Business Housing and Zoning Committee Meeting – June 16, 2026

The Business Housing and Zoning (BHZ) Committee met on Tuesday, June 16, 2026, at 18:32 UTC, chaired by Councilmember Jamal Osman. The meeting covered a consent calendar, several public hearings, and substantive discussions on data centers and adult bathhouse regulations. Key actions included approving a data center moratorium, moving an adult bathhouse ordinance without recommendation, and advancing the reappointment of CPED Director Eric Hansen.

Consent Calendar

• The consent agenda (items 8-29) included liquor license approvals, business license conditions, appointments to boards and commissions, grant agreements, and zoning matters. Councilmember Rainville pulled items 16 (Minnesota Ballpark Authority appointment) and 29 (data center use regulations). All other consent items were approved unanimously.
• Item 16 – Ballpark Authority Appointment: After Councilmember Chavez explained the appointment of former state representative Jim Dabney, Councilmember Rainville moved the item without recommendation. That motion passed (6-0).
• Item 29 – Data Center Use Regulations: Councilmembers Rainville, Chowdhury, Schaefer, Chavez, and Warren discussed the scope of the ordinance and the need for public engagement. The item was referred to staff to begin a five-month process through the Planning Commission. Motion passed (6-0).

Public Comments & Testimony

• Eric Hansen CPED Director Nomination: Mayor Jacob Frey introduced Hansen, citing his leadership during crises, affordable housing production, and economic recovery. Seven public speakers (including James Trice, Bill English, David Wellington, and Abbe Demeth) voiced strong support, emphasizing Hansen’s engagement with communities of color and small businesses. No opposition testimony was given.
• Indeed Brewing Entertainment Upgrade: No public comments.
• Millennium Event Center Extended Hours: Maria Alvarado read a statement on behalf of the owner, Eugenio Rivera, describing 15 years of management experience and commitment to the community.
• Land Sale 3726 Logan Avenue North: No public comments.
• Tailgate Zone Ordinance Amendment: Will Buzek, a third-generation parking lot manager, thanked the committee for the amendment, noting its positive impact on downtown and the upcoming 2028 NFL draft.
• Adult Bathhouse Ordinance: Four public speakers (Dee, Josh, Epiphany, Amy) testified in favor, arguing that the ban was rooted in anti-LGBTQ+ bigotry and that repeal would create safe spaces and economic opportunities. No opposition testimony was given.
• Data Center Moratorium: Over 25 speakers testified, with a split of opinions. Supporters (e.g., Alejandro Richardson, Margaret Sullivan, Leslie Mint, Chris Popowski, Natasha Villanueva) cited environmental justice, water and energy consumption, and risks to marginalized communities. Opponents (e.g., Kyle O’Neill, Jake Petit, Lucas Franco, Dan McConnell, Kevin Premnis) highlighted union jobs, tax revenue, and responsible state-level regulations. Business leaders like Adam Dunnock (Minneapolis Downtown Council) opposed the moratorium but supported a regulatory framework.

Discussion Items

• Data Center Moratorium (Item 30): Vice Chair Chowdhury presented a six-month moratorium with a downtown exemption (projects ≤350,000 sq ft). Councilmembers debated the economic and environmental trade-offs. Councilmember Chavez stressed that the exemption already allows downtown development, while Councilmember Schaefer argued that a moratorium signals instability. Chair Osman defended the compromise as balancing business interests and community protection. A motion to approve with recommendation passed 5-1 (Warren absent, Schaefer opposed).
• Adult Bathhouse Ordinance: Councilmember Chavez described the ordinance as a technical step to move existing adult entertainment venue rules into the appropriate code section, paving the way for future licensing. Councilmember Warren expressed concerns about public health and referenced earlier councilmember Brian Cole’s role in the original ban. Councilmember Chavez emphasized her perspective as the only openly LGBTQ+ council member, stating the ban was rooted in homophobia. A motion to approve with recommendation failed 3-3-1 (Osman abstained). A subsequent motion to move without recommendation passed 4-3 (Rainville, Warren, Schaefer opposed).
• Eric Hansen Reappointment: Councilmember Warren questioned Hansen about persistent disparities and conditions at Heritage Park. Hansen acknowledged failures and committed to a new approach focused on consequential outcomes. Councilmembers Schaefer and Chowdhury praised his leadership. A vote to recommend appointment passed 6-1 (Warren opposed).

Key Outcomes

• Consent Calendar: Approved with items 16 and 29 pulled and separately handled.
• Item 16 (Ballpark Authority Appointment): Moved without recommendation to full council (6-0).
• Item 29 (Data Center Regulations): Referred to staff (6-0).
• Eric Hansen Reappointment: Recommended to full council (6-1).
• Indeed Brewing Entertainment Upgrade: Approved.
• Millennium Event Center Extended Hours: Approved.
• Land Sale 3726 Logan: Approved.
• Tailgate Zone Amendment: Approved.
• Adult Bathhouse Ordinance: Moved without recommendation to full council (4-3).
• Data Center Moratorium: Approved with recommendation (5-1).
• Remaining Agenda Item (Impervious Surfaces): Deferred to the next meeting without objection.

The meeting adjourned at approximately 20:30 local time.