Tue, Dec 2, 2025·Minneapolis, Minnesota·City Council

Minneapolis Business, Housing & Zoning Committee — Regular Meeting (Dec 2, 2025)

Discussion Breakdown

Affordable Housing35%
Homelessness18%
Economic Development18%
Engineering And Infrastructure12%
Environmental Protection8%
Community Engagement5%
Public Safety4%

Summary

Minneapolis Business, Housing & Zoning Committee — Regular Meeting (Dec 2, 2025)

The Business, Housing & Zoning Committee met on December 2, 2025 (afternoon meeting; called to order in open session). Vice Chair Aurene Chowdhury presided in the absence of Chair Jamal Osman (who joined later). The committee approved a large consent calendar, held multiple public hearings on licensing, land use, finance, and housing items, heard extensive public testimony on a proposed Tenant Opportunity to Purchase (TOPA) ordinance (but took no final action on the ordinance), decided a quasi-judicial land use appeal, and received Q2–Q3 2025 encampment closure reporting.

Attendance

  • Present at roll call: Council Members Andrew Cashman, Emily Koski Vita, Jeremiah Ellison Jenkins (arrived after roll), Andrea Chavez, Vice Chair Aurene Chowdhury
  • Absent at roll call: Chair Jamal Osman (noted as away initially)
  • Quorum: 4 members present at roll; quorum established

Consent Calendar

  • Approved (single motion) the following items; received & filed items #26 and #28:
    • Six liquor license approvals; eight liquor license renewals; one gambling license
    • Building permit extension: Silva on the River
    • Great Streets Facade Grant Program: authorization of agreements and acceptance of a Federal Transit Administration grant (including reference to Blue Line Extension-related funding)
    • 2025 Emergency Solutions Grant: authorization of agreements
    • Two loans to Martisur Hospitality Group (Nicollet Ave)
    • Stable Homes, Stable Schools appropriation and contract reauthorization (discussion noted a “fiscal cliff” and the inability to expand the pilot as originally envisioned)
    • Street vacation: 4301 Lake St E
    • Loan settlement: TLC Precision Technology
    • Grant agreement: Curtis Financial (rehabilitation at Heritage Park)
    • Appointment: Bruce Brunner to Seat #10, Minneapolis Advisory Committee on Housing
    • Temporary construction item (as listed)
    • Zoning code ordinance: minimum building height requirements
    • Prolonged vacancy enforcement report (received & filed)
    • Great Streets Gap Loan: Newbie 314 Property Holdings
    • Report on pet restrictions in rental properties (received & filed; noted it would not be taken up at this meeting)
  • Vote: Approved by voice vote (unanimous “aye,” no nays stated)

Public Hearings & Actions

Curioso Coffee Bar — On-sale Wine/Strong Beer w/ Limited Entertainment (3001 Hennepin Ave S, Suites 1170–1175)

  • Staff (Beth Dominguez, Licenses & Consumer Services):
    • Requested license: on-sale wine and strong beer with limited entertainment
    • Planned interior capacity: 35 patrons
    • Hours: 7:00 a.m.–8:00 p.m. (Mon–Fri); 8:00 a.m.–8:00 p.m. (Sat–Sun)
    • Notice: sent to residents/property owners within 600 feet and neighborhood/business association; two supportive comments received; no significant issues found
  • Applicant testimony (Luke, Curioso): expressed intent to remain primarily a coffee shop; sought beer/wine to expand funding model for events
  • Motion/Outcome: Approved on motion by Council Member Cashman
  • Vote: voice vote, passed (no nays stated)

Lumi Restaurant & Bar — Upgrade from Limited to General Entertainment (9921 Nicollet Mall)

  • Staff (Christina Steeester, Licenses & Consumer Services):
    • Request: upgrade entertainment to allow DJ and dancing (weekend evenings, lowest level)
    • Hours: 6:00 a.m.–2:00 a.m. daily; sidewalk cafe 6:00 a.m.–12:00 a.m.
    • Notice: 24 notices to taxpayers within 450 feet (sent Nov. 12); no responses
    • Public safety history: no 311 or police calls for service directly resulting from operations
    • Safety plan: reviewed; police lieutenant reviewed but did not sign off (resource/coverage concerns for the location)
  • Public testimony: owner (name not clearly captured in transcript) described cultural and event use and desire to allow dancing without having to stop patrons
  • Committee discussion:
    • Council Member Vita requested moving forward “without recommendation” to allow a meeting between staff and nearby businesses/community members who received notice late and wanted to discuss the safety plan
    • Council Members Cashman and others emphasized desire to keep the item moving to final Council action by the last Council meeting of the term (Dec. 11)
  • Motion/Outcome: Forwarded without recommendation
  • Vote: voice vote; passed (no nays stated)

Interim Use Permit — Hennepin County Emergency Family Shelter (219 4th St S)

  • Staff (Alex Kohlhaas, CPED Planning):
    • Interim use permit for emergency shelter up to 50 beds; operated by Hennepin County through no later than Aug. 31, 2026
    • Guest access: referral-only by Hennepin County
    • Written comment received: Downtown Minneapolis Neighborhood Association letter in approval
  • County testimony (Ms. Werder, Hennepin County):
    • Described “first stop”/triage model for families; goal stated as “no child to sleep outside”
    • Average household size stated as about 3.5 people; about 10 families on average at any given time (about 30–35 people)
    • Stated that due to the program there have been “zero turnaways” since it started at a different location beginning Christmas 2023
    • Noted site was already operating and intended as temporary while planning for a long-term site
  • Motion/Outcome: Approved
  • Vote: voice vote, passed (no nays stated)

Tax Increment Financing (TIF) Plan Budget Modifications — 59 TIF Districts

  • Staff (Matthew Hendricks, Finance & Property Services):
    • Explained 2021 special legislation allowing additional pooling flexibility during the pandemic era
    • City previously transferred “just over $17 million” from TIF accounts to the Affordable Housing Trust Fund; stated these funds were awarded to specific affordable housing projects and would be fully expended by year-end 2025
    • Office of the State Auditor advised updating district budgets to reflect transfers as additions to district budgets
    • Also proposed updating most active TIF district plans to add capacity for potential future pooling for affordable housing (not a commitment to pool a specific amount)
    • Two resolutions: one for districts that pooled under 2021 law; one for districts that did not
  • Motion/Outcome: Approved
  • Vote: voice vote, passed (no nays stated)

Planning Commission Appointments — Three Reappointments

  • Staff (Kimberly Helene, CPED): reappointments of Kelly Jones, Dave Shepard (full term after mid-term fill), and Tom Wagner
  • Motion/Outcome: Approved
  • Vote: voice vote, passed (no nays stated)

PACE Clean Energy Financing Assessment — “222” Building (222 9th St S)

  • Staff (Becky Shaw, CPED Business Development):
    • Building: 41 stories; over 720,000 rentable square feet; four levels of below-ground parking
    • Project: $31.7 million in energy/retrofit improvements (HVAC, insulation, lighting, heat recovery, water efficiency, automatic energy controls, new chiller)
    • Financing: St. Paul Port Authority approved $12.5 million PACE financing
    • Repayment: special assessment, twice yearly payments over 30 years beginning Jan. 2027
    • Also required: amendment to joint powers agreement to align with 2023 legislative PACE language
  • Motion/Outcome: Approved
  • Vote: voice vote, passed (no nays stated)

Land Sale Side Yard Program — Add Two Properties

  • Staff (Naren Sihvong, CPED Real Estate Services): add 1900 Penn Ave N and 2756 Queen Ave N (both Ward 5; Jordan and Willard-Hay)
  • Motion/Outcome: Approved
  • Vote: voice vote, passed (no nays stated)

Building Code Ordinance — Demolition/Wrecking Permit Requirements (Chapter 599)

  • Staff (Steve Poore, CPED Development Services):
    • Ordinance intended to address gaps in public noticing and environmental mitigation identified in 2025, referencing “recent events” and new noticing needs
    • Key changes described:
      • Expand mailed notice for demolitions (similar to construction management agreement noticing) to property owners within 350 feet (not just adjacent owners)
      • Improved effort to contact non-owner residents, with attention to sites with possible contamination/hazardous materials (state environmental permit/air permit/local permit, hazardous waste storage)
      • Health Department collaboration for extra review and permit conditions
      • Wind safety: require demolition to stop when winds exceed 15 mph
    • Clarified emergency demolitions (fire, vehicle impact) would not be subject to this process
  • Council Member Chavez:
    • Cited Smith Foundry demolition concerns in 2025 and community/staff workgroup collaboration
    • Supported stronger noticing and environmental mitigation planning
  • Council Member Cashman:
    • Asked scope impacts and urged avoiding barriers to necessary demolitions; raised future interest in deconstruction/salvage for zero-waste strategy
  • Council Member Chavez further asked about penalties for unpermitted demolition and expressed interest in higher/coercive penalties, particularly where contamination is involved
  • Motion/Outcome: Approved ordinance amendments
  • Vote: voice vote, passed (no nays stated)

Tenant Opportunity to Purchase (TOPA) Ordinance — Public Hearing (No Final Action)

  • Vice Chair Chowdhury (remarks on behalf of authors Council Member Ellison and Vice Chair Chowdhury as named in the meeting; noted Council Members Ellison and “Council Vice President” were co-authors and not on the committee):
    • Framed TOPA as an anti-displacement tool used in other jurisdictions
    • Stated authors requested no vote by end of term and requested no action at this meeting so the policy could be revisited in the next council term

Public Comments & Testimony (TOPA)

  • Opposed / concerns raised (positions and key points):
    • Patience (27-year Minneapolis resident): expressed opposition, arguing owners already may sell to tenants voluntarily; stated ordinance would infringe on property rights and create government overreach
    • Miles Artis (Director of Government Affairs, Minneapolis Area Realtors): opposed; stated main barrier is mortgage qualification; advocated expanding down payment assistance and financial literacy/homebuyer education
    • John Stiles (realtor; rental property owner): opposed; argued timelines could extend a sale to “eight months or more”; criticized $8,500 minimum buyout provision as forced value transfer; warned of impacts to 1031 exchanges
    • Ray Peterson (Ventura Village; stated neighborhood organization opposed): opposed as drafted; argued TOPA needs companion supports (financing, legal help, training); raised concerns about “qualified organizations” and exemption structure possibly concentrating poverty
    • Pat Paulson (Past President, Minneapolis Area Realtors; 40-year realtor): opposed; compared to 2009 “First Look” program; stated tenants buying their building is rare in his experience; argued sales do not terminate leases
    • Jennifer Spadini (property manager, buildings 10 units and less): opposed; criticized buyout calculation and ambiguity for shared units; warned exemptions could penalize keeping long-term lower-rent tenants
    • Will O’Keefe (Ward 8 rep, Housing Advisory Committee): could not support as drafted; noted HAC discussion without quorum/no official vote; cited concerns about limited success claims (referenced DC Policy Center); questioned fiscal note/staffing analysis and nonprofit capacity
    • Stacy Niemeyer (SVP Property Management, Bader Management; ~15,000 units managed): opposed as drafted; emphasized “6 to 12 months” potential delay and financing/1031 complications; argued no reason to believe it would increase homeownership
    • Karen Meika Nielsen (incoming Vice Chair, MAR Government Affairs): opposed; cited stacked timeframes (14/30/60/90 days plus ROFR) as unrealistic; stressed sellers’ urgent needs
    • Kathy Bennett (Executive Director, Twin Cities Housing Alliance): opposed; argued it would discourage investment and burden nonprofits; urged focus on programs like Voluntary 4D and first-time buyer resources
    • Kyle Sinochinski (incoming Chair, MAR Governmental Affairs): opposed; cited seller urgency statistics (15% urgent; 42% somewhat urgent); raised concerns about qualified-organization purchases reducing inventory
    • Cecil Smith (President/CEO, Minnesota Multi Housing Association): opposed; warned standard deals could be delayed “almost a year” and rescission enforcement could deter buyers/title insurers; predicted lower sales prices and market impacts
    • Nils Snyder (small owner/operator; broker): opposed; argued ordinance would burden single-family/duplex sales and create legal risk for small owners
    • Bernadette Homus (speaker opposed): urged permanently tabling; argued co-ownership of older buildings is risky and capital intensive; doubted affordability/financing feasibility for tenant groups
  • Supported / urged strengthening (positions and key points):
    • Connor Carroll (Minneapolis renter): supported; stated TOPA would help renters stay housed and “level the playing field” against institutional investors
    • Jessica Cheminski (Housing Justice Center policy attorney; homeowner): supported passage with improvements; cited DC results of “over 1,100 affordable units” preserved/created annually (2006–2020); urged removing affordability-based exemptions, improving clarity/enforcement, and pairing with funding and technical support
    • Reg Enrique (Homelines Managing Organizer; Housing Justice League facilitator): supported a strong, community-influenced TOPA; framed as necessary to counter displacement and speculative pressures
    • Juan Luis Rivera-Rez (Alliance for Metropolitan Disability; Housing Justice League member org): supported; emphasized cooperative ownership and existing Minneapolis housing cooperatives
    • Andrew Falstrom (speaker supported passage): urged advancing equity and stated opposition framing as “socialism” reflects resistance to tenant ownership; shared anecdotal examples

Committee Discussion & Action (TOPA)

  • Council Member Vita moved to return the ordinance to author (seeking an action rather than leaving it in committee).
  • Vice Chair Chowdhury stated preference for no action to honor authors’ request (leaving it in committee through term end).
  • Council Member Chavez stated she supported leaving it in committee per authors’ request, emphasizing TOPA as anti-displacement and criticizing repeated opposition by real estate/landlord interests; stated policy needed strengthening rather than abandonment.
  • Council Member Jenkins supported keeping in committee; also objected to broadly characterizing all opposition as “lobby” and emphasized concerns of small providers; argued TOPA would not by itself solve affordability without financing supports.
  • Roll call vote on motion to return to author:
    • Vita: Aye
    • Cashman: No
    • Jenkins: Aye
    • Chavez: No
    • Chowdhury: No
    • Result: 2 ayes, 3 nays — motion failed
  • Outcome: No further action taken; ordinance left in committee (not advanced to full Council in this term).

Quasi-Judicial Land Use Appeals — 4109 & 4113 Sheridan Ave S (Linden Hills)

  • Staff (Lindsay Silas, CPED Planning):
    • Proposal: demolish existing duplex and garage; construct 4-story residential building with 13 dwelling units and 26 underground parking spaces
    • Zoning context: Corridor 3 built-form overlay (3 stories by right; up to 4 stories with a premium); portion of site in Shoreland Overlay District (approx. 1,000 feet from protected waters)
    • Approvals/appeals:
      • City Planning Commission (Nov. 3, 2025): approved CUP to increase height in Shoreland Overlay portion (2.5 to 3 stories; 35 ft to 40 ft 6 in) and site plan review
      • Administrative approvals: FAR increase (not appealed) and administrative height increase (3 to 4 stories at front of building) using an environmental sustainability/climate resiliency premium
    • Premium described: commitment for at least 50% of building energy usage as renewable energy (on-site solar or renewable energy credits)
    • Shadow studies: staff reported minimal difference compared with by-right scenarios, including findings related to adjacent solar energy systems
  • Appellant testimony (Tom DeVink, attorney for Linden Hills Community Coalition):
    • Requested sending item back to planning; stated coalition not against project but objected to CUP and administrative height increase; argued premium not adequately demonstrated “now” and that neighbor solar panels would be significantly impacted
    • Noted Planning Commission vote was narrow (stated as 4–3)
  • Applicant testimony (Josh Siegel, JLS Design Build):
    • Asked Council to deny appeal; asserted compliance with CUP and shoreland standards and height premium; stated renewable energy compliance is performance-based and verified later in permitting; stated expectation of rooftop solar providing nearly all renewable energy from day one
  • Public testimony included:
    • Support (e.g., Neighbors for More Neighbors volunteer; Planning Commission member speaking as individual): argued project supports fiscal stability, climate goals, and aligns with Corridor 3 near E-Line BRT
    • Opposition (nearby residents): raised concerns about fit/scale, sun/shadow, privacy, stormwater/drainage, retaining walls/foundation impacts from excavation, traffic/pedestrian safety on Sheridan, and potential impacts to existing solar panels
  • Committee questions:
    • Vice Chair asked staff about premium requirement; staff clarified staff report typo (40% listed, ordinance requires 50%), and explained enforcement via permit-stage review and conditions requiring premiums for life of building
  • Decision:
    • Motion: Deny the appeal and adopt staff findings, with an added condition (raised by Council Member Vita, Ward council member not on committee) that applicant work with staff on enhanced landscaping (trees/shrubs/plantings) in rear yard and south interior yard to mitigate impacts
    • Vote: voice vote, passed (no nays stated)

Encampment Closure Reporting — Q2 and Q3 2025 (Receiving Presentation)

  • Presenter: Enrique Velasquez, Director of Regulatory Services
  • Q2 2025 (Mar. 18–Jun. 30):
    • City-supported closures: 0
    • Homeless Response Team activity (reported):
      • 834 site visits (225 unique locations)
      • Vehicle-only sites: 58 of 225; 71 vehicles across those locations
      • Supplies provided: 212 times
      • Engagements: 484; resulting in 93 housing referrals, 6 shelter reservations, 6 intake assessments
    • Hennepin County Office of Housing Stability: 174 people exited unsheltered homelessness into shelter or stable housing (county could not disaggregate by encampment origin)
  • Q3 2025 (Jul. 1–Sep. 30):
    • City-supported closures: 1 (Ward 9; estimated ~60 unsheltered residents affected)
    • Housing-related actions connected to the closure:
      • Shelter offered: 279 times
      • 28 housing referrals, 6 shelter reservations, 12 intake assessments
      • Presenter noted 7 individuals who wanted shelter but could not access it due to lack of capacity (noted as not shown on the slide)
    • Hennepin County: 141 people moved from unsheltered homelessness into shelter or stable housing
    • Closure cost/time (single closure):
      • Total cost: $16,382
      • Total staff hours: 142.75
    • Reported closure site impacts:
      • Encampment duration: 76 days
      • HRT visits: 27
      • Day-of outreach: 30 people contacted; 3 accepted shelter
      • No arrests
      • 311/911 calls: 84% decrease in 311 calls and 90% decrease in 911 calls comparing the encampment period to after closure
    • Personal belongings: report stated residents were not permitted to return the day of closure to retrieve belongings due to circumstances following a mass shooting; Council Member Chavez requested follow-up explanation and emphasized the harm of denying retrieval
  • Process improvements described:
    • Ongoing data alignment with Hennepin County; county system changes aimed at tracking the “journey” from shelter entry to stable housing (additional information anticipated after Q1 2026)
    • Protocols to pre-reserve shelter spaces in advance of planned closures (not always possible for sudden closures)
    • Continued refinement of notification tracking and an expanded unsheltered homelessness dashboard beyond encampments

Key Outcomes

  • Approved the full consent calendar (including licensing actions, loans/grants, street vacation, zoning/code items, and appointments) by voice vote.
  • Approved:
    • Curioso Coffee Bar on-sale wine/strong beer w/ limited entertainment license.
    • Interim use permit for Hennepin County emergency family shelter (up to 50 beds) through Aug. 31, 2026.
    • TIF plan budget modifications for 59 districts (including clarification of 2021 special-legislation pooling and future pooling capacity lines).
    • PACE special assessment for $12.5 million financing portion of a $31.7 million energy retrofit at 222 9th St S (payments over 30 years starting Jan. 2027) and joint powers agreement amendment.
    • Side Yard Program expansion to two Ward 5 properties.
    • Wrecking/demolition ordinance amendments (expanded notice, mitigation planning triggers, wind-stop at >15 mph, Health Department coordination).
  • Forwarded Lumi Restaurant & Bar entertainment upgrade without recommendation to allow additional community/staff engagement while keeping it eligible for final Council consideration.
  • TOPA ordinance: heard extensive testimony; motion to return to author failed (2–3); no action taken and ordinance left in committee for the next term.
  • Quasi-judicial appeals (Sheridan Ave S 13-unit/4-story project): appeal denied; staff findings adopted; added condition for enhanced landscaping.
  • Received Q2–Q3 2025 encampment closure reports and discussion flagged shelter capacity limits and requested follow-up regarding belongings retrieval and storage options.

Meeting Transcript

Good afternoon. Welcome to the business housing and zoning committee. I will call to order this regular meeting for December 2nd, 2025. My name is Aurene Chowdhury and I am the vice chair of this committee. Before we begin the meeting, I want to remind everybody that these meetings are broadcast live to enable greater public participation. They include real-time captioning 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 transcribe all comments for the broadcast. We ask all speakers to moderate their speed and clarity of their comments. Members, we will be using speaker management for this meeting, so please make sure you are signed in. At this time, I will ask the clerk to call the roll so we can verify a quorum. Council Member Vita. Present. Cashman. Present. Jenkins is absent. Chavez. Present. Vice Chair Chowdhury. Present. Chair Osman is absent. There are four members present. All right. Let the record reflect. We have a quorum. I will also note that Council Member Osman, Chair Osman, is away for a part of this meeting because he is at a press conference and he will be joining us shortly. Our agenda is in front of us and we will begin with the consent item number 11 is approving six liquor licenses. Item number 12 is approving eight liquor license renewals. Item number 13 is approving one gambling license. Item number 14 is approving a building permit extension for Silva on the river. Item number 15 is authorizing agreements for the Great Streets Facade Grant Program. Item number 16 is accepting a grant from the Federal Transit Administration for the Great Streets Facade Grant Program. federal transit administration for the blue line extension item number 17 is authorizing agreements for the 2025 emergency solutions grant item number 18 is authorizing two loans to the martisur hospitality group on nicollet ave item number 19 is reauthorizing the stable homes stable schools appropriation and contract item number 20 is approving a street vacation for the location at 4301 Lake Street East. Item number 21 is authorizing a settlement of a loan to TLC Precision Technology. Item number 22 is authorizing a grant agreement with Cirtis Financial for rehabilitation at the Heritage Park. Item number 23 is approving Bruce Brunner to seat number 10 on the Minneapolis Advisory Committee on Housing. Item number 24 is authorizing a temporary construction item number 25 is approving an ordinance related to the minimum building height requirements in the zoning code. Item number 26 is receiving and filing the prolonged vacancy enforcement report. Item number 27 is authorizing a Great Streets Gap loan to Newbie 314 property holdings. And lastly, item number 28 is receiving and filing a report related to pet restrictions and rental Item number 28 is receiving and filing a report related to pet restrictions and rental properties. With that, do any of my colleagues have any discussion or questions?