Minneapolis City Council — Transcript
Tuesday, June 2, 2026
Housing & Zoning Committee Operations and Consent Agenda
Amendment to City Conduit Bond Policy
Liquor License and Extended Hours Permits
Minneapolis Homes Financing Project and Property Sale Round
Exclusive Development Rights for People's Way (George Floyd Square)
Legislative Directive for Heritage Park Housing Conditions
Votes (13)
Consent Agenda (excluding pulled items 8, 10, 16)
Dissent: None
Moved by Chair Osman [00:10:49] · Seconded by Not explicitly stated, but implies consensus as no dissent.
The committee approved the bulk of its consent agenda items without separate discussion, including various liquor license approvals and renewals, funding amendments, revised guidelines, and setting public hearings for future ordinances. Council Member Chavez spoke in favor of item 14, highlighting the importance of the Great Street Gap Loan to Mercado Central, a cooperative business impacted by Operation Metro Surge.
Consent Item 8: Approves seven liquor license (sub-items 2 and 4)
Dissent: None
Moved by Chair Osman [00:13:30] · Seconded by Not explicitly stated.
Council Member Rainville pulled this item to clarify details. For sub-item 2 (1029 bar), staff confirmed it was for a new manager application, not a change of ownership. For sub-item 4, Rainville noted a ward correction (Ward 3, not Ward 7).
Consent Item 10: Authorizes an amendment to the funding agreement for stable home stable schools with MA
Dissent: None
Moved by Chair Osman [00:16:51] · Seconded by Not explicitly stated.
Council Member Warren pulled this item to question the additional $5 million in funding. Staff clarified that this amount was appropriated in the 2020 budget for 2026 and is now just being pulled into the contract, not new additional funding. Chair Osman inquired about how this aligns with addressing the fiscal cliff and future budget years, with staff explaining a three-year projection is being developed with the Minneapolis Public Housing Authority.
Consent Item 16: Sets a public hearing for June 16 to consider Mayor's nomination of director Eric Hansen to the appointed position of director of community planning and economic development
Dissent: None
Moved by Council Member Warren [00:17:41] · Seconded by Not explicitly stated.
Council Member Warren pulled this item to clarify that it was setting a public hearing for June 16th, rather than an immediate approval of the nomination itself.
Joint Consent Item 21: Resolution approves amendment to the city conduit bond policy
Dissent: None
Moved by Chair Osman [00:25:01] · Seconded by Not explicitly stated.
Council Member Schaefer requested a layman's explanation of the amendments. Miles Mercer (Business Development Manager) explained the changes aimed to clarify bond administration fees, remove an arbitrary restriction on fee caps for healthcare organizations (applying it to all large borrowers), and specify 501c3 eligibility for economic development bonds. He noted that housing bonds are more frequent than 501c3 economic development bonds. Council Member Chavez sought clarification on the procedural steps for MCDA approval, which Director Hansen explained involves the City Council acting as the MCDA Board of Commissioners.
Public Hearing: Permanent expansion premises for Mystizo Restaurant Inc.
Dissent: None
Moved by Council member Rainville [00:28:56] · Seconded by Not explicitly stated.
Greg Elias (Licenses and Consumer Services) presented the application for Mystizo Restaurant to expand its licensed premises with an outdoor patio for 48 patrons. The proposed hours are 10 AM to 11 PM daily. One public comment supporting the application was received, and no significant issues were found. The owner, Danny Guerrero, spoke in favor, emphasizing his desire to expand his business and continue providing good food to the community.
Public Hearing: On-sale liquor with no entertainment license for the Pillsbury Club Limited
Dissent: None
Moved by Council member Chai [00:32:38] · Seconded by Council member Rainville [00:32:42]
Greg Elias presented the application for Pillsbury Club to add an on-sale liquor, no entertainment, Sunday sales, and 2 AM license to its existing boutique hotel and restaurant. The plan includes a small guest-focused restaurant and cocktail lounge, with a small private outdoor patio (under construction). Community feedback included three comments in support and one opposition due to concerns about noise, traffic, and parking. The owner, Norman, thanked the council and staff, expressing excitement to open the building.
Public Hearing: Extended hours operation for University Tobacco and Vape
Dissent: None
Moved by Chair Osman [00:38:18] · Seconded by Not explicitly stated.
Amy Lingo (Licenses and Consumer Services) presented the application for University Tobacco and Vape to extend its operating hours. The Minneapolis Police Department approved the security review. Three community comments expressed concerns about traffic and sound. The CEO, Mohamad Amro, stated they had been operating extended hours unknowingly and had implemented security measures without issue. A security guard also testified to the store being a safe space with extensive security. The recommendation was for approval, contingent on resolving related quasi-judicial items.
Public Hearing: Sidewalk cafe license for Yellowbird Coffee Bar LLC
Dissent: None
Moved by Chair Osman [00:40:27] · Seconded by Not explicitly stated.
Amy Lingo presented the application for Yellowbird Coffee Bar Northeast to obtain a sidewalk cafe license for 32 exterior seats, operating from 7 AM to 5 PM. One community comment was received in full support, and no significant issues were found. There were no public speakers.
Public Hearing: 2026 property sale round for Minneapolis Homes financing project
Dissent: None
Moved by Chair Osman [00:50:57] · Seconded by Not explicitly stated.
Tara Thompson (CPED) presented recommendations for 31 proposals creating 73 affordable housing units through the Minneapolis Homes program, utilizing $13.6 million in funding. The program aims to increase homeownership access, creation, and sustainment for households up to 80% AMI. Council Member Warren inquired about post-purchase support and developer training for multi-family units. Council Member Chavez expressed support and asked to be a co-author on two projects in East Phillips, also advocating for using vacant city land for homelessness. Chair Osman questioned the tracking of successful project completions and the challenges of serving lower AMI households, with Director Alfred Port (CPED) clarifying tracking efforts and the complexities of mortgage readiness for lower-income buyers.
Quasi-Judicial Item: License revocation for University Tobacco and Vape
Dissent: None
Moved by Chair Osman [00:52:58] · Seconded by Not explicitly stated.
Amy Lingo presented this item, noting it was a state-mandated process due to Department of Revenue issues. She indicated that the applicant was working to resolve the tax issues and a tax clearance letter was expected before the full council meeting, which would negate the revocation. The committee moved the item without recommendation to allow the license holder more time.
Discussion Item: Exclusive development for the People's Way project
Dissent: Council Member Warren and Council Member Schaefer voted Nay against denying the proposal. Council Member Rainville was absent.
Moved by Council Member Chavez [01:17:15] · Seconded by Not explicitly stated.
Miles Mercer (CPED) presented the recommendation for Minnesota Agape Movement to receive exclusive development rights for the People's Way site at George Floyd Square. He outlined the RFQ process, Agape's team, and the proposed two-to-three-year pre-development period. Council Members Stevenson and Chavez (representing the ward) expressed strong opposition, citing a city-commissioned survey showing greater community support for Rise and Remember's proposal (58% vs 36%), concerns about Agape's lack of development experience, and the lengthy timeline. They emphasized the need for community trust and alignment with the area's sacred significance. Other council members questioned Agape's organizational capacity and past financial reports. Vice Chair Chowry confirmed with legal counsel that denying the recommendation would allow for a new RFP process, where Agape could reapply. Ultimately, Council Member Chavez withdrew his motion to refer back to staff and instead moved to deny the proposal.
Legislative directive for Heritage Park
Dissent: None
Moved by Council member Warren [01:29:43] · Seconded by Not explicitly stated.
Council Member Warren introduced a legislative directive due to the severe deterioration of housing conditions at Heritage Park in North Minneapolis, impacting approximately 200 units. She detailed issues like moisture intrusion, mold, leaking roofs, and unsafe vacant units, calling for urgent action, transparency, and accountability from various entities involved, including MPHA and the court-appointed receiver. Director Hansen acknowledged the unacceptable conditions and the complexity of the situation, explaining the city's role as a lender/enforcer rather than owner, and indicating an August 4th deadline for a formal report, while committing to regular updates. Council members expressed strong support, offering to co-author and to understand the situation further.
Notable Quotes (18)
So my question on on two 8.2 2, we'll call it the 1029 bar. Are these the new owners or the old owners or you know has it is this a transfer?
the $5 million was appropriated in 2020 as part of the 2026 budget process. Um, we are currently just requesting that we pull it into the contract. We aren't asking for any additional funding at this time, just what was appropriated in 20 as part of the process in 2025.
the main intention of this amendment is to clean up and clarify that the bond fee policy the the bond admin fee policies part of the of the document.
congratulations. You're all commissioners of the Minneapolis Community Development Agency as well as council members. And so this committee operates as the operations committee. We only use this once or twice a year for these bond um financing tools.
basically just requesting to have the opportunity to expand uh for this been my first uh new business and just to provide what I've been doing through my whole career which is uh uh make a great food and uh on something as the northeast neighborhood which has been very very lovely for me to be establishing there.
This is my last application that I'm hoping to get approved. So, um I just am very anxious and excited to be here and get the building open.
So, it's just pretty much we're doing business as a university and Lori Tobacco and we got our security team here and we actually did open until 2:00 a.m. We didn't know about the the extended hours of license until we got a notification from the city.
the store is a valuable part to the community because they provide safe space for people to come and shop for their products and also the store is really on the agenda of protecting their customer with extensive security system also physical uh security deterrent also and with my time there there's no major incident and also the police call have been also reflect that.
our cap is 80% AMI, but developers can come in and serve households at a lower income tier. And if the their proposal pro presents itself that they're wanting to serve households at 60% as an example or 40%. Um, the the the affordability gap is increased. The challenge with finding households at 40% is the income that's needed to support the sale price of that home is sometimes challenged whilst also talking about um figuring out what the credit worthiness because we're just providing development gap assistance and then affordability assistance. But the the home buyer, the prospective home buyer still has to go out and secure mortgage through a financial institution. we're not providing the first mortgage product.
The applicant has been working with the Minnesota Department of Revenue and we are awaiting that tax clearance letter which we think should be coming um in time for the full council next week.
So we are going to have them all happen at the same time. If the tax revocation process is not cleared up then the extended hours application will be removed. It will be um inactivated. But if the tax revocation process is corrected in time for next week, then those items will be removed and then we'll be able to move forward with the extended hours application.
The community created this spirit. People come with offerings. Artists created symbols of resistance... A successful project at the people's way needs to be in alignment with the values, vision, and spirit that the community formed, stewarded, and fought for the preservation of George Plate Square.
The survey clo collected close to 800 submissions from mine and uh council member Chavez constituents in the area and found that overall the community found that rise and remembers proposal was most closely aligned with the community values. 58% of respondents agreed with the rise and remembers project proposal while only 36% agreed with Agape's vision. We cannot ignore what constituents are clearly asking for.
But the thing that we can't provide and supplement is trust. We lost that trust in that community a long time ago collectively. We just did as an institution and here's our opportunity to repair it. So we have to go with a group that does have that trust built in because we can't supplement it.
Agape has developed a team as I explained. I think Agape would admit themselves they do not have experience. It's it's evident they do not have experience with real estate development, but they brought and and part of our RFQ was we encouraged anybody that didn't have that real estate experience to partner with others to form a team that does. All of the applications, all of the applicants did that and we're left with Agape's team. We've reviewed their the qualifications of the team. We find that they do have relevant experience. Is it the best that we would have liked to see? No. No. But it is what we have.
The conditions at Heritage Park have reached a point um where inaction is no longer acceptable. Um what we are seeing at Heritage Park is not simply deferred maintenance. It is the deterioration of housing conditions that are currently um directly impacting the health, safety, dignity and stability of the residents in the fifth ward.
The promise made to this community was that redevelopment would create safe, sustainable, and thriving housing for North Minneapolis and North Minneapolis families. This was supposed to represent investment, opportunity, and long-term community care. Instead, many residents today feel abandoned by the very systems that promise transformation.
we appreciate that August doesn't feel like it feels like a long time from now, but it is going to come really fast when it comes to as many things that we need to do in this um legislative directive. But we are already working with the receiver. We're working with the property manager. We're getting into into um into the units. We're working with the council member and her office.
Ordinances & Resolutions (16)
Authorizes an amendment to the funding agreement for stable home stable schools with MA, involving a $5 million appropriation from the 2026 budget process.
Due to delays caused by Operation Metro Search.
Authorizes the revised home improvement guidelines.
Approves 11 appointments to this committee.
Public hearing set for June 16.
Public hearing set for June 16.
Public hearing set for June 16.
Referring this matter to MCDA board of commissioners for consent; aims to clarify admin fees and expand cap applicability.
Application to expand licensed premises to an outdoor patio with 48 seats.
Application to add an on-sale liquor, no entertainment with Sunday sales, and 2 a.m. license.
Application to operate beyond standard hours, from 8 AM-12 AM (Sun-Thu) and 8 AM-2 AM (Fri-Sun).
Application for a sidewalk cafe license with 32 exterior seats.
Recommendations for the sale of city-owned property and financing through Minneapolis Homes programs, supporting affordable homeownership.
Quasi-judicial item for license revocation due to Department of Revenue issues, pending tax clearance letter.
Agreement designating Minnesota Agape Movement as the city's development partner for George Floyd Square site.
Directive addressing severe housing conditions and calling for coordinated action and accountability.