Minneapolis Business, Housing & Zoning Committee Meeting Summary

Meeting Information

• Date: October 22, 2024
• Title: Regular Meeting of the Business, Housing and Zoning Committee
• Present: Osman (Chair), Rainville, Cashman, Jenkins, Chowdhury, Ellison (Vice-Chair), Chavez (joined late)
• Absent: None noted
• Guests: Eric Hanson (CPED Director), Joey Dobson (Housing Coordinator), Sara Roman (CPED Planning)
• Votes: 5 (2 on amendments, 3 on main motions)

Highlights

• Affordable Housing Preservation Ordinance (AHPO) proposal and amendments
• Cannabis Business Zoning Regulations with proposed amendments
• Lake Street Fund Contract with Graves Foundation ($8M)
• Public hearing for Northstar 8 Rosewood Room liquor license

Discussion

Affordable Housing Preservation Ordinance

Extended debate over new ordinance giving qualified organizations (QOs) right of first refusal when certain rental properties are sold. Main concerns centered on impact on first-time homebuyers and potential market restrictions. Two amendments passed: one regarding owner occupancy requirements and another adjusting AMI requirements from 60% to 50%.

Councilmember Osman expressed concern about impact on low-income homebuyers: “I really want to promote homeownership… it’s very challenging and tough already in the market for low-income families that are trying to get in the market.”

Councilmember Ellison defended the ordinance: “The market as currently constructed produces disparities that we see now… I look at the market, it’s currently constructed and I say I see a lot of disparity.”

Moved forward without recommendation to full council (Vote: 5-0)

Cannabis Business Zoning Regulations

Discussion focused on buffer zones between dispensaries and schools, with amendments proposed to reduce distances from 500 to 300 feet and minimum commercial area from 5 to 3 acres. Debate centered on balancing accessibility with community concerns.

Significant attention paid to social equity considerations and opportunities for local business owners. The state will allow minimum of 34 licenses in Minneapolis, with special consideration for social equity applicants through 2026.

Amendments passed to reduce buffer zones and minimum acreage requirements. Final ordinance passed as amended (Vote: 5-0)

Public Comments

Cannabis Zoning:

• No public comments recorded

AHPO Comments:

• Miles (Minneapolis Area Renters Association): Opposed ordinance, argued it would create unfair advantages and limit housing options
• Ian Rosenthal (Jewish Community Action): Supported AHPO as step toward tenant opportunity to purchase
• Pat Paulson (Minneapolis Area Realtors): Opposed, concerned about impact on homebuyers and market restrictions
• Carson Brooks (Realtor): Opposed, concerned about market restrictions and seller limitations
• Kyle (Ward 8): Opposed, shared personal story about recent home purchase that might have been prevented
• John Nias (Minneapolis Area Realtors): Opposed, concerned about impact on minority homeownership
• Denise Mazon (Realtor): Opposed, concerned about market restrictions
• Mohamed (Ward 9): Supported ordinance with recommendations for implementation
• Jessica (Housing Justice Center): Supported ordinance while advocating for stronger TOPA
• Reagan Rake (Home Line): Supported with emphasis on tenant protections
• Juan (Alliance for Metropolitan Stability): Supported with focus on tenant protections
• Bill Cullen: Raised technical concerns about offer process
• Cecil Smith (Minnesota Multi Housing Association): Opposed, concerned about unintended consequences
• Kathy Bennett (Twin Cities Housing Alliance): Opposed, suggested alternative approaches
• Erica Coleman (Land Bank Twin Cities): Suggested working with existing organizations rather than passing ordinance