Minneapolis Business, Housing & Zoning Committee Meeting Summary
Meeting Information
- Date: March 20, 2025
- Title: Regular Meeting of the Business, Housing & Zoning Committee
- Present: Jamal Osman (Chair), Michael Rainville, Katie Cashman, Andrea Jenkins, Aurin Chowdhury, Jeremiah Ellison (Vice Chair). Later joined by Aisha Chughtai and Jason Chavez.
- Absent: None noted
- Guests: Various license applicants, CPED staff, Regulatory Services staff
- Votes: 7 total (including voice and roll call votes)
Highlights
- Ban on algorithmic rent-setting tools proposed to prevent artificial rent inflation
- Report on encampment closures reveals costs and outcomes of city’s approach
- Large development variance request denied for 1302 Douglas/1716 Fremont project
- Cultural Business Week Celebrations Program guidelines approved
Discussion
Ban on Algorithmic Rent-Setting Tools
Councilmember Ellison presented an ordinance to ban landlords from using AI-powered pricing software to set rents. The proposal aims to prevent artificial rent inflation and reduce housing displacement. The ordinance would take effect March 1, 2026, with enforcement through self-attestation during license renewal and potential fines for violations.
Councilmember Cashman expressed concerns about enforcement mechanisms and questioned whether Excel spreadsheets would be banned. Councilmember Chowdhury emphasized that the ordinance specifically targets rental pricing algorithms, not general software tools.
Quote from Councilmember Ellison: “This ordinance is about putting people over profits. It’s about ensuring that renters in Minneapolis aren’t forced out of their homes because of unchecked AI-driven greed.”
Passed with two nays.
Encampment Closure Report
Director Velasquez presented the first required report on encampment closures, covering July-December 2024. Key findings included:
- 17 encampments closed affecting 227 individuals
- Only 9 people accepted shelter offers
- Total cost of $332,000 ($269,000 for police presence)
- No one accepted storage options
Several council members expressed concern about the low success rate of housing placements and the high costs. Discussion focused on improving coordination with Hennepin County and creating better storage solutions.
Received and filed.
Douglas/Fremont Development Variance
Developer requested variance to increase F.A.R. from 0.8 to 1.32 for an 8-unit development. Planning staff recommended denial due to lack of practical difficulty justifying the variance. Neighbors opposed the project as too large for the neighborhood.
Multiple council members emphasized that variances must be based on practical difficulties, not simply developer preference. Councilmember Ellison noted they “can’t legislate from the bench.”
Motion to deny passed 3-1-2 (3 ayes, 1 nay, 1 abstention, 1 recusal).
Cultural Business Week Celebrations Program
Guidelines approved for Black Business Week and Latino Business Week celebrations. Discussion clarified that while program creates an umbrella framework, it maintains these as separate events rather than expanding to additional cultural celebrations at this time.
Passed unanimously.
Public Comments
For Douglas/Fremont Development:
- Howard Rubin (neighbor): Opposed project as out of scale with neighborhood. Questioned validity of neighborhood association support letter.
- David Hartwell: Criticized lack of public engagement and expressed concerns about precedent.
- Suzanne Lowry: Worried about loss of light and air from proposed building mass.
- Craig Wilson: Emphasized lack of practical difficulty required for variance.
- Hazel Turner: Long-time resident opposed to project’s scale.
- Trevor Poorth: Noted project would double existing F.A.R. ratios.
- Jacob Softly (attorney): Argued approval would be unlawful without meeting variance criteria.
For Algorithmic Rent Setting:
- William Raymond: Supported ban, comparing algorithmic pricing to illegal market collusion.
- Sia Shelar (U of M): Supported ban, describing impact on student renters who are particularly vulnerable to rent increases.