Minneapolis City Council — Transcript
Tuesday, August 18, 2026
Dress Code Posting Requirement Ordinance
2025 Consolidated Annual Performance Evaluation Report (CAPER)
Liquor License for Rain Nightclub
Data Centers Policy and Impact
Votes (4)
Public Hearing: 2025 Consolidated Annual Performance Evaluation Report (CAPER)
Moved by Chair Osman [15:40] · Seconded by Implied by motion to file
Matt Bower presented the 2025 CAPER report, a requirement for HUD, covering federal grants like CDBG, HOME, ESG, and HOPWA, and an update on COVID-19 entitlement grants. He noted the public comment period runs through August 25th. Council Member Warren inquired if the report would include specific property performance reviews, particularly Heritage Park, to which Matt Bower clarified that the report is high-level and only covers projects that received HOME funds.
Public Hearing: Dress Code Posting Requirement Ordinance
Moved by Council Member Chavez [27:31] · Seconded by Council Member Warren [27:35]
Council Members Chavez and Warren presented an ordinance requiring liquor-selling establishments with dress codes to post them conspicuously, aiming to prevent discrimination based on protected classes. They emphasized transparency and addressing 'velvet rope discrimination.' Public speakers included Howard Dodson, who shared personal accounts of discrimination and supported the ordinance, and Robin Russell, who expressed skepticism about the problem's documentation and raised concerns about double jeopardy for businesses. Mel supported the ordinance as a preventative measure. Council members debated the prevalence of discrimination and the ordinance's role as a proactive step, with several sharing personal experiences.
Discussion Item: Liquor License for Rain Nightclub
Moved by Council Member Chuktai [38:52] · Seconded by Unknown [38:55]
Julianne Linham from CPED provided an update on Rain Nightclub's liquor license, prompted by a recent shooting incident outside. She clarified that the police investigation found the incident stemmed from an individual dispute with no direct nexus to the business. The owner had updated security and business plans, which MPD approved. Staff emphasized the owner's cooperation and regular practice of employing off-duty officers, noting no violations were found to warrant additional conditions. Council members supported the renewal, appreciating the thorough investigation and the owner's proactive engagement with the city and police.
Receive and File: Data Centers Presentation
Dwight Miller of LRO presented a comprehensive overview of data centers, emphasizing that 'context matters' and the rapidly changing nature of the industry. He detailed their components, resource demands (electricity, water, but not correlated with square footage), and environmental/economic impacts, noting Minneapolis's robust infrastructure. He also introduced CPED's proposal for regulating data centers, which includes a standalone definition, zoning limitations, and a 175,000 sq ft 'white space' limit. A landscape analysis of six comparison cities highlighted varied approaches, often in Sunbelt states. Council members raised concerns about climate goals, the potential for overlay districts in environmental justice zones (Chavez), and the ambiguity of economic benefits and the impact of state-level sales tax exemptions (Chowry, Rainville). Staff confirmed that hyperscale data centers are currently unlikely in Minneapolis but stressed the importance of public engagement and state/regional advocacy for future regulation.
Notable Quotes (16)
This report covers our performance over the past program year for community development block grant, home investment partnership grants, emergency solutions grants, and housing opportunities for persons with AIDS grants.
it's very high level broad. We do um we do report on projects where we have home investment, home grant dollars invested. We provide a report. Part of the report is talking about the um properties that had been inspected over the past year under um the home compliance period and results of that. To my understanding um Heritage Park did not receive any home funds from the city in the past and so it wouldn't come up in the within that context.
This ordinance is necessary to prevent velvet rope discrimination, which is the use of legally protected categories by public accommodation in the in their determinations of who is granted entry and in their provisions of service.
if you have a dress code and it is strictly enforced, post it so that everyone knows and that there is um no discrimination um to your establishment. And if you don't have a dress code, you don't have to worry about posting about it because then that just means that everyone is welcome regardless to what attire that that they're wearing.
For two years, I've been hearing about a bar over Northeast turning away African-American males. 55 now. You hurt my family. You hurt me. So, here's what I've heard. 10 years ago, an African-American man went up to the bar and he was told, "We don't serve ends here.
Protections for discrimination based on protected class are already in place under federal and state laws. If there is no evidence to substantiate a civil rights claim of discrimination, it it sounds like it will be assumed that the proprietor can still be held responsible under the licensing ordinance. Would their business and liquor license be at risk? Sounds like it. Is this not a double jeopardy scenario?
By requiring posted dress codes, we give people agency. Lower income communities, black women, queer folks, and disabled people deserve to know what they're walking into. And to that point, I will not be wearing heels to a club. But I should know that rule before I arrive. um not learn it after I'm humiliated at the door. That's blatant discrimination.
We did not find in our investigation. We didn't find any nexus rel from the business to the activity outside. We have some details of what occurred from the police department which was an individual dispute between two people. One saw the other and fired a gun at a crowd.
Uh, one thing I did forget to mention though is that this bar typically has offduty working. So they have part-time officers working regularly. It just happens on that particular evening they did not because they were pulled to the chief speed.
I encourage the business owners and to really continue to engage with precinct which is a phenomenal precinct over there. Um officers are doing a a good job and also people do have a actual concern of crime in in in our city and and I see that he has a plan of working with with the city which is a good sign and I appreciate the staff for your time and commitment.
I also want to just call call you know it is what it is as far as the a lot of noise um around this topic. There's a lot of noise on the internet particularly on social media about both the dangers and the virtues of data centers. And my aim today and also through the report is just to kind of deliver sort of the facts I mean also put this from it being the context in Georgia or in Texas or in Nevada just put in the context of Minneapolis and using those regulations as comparison.
The one thing with these categor and also there's edge um computing systems which are generally like how do we make sure we're making connections between these large facilities and connecting them to end users. Um so think of them as like very essential nodes in the network of data centers. I do want to kind of highlight that this kind of makes regulation of them very difficult. Um, not all of these categories are exclusive. There could be enterprise data centers that are hypers scale. There could be edge centers that also serve some collocation capacity. It really depends based on data center to data center which is also goes back to some of the bigger themes within this report and within the research is that context matters and that looking into deeply into each one of these projects is very important.
So slide 21, yes, shows CPATs proposal which was released on Friday. And I know there was a question about what particularly is the overlay district outside of downtown. And based on the update we got, it would allow properties in RM3, CM1, CM2, CM3, CM4, PR1, and PR2 districts to apply for a data center overlay. And as proposed on Friday and under consideration, the areas of the overlay districts would include industrial parcels bordering Little Earth, the roof depot site, East Lake Street, and parts of Haywa Avenue South and Bloomington Avenue South, including parts of the Southside Greenzo already carrying a disproportionate burden of pollution.
I can appreciate that there is a high amount of capacity for water treatment available of 25 to 30 million gallons. Is it daily? ... I think one thing that I I kind of want to get a better understanding about in terms of treatment capacity is I understand that there is this availability and at the same time the city of Minneapolis is currently sharing communications around conserving water for everyday residents. Um, could do you have any understanding or could any staff speak to why the city of Minneapolis is asking residents to currently conserve water? Is it due to drought conditions? Is it due to treatment capacity? Because I think that's an important point of conversation in terms of water usage as it comes to available capacity if we're asking average everyday Minneapolis residents to conserve water.
It's not conclusive. And I I'll just read for the report. it. Although data centers may increase the assessed value of individual properties, increases in assessed value do not necessarily produce proportional increases to municipal revenue. And I think that's like a big takeaway for me in this research is we as policy makers in Minneapolis can't substantively say that this is a golden goose for the city because it's opaque and it's not conclusive in terms of that type of financial impact.
So, uh, but back to my original questions, um, I I think you should, the staff should listen very clearly to what, uh, Council Member Chavez has brought up about these uh, districts and Lake Street or Hayawa. Uh, because I I was not allowed to be in on the policy conversations as well. Uh so I don't I don't know how this all went but I would think it's very reasonable to uh listen to that request to not have these even if it requires extra set of permissions but let's ally that fear let's just nip that in the bud and honor you know his request.
Ordinances & Resolutions (15)
File number for an ordinance to amend Title 13, Chapter 266 of the Minneapolis Code of Ordinances relating to licenses and business regulations around rental halls.
Portion of the city code related to licenses and business regulations around rental halls, subject to amendment.
Ordinance to be considered for a public hearing on September 8th.
Report submitted to HUD covering performance over the past program year for community development and housing grants.
Federal grant program covered by the CAPER report.
Federal grant program covered by the CAPER report, used for housing projects.
Federal grant program covered by the CAPER report.
Federal grant program covered by the CAPER report.
COVID-19 related Community Development Block Grant, whose performance period ended June 30th of the current year.
Legislation that provided funds to the city in 2022 for two housing projects for special needs populations.
Ordinance requiring establishments selling liquor and enforcing a dress code to post it conspicuously.
Updated plan by Rain Nightclub owner, reviewed and signed off by MPD, to address safety concerns.
Updated plan by Rain Nightclub owner.
Report by Legislative Research Oversight providing an overview of data centers, their impacts, and regulatory considerations.
Community Planning and Economic Development's proposal for a standalone data center definition, zoning limits, and development standards.