Minneapolis City Council — Transcript
Tuesday, August 4, 2026
Consent Agenda Approvals and Referrals
Commercial License Applications for Outdoor Seating
Minneapolis Tourism Improvement District (MTID) Annual Report
Rental License Reinstatement
Minnesota Park Board Ball Park Authority Appointment
Rental License Ordinance Implementation and Tiering System Review
Votes (8)
Consent Agenda
Dissent: None
Moved by Chair Osman [00:00:00] · Seconded by Unspecified [00:00:00]
The consent agenda included various approvals and settings of public hearings. Council Member Champlin highlighted the importance of the Ownership and Opportunity Fund loan to La Herencia as a woman-owned business's incubation. Council Member Warren confirmed the ward for the Ted Williams Museum license and praised the Lindquist Apartments loan forgiveness for benefiting community assets. Council Member Chavez supported the rezoning for the Neighborhood Development Center, noting its role in rebuilding a riot-devastated area. Vice Chair Choudry mentioned redistricting's impact on ward assignments for licenses.
Postponement of Item 23 (License Renewal)
Dissent: None
Moved by Chair Osman [00:00:00] · Seconded by Unspecified [00:00:00]
Chair Osman announced the postponement of item 23, a license renewal, to the next meeting on August 18th, 2026, as staff required an additional cycle for review. No questions or discussion arose from the committee.
Public Hearing: Permanent Expansion of Premises and Sidewalk Cafe License for Pot Shot
Dissent: None
Moved by Council member Rainville [00:00:00] · Seconded by Unknown [00:00:00]
Max Cervantes from Licenses and Consumer Services presented the application for Pot Shot (700 North 3rd Street, Ward 3) to add 11 tables/34 seats facing 3rd Street North and 5 tables/20 seats facing 7th Avenue North. The proposed sidewalk cafe hours are Mon-Thu 4-10pm, Fri-Sun 11am-10pm. One community concern about changing the neighborhood character was noted, but the applicant committed to operating as a good neighbor. No significant issues were found in complaint records.
Public Hearing: Permanent Expansion of Premises and Sidewalk Cafe License for Bill's Bait Shop
Dissent: None
Moved by Vice Chair Choudry [00:00:00] · Seconded by null
Max Cervantes presented the application for Bill's Bait Shop (3101 42nd Street East, Ward 12) to add 6 tables/12 seats on the public sidewalk. The business, not yet open, will be a sit-down restaurant. Proposed outdoor hours are Sun-Thu 11am-10pm, Fri-Sat 11am-10pm, adjusted from 11pm close after community concerns. Six comments supported the application, with two concerns regarding outdoor hours and litter, which the business addressed. Council Member Shafer questioned whether these expansions qualified for fee waivers related to Operation Metro Surge, learning that such waivers primarily covered food-based business license fees, not encroachments.
Public Hearing: Annual Service Charge Continuation for Minneapolis Tourism Improvement District (MTID)
Dissent: None
Moved by Chair Osman [00:00:00] · Seconded by null
Jeff Johnson, Melvin Tennant, and Jeff Barnhart presented the first annual report for the MTID, emphasizing its role as a public-private partnership funded by a 2% hotel fee. They detailed the district's activities, including sales, marketing (e.g., 2028 NFL Draft, Michelin Guide), and workforce development (Squared Roots). The report acknowledged the decline in hospitality employment post-2019, exacerbated by the pandemic and Operation Metro Surge, but highlighted how MTID funds helped in recovery. Council members praised the initiative for economic impact, job creation, and fostering city vibrancy, with calls to expand marketing for events like Pride Month and further detail on RevPAR improvement.
Discussion Item: Rental License Reinstatement for 213 Leon Avenue North
Dissent: None
Moved by Council member Warren [00:00:00] · Seconded by null
Jordan Hooks from Regulatory Services provided an update on the rental license reinstatement for 213 Leon Avenue North. The property owner, a Spanish-speaking resident, did not initially live at the property but has since moved into the upper unit with family, leaving the lower unit vacant and ready to rent. Council Member Warren affirmed her due diligence, including site visits, and supported the reinstatement, emphasizing the importance of ethical and quality business practices.
Discussion Item: Appointment to the Minnesota Park Board Ball Park Authority
Dissent: None
Moved by Chair Osman [00:00:00] · Seconded by null
The committee considered the appointment of Justin Baylor to the Minnesota Park Board Ball Park Authority for a term from January 1, 2026, to December 31, 2029. Chair Osman stated the item would be moved to the full Council without a recommendation, noting prior discussions. Council Member Gordon expressed pleasure in approving the appointment, while Council Member Chavez clarified that 'without recommendation' does not imply committee support for the candidate.
Receiving and Filing the Second Report on Rental License Ordinance Implementation
Dissent: None
Moved by null · Seconded by null
Josie Shardlow and Enrique Velasquez from Regulatory Services presented on the implementation of Ordinance 2025047, which mandates City Council review for high-risk rental license renewals (Tier 3 or with conditions) starting January 1, 2027. They detailed the current tiering system (Tier 1, 1D, 2, 3), highlighting its limitations in reflecting current property conditions and its complexity. A postponement of the implementation date to March 1, 2028, was proposed to facilitate a comprehensive overhaul of the tiering system, IT integration, and stakeholder education. Council members raised concerns about landlord accountability, the adequacy of inspections, the impact of large property management portfolios, and the city's approach to mold inspections. The discussion underscored the need for a clearer, more effective system to ensure safe housing without displacing renters.
Notable Quotes (17)
I just wanted to highlight the importance of the ownership and opportunity fund loan um to this business to their acquisition. And this business is a woman-owned business. Uh and it started off as a food truck. So, uh La Cochinita was a really, really good Mayan cuisine food truck business. They also started selling breakfast burritos in local coffee shops on the south side. And the ownership opportunity fund is doing exactly what we want to see happen is take women-owned, women of color-owned businesses where they're starting off at a food truck and helping them incubate into a brick and mortar and creating vibrancy for the neighborhood.
I'm also excited to see the Lindquist Apartments loan forgiveness for 1931 West Broadway. Um, approving the forgiveness of all principal and accrued interest of the 2004 Affordable Housing Trust loan for the Lindquist Apartments. It's also the home to RS Eden, the Link, and the RSI Laboratories. And so, this really serves, um, all of those, um, businesses serve as great assets to our community and the West Broadway corridor. So, I am, um, pleased to support them in receiving the the support, um, around this.
I just want to talk about the importance of this project. I'll make sure this is an impact just an area of South Minneapolis that was devastated by the uprising, and it is important that we do everything that we can to help rebuild the East Lake Street corridor. So, I just want to speak in favor of this item and thank the applicant and staff.
We have received one comment from the community with concern for outdoor dining changing the character of the neighborhood. This concern has been shared with the applicant and the applicant intends to operate as a good neighbor. The application meets the minimum requirements for sidewalk cafe seating to be allowed. A review of any complaints, 311 calls, police calls found no significant issues concerning this business.
We have received eight comments from the community. Six are in support of this application, two with concern about outdoor hours, cigarettes and litter. These complaints or these concerns have been addressed with the business. Routine litter collection is part of their business plan. The business has also decided to close their outdoor seating at 10:00 p.m. in an effort to be a good neighbor.
I will move this item for approval and just want to, uh, shout out Bill's Bait Shop for just working with the community. Originally, the hours were going to be till 11:00 p.m. which for me, I would just like, let's give it a shot and see how it goes. But, it it just says a lot that you are willing to hear community feedback about the timing. Like, I think that makes a huge difference. Um, and I think the sidewalk cafe is just going to be such a great activation for the area.
The board of Meet Minneapolis made the decision that we wanted to figure out a way to be able to invest more in our community, and that's when this process started. We have a number of general managers and hotel leaders in this community that have worked at other places where TIDs are in existence, so there's a lot of support for it.
Minneapolis has not recovered as well as some of the other what we call peer cities that we compare ourselves to since covid and you know we we had the riots with which other cities didn't have and then operation metro surge was obviously something that other cities didn't have so we we had to overcome more and for prior to operation Metro surge, you know, Minneapolis has has needed to continue its recovery and I think we had a pretty good 2024 and 2025 was was down a little bit, which was concerning.
I'm really looking forward to seeing what more happens as this continues. Um some highlights for me that I really liked and would love to see grow is just the um inclusive workforce development work. I think that's super important. I think we're in a really um really interesting, difficult time as it comes for our workforce and people looking for a good paying job or a place where they can step into the hospitality industry right now and it's this is a great opportunity for us to give people a hand up and a pathway.
During that call, I did find out that the property owner did not live at the property at the time uh the application was submitted. Since then, the property owner has moved into the property and is occupying one unit with family. Um until we we will update that license or that contact address on the actual rental license. Um we also had a Spanish-speaking housing liaison door knock at the property. The property owner and family are living in the upper unit and the lower unit is vacant and ready to be rented out. Um we respectfully ask that you consider the reinstatement.
Thank you so much for your due diligence in the work. I had driven past all of the properties that were on the application, whether if belonging to the previous owner and the current applicant, because I wasn't exactly clear on whose responsibility was it for what and who, but I went I walked around. I take pictures. I'm that council person. So, you know, if you are going to do business, I want it to be ethical and quality business and I want to make sure that we're not missing any things cuz teamwork will make a dream work.
I am having I I had a with Councilmember Palmisano and also Council President and I am moving this item without recommendation.
I just want to make sure the public knows that just because you're moving it forward without recommendation doesn't mean you support the appointment. I just want to make that clear.
Currently, about 74 properties fall into these two categories, but I want to flag that that's just our working number for now, so it'll change from year to year, and updates that we're working on to fine-tune tiering will definitely impact that number. You can see in this map that geographically, tier three properties are spread across Minneapolis.
Ultimately, a rental license is not inherently a stamp of approval on a building. It does, however, bring a rental property under the city's authority. And as we discussed earlier, a tier doesn't tell the whole story of what's happening at a property. We can provide more context about a particular case uh when we have advanced notice to prepare information ahead of committee meetings. And most importantly possibly is if council decides to deny a license renewal that inherently means displacing renters.
The idea behind um bringing this back to the council was that we know the tier system is broken. It's not catch catching up the uh the bad actors out there. It's it's not uh a fair system. Um there are properties that are hired uh tier one that are actually could be tier three. So um and I'm super excited that the the regulatory services regulatory services is doing this overhaul study community engagement which I like to be part of in my resident there are a lot of residents who have a lot to say in my word.
So, the way we have approached this specific ordinance was looking at all the different factors that would contribute to the creation or the emanation of mold in that property, whether it's cold, moisture, dampness, all those different factors, and abating the situation that caused the mold, and all the under other underlying conditions, as well as remediating the specific surfaces or whatever is damaged by the mold. Uh which is also to say, we're not going in with uh air quality systems or other tools to be able to evaluate which specific spore type is in the air or on the surface or in these different areas. Um we're focused more on all the other factors that would lead to mold.
Ordinances & Resolutions (22)
Consent agenda item for approval of two liquor licenses.
Consent agenda item for approval of fifteen liquor license renewals.
Consent agenda item for approval of two gambling licenses.
Consent agenda item for approval of four gambling renewals.
Consent agenda item for approval of rezoning application for Neighborhood Development Center.
Consent agenda item for approval of a workforce development board appointment.
Consent agenda item for authorization of a contract amendment to the pizzeria project in the convention center.
Consent agenda item for approving a loan forgiveness for the Lindquist apartment project.
Consent agenda item for authorizing an ownership and opportunity fund loan to La Herencia.
Consent agenda item for granting the award and authorizing an agreement.
Consent agenda item for accepting a gift reimbursement.
Consent agenda item for accepting a gift donation.
Consent agenda item referred to staff for consideration.
Consent agenda item setting a public hearing for Axe 18.
Consent agenda item setting a public hearing to receive public comment.
Consent agenda item setting a public hearing for September 8.
License application for Pot Shot and Bill's Bait Shop.
License application for Pot Shot and Bill's Bait Shop.
Amended to establish the Minneapolis Tourism Improvement District.
State statute authorizing Tourism Improvement Districts, aligned with Minneapolis MTID.
New rental licensing ordinance requiring high-risk property renewals to go before City Council.
License type for properties, subject to a new ordinance and tiering system.