News & Events

For the second year in a row, all three bond rating agencies have assigned the highest credit rating possible to the City of Minneapolis. The AAA rating by S&P Global, Fitch Ratings and Moody’s is yet another sign that the state of the City’s finances, credit standing and revenue recovery is on solid footing.

Mayor Jacob Frey highlighted the AAA ratings during his 2026 budget address, during which he outlined a disciplined, long-term vision for the City brought to life through durable investments in vital programs and infrastructure – all supported by a sturdy fiscal foundation and growth outlook exemplified in these bond ratings.

“AAA ratings from all three major credit agencies send a crystal-clear message: Minneapolis is strong, stable and well-managed,” said Mayor Jacob Frey. “These ratings don’t just happen — they’re earned through years of thoughtful stewardship, smart budgeting and a commitment to delivering core services for our residents. That kind of fiscal strength means we can invest in our city’s future while keeping costs low for taxpayers.”

The AAA ratings affirm Minneapolis’ position at the center of a strong and diverse regional economy, low long-term liability and a sound financial profile. In fact, only a handful of cities and towns across the country maintain the top ratings for several years in a row. The City plans to take bids for the $141 million bond issue on August 20.

The City has “very stable operations supported by strong financial management practices that include multiyear budgeting and long-term capital planning,” pulled from Moody’s report. Fitch reports a “high level of budgetary flexibility” and healthy general fund reserves.

“These ratings validate our budget resilience and robust financial standing,” said City CFO Dushani Dye. “Year after year, we remain confident in our reserves and plans to manage the City’s finances.”

Minneapolis Mayor Jacob Frey delivered his 2026 Budget Address in front of Council Members, City leaders, and community and business partners. The mayor’s proposed budget reflects a disciplined, long-term vision for a city “built to last,” with investments in programs and infrastructure that strengthen Minneapolis for decades to come.

Mayor Frey’s budget proposal emphasizes protecting core services, supporting the City’s workforce, and continuing to deliver on Minneapolis priorities: affordable housing, modernized public safety, climate and public health investments, inclusive economic growth, and downtown vitality.

Simply sustaining the City’s current operations would have increased the 2026 property tax levy by 13% -- far too much for residents to shoulder. City staff identified savings and cuts that reduced the projected levy increase by 40%, bringing it down from 13% to 7.8%.

The mayor’s $2 billion proposed budget includes:

• $23 million in smart savings
• No layoffs
• No interruptions to core City services
• Maintained fiscal reserves to withstand potential federal funding instability

“Great cities aren’t accidents—they are built to last,” said Mayor Frey. “This budget makes disciplined choices to keep Minneapolis strong for the long term. We’re protecting the services residents rely on, investing in programs that work, and building a city that our kids and grandkids will be proud to call home.”

Community safety and police recruitment

• Supports recruitment to continue rebuilding the MPD, now at more than 600 officers and the most diverse force in city history.
• Prioritizes a full-spectrum public safety system with police, fire, EMS, civilian responders, and violence prevention efforts working together.
• Fully funds compliance with the federal consent decree and state settlement agreement, including two new positions in the Implementation Unit.
• Sustains 24/7 Behavioral Crisis Response (BCR) services and community-led violence prevention initiatives.
• Advances key public safety capital projects, including the modernization of the 4th Precinct and the Public Safety Training and Wellness Center.

Affordable housing and homelessness response

• Continues the Stable Homes Stable Schools program, keeping thousands of Minneapolis students and families stably housed.
• Sustains investments in the Affordable Housing Trust Fund and the Minneapolis Public Housing Authority, putting more apartments and homes to own in reach of more residents.
• Dedicates $1 million for homelessness response, to ensure shelters can operate safe, dignified, and supportive spaces for unsheltered neighbors.

Climate action and public health

• Advances the Climate Legacy Initiative (CLI), including investments in cleaner energy, green infrastructure, and waste reduction.
• Supports the Zero Waste Plan to move toward the City’s 2030 waste diversion goals.
• Uses opioid settlement funds to launch a Mobile Medical Unit, expand access to Narcan vending machines, and support hospital-based intervention programs for overdose survivors.

Economic inclusion and downtown vitality

• Supports the Ownership and Opportunity Fund, helping Black, brown, and immigrant entrepreneurs build lasting wealth by owning their businesses and properties.
• Funds Vibrant Downtown Storefronts and Nicollet Mall activation, keeping downtown lively and welcoming for residents, workers, and visitors.
• Invests in cultural and commercial districts, including Uptown and Lake Street, through technical assistance and small business support programs.
• Provides dance programming in schools, downtown, and at the Cowles Center, which is slated to reopen next year under new operator Arts Nest/Zenon Dance Company.
• Continues outreach and services for vulnerable communities, including immigrants and refugees.

Good governance and fiscal discipline

• Generates $23 million in savings through vacancy management, scaling back nonessential spending, and prioritizing proven programs.
• Protects City jobs, avoiding layoffs, and maintains the City’s AAA bond rating, saving taxpayers millions through lower borrowing costs.
• Budgets responsibly to prepare for potential federal funding reductions amid continued uncertainty in Washington.

“This budget invests in homes that are stable, streets that are safe, neighborhoods that succeed, and a city government that keeps its promises,” Frey said. “We’ve done the hard work to make sure Minneapolis is strong today and built to last for tomorrow.”

The full text of Mayor Frey’s speech as prepared for delivery is attached, and you can watch the mayor’s full address on the City’s YouTube page.

Mayor Jacob Frey joined City Council Member LaTrisha Vetaw and local community leaders to celebrate the official signing ceremony for the Community Performing Arts Center, marking a major milestone in the Upper Harbor Terminal redevelopment on the Northside. 

The 8,000-seat concert venue will be operated by the legendary Minneapolis nightclub First Avenue and the Minnesota Orchestra. The venue is expected to host around 50 ticketed events each year, with $3 in proceeds from each sale reinvested directly into the local community through a partnership with the African American Community Development Corporation (AACDC). 

“Imagine a warm summer night in Minneapolis, sitting by the river, watching your favorite band play live at a state-of-the-art venue—that’s what we’re delivering to the Northside,” said Mayor Frey. “The Community Performing Arts Center is a generational investment. Not only does it bring jobs and tourism to the community, with our partners at First Avenue and the Minnesota Orchestra committed to reinvesting revenue back into North Minneapolis, it brings real change.” 

A long-term investment

“The Upper Harbor Terminal is more than a development, it’s a long-term investment in North Minneapolis,” said Council Member LaTrisha Vetaw. “This project creates real jobs, builds community wealth, and opens doors for residents who have historically been left out of major economic opportunities. I am proud to help bring this vision to life and ensure that Northside families benefit from every phase of this project.” 

The AACDC will manage and distribute funds generated from commercial ticketed sales at the Community Performing Arts Center, reinvesting revenue into social, cultural, and economic initiatives on the Northside. The Minnesota Orchestra has put together a fundraising coalition to raise private funds to support the building of the amphitheater. When the venue is complete, the Orchestra will play both a performance role—playing at the venue each season—and an operational one, working alongside First Avenue on the venue’s long-term oversight. 

“This milestone is the result of countless hours of community planning, co-creation, and dedicated neighborhood input,” said Dayna Frank, President and CEO of First Avenue Productions. “We are honored to be a part of such an incredible project and look forward to building a world-class, inviting, boutique urban amphitheater on the Mississippi riverfront. Thank you to the State of Minnesota, the City of Minneapolis, our partners at the Minnesota Orchestra and AACDC, and the hundreds of Northside community members who contributed ideas to make this project truly special. We are thrilled to be moving forward and building a cherished community asset to be enjoyed for generations to come.” 

“The Orchestra is proud to partner with First Avenue, another home-grown music organization, and the AACDC to expand the musical footprint of Minneapolis with this beautiful outdoor amphitheater,” said Minnesota Orchestra Board Chair Nancy Lindahl. “We are grateful to the Mayor and City of Minneapolis for their support and to the coalition of generous funders who rallied together to make this vision a reality. These private individuals were drawn to support the project because of a shared belief in the important role music, the Orchestra and the arts can play in strengthening our City, and we now look forward to seeing this come to life along the riverfront for audiences for decades to come.” 

In addition to world-class musical acts, the amphitheater will also host year-round community programming in public spaces, with a strong focus on including Northside residents, businesses and organizations. Construction of the Community Performing Arts Center will create more than 500 jobs, and once completed, amphitheater operations will employ more than 250 people.  

"We are thrilled to reach this milestone in our journey — excited to collaborate with the community and this incredible team to bring year-round programming, public art, career paths, and local vendor opportunities to life," said AACDC Board Chair Keith Baker. "Can’t wait to see years of community planning become a vibrant reality." 

Upper Harbor Terminal Redevelopment 

The Upper Harbor Terminal, a 48-acre riverfront site off Dowling Ave. N and I-94, is currently being redeveloped by the City in partnership with the Minneapolis Parks and Recreation Board and a group of local developers with additional investments from the State of Minnesota and the federal government. 

The $350 million investment—including $20 million from the City—reconnects North Minneapolis to the Mississippi River and will include affordable housing, a health and wellness hub, 20 acres of riverside parkland, hundreds of new living-wage jobs, and more. Infrastructure work was completed at the site last summer, with construction set to begin this fall. The amphitheater will begin hosting events for the 2027 concert season.

Today, the City of Minneapolis announced $700,000 in funding to empower local artists, creative entrepreneurs, community place makers, and cultural organizations working to enhance community and quality of life through culture and creativity . In total, the 2025 Cultural District Arts Fund will grant 65 awards across the city’s seven cultural districts.  

“Minneapolis is a city where culture, creativity, and community go hand in hand—and the Cultural District Arts Fund is proof of that,” said Mayor Jacob Frey. “From dance and storytelling to puppetry and public art, these 65 projects reflect the best of who we are. Thank you to our Arts Department for finding unique ways to bring the arts to life in every corner of our city.”  

“Minneapolis thrives on the energy of its vibrant creative community, and this fund represents the City’s commitment to empowering artists and initiatives that are shaping a brighter, more inspired future for all who call this city home.” said Ben Johnson, Director of Arts & Cultural Affairs.  

A dynamic portfolio of art projects is supported by this fund, including funding for new/existing festivals, cultural venues/spaces, supporting pop-up projects and creative activations.  The 65 selected projects will showcase a vibrant tapestry of community engagement, artistic expression, and cultural celebration across the seven Minneapolis Cultural Districts: Lowry Avenue North, 38th Street, Cedar Avenue South, Central Avenue, East Lake Street, Franklin Avenue East, and West Broadway.

Highlights of the funded projects include:

• 38th Street Projects: Dance and music performances blending cross-cultural partnerships, hands-on iron-casting workshops, piñata parties, sauna rituals, and storytelling-based workshops focused on trust and healing.

• Cedar Avenue South: Innovative performances combining shadow puppets with live music. Afghan and Somali Heritage Celebrations through workshops, concerts, and youth art & fashion. 

• Central Avenue Projects: Music gatherings at Dutch Bar, art market, sci-fi/fantasy arts convention, and Chinese folk demonstrations. Creative workshops include beading, crafts, poetry and writing month.

• East Lake Street Projects: Community involvement in Urban Art Village and winter festival builds, bilingual puppet shows, live choral music performances, and miniature Brazilian puppetry.

• Franklin Avenue East Projects: Large-scale gathering with art-making activities for families. Native traditional arts workshops, cultural storytelling, and civic engagement events.

• Lowry Avenue North Projects: Placemaking & Public Art including sculptural installations, pop-up music festivals, and open mic series supporting local creativity. 

• West Broadway Projects: Showcasing immersive theater performances, youth programming, film screenings and participatory dancing events promoting health and community.

A full list of award recipients can be found on the fund's website.  

The Arts & Cultural Affairs Department exists to advance, support, stimulate, and promote a diverse and active arts and cultural environment that recognizes and draws on the full potential of Minneapolis’ artists and arts organizations, reflects, and responds to civic concerns and aspirations, and enriches the lives of all people who live in, work in and visit Minneapolis. More information about the department’s work can be found on the Arts & Cultural affairs website.

The City of Minneapolis’ finance team has been awarded the “Distinguished Budget Presentation Award” and a certificate of achievement for “Excellence in Financial Reporting” by the Government Finance Officers Association (GFOA), the leading organization for municipal finance experts. The awards honor the team’s commitment to financial excellence, transparency and responsible planning.  

“These awards specifically speak to the rigor of the Annual Budget Process, and Financial Reports which are accessible to all residents. That’s something our community deserves and expects. You shouldn’t have to be a financial professional to understand the city’s budget,” said Dushani Dye, Chief Financial Officer for the City of Minneapolis. “It also means so much to us because these awards are from our financial peers. This organization is the gold standard in government finance, and we’re honored to be recognized.”  

Requirements for the awards change annually, and the GFOA gave credit to the City’s team for the ability to pivot where needed to consistently make improvements to the City’s budget systems. The organization provides comments that budget leaders say help refine processes and documents in the coming years.  

The GFOA called the certificate of achievement in particular the “highest form of recognition in the area of governmental accounting and financial reporting, and its attainment represents a significant accomplishment by a government and its management.” The City has received this award for 50 years consecutively.  

Other budget news 

The next meetings of the Capital Long-Range Improvement Committee (CLIC) are June 18 and 25. The group of residents and businesses advises the City on its six-year capital improvement plan. See the calendar of upcoming committee meetings or previous agendas and minutes. 

The mayor’s office and the Finance Department are in the process of developing the 2026 Mayor’s Recommended Budget. The mayor’s budget address is scheduled for mid-August, with several public meetings to follow.  

Stay informed 

There are several ways to stay informed on the budget process. The budget team will participate in several events around the City, like the Juneteenth Celebration of Freedom at Bethune Park this weekend. There will be interactive activities to learn the basics of the budgeting process, along with take-home materials.

Only two cities in the United States can boast about being among the happiest in the world. According to the Institute for Quality of Life’s 2025 Happy City Index, Minneapolis is one of them. The Institute ranks 200 of the globe’s most joyful cities in gold, silver and bronze categories based on several factors like strong economies, inclusive policies, climate initiatives and more.  

“Of course Minneapolis is one of the happiest cities in the world—that’s no surprise to those of us who call it home,” said Mayor Jacob Frey. “Where else can you launch a startup in the morning, bike the Chain of Lakes at lunch and catch a game or a show at night? We’ve got big-city energy with backyard access to nature, and that makes life here pretty hard to beat.” 

Being happy is more than just a smile on the street or a friendly neighbor. The Happy Index, as it turns out, is quite serious. Ranked 30th out of the gold category’s 31 worldwide cities, 150 independent researchers worked since August to judge Minneapolis on six robust rubrics that essentially lead right back to happy people: 

• Education & Innovation – The Index touts the honor that 25 percent of Minneapolis residents hold master’s degrees, and 20 percent are considered proficient in at least one foreign language, contributing to a “diverse and globally connected workforce” and community.  

• Governance & Transparency – Minneapolis is once again praised for its high voter turnout in local elections, including this past November’s races. The Index also applauds the convenience and efficiency of the City’s e-services like online payments and appointment scheduling.  

• Health & Well-Being: Minneapolis can be proud of its long life expectancies and 92 percent medical insurance coverage rates. City residents might also be happy to know we have some of the more robust mental health initiatives in the world.   

• Mobility & Transport: The Happy City Index also hails the “highly developed,” safe and efficient public transportation system. 

• Environment & Sustainability: Researchers confirmed that Minneapolis’ environmental efforts are a priority for its residents in terms of air quality, efficient electricity usage and renewable energy. The Index also lauds our beautiful City parks.  

• Economy & Business: Minneapolis is an “attractive destination for professionals and entrepreneurs alike” thanks for the 474 businesses per 1,000 residents – and the low unemployment rate.  

“Every year has its highs and lows, and the past year was no exception – from debates related to AI (artificial intelligence) to various hot and cold conflicts…and aftershocks of the pandemic,” the Index cited. “Minneapolis is a thriving urban center. The economy…is robust and business friendly. Local governments have a direct and significant impact on people’s everyday lives and, consequently, their happiness.” 

The top five happiest cities in the world, in order, are Copenhagen, Zurich, Singapore, Aarhus and Antwerp.

Mayor Jacob Frey announced his priorities for 2025, laying out a progressive agenda that will drive the City's policy and budget decisions. The priorities build on the work already underway and focus on key areas that will shape Minneapolis’ future: building out a comprehensive safety ecosystem, expanding affordable housing, creating economic opportunities, advancing climate action, and ensuring good governance. These priorities aren’t just about policy—they reflect a commitment to building a Minneapolis that’s stronger, more equitable, and more sustainable for everyone.

"Our vision for 2025 is clear: provide the most important City services with excellence,” said Mayor Jacob Frey. "We want to see safe streets, affordable housing, good paying jobs, and equal access to opportunity regardless of zip code.”

“Setting priorities for the City is a roadmap for the work ahead. It provides the strategic direction for City staff to dig in and work on behalf of Minneapolis residents,” said City Operations Officer Margaret Anderson Kelliher. “Doing the work of the City is like running a well-oiled machine. When we all work together for the good of the City, that’s when real change happens. We appreciate Mayor Frey setting the tone for 2025 and beyond.”

“The Office of Community Safety’s vision of a safer Minneapolis is aligned with Mayor Frey’s priorities,” said Community Safety Commissioner Toddrick Barnette. “We have generated significant momentum in our first responder recruiting efforts and continue to build out the foundation of our expanded response services through the Safe and Thriving Communities plan. We are fully engaged in the work laid out by the MDHR Settlement Agreement and while there is much to be done, we are committed to delivering the community safety ecosystem that our community expects and deserves.”

“The City is committed to the important work of police reform and building upon efforts that have already been implemented in the Minneapolis Police Department,” said City Attorney Kristyn Anderson. “The community has spoken loud and clear that this is a priority for the City not just for this year, but for years to come.”

Mayor Frey’s key priorities for 2025

Community safety and police reform

• Build on record police recruitment in 2024 to continue rebuilding the Minneapolis Police Department and expand the number of community safety professionals.
• Use the guidance of the Minnesota Department of Human Rights settlement agreement and the federal Department of Justice consent decree to implement reforms that guarantee equitable outcomes in all law enforcement encounters.
• Strengthen the community-safety ecosystem, providing a broad, equitable and bias-free range of services to meet people’s needs in critical moments.
• Support a comprehensive network of accessible treatment and recovery options for substance use disorder, with a specific focus on fentanyl.

Affordable housing and homelessness response

• Continue Minneapolis’ nation-leading affordable housing work, creating more affordable housing and preserving deeply affordable rental housing.
• Increase housing stability for Minneapolis Public Schools elementary students and their families through the Stable Homes, Stable Schools program, which has already benefitted 5,600 students and their families.
• Reduce racial disparities in homeownership, allowing for the growth of generational wealth.
• Stay on track to eliminate childhood lead poisoning in Minneapolis by 2035.
• Continue efforts to reduce homelessness and address the impact of encampments, supporting both encampment residents and the surrounding neighborhoods.

Economic inclusion and recovery

• Help Black and Brown small-business owners build generational wealth and own real estate through the Ownership and Opportunity Fund and the Business/Developer Technical Assistance program, which has already supported dozens of BIPOC entrepreneurs.
• Advance transformational projects and build resilient, sustainable infrastructure including:
  • Re-envisioning George Floyd Square.
  • Redeveloping the former 3rd Precinct building at 3000 Minnehaha.
  • Pedestrianizing Nicollet Mall.
  • Transforming the Warehouse District into the entertainment capital of the North.
  • Beginning construction at the former Kmart site to reconnect Nicollet Avenue between West Lake Street and the Midtown Greenway.
• Reimagine and maintain a vibrant, safe, economically sound downtown Minneapolis, using strategies formulated and executed by the Downtown Action Council and building on our nation-leading post pandemic recovery work.
• Continue to streamline the process of converting vacant commercial space into housing, specifically in empty office spaces downtown.

Climate action

• Drive efforts to reduce greenhouse gas emissions in line with the City’s 2050 climate goals, promoting positive health outcomes.
• Pilot a block-by-block home weatherization initiative through our Green Cost Share program, lowering residential energy bills.
• Partner with community organizations via Green Careers Exploration to train people for careers in solar energy, electric vehicles, and the other green jobs of the future.
• Expand the urban tree canopy, continue development of the nation’s first biochar site, and enhance the City’s electric vehicle charging infrastructure.

Good governance

• Under the new government structure, continue providing excellent core public services while exploring opportunities to diversify or increase non-property tax revenue.
• Improve outcomes through data-driven decision making, and develop or refine metrics to track program delivery and racial equity.

The City of Minneapolis has unveiled a draft Development Framework for the highly anticipated New Nicollet Redevelopment project, guided by input from thousands of community members. Through 14 in-person and virtual events, 2,245 survey responses, and 520 in-person interactions, the community’s voice is represented and shaping every aspect of this project.

During an open house at Whittier International Elementary School, the project team celebrated the public’s engagement and shared a bold vision for transforming the former Kmart site into a thriving hub of green space, a variety of housing options, and small business opportunities.

“Reconnecting Nicollet Ave. has been a decades-in-the-making vision, and we are going to get it done right,” said Mayor Jacob Frey. “For far too long, this space has separated our communities rather than united them, and this community-driven process is bringing them back together. Opening it up with people, a park, and public realm improvements will drive life into a place that everyone will want to be.”

Ideas abound for the site

The New Nicollet Redevelopment site spans 10 acres of land between the Midtown Greenway trail, Lake Street, First Avenue and Blaisdell Avenue. The City's plan includes the reconnection of Nicollet Avenue and creates more opportunity for

• Housing options for individuals and families of all income levels
• A new park and green spaces for community gathering areas
• Local businesses to meet daily needs of residents
• Incorporate sustainable design opportunities

“Residents are at the center of the New Nicollet Redevelopment project, which is a generational investment in our community. Thousands of residents have offered their feedback as part of the extensive community engagement guiding the project,” said Minneapolis City Council Vice President Aisha Chughtai. “I’m committed to ensuring impacted residents have a seat at the table and their vision guides every decision in this development.”  

A few of the top resident priorities emerging from community engagement include enhanced public spaces, a variety of housing choices for households at all income levels and a new grocery store.

"Whittier Alliance has been thrilled to partner with the City and other local community organizations to drive community engagement on this project. We know that effective planning happens when community members' voices are heard,” said Anna Schmitz, executive director of Whittier Alliance. “It's exciting to see the results of that engagement in this Development Framework--and, crucially, we know that engagement work can't stop here. We look forward to continuing to bring community members to the table as this project continues to move forward."

A win for community-driven planning

"The New Nicollet Redevelopment is a testament to the power of inclusive, community-driven planning. Thanks to the dedication of our planning staff and the thousands of residents who shared their ideas, we are creating a vision that reflects the needs and aspirations of the people who live and work in this area,” said Community Planning and Economic Development Director Erik Hansen. “This project will bring new housing, green space, and economic opportunity to the heart of Minneapolis, and we are excited to continue this work together."

The project team will seek approval of the Development Framework from City Council and the mayor this spring. Construction on Nicollet Avenue is expected to begin later this year.

Minneapolis reached a major milestone in 2024, surpassing $1 billion in construction value for the 14th year in a row. The impressive total reflects the city’s continued growth and residents’ confidence in Minneapolis as a place to live, invest and build.  

At a news conference Tuesday, Mayor Jacob Frey – flanked by Council President Elliott Payne, Council Member Jamal Osman, City leaders and development representatives – said the numbers signify how much people believe in Minneapolis’ future and are committed to making it stronger.

"No matter the scale or scope of the project, these numbers speak volumes: people trust Minneapolis. They see it as a city of opportunity, a city worth building in, and a city worth building on,” said Mayor Jacob Frey. "Surpassing $1.8 billion in construction value is no small achievement. I am incredibly proud of our outstanding CPED team and community partners, whose dedication ensures Minneapolis remains a city that people are eager to invest in and call home.”

A nod to affordable housing

Half of the highest-valued projects in 2024 are for affordable housing developments, showing the City continues to invest in publicly subsidized homes for residents who need them. The City also permitted smaller, residential projects like kitchen or bath remodels, home additions and more. Over the last several years, this has proven that residents not only want to move to the city but want to improve their homes to stay long term.

"These numbers represent the City’s deep commitment towards addressing the housing crisis,” said Minneapolis City Council President Elliott Payne, Ward 1. “Construction at this scale doesn’t happen at the whim of the market, but through focused and consistent dedication to housing policy that prioritizes the needs of the community.”

“I am very pleased to see the City continuing to invest in publicly subsidized housing for Minneapolis residents,” said City Council Member Jamal Osman, Ward 6. “Buying a home can be a struggle, so it is great to see efforts being made to help people stay in Minneapolis. Homeownership should be achievable for everyone in Minneapolis, and if the City continues investing in its future, that can become a reality for more residents.”

By the numbers, the City of Minneapolis issued 44,574 permits in 2024. There were 640 dwelling units permitted for new construction. The overall value for the year is more than $1.806 billion.

“The exciting part is that this work never stops. There are more significant projects in the future that will continue to build and enhance Minneapolis – for people and our community,” said City Operations Officer Margaret Anderson Kelliher. “It’s an important responsibility to build a future Minneapolis for generations to come.”

The top 10 projects in 2024:

• $586 million – Expansion of Abbott Northwestern Hospital’s Surgical and Critical Care Pavilion. This is the highest valued project since U.S. Bank Stadium was built in 2014.
• $45 million – Redevelopment of the former Wells Fargo bank site for Opportunity Crossing
• $39 million – Multi-phase development of the Artspace NKB Lofts
• $31 million – Rehabilitation of five buildings at Olson Court Apartments – Park Plaza and the new construction of a 119-unit building
• $24 million – Interior remodel of Minneapolis City Hall
• $22 million – Multi-floor remodel of Ameriprise office building
• $22 million – Construction of 110 units at Lakefield Apartments
• $19 million – Construction of a mixed-use building at France 50
• $17 million – Buildout of additional floors and office space at North Loop Green
• $17 million – Construction of a mixed-use building at Valiance

“This milestone is a testament to the collaboration and vision of our employees, city leaders, developers and residents, said Community Planning and Economic Development Director Erik Hansen. “As we look ahead, the projects on the horizon promise to continue reshaping Minneapolis into a city that thrives for everyone who chooses to open businesses and call it home."

New York, December 18, 2024 -- Moody's Ratings (Moody's) has upgraded the City of
Minneapolis, MN's issuer rating and the rating on its outstanding General Obligation
Unlimited Tax (GOULT) bonds to Aaa from Aa1. The city had about $900 million in
debt outstanding at the close of fiscal 2023 (December 31 year-end). The outlook has
been revised to stable from positive.

The upgrade to Aaa from Aa1 reflects the continued strength in the city's economic
and demographic trends, a consistently strong financial profile and declining long-term
liabilities.

RATINGS RATIONALE

The Aaa issuer rating reflects the city's position at the center of a large and diverse
regional economy that benefits from consistently low unemployment, strong labor
force participation and a growing full value per capita that now exceeds $160,000. The
Minneapolis economy benefits from several large and stabilizing institutions and
favorable demographic trends with a stable to growing population that remains
relatively young compared to an aging state and nation.

The city has a strong financial profile with an available fund balance ratio that typically
hovers between 45% and 50%. Finances will remain strong despite growing public
safety costs given a stable revenue base, sound financial management including
multi-year budgeting and a track record of the willingness and ability to materially
increase the property tax levy. The long-term liabilities ratio has declined to levels well
below 200%, which is in line with Aaa rated peers, and the fixed costs ratio
consistently hovers around 10%. 

The Aaa rating on the GOULT bonds is at the same level as the Aaa issuer rating
because of the city's full faith and credit pledge and the authority to levy a dedicated
property tax unlimited as to rate and amount to pay the bonds.

RATING OUTLOOK

The stable outlook reflects the expectation that the strong regional economy will
continue supporting sound economic metrics and that the city's consistently strong
financial profile will allow it to absorb cost pressures related to employee
compensation and public safety staffing.

FACTORS THAT COULD LEAD TO AN UPGRADE OF THE RATINGS
- Not applicable

FACTORS THAT COULD LEAD TO A DOWNGRADE OF THE RATINGS
- A weakening of demographic trends or prolonged declines in labor force participation
trends, resident incomes, or full value per capita
- A materially weakened financial profile with an available fund balance ratio
approaching 30%
- A long-term liabilities ratio increasing to levels well above 250%

LEGAL SECURITY
The GOULT bonds are backed by the city's full faith and credit pledge and authority to
levy a dedicated property tax unlimited as to rate and amount. The bonds are
additionally secured by statute.

PROFILE
The City of Minneapolis is located in Hennepin County (Aaa stable) in eastern
Minnesota (Aaa stable) and is directly west of St. Paul, with the Mississippi River
creating the border between the two cities. Minneapolis is the largest city in the state,
with a population that exceeds 420,000 residents. Governmental services primarily
consist of police, fire, health services, public works and general governmental
functions. The city's major enterprise funds include sanitary sewer, stormwater, water
treatment, municipal parking, solid waste and community planning.

The City of Minneapolis has committed nearly $17 million in direct investment, along with $1.5 million in 10-year federal tax credits, to 11 affordable rental housing projects in Minneapolis. The funds are awarded through a competitive request-for-proposal process each year. Both the Affordable Housing Trust Fund Program (AHTF) and the Federal Low Income Housing Tax Credit Program support new construction and the rehabilitation of affordable multifamily rental housing. The City Council approved the awards on Dec. 5.

"Minneapolis is leading the way in affordable housing, with the Affordable Housing Trust Fund playing a central role in our efforts," said Mayor Jacob Frey. "With the support of our amazing housing partners, we’re creating deeply affordable housing at a rate 8.5 times higher than previous years. Safe, affordable housing is a basic right for everyone in Minneapolis, and today’s investment is a reminder that we’re fully committed to making sure that right is a reality for all."

The AHTF was established in 2003 to assist in financing the production and stabilization of affordable and mixed-income rental housing projects with 10 or more units. Twenty percent of the total units need to be affordable and occupied by households at or below 50 percent of the area median income (AMI).

The City received 25 applications requesting $42,600,298 in funding from the AHTF. Proposals were evaluated based on underwriting standards, financial feasibility, location, project readiness, design guidelines and more. The funds are provided as a deferred loan with a 30- to 40-year term.

The recipients

The 11 projects awarded AHTF funds are as follows:

• Ward 1
  • Clare 5 Housing - 1900 Monroe St. NE - $1,205,000 for new construction of 33 units of 100% supportive housing for seniors living with HIV/AIDS.
  • 1345 Central - 1345 Central Ave. NE - $2,480,000 for the new construction of 64 units of affordable housing and first floor production space.
• Ward 3
  • Clare Apartments - 929 Central Ave. NE - $1,120,000 for rehabilitating 32 units of 100% supportive housing for people living with HIV/AIDS.
• Ward 4
  • Warren Apartments - 3120 Washburn Ave. N - $2,200,000 for new construction of 61 units with a significant number of deeply affordable housing units.
  • Upper Harbor Terminal - 3700 Washington Ave. N. - $1,295,000 for the new construction of 183 affordable units on a City-owned site.
• Ward 5
  • EPIC+R - 1014-1016 Plymouth Ave. – $1,500,000 for the new construction of 68 deeply affordable housing units with a significant number of family sized units on a City-owned site.
  • Downtown View - 1205 Chestnut Ave. - $1,465,000 for the rehabilitation of 39 units serving homeless youth.
• Ward 6
  • Native American Community Clinic-Housing - 1213 Franklin Ave. E. – $1,155,000 for the new construction of 83 deeply affordable units in a mixed-use project with an expanded clinic on-site.
• Ward 8
  • Zaria Apartments - 3030 Nicollet Ave. - $1,250,000 for new construction of 89 units with a significant number of deeply affordable housing units as well as a significant number of family sized units.
• Ward 9
  • Cheatham Apartments - 3716 Cheatham Ave. - $2,255,000 for new construction of 98 units of mixed income housing with a significant number of large family units.
• Ward 10
  • 2116 Nicollet - 2116 Nicollet Ave. S. – $1,070,000 for 53 units of 100% deeply affordable supportive housing for people at risk of homelessness.

The City Council also approved the project at 2116 Nicollet Ave. S. for a preliminary reservation of Federal Housing Tax Credits (HTCs) of $1.5 million for its housing additions. This HTC award will generate more than $12 million in equity to support the construction.

“The 2024 AHTF Program will help create or preserve 803 rental housing units across Minneapolis,” said Elfric Porte, director of housing policy and development for the City of Minneapolis. “Mayor Frey has championed producing and preserving affordable housing through the AHTF budget for over a decade. I’m grateful to him and the City Council for again stepping up with a significant $18 million investment in this work.”

S&P Global Ratings assigned its 'AAA' rating to the City of Minneapolis' $123.59 million series 2024 general obligation (GO) bonds, based on the application of its "Methodology for Rating U.S. Governments," published Sept. 9, 2024. At the same time, S&P Global Ratings affirmed its 'AAA' rating on the city's GO debt outstanding. The outlook is stable.

"The 'AAA' rating reflects Minneapolis' highly productive economy and robust tax base, the willingness and ability to increase property taxes to match expenditures, and a management team that consistently has built reserves to a high level by responding to unexpected budgetary changes and forward planning," said S&P Global Ratings credit analyst Jessica Olejak.

The stable outlook reflects the continued stronger revenue recovery, economic growth even with some risks around commercial real estate, and a five-year plan that shows a measured use of reserves and stimulus funds but a return to structurally balanced operations in the next two years with reserves remaining above the fund balance policy.

We could lower the rating if the city draws down its general fund reserves more rapidly than planned, which we believe could signify unanticipated budgetary pressure and would leave less room for fiscal maneuvering in outyear budgets.

Fitch Ratings - Chicago - 18 Sep 2024: Fitch Ratings has assigned a 'AAA' rating to $123,590,000 of general obligation (GO) bonds series 2024 to be issued by the city of Minneapolis, MN.

Proceeds are being used to finance the construction of various assessable public projects, utility system improvements, and other capital projects. The bonds are expected to sell during the week of September 30.

In addition, Fitch has affirmed the 'AAA' ratings on the following city of Minneapolis, MN securities:

--Approximately $813.85 unlimited tax general obligation (ULTGO) bonds;

--Long-Term Issuer Default Rating (IDR).

The Rating Outlook is Stable.