Minneapolis City Council — Transcript

Tuesday, December 9, 2025

Public Restroom Development

Nighttime Business License Inspectors

Grocery Store Development Funding

Commercial Adaptive Reuse Study

Vacant Retail Activation Program

Childcare Workforce Investment

Enterprise Policy Management System

Legislative Branch Staffing and Capacity

Audit Department FTE Restoration

Budgetary Control Financial Policy

Votes (10)

Amendment number 29: Nicollet Avenue Public Restrooms

10 Ayes and 1 Nay

Dissent: Council Member Palmisano

Moved by Council Member Kman [00:04:00] · Seconded by Unidentified [00:05:07]

The amendment proposes ongoing funding for public restrooms, starting on Nicollet Avenue. Council Member Cashman clarified the intent for ongoing funding due to research on other cities' experiences and to avoid future budgetary concerns, envisioning 5-8 units contracted with a private vendor. Public Works Director Ston detailed that a 0.75 FTE would manage engagement and contracts. Several council members supported the initiative as a 'smart city' approach for transit riders and public realm improvement, noting the potential for expansion beyond Nicollet, with some suggesting card access for accountability. Council Member Palmisano expressed concerns about the amendment's readiness, preferring a pilot program and questioning the sufficiency of funding and staffing impact.

Amendment number 30: Nighttime Business License Inspectors

10 Ayes and 1 Nay

Dissent: Council Member Palmisano

Moved by Council Member Rainville [00:26:00] · Seconded by Unidentified [00:28:44]

Council Member Rainville introduced the amendment to fund nighttime business license inspectors, transferring money from Public Works to CPED. He emphasized the lack of city staff monitoring the nighttime economy after 5-6 PM and the need to support business districts and address operational issues in residential neighborhoods. Council President Payne supported this, highlighting problems with struggling neighborhood bars and the need for greater city engagement.

Amendment number 31: Grocery Store Development Funding (Revised)

8 Ayes and 4 Nays

Dissent: Council Member Rainville, Council Member Vita, Council Member Jenkins, Council Member Palmisano

Moved by Council member Wansley [01:00:00] · Seconded by Unidentified [00:32:02]

Council Member Wansley introduced a revised amendment to allocate $200,000 from the Great Streets Fund for pre-development work for new grocery stores in food-insecure areas, specifically targeting non-profit or CDFI organizations with matching funds. Council Member Vita raised concerns about supporting existing struggling stores versus creating new ones, stating she could not support it if it didn't benefit current businesses like North Market. CPED Director Hansen detailed the challenges of opening new grocery stores, including high costs, thin margins, and the need for significant floor space, noting the $200,000 would require substantial leverage.

Amendment number 32: Commercial Adaptive Reuse Study

12 Ayes

Dissent: None

Moved by Council Member Kman [00:53:00] · Seconded by Unidentified [00:55:04]

Council Member Cashman proposed a $125,000 one-time appropriation to CPED for a study on the public benefit and financial incentives for adaptive reuse of underutilized commercial buildings. She cited concerns about declining downtown commercial property values, low in-person work rates post-COVID, and the need for better metrics to support policy for converting vacant office space into housing or other uses. Council Member Palmisano supported the amendment, noting the success of similar projects like Groove Lofts and acknowledging the high costs involved.

Amendment number 33: Vacant Retail Activation

12 Ayes

Dissent: None

Moved by Council Member Kman [00:57:00] · Seconded by Unidentified [00:59:16]

Council Member Cashman, co-authoring with Chair Chuktai, introduced a proposal for a citywide cost-share program to activate vacant retail spaces. This program would fund physical improvements like subdividing large spaces or adding doors, leveraging private investment to make retail units more affordable for local small businesses. Council Member Palmisano noted the significant transfer of $2.2 million from the downtown assets fund for this and related amendments.

Amendment number 34: Invest in Childcare Workers

11 Ayes and 1 Nay

Dissent: Council Member Palmisano

Moved by Council member Wansley [01:00:00] · Seconded by Unidentified [01:02:40]

Council Member Wansley presented an amendment to allocate $12,000 from CPED’s workforce development fund to create an FTE focused on establishing clear pathways into early childcare education. This initiative aims to address the critical workforce shortage in early childhood education, which contributes to high childcare costs. Council President Payne supported the amendment as timely, citing a development including a childcare center facing complex tax policy. Council Member Palmisano expressed concern about potential duplication with Minneapolis Public Schools' existing career pathways program, but Council Member Wansley clarified that the focus is on early childhood education, distinct from pre-K to sixth grade programs.

Amendment number 35: Enterprise Policy Management System Staff Direction (Z Amendment)

12 Ayes

Dissent: None

Moved by Council President Payne [01:07:00] · Seconded by Unidentified [01:09:47]

Council President Payne introduced this Z amendment to roll over funds from the previous budget cycle for an enterprise policy management platform. He explained that a vendor for the system is being identified, and the rollover is necessary to continue the project. The City Clerk confirmed it is an enterprisewide project to manage policy development and make policies publicly available.

Amendment number 36: Policy for the People (Second Revision)

12 Ayes

Dissent: None

Moved by Council member Wansley [01:10:00] · Seconded by Unidentified [01:14:48]

Council Member Wansley presented a revised amendment to enhance the legislative branch's capacity by leveraging existing FTE positions within the legislative department and city clerk's office. This involves a $25,000 appropriation to HR for vendor support to classify these positions, with a staff directive for a progress report by March 2026. The discussion emphasized formalizing communication and addressing past instances where administration did not implement council appropriations, viewing this as a necessary 'guard rail' for governance, particularly in the context of the new government structure.

Amendment number 37: Audit Department FTEs (Revised)

12 Ayes

Dissent: None

Moved by Council President Payne [01:22:00] · Seconded by Unidentified [01:25:39]

Council President Payne introduced a revised amendment to restore two FTEs cut by the Mayor and add two additional positions to the City Auditor's department, aiming for a four-FTE buildout for special review and advisory services. He highlighted the auditor's need for capacity to conduct investigations. Council Member Palmisano, a former audit committee chair, supported the amendment due to its collaborative nature but cautioned against rapid departmental growth. Council Member Cashman questioned the source of the vacant positions (Public Works and CPED) instead of politically appointed positions from the Mayor's office, expressing disappointment. Deputy COO Brett Jelly clarified these were vacant positions identified as agreeable compromises, and Public Works Director Tim Ston detailed the potential impacts of these cuts on his department's project development and service delivery.

Amendment number 38: Budgetary Control Financial Policy (Z Amendment)

Held over for revision; anticipated approval based on discussion

Dissent: None expressed, though concerns were voiced, particularly by Cashman, and the item was held for further revision by Wansley.

Moved by Chair Chugai [01:36:00] · Seconded by Unidentified [01:40:02]

Chair Chuktai introduced this Z amendment to financial policies, aiming to establish guardrails and accountability for how funds are spent post-budget allocation. City Attorney detailed the comprehensive changes, including clarifying existing budgetary control, newly addressing council earmarks (council dedicated funds), creating new reporting requirements for anticipated overspending, and granting the legislative department view-only access to financial systems. Council Member Palmisano, initially concerned about excessive reporting, supported the amendment after discussion, acknowledging its importance for oversight. Council Members Cashman, Chowry, Payne, and Wansley emphasized the need for formality, transparency, and accountability, citing past instances of non-implementation of council appropriations and communication breakdowns.

Notable Quotes (24)

This particular amendment has ongoing funding. So, first I'm curious for the author or someone who helped put this together. Is your intent to do a pilot program as other cities have done to determine the effectiveness in the true costs of such a program or what have you used to determine how we do this permanently?

Council Member Palmisano [00:06:00]
Amendment number 29: Nicollet Avenue Public Restrooms

I made this funding ongoing because in our research with other talking with other cities that have implemented this, Ann Arbor being one, uh the bathrooms were so popular that the community did not want to get rid of them once they were created.

Council Member Kman [00:08:00]
Amendment number 29: Nicollet Avenue Public Restrooms

And then in terms of safety and use, one of the tactics that they used was um having like uh their city hall, it could be local libraries, it could be a number of organizations that we could partner with that would give uh the community [snorts] members specific cards to access the public restrooms and they would get to card in and get to use it. And then if there was any instance of vandalism or um destruction or just behavior that we don't want to see in our public restrooms, we'd be able to identify that individual card code and shut it off and be able to enforce it that way.

Council Member Chowry [00:19:00]
Amendment number 29: Nicollet Avenue Public Restrooms

At this point now when uh 5:00 6:00 at night, there is no one on the city staff to help monitor this uh economic engine that is our nighttime economy.

Council Member Rainville [00:26:00]
Amendment number 30: Nighttime Business License Inspectors

I have uh Northeast has a number of little neighborhood bars and right now the status quo is that um either we have bar owners that are really on top of managing their operations and there's no issues or we have owners that are just overwhelmed by the reality of having a bar in the middle of a residential neighborhood.

Council President Payne [00:28:00]
Amendment number 30: Nighttime Business License Inspectors

Uh this amendment allocates $200,000 to support the development of a grocery store in an area um of our city identified as experiencing high food insecurity or what also as our homegrown council has uh defined to be food apart tide.

Council member Wansley [00:30:00]
Amendment number 31: Grocery Store Development Funding (Revised)

I think the the bigger problem we have in Ward 4 is we have North Market that's a struggling grocery store that um you know if we developed a new grocery store it wouldn't be as helpful to the community as helping North Market right so like um I'm just wondering if there's an opportunity or could we maybe create an opportunity in this for a store like North Market or Solo or Colonial Market, some of the stores that we have in North Minneapolis already that are struggling to stay open that may be able to benefit um from some of these dollars in helping not to create another grocery store, but to sustain existing grocery stores um in our community that is uh ran by our community members.

Council member Vita [00:32:00]
Amendment number 31: Grocery Store Development Funding (Revised)

Grocery stores are notoriously expensive to develop and maintain and have very little profit margin and that gets to go back into the store. Um what can $200,000 accomplish here? There's no way it can cover space, buildout, inventory, technology, equipment, licenses, or even staff. just to open the doors.

Mayor Hansen/CPED Director [00:48:00]
Amendment number 31: Grocery Store Development Funding (Revised)

But we have not really explored a financial incentive to make this happen. And while we understand the barriers that exist to converting these buildings in financial barriers, engineering barriers, we don't fully understand the public benefit. And I would like us as a city to to study that public benefit to model the the benefits of converting a building like the Northstar Center right in the center of downtown.

Council Member Kman [00:53:00]
Amendment number 32: Commercial Adaptive Reuse Study

This is another economic development proposal to address the retail vacancies that we're seeing citywide. The proposal is for a cost share program for vacant retail activation, which would support uh property owners actually making physical changes to their buildings to allow for for the tenants uh retail tenants to come in.

Council Member Kman [00:57:00]
Amendment number 33: Vacant Retail Activation

I want to point out that this amendment along with amendments 26 and 27 transfers $2.2 million from downtown assets. Um, while I understand this amendment is meant to just reduce empty retail space at a time that we're trying to revitalize downtown, that is a lot of money coming all from the same source here.

Council Member Palmisano [00:59:00]
Amendment number 33: Vacant Retail Activation

Uh this this earmark uh about $12,000 in CPAD's workforce development fund which has approved budget of 14 million. was support funding a FTE that would help residents interested in early child care education get plugged into the correct pathways and programs.

Council member Wansley [01:00:00]
Amendment number 34: Invest in Childcare Workers

I could see us having uh a full-time staffer uh that knows how to navigate some of these challenges so that we can actually uh expand access to child care to our community. So, uh there's a real need for this and it's really timely.

Council President Payne [01:02:00]
Amendment number 34: Invest in Childcare Workers

Um perhaps others know more here, but I really don't think it makes sense to reinvent the wheel and have CPED stand up a brand new program utilizing an FTE when this other program already exists. Would this need to be a new track as part of the existing career pathways program.

Council Member Pomono [01:04:00]
Amendment number 34: Invest in Childcare Workers

This was a budget amendment last year. Uh we are very much on our way to getting a vendor identified. It's just the timing of it all. This these funds need to be rolled over and we need to take this action so that um that we can actually leverage those funds that were allocated for this year's budget.

Council President Payne [01:07:00]
Amendment number 35: Enterprise Policy Management System Staff Direction (Z Amendment)

Um this motion in front of you, um, essentially repurposes the very original, uh, motion where we were looking to, uh, pull FTEEs from the administrative side, um, to essentially, uh, use already existing, um, FTE positions that's within, uh, the legislative department or the city clerk's um, office that's actually already in motion for classification.

Council member Wansley [01:10:00]
Amendment number 36: Policy for the People (Second Revision)

I am just I'm really grateful to to the author to council member Wanley here for um you know her her willingness to um be flexible and find a creative solution here um that that is an alternative to such a significant reduction to the mayor's office.

Chair Chugai [01:13:00]
Amendment number 36: Policy for the People (Second Revision)

And I think that as we have evolved into this new government structure increasingly we are estab establishing a need for increasing levels of formality because there are such breakdowns in informal communication. And I think um you know it's shockingly timely that this is being brought forward cuz I mean one of the questions that was asked I think council member Kashman asked this of um our safety commissioner of you know what are you doing to prevent these types of overages and in December as we're finalizing our budget they're saying they're going to start a conversation around more oversight.

Council President Payne [01:18:00]
Amendment number 36: Policy for the People (Second Revision)

This budget amendment is really aimed at making sure that our city auditor has the capacity to say yes. Um, and I'll also note that we worked really closely with uh our budget team. Starting in the beginning of the year, we identified four FTEEs to move over to the auditor's office with the vision of a a multi-year buildout.

Council President Payne [01:22:00]
Amendment number 37: Audit Department FTEs (Revised)

I will support this today because of the trust involved here on all sides. But I do want to caution us to give audit a chance to absorb these new positions and be responsible about their growth. um this department is too important to not be monitor monitoring its ability to incorporate all these new positions in the work that they are intended to do.

Council member Palmisano [01:24:00]
Amendment number 37: Audit Department FTEs (Revised)

I, you know, appreciate that everybody was working to compromise here, but I do have some concerns that public works and CPAD are getting their positions taking taken instead of the mayor's office positions. uh of politically appointed positions and I'm wondering how how it came to be that um you know the mayor and his uh negotiating team came to agree that public works and CPAD positions should be taken for this.

Council Member Cashman [01:26:00]
Amendment number 37: Audit Department FTEs (Revised)

I think there is a a real need for us to build some some guard rails around um around our how money is um spent once it has been allocated through the budget process. Um and build in some some accountability.

Chair Chugai [01:36:00]
Amendment number 38: Budgetary Control Financial Policy (Z Amendment)

These earmarks are captured in your budget amendments dedicating funds for a specific purpose. For example, the earmark earmark of funds to the office of immigrant and refugee affairs for the purpose of providing community engagement and support for im immigrant and refugee communities. The policy provides for both controls and reporting. So under the policy number one, the earmarked funds can't be used for different per purposes without council approval.

City Attorney [01:37:00]
Amendment number 38: Budgetary Control Financial Policy (Z Amendment)

Um this council has made appropriations and we do not see the mayor then implement or execute them. Um, we're even seeing that play out in this existing budget where we know council may appropriations for 2025 uh for emergency housing vouchers to get 150 unsheltered people into permanent housing with wraparound services. And that work did not um get executed this budget cycle and now we're having to do the restoration of that along with other like civilian investigators right now.

Council member Wanssley [01:58:00]
Amendment number 38: Budgetary Control Financial Policy (Z Amendment)

Ordinances & Resolutions (20)

Mayor Fry's 2026 recommended budgetBudget

The foundational budget proposal under revision by the Budget Committee.

amendment number 29Amendment

Proposal for Nicollet Avenue Public Restrooms funding.

standalone public restrooms report by our legislative research and oversight divisionReport

A report cited during discussion of public restrooms, mentioning pilot programs in other cities.

budget proposal (value capture district map)Map

A map included in the budget proposal showing the Nicollet Avenue value capture district.

urination hotspots mapMap

A map from the downtown council used to identify potential public restroom sites.

amendment number 30Amendment

Proposal for Nighttime Business License Inspectors.

amendment number 31 (revised)Amendment

Proposal for Grocery Store Development Funding.

amendment number 32Amendment

Proposal for a Commercial Adaptive Reuse Study.

city assessor's 2025 reportReport

Report indicating a 9.5% fall in estimated market value of downtown commercial property values.

zoning code reforms (last year)Ordinance

Reforms passed to incentivize conversion of office buildings into housing.

amendment number 33Amendment

Proposal for Vacant Retail Activation.

amendment number 34Amendment

Proposal to Invest in Childcare Workers.

amendment number 35Amendment

Proposal for Enterprise Policy Management System Staff Direction (Z amendment).

amendment number 36 (second revision)Amendment

Proposal for Policy for the People (regarding legislative branch staffing and communication).

amendment number 37 (revised)Amendment

Proposal for Audit Department FTE restoration and addition.

amendment number 38Amendment

Proposal around Budgetary Control Financial Policy (Z amendment).

Q3 financial status presentationReport

Quarterly financial report discussed by the committee.

license fee scheduleDocument

Document outlining fees businesses pay to the city, mentioned in discussion about grocery stores.

PAR reportReport

Report with recommendations on public-private partnerships, mentioned in grocery store discussion.

charterLegal Document

The city's foundational legal document, defining budgetary authority.

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