Minneapolis City Council - Business, Housing & Zoning Committee Meeting Summary

Meeting Information

• Date: February 4, 2025
• Title: Regular Meeting of the Business, Housing, and Zoning Committee
• Present: Osman (Chair), Rainville, Cashman, Jenkins, Ellison, Chowdhury, Vetaw (joined late), Wonsley (joined late), Payne (joined late)
• Absent: None noted
• Guests:
  • Rick from Street Level Advisors
  • Sarah from MN Attorney General’s Office
  • Representatives from Minnesota Immigrant Movement
• Votes: 7 roll call votes

Highlights

• Historic Grain Belt Office demolition appeal approved despite preservation concerns
• Inclusionary Zoning policy updates postponed for further discussion
• Presentation on rental pricing algorithm lawsuit from AG’s office
• Food vendor licensing concerns presented by Minnesota Immigrant Movement
• Extended hours license for Lowry Handy Stop debated with security requirements

Discussion

Historic Grain Belt Office Demolition

The committee heard an appeal regarding the Heritage Preservation Commission’s denial of demolition for the former Pilgrim Heights Community Church. Staff recommended approval of demolition, finding the building did not meet landmark criteria, while HPC had denied based on architectural significance. The developer plans affordable housing for the site. Despite concerns about property maintenance and community opposition, the committee voted 4-2 to grant the appeal and allow demolition.

Inclusionary Zoning Updates

Street Level Advisors presented findings on the city’s inclusionary zoning policy, noting market changes since implementation. Key findings showed market rate rents have flattened while construction costs increased. The consultant recommended maintaining consistent requirements rather than reducing them during market downturns. The committee voted to postpone the item for further discussion, with Councilmember Ellison noting:

“If we were to repeal inclusionary zoning, or pause it or freeze it or whatever, we wouldn’t see any changes on the ground… When we’re over the hump, what we would experience is less affordable housing.”

Rental Algorithm Lawsuit

The Attorney General’s office presented on their lawsuit against RealPage and property management companies for alleged antitrust violations in rental pricing algorithms. The presentation detailed how the software uses non-public data to set rental rates across properties, with 40-80% of properties following the recommended prices within 5%. Multiple council members expressed support for the lawsuit and local action on the issue.

Food Vendor Licensing

Minnesota Immigrant Movement presented findings from their work with street food vendors, highlighting language barriers, cultural differences, and economic challenges. The presentation emphasized the need for more accessible permitting processes and culturally competent enforcement. Council members Chavez and Chowdhury indicated they are working on an ordinance to address these issues.

Lowry Handy Stop Extended Hours

The committee debated adding security requirements to an extended hours license for Lowry Handy Stop. While Councilmember Cashman proposed requiring licensed security between 12am-5am, others worried about the cost burden. A motion to add the security requirement failed 3-3, and the underlying motion failed 2-4. The matter was moved to full council without recommendation.

Public Comments

Public comments were received on several items:

• Bar Harmony: Owner Eric spoke in support of their liquor license application
• Historic Grain Belt: Brigitte expressed continued concerns about neighborhood compatibility of the proposed replacement building
• Food Vendors: Multiple vendors shared experiences through the Minnesota Immigrant Movement presentation