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# City Council Business, Housing, and Zoning Committee Meeting Summary

## Meeting Information

- Date: September 24, 2024
- Title: Regular Meeting of the Business, Housing and Zoning Committee
- Present: Osman (Chair), Rainville, Cashman, Jenkins, Chowdhury, Chavez (joined late)
- Absent: Ellison (Vice Chair)
- Guests: Ben Zimmerman and Ossa Apartanu (Budget Division), Connie Milchizidek and Bob Kaufmann (Accord Health), Lindy Silas (CPED), Sarah (City Audit Office)
- Votes: 5

## Highlights

- Presentation on 2025 License Fee Schedule recommendations
- Appeal hearing for Conditional Use Permit for emergency shelter at 1801 Nicollet Avenue
- Discussion on Conditional Use Permit for 918 West Lake Street
- Presentation on Transportation Network Company (TNC) fees
- Presentation on addressing homelessness through safe outdoor spaces

## Discussion

### 2025 License Fee Schedule

The committee heard a presentation from Ben Zimmerman and Ossa Apartanu on the proposed 2025 License Fee Schedule. The recommendation included a 5% base increase for most fees, excluding Parking and Traffic Control (PCAR). The increase was driven by personnel expense budget increases. Some fees were held flat or decreased to align with state and federal policies or to incentivize certain behaviors.

Cecil Smith from the Minnesota Multi-Housing Association expressed concern about the 10% increase for large Tier 1 rental properties, citing current economic challenges in the rental market. He urged the committee to pause the increase.

The committee moved the item forward to full Council without recommendation, anticipating potential amendments.

Vote: Passed unanimously

### Conditional Use Permit for Emergency Shelter at 1801 Nicollet Avenue

The committee held an appeal hearing regarding the City Planning Commission's decision to approve a Conditional Use Permit for an emergency shelter at 1801 Nicollet Avenue. The proposed facility would be a 64-bed recuperative care facility operated by Accord Health.

The appellant, representing nearby property owners, argued that the facility would negatively impact the neighborhood and did not meet the criteria for a Conditional Use Permit. Concerns were raised about the concentration of homeless services in the area and the potential for increased crime and drug use.

The applicant, Accord Health, countered that the facility is not a traditional homeless shelter but a medical care facility for referred individuals already in the care system. They emphasized the professional nature of the operation and the need for such services.

Community members expressed mixed opinions, with some supporting the need for such services and others concerned about the impact on the neighborhood.

Council Member Osman moved to continue the item to the next cycle to allow for further community engagement.

Vote: Passed unanimously

### Conditional Use Permit for 918 West Lake Street

The committee discussed the Conditional Use Permit for 918 West Lake Street, which had been continued from a previous meeting to allow for community engagement. The applicant had met with community stakeholders and agreed to several conditions, including adding skylights, maintaining a specific staff-to-client ratio, and appointing a community liaison officer.

Council Member Rainville moved to approve the item with the recommended conditions.

Vote: Passed unanimously

### Transportation Network Company (TNC) Fees

Amy Lingo presented findings from a fee study on Transportation Network Companies. The study revealed that the city was overcollecting fees with a recovery ratio of 193%. Recommendations were made to adjust fees to achieve a recovery ratio closer to 95%. The presentation also included options for tiered fee levels based on company size and considerations for incentivizing wheelchair-accessible services.

The committee received and filed the presentation without further action.

### Safe Outdoor Spaces for Addressing Homelessness

Sarah from the City Audit Office presented findings on the potential establishment of safe outdoor spaces to address homelessness in Minneapolis. The presentation covered the current state of homelessness in Hennepin County, experiences from other cities with similar programs, and considerations for implementing such spaces in Minneapolis.

Council Member Chavez expressed support for pursuing safe outdoor spaces and safe parking initiatives, citing positive outcomes from similar programs in other cities. He mentioned that he, along with Council Members Chowdhury and Chughtai, would be introducing related ordinances soon.

The committee received and filed the presentation without further action.

## Public Comments

- Eric Burger: Supported adding CO2 to the PCAR 2025 fee schedule to advance the city's climate goals.
- Angela Holmerguard: Represented a small short-term vacation rental management company and expressed concern about the significant increase in fees for their business category.
- Lydia Mallard: Executive Director of Stevens Square Loring Heights, expressed concern about the lack of community engagement from Accord Health regarding their proposed facility at 1801 Nicollet Avenue.
- Mike Finkelstein: Managing partner of a nearby building, opposed the emergency shelter at 1801 Nicollet Avenue, citing concerns about the impact on the commercial corridor and existing drug-related issues in the area.
- April Kelly: Long-time employee in the Stevens Square neighborhood, opposed the emergency shelter at 1801 Nicollet Avenue, expressing concerns about the impact on an already challenging area.
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## Meeting Information

- Date: September 24, 2024
- Title: Budget Committee Meeting
- Present: Chughtai (Chair), Payne, Rainville, Vetaw, Cashman, Chavez, Koski, Palmisano
- Absent: Wonsley, Ellison, Osman, Jenkins, Chowdhury
- Guests: Karen M (Director of Neighborhood and Community Relations), Ben Johnson (Director of Arts and Cultural Affairs), Katie Topanga (Director of Intergovernmental Relations)
- Votes: 0

## Highlights

- Presentation on 2025 budget for Neighborhood and Community Relations Department
- Presentation on 2025 budget for Arts and Cultural Affairs Department
- Presentation on 2025 budget for Intergovernmental Relations Department
- Discussion of immigrant and refugee services in light of increasing needs
- Proposal for art preservation at George Floyd Square
- Proposed funding for Cowles Center dance programming

## Discussion

### Neighborhood and Community Relations Department Budget

Director Karen M presented the 2025 budget for the Neighborhood and Community Relations Department. Key points included:

- Restructuring of the department to improve efficiency
- Expansion of the Office of Immigrant and Refugee Affairs
- Challenges in building trust with residents due to national events and trends
- Successful merger of some neighborhood organizations

Council members expressed support for the department's work but raised concerns about the increasing needs of immigrant and refugee populations. Council Member Chavez stated:

"We're starting to see homelessness skyrocket. And we are starting to see a variety of new arrivals coming to schools and in the city, frankly. We're starting to see even folks coming to City Hall asking for services."

The director acknowledged the growing need but noted that no new programming or funding was proposed in the mayor's budget to specifically address this issue.

### Arts and Cultural Affairs Department Budget

Director Ben Johnson presented the 2025 budget for the Arts and Cultural Affairs Department. Key proposals included:

- $1,430,000 for expansion of Vibrant Storefronts and Cultural Districts programs
- $1,150,000 for Cowles Center dance programming
- $300,000 for art preservation at George Floyd Square

The Cowles Center funding proposal generated significant discussion. Council members expressed support for the dance community and the importance of maintaining the venue's cultural legacy. Director Johnson explained:

"When the Cowles closed, it decimated our dance company and community. In response, the dance community self-organized and conducted three town halls and many ongoing community gatherings. And the funding request is a direct result of the community and relationship to the venue."

Council members also discussed the art preservation project at George Floyd Square, emphasizing the need for community involvement and sensitivity in the process.

### Intergovernmental Relations Department Budget

Director Katie Topanga presented the 2025 budget for the Intergovernmental Relations Department. Key points included:

- Proposed transfer of an FTE from the Health Department to IGR for energy policy work
- $50,000 in one-time funds for continued work on federal funding opportunities
- Success in securing federal tax credits for city projects

Council members expressed support for the department's work, particularly in securing federal funding and tax credits. There was also discussion about the importance of maintaining subject matter expertise in energy policy with the proposed position transfer.

## Public Comments

There were no public comments during this meeting.
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## Meeting Information

- Date: September 23, 2024
- Title: Budget Committee Meeting
- Present: Elliot Payne, LaTrisha Vetaw, Jamal Osman, Jason Chavez, Emily Koski, Linea Palmisano, Aisha Chughtai (Chair). Robin Wonsley, Michael Rainville, Katie Cashman, and Andrea Jenkins joined later.
- Absent: Jeremiah Ellison, Aurin Chowdhury
- Guests: Erik Hansen (CPED Director), Enrique Velasquez (Regulatory Services Director)
- Votes: 0

## Highlights

- Presentation on the 2025 Community Planning and Economic Development (CPED) budget
- Discussion of housing development trends and challenges in Minneapolis
- Presentation on the 2025 Regulatory Services budget
- Proposal for expanded unsheltered homelessness response activities
- Affordable Homeownership Preservation Program proposal

## Discussion

### CPED 2025 Budget Presentation

Erik Hansen, CPED Director, presented the department's 2025 budget proposal. Key points included:

- The proposed budget is $119.7 million, including $10.3 million in change items
- There has been a significant reduction in housing entitlements, from around 4,000 units in 2022 to about 1,100 units in 2023
- The department is facing challenges with recruitment and retention due to competitive salaries in other agencies
- New initiatives include programming for Nicollet Mall and preparation for the 2050 Comprehensive Plan

Council members expressed concerns about the reduction in the department's budget and its impact on services. Director Hansen explained that the decrease was largely due to the expiration of one-time funding sources, such as American Rescue Plan Act (ARPA) funds.

Councilmember Chavez raised concerns about the low participation rate of Native American community members in homeownership programs. Director Hansen acknowledged this issue and committed to working on improving outreach and accessibility.

### Regulatory Services 2025 Budget Presentation

Enrique Velasquez, Regulatory Services Director, presented the department's 2025 budget proposal. Key points included:

- A proposal for $850,212 in ongoing general fund investment to expand unsheltered homelessness response activities
- A request for $100,000 in one-time funding for the Affordable Homeownership Preservation Program
- Challenges faced by the department, including a stressed workforce and increasing nonpersonnel costs

Councilmembers expressed strong support for the department's work, particularly in addressing livability issues and animal care and control. Councilmember Vetaw stated:

"I'm always going to support whatever you ask for here. Go big. But I do, I appreciate the work. I appreciate the collaboration with my office in particular on teaching us a lot of things and helping to navigate through these sometimes very complex issues but very important liveability issues."

Councilmember Osman raised concerns about the need for additional staffing to address homelessness and encampment response. Director Velasquez explained that the department currently has four total positions for this work, with plans to hire additional staff.

### Affordable Homeownership Preservation Program

The proposal for a $100,000 one-time investment in the Affordable Homeownership Preservation Program was discussed. This program aims to help low-income homeowners address outstanding housing orders to avoid displacement.

Councilmember Koski expressed strong support for the program, stating:

"I believe that programs that avoid displacement are critical right now, so I'm grateful to see this. And I think this program does more than just what you state here. You know, really it's a gateway to learn about what's happening in a resident's life. It's able to get residents access to other services."

There was interest from multiple council members in potentially expanding this program and making it an ongoing funding item in future budgets.

## Public Comments

There were no public comments during this meeting.
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