026 Recommendations

City Council — Friday, October 17, 2025
BodyMinneapolis, Minnesota
SessionCity Council
DateFriday, October 17, 2025
StatusFILED
Video Record
0:00 / 2:27:37

Transcript — Verbatim
0:14

Good morning.

0:15

My name is Aisha Chugtai, and I am the chair of the budget committee.

0:19

I am going to call to order our adjourned meeting for Friday, October 17th, 2025.

0:25

Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation.

0:35

These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community.

0:43

Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast.

0:52

We ask all speakers to moderate the speed and clarity of their comments.

0:56

At this time, I'll ask the clerk to call the role so we can verify the presence of a quorum.

1:01

Councilmember Payne is absent.

1:04

Wansley absent.

1:07

Vita.

1:08

Present.

1:09

Ellison is absent.

1:11

Osman is absent.

1:13

Cashman.

1:14

Present.

1:15

Jenkins is absent.

1:16

Chavez.

1:17

Present.

1:18

Chowdry.

1:19

Present.

1:20

Palmasano.

1:21

Present.

1:22

Vice Chair Koskey.

1:23

Present.

1:24

Chair Chucktai.

1:26

Present.

1:26

That is eight members present.

1:28

Let the record reflect that we have a quorum.

1:30

I'll also remind my colleagues that we will be using speaker management today.

1:34

So please make sure to sign in.

1:36

Today we have two presentations related to the mayor's recommended 2026 budget from the community planning and economic development department and the regulatory services department.

1:47

I'll first invite the community planning and economic development director, Eric Hansen, to join us and begin his presentation.

1:54

Welcome.

1:55

Thank you.

2:10

And together with our staff, we are proud to present the CPE CPED's 2026 supplemental budget recommendations.

2:19

CPED operates within the development, health, and livability area of the public, the Office of Public Service, as you see highlighted on the slide in front of you.

2:29

And we work to grow a vibrant, livable, equitable, sustainable, and safely built city for everyone.

2:36

We have about 243 professionals that carry out this work daily.

2:40

We advance planning, housing, economic opportunity, and regulatory services that reach every neighborhood.

2:47

CPED is a diverse and complex department.

2:52

The team you see on the slide, and we measure out our success through our impact.

2:57

Uh striving for an inclusive city where everybody can fully participate in the economy.

3:08

Our department continues to deliver results that advance priorities.

3:12

This year we celebrated the opening of Wadeg Commons, a 39-unit uh affordable multifamily housing development by NOR companies and redesign Inc.

3:22

WattEgg Commons is an example of how CPED drives forward to increase opportunities for wealth creation, make sure we have more safe, stable, and affordable housing, and advancing a more inclusive economic future.

3:38

People like Arlene Davis, who brought her bought her house on the North Side with city support in 1996, is continuing to reinvest in that home with a new kitchen, which was funded by a CPED program.

3:50

Arlene has already raised her four children in this home.

3:54

And with up with the updates she made, she is ensuring that she's create that she's retaining the wealth she has created in this home.

4:01

Our achievements reflect CPED's broader impact for safe housing, real estate development, complete neighborhoods, and equitable access to living wage jobs across all 87 neighborhoods.

4:15

CFET CPED faces evolving challenges.

4:18

We have a post-ec our post-COVID economic uh uh economy which have shifted in consumption patterns.

4:25

We have uncertainty in federal funding and unexpected events like the one you see on the screen here.

4:33

CPED still remains resilient and adaptive thanks to the skilled staff and our approving systems.

4:40

CPED continues to be agile and resilient and is ready to meet the changing world because of the wisdom, skill, and tenacity of our talented staff at every level of the organization and the funding that drives our processes, programs, and investments.

4:57

We track performance through measurable outcomes.

5:00

Our CPED Impact Report is our annual report, which you can access by scanning the code on the screen.

5:07

CPEN operationalizes the city's strategic goals, plans, and directives to advance our primary objectives.

5:14

We report on our work through Outcomes Minneapolis.

5:19

This QR code will uh become will be at the last slide too, so if you miss it, we can catch you on the back.

Discussion Breakdown — Share of Meeting
Budget Management████████████████████████████████████36%
Affordable Housing███████████████████19%
Public Safety███████████11%
Homelessness██████████10%
Economic Development████████8%
Personnel Matters████4%
Community Engagement████4%
Workforce Development██2%
Transportation Safety██2%
Summary of Proceedings

2025-10-17 Budget Committee Meeting: CPED & Regulatory Services 2026 Recommendations

The Budget Committee convened on October 17, 2025, to review the Mayor's recommended 2026 budget for the Community Planning and Economic Development (CPED) and Regulatory Services departments. The meeting featured a 115.3 million dollar budget request from CPED, which included significant structural shifts from ongoing to one-time funding, and a detailed presentation from Regulatory Services highlighting operational realignments and staffing challenges. Council members engaged deeply on housing stability programs, specifically the trade-offs between Emergency Housing Vouchers (EHV) and Stable Home Stable Schools, as well as delays in small business pilot programs and the People's Way development.

Consent Calendar

  • No items were explicitly processed under the Consent Calendar portion of the transcript; the meeting proceeded directly to the presentations and public comments.

Public Comments & Testimony

  • Councilmember Wansley: Expressed full support for the staff's accessibility but raised concerns about the lack of program design updates for the 2025 construction loan pilot. Requested clarification on funding allocations for Cultural Corridors and the timeline for the Senior Housing Code Abatement program consolidation. Argued that the proposed shift from Emergency Housing Vouchers to Stable Home Stable Schools serves distinct populations and requested budget book language be updated to reflect the 150 unsheltered individuals potentially lost from EHV. Expressed deep disappointment regarding the administration's decision to pivot funding away from EHV after it was previously authorized by this body, stating the city's current approach to unsheltered homelessness is failing and advocating for an amendment to restore the funding.
  • Councilmember Chowdhury: Expressed appreciation for the department's emergency response capabilities. Requested clarity on the derivation of the $1 million shelter funding and asked that the city collaborate with Hennepin County to understand the utilization of these funds given the fiscal cliffs faced by service providers. Advocated for more proactive communication regarding the status of the Lake Street business hardship loan pilot.
  • Councilmember Palmasano: Expressed strong support for the department's recent emergency response to a water main flood. Commended the department for making tough budget reduction choices to reduce the property tax burden. Expressed concern regarding the decision to move the Ownership and Opportunity Fund to one-time funding only.
  • Councilmember Chavez: Read shelter capacity statistics showing zero available beds on recent nights. Expressed strong opposition to the cuts in the Emergency Housing Voucher program and stated that the current budget will not end homelessness. Expressed concern that the loss of the Homeless Response Coordinator position contradicts prior staff concerns about staff being pulled into "paper pushing" rather than field work.

Discussion Items

Community Planning and Economic Development (CPED)

  • Proposal Overview: Director Eric Hansen presented a 115.3 million dollar general budget recommendation, including $3.5 million in ongoing reductions and $11.5 million in additions (mostly one-time).
  • Funding Shifts (EHV vs. Stable Home Stable Schools): Staff proposed reducing the Emergency Housing Voucher (EHV) program by $1.4 million (shifting to Stable Home Stable Schools) and redirecting a previously approved 2025 appropriation of $1.8 million to support the core Stable Home Stable Schools program to fill a projected $3.2 million fiscal cliff in Q2 2026. Council member Wansley argued these populations are distinct, with EHV serving unsheltered individuals and Stable Home Stable Schools serving families with children.
  • Programs and Pilot Updates: Director Hansen acknowledged that the $900,000 "Hardship Forgivable Loan Fund" for businesses impacted by construction (specifically Lake Street) has not yet been programmed due to the complexity of underwriting and the need to distinguish liability between city, Metro Transit, and county projects. Staff noted it would likely take six to nine months to finalize, with funds expected to roll over.
  • Fiscal Constraints: Staff explained that the reduction in the Emergency Shelter Response is due to a lack of viable service providers interested in providing storage in community locations (downtown only proposals were rejected) and the decline in encampments.
  • People's Way: Director Hansen clarified that transferring ownership will take years, requiring a Request for Qualifications (RFQ) process, community partnership evaluation, and public hearings, with the current delay attributed to community feedback received in February.
  • Stable Home Stable Schools: Housing Director Alfred Port confirmed the program serves families with children in Minneapolis Public Schools (elementary level) and noted that the pause on new referrals was made to prevent over-committing resources before 2026.
  • Affordable Housing Trust Fund: Staff confirmed the total recommended budget for the Trust Fund is $17 million, with $7.35 million in one-time Local Affordable Housing Aid (LAHA) and Tax Increment Financing (TIF) resources.

Regulatory Services

  • Reorganization: Director Enrique Velasquez presented a shift to create "one Regulatory Services," moving the Alternative Enforcement and Housing Liaison teams from Operations and Engagement to Inspection Services.
  • Staffing and Capacity: Director Velasquez highlighted that the department is operating stretched beyond capacity. Proposed budget reductions include eliminating a vacant Homeless Response Coordinator position (due to difficulty recruiting) and canceling contracts for hand washing stations and portable toilets due to lack of service providers.
  • Performance Metrics: The department reported a >90% live release rate for Minneapolis Animal Care and Control (MAC), despite record pet surrenders. Traffic Control is reporting near 100% compliance with service level agreements for response times.
  • Security Risks: MAC received an audit finding regarding security risks due to cash transactions; a one-time $101,000 reduction was proposed to fund an interim on-site security specialist.
  • Prolonged Vacancy Enforcement: Staff reported that 59 properties have entered this program, with 20 actively moving toward sale or rehabilitation.

Key Outcomes

  • Budget Presentation Only: No formal votes were taken on the budget items during this meeting; the presentations were delivered for committee review and staff briefing.
  • Administrative Follow-ups Directed:
    • Staff to provide data on seniors served via Minneapolis Homes vs. the Senior Housing Code Abatement program (Councilmember Wansley).
    • Staff to provide a memo on funding allocations for Cultural Corridors across all departments (Councilmember Wandsley/Chowdhury).
    • Staff to provide the current balance of the Ownership and Opportunity Fund (Councilmember Palmasano/Chugtai).
    • Staff to provide a detailed breakdown of the 2025 Local Affordable Housing Aid (LAHA) distribution timeline and amounts (Council President Payne).
    • Staff to report on the utilization of the $100,000 People's Way maintenance fund in 2025 (Councilmember Chavez).
    • Staff to provide a status update on all 2025 change items and their utilization/savings (Councilmember Chavez).
    • Staff to provide clarity on the process for the $1 million shelter funding allocation to Hennepin County (Councilmember Chowdhury).
  • Councilmember Wansley's Stance: Announced intent to bring an amendment to restore the $1.8 million Emergency Housing Voucher funding, arguing the current administration's approach to unsheltered homelessness is failing and that the two housing programs serve different, non-overlapping populations.
  • Quorum Management: The meeting was adjourned with approximately 8 members present, noting that quorum would be lost shortly after the Regulatory Services presentation concluded.

Meeting Transcript

Good morning. My name is Aisha Chugtai, and I am the chair of the budget committee. I am going to call to order our adjourned meeting for Friday, October 17th, 2025. Before we begin the meeting, I want to offer a friendly reminder to all members, staff, and the public that these meetings are broadcast live to enable greater public participation. These broadcasts include real-time captioning as a further method to increase the accessibility of our proceedings to the community. Therefore, all speakers need to be mindful of the rate of their speech so that our captioners can fully capture and transcribe all comments for the broadcast. We ask all speakers to moderate the speed and clarity of their comments. At this time, I'll ask the clerk to call the role so we can verify the presence of a quorum. Councilmember Payne is absent. Wansley absent. Vita. Present. Ellison is absent. Osman is absent. Cashman. Present. Jenkins is absent. Chavez. Present. Chowdry. Present. Palmasano. Present. Vice Chair Koskey. Present. Chair Chucktai. Present. That is eight members present. Let the record reflect that we have a quorum. I'll also remind my colleagues that we will be using speaker management today. So please make sure to sign in. Today we have two presentations related to the mayor's recommended 2026 budget from the community planning and economic development department and the regulatory services department. I'll first invite the community planning and economic development director, Eric Hansen, to join us and begin his presentation. Welcome. Thank you. And together with our staff, we are proud to present the CPE CPED's 2026 supplemental budget recommendations. CPED operates within the development, health, and livability area of the public, the Office of Public Service, as you see highlighted on the slide in front of you. And we work to grow a vibrant, livable, equitable, sustainable, and safely built city for everyone. We have about 243 professionals that carry out this work daily. We advance planning, housing, economic opportunity, and regulatory services that reach every neighborhood. CPED is a diverse and complex department. The team you see on the slide, and we measure out our success through our impact. Uh striving for an inclusive city where everybody can fully participate in the economy. Our department continues to deliver results that advance priorities. This year we celebrated the opening of Wadeg Commons, a 39-unit uh affordable multifamily housing development by NOR companies and redesign Inc. WattEgg Commons is an example of how CPED drives forward to increase opportunities for wealth creation, make sure we have more safe, stable, and affordable housing, and advancing a more inclusive economic future. People like Arlene Davis, who brought her bought her house on the North Side with city support in 1996, is continuing to reinvest in that home with a new kitchen, which was funded by a CPED program. Arlene has already raised her four children in this home. And with up with the updates she made, she is ensuring that she's create that she's retaining the wealth she has created in this home. Our achievements reflect CPED's broader impact for safe housing, real estate development, complete neighborhoods, and equitable access to living wage jobs across all 87 neighborhoods.

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