Hennepin County — Transcript
Tuesday, June 24, 2025
Story
Hennepin County approves $15M loan to healthcare system amid concerns
Tribute and Response to Political Violence
Policy Review for Community Advisory Board Appointments
Youth Curfew Truancy Services Model Redesign
Financial Support for Henepin Healthcare Systems Capital Equipment
Economic Development and Affordable Housing Initiatives
Votes (23)
Acknowledgement of June 14th Violence and Speaker Melissa Hortman's Death
Moved by N/A · Seconded by N/A
The committee began with a solemn acknowledgment of the recent political violence, including the assassination of Speaker Melissa Hortman, her husband, and their dog, and the attempted murder of Senator John Hoffman and his family. Speakers shared personal anecdotes highlighting Speaker Hortman's leadership, negotiation skills, and commitment to public service, especially for overlooked communities. The discussion emphasized the rising threats against public sector workers, the need to resist fear, and the importance of community building and kindness. Plans to honor Speaker Hortman were shared, including flags at half-mast, a future board honor, and the Lowry Avenue Bridge lighting.
Policy Discussion: Community Advisory Board (CAB) Appointments and Term Limits
Moved by N/A · Seconded by N/A
Commissioner Eden initiated a discussion on the policy for community advisory board appointments, questioning the supermajority requirement for reappointments after three terms. She advocated for term limits with mandatory breaks to ensure broader community representation and opportunities for new voices, particularly on highly sought-after boards like Watershed Districts. Commissioners acknowledged the difficulty of the appointment process and the value of reviewing existing policies, with administration agreeing to provide relevant policy documents for future consideration.
Watershed and Workforce Innovation and Opportunity Act Board Appointments
Dissent: None
Moved by Chair Fernando [0:32] · Seconded by Commissioner Lundy [0:32]
The committee conducted interviews for several candidates applying to the Riley Purgatory Bluff Creek Watershed District Board and the Henepin Carver Workforce Development Board. Candidates highlighted diverse professional backgrounds in environmental restoration, finance, energy/infrastructure, human resources, and higher education. They expressed strong commitments to water quality, ecosystem health, financial transparency, public engagement, workforce development, equity, and community partnership. Due to the difficulty of choice and the ongoing policy discussion about board appointments, the items were progressed to a future meeting.
Ratification of Permits, Lease Agreements, Related Property Agreements
Dissent: None
Moved by Chair Gau [0:33] · Seconded by Commissioner Lundy [0:33]
A routine item for ratification of permits, lease, and related property agreements approved by the county administrator within a specified period and not to exceed amount. There was no specific discussion.
Schematic Design and Budget Approval of ACF Men's Visitation, Education, and Staff Training Remodeling Project
Dissent: None
Moved by Chair Gau [0:34] · Seconded by Commissioner Lundy [0:34]
A routine item to approve the schematic design and budget for a remodeling project. There was no specific discussion.
Submission of Substantial Amendment to the 2023 HUD Annual Action Plan
Dissent: None
Moved by Commissioner Fernando [0:34] · Seconded by Commissioner Lundy [0:35]
A routine item for the submission of an amendment to the 2023 HUD Annual Action Plan, negotiating award modifications for a total combined not to exceed amount. There was no specific discussion.
Negotiate an Agreement with the Minnesota Department of Revenue for Henepin County Local Sales Tax
Dissent: None
Moved by Chair Gau [0:35] · Seconded by Commissioner Lundy [0:35]
A routine item to negotiate an agreement with the Minnesota Department of Revenue for the administration, collection, and enforcement of the Henepin County Local Sales Tax. There was no specific discussion.
Withdrawal from Joint Powers Agreement for Youth Curfew Truancy Services (Addendum)
Dissent: None
Moved by Commissioner Lundy [0:59] · Seconded by Commissioner Fernando [0:59]
County administration sought withdrawal from a Joint Powers Agreement (JPA) with the City of Minneapolis and Minneapolis School District for youth curfew truancy services, effective January 1, 2026. This move transitions to a Memorandum of Understanding (MOU) to allow for a more nimble and responsive operating model for youth connection services, overseen by the Safe Communities department. Discussion centered on ensuring continued partnership, exploring broader county access (including suburban areas), and integrating various support services like mental health, truancy supports, and workforce development. The city of Minneapolis remains a partner, providing physical space for a new Youth Connection Center.
Loan to Henepin Healthcare Systems (HHS) for Capital Medical Equipment Purchases
Dissent: Commissioners Fernando, Lundy, Eden, and Conley voiced significant concerns, leading to the decision to progress the item rather than approve it outright.
Moved by Chair Fernando [1:34] · Seconded by Commissioner Lundy [1:35]
The committee discussed an R1 resolution to provide a loan of $15 million initially, with a potential for an additional $5 million, to Henepin Healthcare Systems (HHS) for capital medical equipment. This loan, from the county's general fund at a 4% interest rate over five years, aims to address HHS's dire need for equipment replacement. Commissioners expressed significant concerns about HHS's overall financial health, the use of general fund reserves, the lack of transparency on HHS's repayment plan, and their perceived slow-walking of cost-saving partnerships. A critical provision was included, stating that the county board's approval is required for HHS to incur additional debt from any other source, due to the county's role as guarantor and owner of HHS's real estate. The item was progressed to a future meeting to allow for more information and discussion.
Human Service and Public Health Resolution Including Contracts and Amendments to Contracts with Providers
Dissent: None
Moved by Chair Eden [1:35] · Seconded by Chair Conley [1:35]
A routine item approving various human service and public health contracts and amendments. No specific discussion.
New Agreements with Minnesota District Court for Drug Court and Mental Health Court Services
Dissent: None
Moved by Commissioner Fernando [1:36] · Seconded by Commissioner Lundy [1:36]
Approval of two new agreements with the Minnesota District Court to provide drug court and mental health court services, with a receivable amount of $716,878. No specific discussion.
Agreement with the Minnesota Department of Corrections for Intensive Supervised Release (ISR)
Dissent: None
Moved by Commissioner Lundy [1:37] · Seconded by Commissioner Fernando [1:37]
Approval of an agreement with the Minnesota Department of Corrections for Intensive Supervised Release (ISR) services, with a receivable amount of $3,778,400. Rene Mkens from Community Corrections explained that DOCCCR staff supervise high-risk clients released from correctional facilities, maintaining small caseloads for intensive supervision and reducing public safety risk in Henepin County communities. While funding is similar to previous cycles, there's a slight decrease in FTE count.
Authorization to Request a Variance for Lowry Avenue Reconstruction Project
Dissent: None
Moved by Chair Fernando [1:40] · Seconded by Commissioner Lundy [1:40]
Authorization was requested to seek a variance from Minnesota Department of Transportation standards for a shared use path width related to the CASA 153 Lowry Avenue reconstruction (Phase 2). Jess Travoyovich explained that adequate width for the path cannot be achieved under a BNSF railroad bridge without rebuilding it, and the variance is necessary to include a continuous shared use path for multimodal transportation.
Amendment for Food Waste Prevention Campaign and Environmental Educational Services Agreements
Dissent: None
Moved by Commissioner Eden [1:41] · Seconded by Commissioner Connley [1:41]
Two items were batched for approval: an amendment to an agreement with Padilla to extend a food waste prevention campaign and increase its budget, and an agreement with Bolton and Mink Inc. for environmental educational services. These are considered routine with strong background outcomes, and no further discussion was requested.
Agreements with MnDOT to Accept Local Bridge Replacement Program Grant Funds
Dissent: None
Moved by Chair Fernando [1:42] · Seconded by Chair Gutell [1:42]
Two agreements with MnDOT were approved to accept grant funds from the Local Bridge Replacement Program (LBRP) for bridge replacement projects. John Ekla confirmed these grants provide $1.1 million for the Vernon Avenue bridge over Canadian Pacific Railroad in Edina and approximately $358,000 for the France Avenue bridge over 9M Creek in Bloomington. The funding supports critical infrastructure projects.
Negotiate Agreement for CASA 73 and Various Agreements for CASA 82 Mill Street (Capital Projects)
Dissent: None
Moved by Chair Conley [1:42] · Seconded by Chair Gutell [1:42]
Two capital project items were approved: negotiating an agreement with Plymouth and Three Rivers Park District for CASA 73, and various agreements for CASA 82 Mill Street. These routine items come before the committee periodically, and no specific discussion was requested.
Supportive Housing Strategy Award Modification for AON Redevelopment
Dissent: None
Moved by Commissioner Fernando [1:44] · Seconded by Commissioner Lundy [1:44]
An award modification was approved for AON to redevelop the former Exodus space at St. Olaf Church under the supportive housing strategy. Julia Welli explained that the project, preparing for closing and occupancy in late 2026, required an extension of the affordability period to 55 years to align with other funders' requirements. This modification does not change the Not-to-Exceed (NTE) amount.
Amending Agreement with West Henipin Affordable Housing Land Trust to Revise Income Limit for Homeownership
Dissent: None
Moved by Commissioner Fernando [1:45] · Seconded by Commissioner Lundy [1:45]
An amendment was approved to an agreement with the West Henipin Affordable Housing Land Trust, revising the income limit for homeownership for one specific household from 50% to 80% of the Area Median Income (AMI). Julia Welli explained that this aligns with the structure of current agreements under the Homeownership Assistance Fund, reflecting changes in the housing market since the original 2007 agreement. The county anticipates similar requests and aims to maintain a mix of affordability levels.
Preliminary Approval to Issue Tax Exempt Multifamily Housing Revenue Bonds for South Haven and Summit Point
Dissent: None
Moved by Commissioner Lundy [1:47] · Seconded by Commissioner Fernando [1:47]
Preliminary approval was granted for the issuance of up to $22 million in housing revenue bonds to preserve South Haven and Summit Point, two existing affordable housing properties in Edina. Abby Lucen reported that the project, owned by Common Bond, will maintain 129 affordable one-bedroom units for seniors and people with disabilities, with 26 units reserved for extremely low incomes (30% AMI). Additionally, 13 units are newly committed to serving people exiting homelessness, with referrals from Henepin County's coordinated entry team. This conduit financing enables the project to seek state allocation of volume cap bonding authority.
Negotiate Business District Initiative Agreement with Hopkins and Planning Grant Assistance Consultant Agreements
Dissent: None
Moved by Chair Conley [1:50] · Seconded by Commissioner Lundy [1:50]
Approval was given to negotiate a Business District Initiative agreement with the city of Hopkins ($40,000 NTE) and five consultant agreements for Henepin Planning Grant assistance ($160,000 NTE). Ryan Kelly explained these programs are part of Henepin County's economic development strategy, providing resources for cities investing in local businesses and advancing land use/redevelopment plans. Projects include downtown Hopkins marketing/pedestrian improvements, a Blue Line extension station area plan update for Brooklyn Park, a small area plan for Champlain, and a Main Street plan for Rogers. The initiatives aim to leverage investments, guide sustainable growth, address disparities, and impact over 90 businesses.
Negotiate Four Agreements to Provide Commercial Real Estate Ownership Technical Assistance to Small Businesses
Dissent: None
Moved by Commissioner Fernando [1:54] · Seconded by Commissioner Lundy [1:54]
Approval was granted to negotiate four agreements ($100,000 NTE) with consultants to provide technical assistance to eligible local small businesses seeking to acquire commercial real estate for their own use. Ryan Kelly explained that this program aims to provide consulting expertise in assessing property fit, financial viability, and asset management, especially for communities of color facing systemic barriers. The initiative, informed by conversations with community organizations like Lake Street Alliance, seeks to build generational wealth and provide stability for small businesses. The program will support approximately 10 small business owners through an open application process, matching them with consultants tailored to their needs.
Negotiate Six Agreements for Transit Oriented Communities (TOC) Pre-development Assistance
Dissent: None
Moved by Commissioner Fernando [2:02] · Seconded by Commissioner Lundy [2:02]
Approval was given to negotiate six agreements ($200,000 NTE) with consultants to provide pre-development services to eligible local emerging developers in Transit Oriented Communities (TOCs). Ryan Kelly highlighted that this program, building on previous successes since 2022, supports 5-8 emerging developers, predominantly from Black, Indigenous, Asian, Latino, or multi-racial backgrounds (93%), with 80% of projects in focus communities. Consultants provide expertise in finance and project design, tailored to individual developer needs, fostering community-supported redevelopment and addressing barriers to entry for new developers.
Authorize Supplemental Appropriation to Amend 2024 Henipin County Housing and Redevelopment Authority (HRA) Budget
Dissent: None
Moved by Chair Conley [2:03] · Seconded by Commissioner Lundy [2:03]
A supplemental appropriation was authorized to amend the 2024 HRA budget, involving interfund cash transfers to support 2024 expenses. Joe Matthews, CFO, explained this as an administrative reconciliation to close the books on 2024, recognizing that some activities moved more quickly than anticipated. This is a routine accounting adjustment.
Notable Quotes (31)
In the middle of the night, a gunman impersonated a police officer, stalked and terrorized four elected officials homes in Henipin County. This horror comes, as we've seen an intensifying political climate in recent years, including increased threats against public sector workers...
I was part of the 2018 class that made Melissa Speaker, same year that we were elected, Angela and Irene. And she was uh, she was an amazing woman. ... Her last vote um I think was was difficult for her. Everybody saw that that saw the coverage, but she it showed the strength of who she was as a person...
I refuse to live in a society where we cannot serve the people who elected us to represent them with fear for our lives. I refuse to accept that society. So, I'm choosing resistance and I'm going to do that in her memory.
I worry about the idea of using the supermajority to go and um, seniority is is a positive. I agree. But it also removes the possibility for other people to have a voice on these boards.
Chair, commissioner, commissioners, uh you have a policy on community advisory boards that discusses this uh concept of a supermajority for terms after three. So that's something we could you could all revisit and look at your policy to determine uh what you want to do to amend it.
The suggestion to admin would be just to get the documents because I know there's some that are connected to statutes, some have charters, some have bylaws, some don't have any, I think, and getting a sense of that um at a time where it's practical to implement it, such as the new year, for example, might be beneficial for this group.
I am very passionate about the native plant diversity and increasing native plant diversity within an urban environment which can be extremely difficult. Um I also think that more focus needs to be put on the upland areas of a watershed district...
My focus has been centered on three key areas. Number one, modernizing our financial systems. I've worked to ensure that our reporting is transparent, accurate, and that we are responsible stewards of taxpayer dollars. Number two, strengthening governance.
I'm passionate about workforce development not only from an operational standpoint but as a catalyst for equity, economic mobility and long-term community success. ...I care deeply about building inclusive pathways into manufacturing, especially for women, communities of color, individuals with disabilities, and disconnected youth.
It doesn't detract from the commitment of the partners. It just changes our operating model. And so this redesign of the uh YCC model uh means that we continue to partner with the city of Minneapolis through the memorandum of understanding. We're going to be more nimble in our management, not tied to an annual meeting.
I just think that this needs to not be so Minneapolis. ... I think that this may be a legacy of the old where it was Minneapolis public schools, Minneapolis City. I think the new the way uh kids and families now move and they uh kids are active in many different places where they might run into contact with the justice system that having that mindset that it is Hannah County period...
I think one of the things that we have had conversations around has been how safe communities can support the rest of the cities in the county, uh, with access and providing those resources. So, uh, that is the intent. It's in process.
What our uh subsidiary corporation was asking for was uh capital for medical equipment purchases which uh they had a need for. There hadn't been purchases in in quite some time and equipment needed to be replaced.
I'm very disheartened that this is how like financial discussions are uh taking place. ...if this board is who is voting on that, then we need to have access to the financial detail that allows us to make these decisions with our whole heart and our full throat or whatever the um the idiom is.
I'm honestly as I sit here wouldn't know um the confidence of them being able to repay it. ... this just compounds that in my mind. And again, I'm not saying do or don't, but um I think as we continue to do these type of things, it's going to continue to drive uh my desire that we have greater influence on what's going on there because if we are putting this is the one power that this board has. it's to levy taxes on property and to have that money allocated.
One of the things that I have asked and we have yet to get is a strategy and the scenarios for what happens when the federals federal government cuts Medicaid. ... But we have not seen that strategy. We've not seen scenarios of how they will manage through that where I have seen on some of the other nonprofit boards that I am sitting on true strategies...
The DOCCCR staff supervise high-risisk clients re released from a Minnesota correctional facility or prison. The community ultimately benefits as agents are aware of the client's whereabouts during the initial supervision and until the clients move to a lower level of supervision.
There is not adequate width under the bridge to carry the required shared use path with since the project will not rebuild the bridge, a variance for the project is needed. By approving this request, staff can request the variance to include a continuous shared use path for people walking, biking, and rolling along Lowry Avenue.
This request is to execute an agreement with Mandot for to receive $1.1 million and $350,000 for bridge bonds for the associated bridge projects. The funding is available through the state's local bridge replacement bridge the local bridge replacement program.
This action here would extend the project's affordability period to 55 years uh to align with other funders requirements. Please let me know if you have any questions.
This action today would increase the allowable income for just one of the four households under this 2007 agreement uh from 50% to 80% AMI. This reflects the structure of our current agreements that we're executing under the home ownership assistance fund.
Do you um think that we'll have to look at each individual property and see like that stark 50% versus our more average 80% how we're keeping things affordable um for people who are selling versus people who are buying.
South Haven and Summit Point will continue to provide 129 units of affordable housing, all of which are onebedrooms uh reserved for seniors and people with disabilities. This is deeply affordable housing with all units reserved for residents with very low incomes and 26 units further restricted to households with extremely low incomes, the 30% of AMI bracket.
Also through this renovation and preservation project, Common Bond has newly committed 13 units to serve people exiting homelessness. Referrals from Henipin County's coordinated entry team will begin as those designated units turn over so no existing residents are displaced.
These competitive programs provide resources to cities that are actively investing in the success and growth of their local business community and business districts and to cities that are advancing land use and redevelopment plans that implement community visions and help achieve county goals through a more efficient use of land and sustainable growth. addressing climate resiliency, health disparities, and economic resiliency.
It would be helpful for us to understand over time what cities are how cities are bolstering right we are helping cities to complete a vision or advance a certain vision in their area and just uh what is that mutuality or kind of cost it's not cost participation but how are they also bolstering those efforts...
We know that ownership of commercial property can lead to greater certainty and viability for Henipin County small businesses, even in areas where market values may be increasing. Commercial property ownership can also be a strategy for building generational wealth, contributing to Henipin County disparity reduction efforts.
I'm wondering if you can kind of weave in I'm assuming that some of the technical assistance provided helps navigate some of that. Um this space might be too expensive. Where else could we look or do we start online and then can you speak to that a little bit?
Of those supported, 93% identify as black, indigenous, Asian, Latino, or multi-racial, and 80% of the projects are located in focus communities, areas where residents face the greatest disparities and stresses to health and well-being.
This is about assisting with the vision that residents already have particularly the local community you know this is in alignment with how those cities have determined their land use how um how they are discussing density and multimodal and so I th this in particular transit oriented communities which we have several programs that pre-development is an investment in that local areas's wishes for themselves...
This is very similar to the action that we took earlier for the county budget. This is the HA budget. It's the reconciliation, as Mr. Dockery said. And so, we're just closing the books on 2024. And in this case, um, there was some activity that they actually moved more quickly with than we anticipated. And so we need to recognize that in our 2024 financials.
Ordinances & Resolutions (38)
The specific meeting being transcribed and analyzed.
Live streaming platform for committee meetings.
County policy discussing supermajority for terms after three for CABs.
Minutes of the prior meeting of the Administration's Operations and Budget Committee.
Routine agreements approved by county administrator from Jan 1 - March 31, 2025.
Substantial amendment to the annual action plan for housing and urban development.
For administration, collection, and enforcement of Henipin County Local Sales Tax.
Agreement dating back to the 90s, reaffirmed in 2017, for youth connection center services.
Proposed new operating model for youth connection center services with City of Minneapolis.
Issued by Safe Communities department to select a community provider for youth connection services.
County legal review indicated this section requires county board approval for HHS to incur additional debt.
Resolution for a loan to Henipin Healthcare Systems for capital medical equipment.
Entitles Henepin County Office of Budget and Finance to see all requested financial information from HHS.
Report detailing contracts and amendments with providers.
Agreements for drug court and mental health court services.
Agreement for Intensive Supervised Release (ISR) services.
Standard from which a variance is requested for Lowry Avenue reconstruction.
Project for which a variance is requested for shared use path width.
To continue a broad food waste prevention campaign.
For environmental educational services.
Grant funds from MnDOT for bridge replacement projects.
Bridge replacement project along Vernon Avenue in Adina.
Bridge replacement project along France Avenue in Bloomington.
Capital project agreement with Plymouth and Three Rivers Park District.
Capital project agreements for various items.
Modification for a capital award to AON for redeveloping the former Exodus space at St. Olaf Church.
Amended to revise income limits for homeownership.
Current fund model for writing agreements.
For an affordable housing preservation project at South Haven and Summit Point in Edina.
Affordable housing preservation project providing 129 units for seniors and people with disabilities.
For economic development strategy.
Assistance for cities advancing land use and redevelopment plans.
An update to a plan for Brooklyn Park.
A plan for Champlain to attract mixed-use redevelopment.
Creating an actionable coordinated vision for Rogers.
Agreements with consultants to help small business owners acquire commercial real estate.
Model for providing technical assistance to emerging developers.
Administrative reconciliation for 2024 expenses.