News & Events

The Minneapolis City Council voted to move forward with a plan to help small businesses impacted by Operation Metro Surge. The $7 million Small Business Resiliency Fund was approved by Mayor Jacob Frey and the City Council last month and outlined by the Community Planning and Economic Development (CPED) department on Tuesday. It will provide license fee relief, support for events and activations in commercial areas, cultural market grants and more, all in an effort to recover from the $81 million in restaurant and small business losses as a result of the federal immigration enforcement earlier this year.

"Operation Metro Surge hit our small businesses hard, and we recognize the very real impact it has had on workers, their families and their futures,” said Mayor Frey. “This $7 million is getting out the door so our businesses can restabilize, rebuild and come back stronger.”

CPED staff designed the fund to get money out to businesses quickly and without too many hurdles. By City estimates, the Surge cost Minneapolis businesses $81 million in lost revenue as many temporarily closed to avoid further impact.

“ICE’s invasion of our city where they murdered, kidnapped, and traumatized our residents will have devastating impacts on our communities for years to come,” said City Council President Elliott Payne, Ward 1. “We know businesses have been struggling, and I’m proud the City Council took this step to try and provide some relief. We recognize this isn’t nearly enough to meet the current need, but the cost of inaction outweighs the financial restraint in this moment.”

Fund is in two categories

The resiliency fund is divided into two categories: direct financial relief, and activation and marketing support, both aimed at stabilizing small businesses and driving customers back to commercial corridors.

Direct financial relief - $4.5 million

1. License fee relief - $4 million

The money will cover the full or partial costs of business license fees for the food and hospitality industries that were among the businesses hit hardest by the Surge.  As part of this, businesses who have already paid their renewal fees will be reimbursed, and fees will be covered for those yet to pay. The $4 million will benefit more than 2,000 businesses across Minneapolis.

2. Cultural market grants - $500,000

Money will be awarded to cultural markets up to $50,000 each to support overall market operations, security, marketing or other needed improvements.

Activation and marketing - $2.5 million

1. Great Streets Business District Support - $350,000

This is an enhancement of the already successful Great Streets program that provides funding to non-profit business support organizations for marketing and other activations in commercial districts.

2. Business Technical Assistance Program - $500,000

The program offers no-cost consulting services to small businesses and entrepreneurs through community-based support organizations. Related to the surge’s impact, this funding will be applied to lease and contract negotiations, marketing and overall business strategy. This brings the total allocation to $1 million for the program.

3. Cultural business weeks - $200,000

Funding enhances the celebrated annual Latino Business Week and Black Business Week with a focus on impacts from the surge.

4. Fee-free events - $600,000

This money is intended to encourage events in commercial areas. Funds can help pay for event permits such as food, amplified sound, or block events.

5. Venue and music activation - $500,000

Funding boosts independent music venues and musicians for hosting events in commercial corridors focused on family, neighborhoods and bold projects.

6. Creative marketing activation - $350,000

Funds will go toward incentivizing content creators around the City to spread the word about artists, businesses and untold stories around the City.

More to come this spring

Additional information and application processes for the venue and music activation, as well as the creative marketing activation, will be available this spring as the City’s Arts and Cultural Affairs department solidifies details with partners.

“Immense harm was done to our community, and this is our opportunity to support its recovery,” said CPED Director Erik Hansen. “Not one person, not one business was immune from the impact of the operation. It is our duty to help and protect our Minneapolis community, and we believe this plan will help support the people and places that keep our city vibrant.”

Read about other impacts to the City due to Operation Metro Surge in the

Minneapolis is proud to announce that Results for America has awarded it Bloomberg Philanthropies “What Works Cities” Silver Certification for establishing exceptional data capabilities to inform policy, allocate funding, improve services, evaluate programs and engage residents. The Certification standard reflects the practices, policies and infrastructure municipalities must have in place to effectively harness data for better decision-making.

“Minneapolis is a city that believes decisions should be driven by data, not guesswork — and this renewed What Works Cities Certification is proof that our team is putting that value into action every day,” said Mayor Jacob Frey. “From improving core city services to making smarter investments in our neighborhoods, our staff is using data to deliver real results for residents. I’m grateful to our partners at What Works Cities and Bloomberg Philanthropies for recognizing that work and to the City employees who make this level of excellence possible.”

Silver certification

The What Works Cities Certification program, launched in 2017, is the international standard of data excellence in city governance. The standard measures a city’s use of data based on 43 criteria. A city that achieves 51–67% of the 43 criteria is recognized at the Silver level of Certification, 68–84% is required to achieve Gold, and 85% or more is required to reach Platinum. The program is open to any city in North, Central, or South America with a population of 30,000 or more.

“The cities recognized by Bloomberg Philanthropies What Works Cities Certification exemplify what is possible when city leaders commit to data-driven governance: real results for residents,” said Rochelle Haynes, Managing Director of Bloomberg Philanthropies What Works Cities. “By pursuing Certification or advancing to a higher level of recognition, cities are demonstrating and strengthening their dedication to using data to drive progress and deliver better outcomes. While Certified cities are investing in their data capacity to solve today’s issues, they are also building sustainable practices that set the stage for a more resilient and innovative future.”

“The Bloomberg Philanthropies What Works Cities Certification is one of the largest-ever philanthropic efforts to improve how local governments use data to improve people’s lives,” said James Anderson, who leads the Government Innovation program at Bloomberg Philanthropies. “This work is helping reform-minded mayors across the Americas bring their organizations into the 21st century. Whether to stem housing shortages, reduce traffic fatalities, or improve resident service and responsiveness, city halls are tapping data, digital, and artificial intelligence to rise to the challenge – and we are thrilled to support their progress.”

About the Bloomberg Philanthropies What Works Cities Certification

TheWhat Works Cities Certification program, launched in 2017 by Bloomberg Philanthropies and led by Results for America, is the first-of-its-kind standard of excellence for data-informed, well-managed local government. What Works Cities Certification recognizes and celebrates local governments for their exceptional use of data to inform policy decisions, allocate funding, improve services, evaluate the effectiveness of programs, and engage residents.

About Bloomberg Philanthropies

Bloomberg Philanthropies invests in 700 cities and 150 countries around the world to ensure better, longer lives for the greatest number of people. The organization focuses on creating lasting change in five key areas: the Arts, Education, Environment, Government Innovation, and Public Health. Bloomberg Philanthropies encompasses all of Michael R. Bloomberg’s giving, including his foundation, corporate, and personal philanthropy as well as Bloomberg Associates, a philanthropic consultancy that advises cities around the world. In 2024, Bloomberg Philanthropies distributed $3.7 billion. For more information, please visit bloomberg.org, sign up for our newsletter, or follow us on Instagram, LinkedIn, YouTube, Threads, Facebook, and X.

Construction value in Minneapolis surpassed $1 billion in 2025, bringing more affordable housing units, medical clinics and office renovations in the city. This is the 15th consecutive year that Minneapolis has hit the billion-dollar mark, showing a consistent local market for construction, investment in the city and inclusive economic opportunity.

At a news conference, Mayor Jacob Frey, City leaders and public housing officials debuted the top 10 highest valued projects that filled out the $1,072,174,289 total. The City of Minneapolis also contributed more than $20 million to a number of these projects thanks to programs like the Affordable Housing Trust Fund, Great Streets loans and housing tax credits.

“For the 15th consecutive year, Minneapolis has surpassed $1 billion in construction value. This isn’t just about cranes in the skyline – it’s about delivering on the promise to create stability for families, expanding access to health care, and building a stronger, more inclusive city for the future,” said Mayor Jacob Frey. “We know that people want to live, work and build their lives here – and we’re going to keep delivering on that promise for every current and future resident of Minneapolis.”

A historical project

The City’s top construction projects include the largest redevelopment of public housing in the City’s history. Spring Manor is bringing a four-story addition to its campus.

“This project is extra special to me as I watched the original buildings being built when I was a child,” said Council Member Michael Rainville, Ward 3. “Updating our MPHA properties allows us to continue providing quality low-income housing in our neighborhoods and they are an asset to the community.”

The top 10 projects also include new construction of community clinics, renovations of downtown facilities and office space, and new multi-family housing.

“MPHA is fully rehabilitating 221 units across two existing buildings while also building a new four-story building that includes 15 new, fully accessible units,” said Abdi Warsame, Executive Director/CEO of the Minneapolis Public Housing Authority (MPHA). “I want to thank Mayor Frey and City Council Member Rainville for the City’s $7.2 million contribution to this project. And special thank you to Mayor Frey, whose $1.3 million investment in his 2025 budget was the first financial commitment to this project, helping spur other funding partners to invest.”

Top 10 projects by numbers

The City of Minneapolis issued nearly 12,000 building permits in 2025 that contributed to the more than $1 billion in construction value. Construction value considers the costs of labor and materials that feed into a building or project’s overall value.

The top 10 projects in 2025 are:

1. $50.4 million – Mechanical upgrade and remodel of existing data center at 1001 3rd S.
2. $34.6 million – Addition and renovation of North Commons Park Community Center at 1801 James Ave. N. This will remodel the existing center and build a new fieldhouse.
3. $29.6 million – New construction of Native American Community Clinic (NACC) and Housing at 1215 Franklin Ave. E. This is a mixed-use clinic and 83 new deeply affordable housing units.
4. $25.5 million – Remodel of existing 221-unit MPHA Spring Manor at 828 Spring St. NE. It also includes a four-story addition with affordable, accessible units.
5. $25.5 million – New construction of the Indian Health Board of Minneapolis – Menaandawiwe Wellness Campus at 2501 Franklin Ave. E. The new clinic will offer medical, dental and wellness services.
6. $22.9 million – Remodel of Little Earth, the only Indigenous preference project-based Section 8 rental assistance community in the United States, at 2501 Cedar Ave. S.
7. $22.8 million – New construction of a four-story office building for the Xcel Energy Chestnut Service Center at 1518 Chestnut Ave. W.
8. $22.3 million – Addition and renovation to Exodus Residence, which adds 72 more affordable housing units, including many reserved for individuals exiting homelessness, at 827 2nd S.
9. $18 million – 95 new family housing units at Snelling Yards at 3605 44th E.
10. $17.8 million – New construction of 60 new affordable housing units in a six-story apartment building at 3120 Washburn Ave. N.

“Together these investments help ensure economic growth in Minneapolis is inclusive, regardless of our neighbors’ income level,” said Erik Hansen, director of Community Planning and Economic Development (CPED) for the City. “These numbers are proof that we’re making an impact on our neighbors’ lives and protecting the very homes that residents rely on for decades to come.”

City of Minneapolis leaders today released stark numbers that speak to the far-reaching impacts that Operation Metro Surge has caused to residents, communities and City operations. In one month alone – while up to 3,000 federal immigration enforcement agents invaded neighborhoods – the city experienced at least $203.1 million in impact. That money represents losses to the economy, community livelihoods, neighbors’ mental health, and to food and shelter security.

“The damage caused by Operation Metro Surge doesn’t disappear just because the operation is ending,” said Minneapolis Mayor Jacob Frey. “Families were torn apart, small businesses lost millions and students had their learning disrupted. That impact is real. But Minneapolis has never let hardship define us. We will do what we’ve always done: rebuild even stronger — united in the city we love."

The “Preliminary Impact Assessment & Relief Needs Overview” includes impact data and statistics on the most life-saving urgent needs in the City. This preliminary estimate is a snapshot of the severe consequences in everyday life disrupted by Operation Metro Surge (OMS). In particular, 76,000 people – mostly immigrants, refugees, American Indian/Native American, and Black/African American and People of Color – need urgent relief assistance right now in the City.

OMS is a known protection crisis: a large-scale, complex situation that involves violence, detentions based on racial profiling and alleged human rights violations, preventing people from having the freedom to access basic life-sustaining services. The assessment is organized into four of the most urgently affected sectors of basic needs. Highlights include the following estimates:

Sector	Explanation	Data and Statistics (for one month unless otherwise noted)
Livelihood	Financial losses to workers and businesses	$47 million: lost wages for people afraid to leave home and go to work
$81 million: restaurant and small business revenue losses
$4.7 million: revenue from hotel cancellations extending through summer
Shelter	Rent assistance	35,000: low-income renter households unable to afford rent before OMS
$15.7 million: additional rent assistance needed due to lost household income since Dec. 2025
Evictions due to OMS: too early to quantify
Food Security	Substantial increases in requests for food assistance	76,200: people experiencing food insecurity because of OMS
$2.4 million: Weekly cost of food to support citywide need
Mental Health	Increased need for mental health support	8,713: School-age children in need of services due to OMS
50%: the reduction in client contact reported by service providers because clients are going “underground”

“This preliminary assessment is by no means exhaustive, and these totals are almost certainly undercounts. The impacts we are seeing as a city will be felt for decades, even generations to come,” said Director Rachel Sayre, City of Minneapolis Emergency Management. “We need significant funding assistance to meet the urgent needs of our community. This surge has been devastating to so many of our friends and neighbors. It is our collective duty to take care of them as a Welcoming City.”

In addition to the severe impact on the community, OMS has also strained City resources. More than $6 million has been spent on city staff payroll, police overtime and operational expenses in one month alone. Sayre and her team anticipate the overall financial impact could double if the surge continues.

The City is facing a significant financial challenge that could risk its ability to deliver core services without further burdening residents with added property taxes. The City is mindful of keeping spending sustainable in order to maintain sound financial footing. That task is more difficult as economic activity in the City declines while City expenses increase in response to this crisis. The assessment underscores an urgent need for financial assistance from the federal government, from the State of Minnesota and ongoing private philanthropic dollars to aid in the recovery that lies ahead.

The assessment was developed by staff and partners in the City’s Emergency Operations Center.

After weeks of public hearings, negotiations, and budget markup meetings, Mayor Jacob Frey and the Minneapolis City Council announced a budget deal. In a 11-0-0-2 vote, the City Council passed the 2026 $2 billion amended budget.

In a joint statement, Mayor Frey and Council Vice President Aisha Chughtai (Ward 10) thanked their colleagues and staff for their dedication throughout the budget process:

“We are grateful to every Council Member and City staffer who worked tirelessly over the past several weeks to get us to this point. Their commitment to collaborative problem-solving and service to our Minneapolis neighbors made this agreement possible. Crafting a budget is never easy, and there are certainly areas of disagreement in this one. But the collective effort from all involved helped us land a budget deal that ensures residents receive city services, protects our workforce, both unionized and appointed, and reflects the values we do share.”

The budget reflects a disciplined, forward-looking approach that prioritizes and protects core City services and maintains strong financial footing without layoffs to City employees. It allows for continued investments in public safety, affordable housing, economic inclusion and good governance. Highlights of the final, agreed-upon budget include:

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.
• 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.
• Supports the administration’s plan to create a new non-fatal shooting task force to increase clearance rates related to non-fatal shootings and improve public safety.

Affordable housing and homelessness response

• Continues the Stable Homes Stable Schools program, keeping thousands of Minneapolis students and families stably housed.
• Includes a commitment to fund emergency housing vouchers for three years without resulting in staff layoffs.
• Continues 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 to support shelter operations.

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.
• Reinstates labor standards co-enforcement funding.
• 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 millions of dollars 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.

The maximum property tax levy is 8 percent, set by the Board of Estimate and Taxation (BET) in September. The City Council approved the levy on Dec. 9.

As winter arrives and the federal government cuts vital housing resources, the City of Minneapolis continues to expand on its record-setting commitment to providing safe and dignified affordable housing, while helping people experiencing homelessness get access to shelter and stability.

The City Council awarded more than $14 million in direct investment, along with $1.7 million in 10-year federal housing tax credits (HTC), to jumpstart 11 affordable rental housing projects. This money adds or preserves nearly 600 affordable homes for Minneapolis families, seniors, and residents exiting homelessness. In addition, the City announced 126 new shelter beds and 123 new units to help people experiencing homelessness.

“Cities across the country are looking for answers on housing—and Minneapolis is proving what’s possible,” said Mayor Jacob Frey. “We’re out front, building affordability at a scale and pace that puts us on the national map. These investments mean hundreds more people housed, more families stable and a city that’s leading by example.”

Since 2011, the City’s Affordable Housing Trust Fund (AHTF) program – that uses federal and local funding sources – has awarded nearly $183 million in Minneapolis housing, helping build and stabilize thousands of affordable units. Four of the projects, awarded funding in recent years, have opened or will open by year’s end. They will expand warm, safe options during the winter months and create clearer pathways into permanent housing. They are:

• Now open: Valiance Apartments and Shelter – 2806 27th S.
  • 50 permanent supportive housing units, which means that this kind of housing is linked to social services that foster housing stability and improved health for people experiencing homelessness, mental illness, substance abuse disorders and other disabilities.
    • This number includes 25 units for people exiting homelessness.
  • 54 emergency shelter beds
• Now open: Minnesota Indian Women’s Resource Center – 2300 15th S.
  • 24 permanent supportive housing units.
    • This includes 20 units for people exiting homelessness and 4 units for persons with disabilities.
• Now open: Kyle Garden Square – 700 10th S.
  • 59 permanent supportive housing units
    • This includes 48 units for people exiting homelessness.
• Opening soon: Simpson Apartments and Shelter – 2740 First Ave. S.
  • 42 permanent supportive housing units
    • This includes 30 units for people exiting homelessness.
  • 72 emergency shelter beds

Hennepin County, one of the City’s key partners in unsheltered homelessness response, is also adding 133 shelter beds as part of its Winter Warming program (8 of which are at Valiance). The rest of the beds are at Rescue Now, AICDC KOLA, Steps of Strategy and Our Saviour’s Housing. The county’s system to shelter eligible families with children expands to meet the need so no child sleeps outside in Hennepin County.

AHTF program projects have several eligibility requirements, like ensuring that at least 20 percent of units will be affordable to households earning no more than 50 percent of area median income (AMI). Awards are made through a competitive application process that evaluates financial strength, readiness, design, and long-term feasibility. The 11 projects awarded 2025 AHTF funds and 9% HTC are as follows:

• Ward 1
  • Clare 5 Apartments - 1900 Monroe St. NE - $289,658 in 9% HTC to preserve and rehab 33 units of deeply affordable supportive housing for seniors living with HIV/AIDS, including 10 units for people exiting homelessness.
• Ward 5
  • Lindquist Apartments - 1931 W. Broadway - $940,000 to preserve and rehab 26 units of deeply affordable housing, 24 of which will be dedicated to youth exiting homelessness.
  • PennWood Village and Community Market – 2125 Glenwood Ave. N. and 306 Penn Ave. N. - $1,500,000 for a new construction mixed-use property with 86 affordable family-sized units.
• Ward 6
  • Lot A – 1500 S. Fourth St. - $920,000 for 75 units of affordable family housing on a City-owned site.
  • The Jourdain – 2006 Portland Ave. - $840,000 for rehabilitation of 41 units of mixed-income housing with two- or three-bedroom units.
  • The Wellstone – 620 E. Franklin Ave. - $1,315,000 for rehabilitation of 49 family-friendly units.
• Ward 7
  • Flour Exchange – 310 Fourth Ave. S. - $3,195,000 for an adaptive reuse of the historic Flour Exchange building into 110 units of affordable housing, including 12 units for people exiting homelessness.
• Ward 8
  • Zaria Apartments – 3030 Nicollet Ave. - $2,170,000 for phase two of redevelopment for 90 affordable units, including nine units for people exiting homelessness.
• Ward 9
  • Hiawatha Commons Rehabilitation - 2740 Minnehaha Ave. S. - $1,680,000 for the renovation of a mixed-income project with 80 units.
• Ward 10
  • 2116 Nicollet - 2116 Nicollet Ave. S. – $1,488,183 in 9% HTC for 53 units of deeply affordable and low-barrier housing for people exiting homelessness and persons with disabilities.
• Ward 11
  • Lyndale Avenue Apartments - 5719 Lyndale Ave. S. - $1,870,000 for new construction of 40 deeply affordable units.

Each year, the City publishes its Way Home Report that tracks key housing and homelessness outcomes. The latest report from 2022 to 2024 shows a significant and sustained increase in investment since 2018, totaling $400 million.

“Sustained investment in housing keeps delivering real results,” said Elfric Porte, City of Minneapolis housing director. “We want to help our neighbors by providing resources and housing where and when they need it most. As we head into the winter months, it’s important to keep people in the forefront of our efforts.”

Since 2018, the City of Minneapolis has invested more than $400 million in affordable housing and homelessness prevention. Mayor Jacob Frey, city leaders and others marked the milestone by releasing “The Way Home Progress Report” for 2022 - 2024. The report solidifies the City’s commitment to producing and preserving affordable housing, closing homeownership gaps and confronting homelessness with urgency and compassion.

“Behind every unit preserved or built is a family, a child, a neighbor whose life just got more stable” said Mayor Jacob Frey. “As this progress report shows, we’ve made real strides in producing and preserving affordable housing, expanding homeownership, and reducing homelessness. Affordable housing is about giving people the foundation to succeed, and we’re going to keep pushing until everyone in Minneapolis has that chance.”

The Way Home Progress Report outlines core values and strategies to meet the needs of Minneapolis residents. This work is a collaborative effort between the City, Hennepin County, state and local non-profit and community organizations.

“It really does take a village, as the saying goes, to help our neighbors find their way home,” said Erik Hansen, director of the City’s Community Planning and Economic Development (CPED). “We’re grateful to our partners who allow our residents to stay in the home they love or find a new one. Housing is a basic human right, and we’re proud of our commitment affordable housing in our City.”

By the numbers

In 2024 alone, the strategies that help provide safe, dignified, and affordable housing for residents produced these highlights:

• Strategy 1: Increase housing supply, diversity, and affordable in all neighborhoods
  • The City created the New Nicollet Redevelopment, which identified redevelopment ideas for the old Kmart on Lake Street that include home rental and ownership opportunities.
• Strategy 2: Produce more affordable rental housing and preserve subsidized affordable rental housing for 30 years or more
  • 22 projects with 1,745 affordable units will have been funded and closed in 2025.
  • 234 of these will be designated for residents experiencing homelessness.
• Strategy 3: Preserve unsubsidized naturally occurring affordable housing (NOAH)
  • Between NOAH, the 4d incentive program and the small and medium multifamily loan program, the City has preserved 5,208 affordable rental housing units since 2018.

“Affordable housing is a complex ecosystem dependent on the vital participation of everyone involved at every level to operate with a common goal and mission to provide access to more stable and affordable housing in our communities,” said James Crumble, with 1st Class Residential properties, who has received assistance with through NOAH funding.

• Strategy 4: Improve and sustain access to homeownership, especially among residents with lower incomes and people of color
  • Between 2022 and 2024, the City has served more than 3,000 households through financial wellness and downpayment assistance.
• Strategy 5: Support renters
  • As a majority renter city, the City helped more than 6,100 households and 12,450 renters with legal advice on housing discrimination, security deposit disputes and eviction rights.
• Strategy 6: Prevent and end homelessness
  • The past three years have seen measurable progress like a 33% decrease in unsheltered homelessness and a 30% reduction in families experiencing homelessness compared to the year before.
  • The City awarded $18.5 million through the Affordable Housing Trust Fund (AHTF) to create or preserve 803 affordable rental units.
• Strategy 7: Maximize potential of publicly owned land to meet City housing goals
  • 19 properties have been sold – for new construction or rehabilitation
  • 48 properties have been leased as community gardens

Following a successful pilot last year, the City of Minneapolis today announced the expansion of its Vibrant Storefronts initiative in year two – providing a total of $752,879 for eight local artists and creative entrepreneurs bringing culture and creativity to vacant retail spaces across Minneapolis.

Vibrant Storefronts brings artists and arts organizations together with property owners by subsidizing rental costs for two years. This provides opportunities for local artists and creative entrepreneurs to strengthen their business models and engage the public through their art with the goal of fostering creativity, enhancing vibrancy, and promoting sustainability in Minneapolis.

“What do you do with an empty storefront? You could let it sit. You could wait for the right tenant. Or—if you’re Minneapolis—you hand it over to artists, and watch it come to life.” said Mayor Jacob Frey. “That’s what we’re doing with our Vibrant Storefronts Initiative – and with this expanded investment, we’re helping local artists and organizations bring their talent to the streets of Minneapolis—from Loring Park to Uptown. These aren’t just art spaces—they’re proof of what happens when a city believes in its creative people and backs them with real support.”

This year’s roster of Vibrant Storefronts awardees includes Evergreen Audio, Modern Day Me, Grainline, Strange Loop Laboratory, Center for People and Craft, Zoma House, True North Studios x Curioso Coffee, and Cruise.

The Vibrant Storefronts pilot initiative was a recommendation that came out of Mayor Jacob Frey’s Vibrant Downtown Storefronts Workgroup and is part of the City’s comprehensive plan, Minneapolis 2040. Mayor Frey allocated and the City Council approved $250,000 in the City’s 2024 budget to launch the initiative.

“The Vibrant Storefronts initiative launched last year in Loring Park and has been an incredible contribution to a neighborhood with a long history of creativity,” said Ward 7 Council Member Katie Cashman.” I am thrilled that not only is this program continuing in 2026, but it is expanding to the Uptown and Downtown areas. The Vibrant Storefronts have received nothing but positive responses, and I am so excited to see what our artists do next for Ward 7, and the City as a whole!”

“The Vibrant Storefronts initiative is truly a meaningful and visible way that the city is directly investing in our collective creative future,” said Ben Johnson, Arts & Cultural Affairs Director for the City of Minneapolis. “Minneapolis is a city of artists, and we believe that this investment will reignite community cohesion, drive innovation, and bring new creative focus on historically-beloved areas of our city.”

In its inaugural year, the Arts & Culture Vibrant Storefronts fund awarded $224,202 to subsidize rental costs for five creative entrepreneurs in the Harmon Place Historic District. A vibrant array of community-centered events and creative initiatives took place through the work of the initial five awardees. These included grand openings, open-mic nights, live art and fashion shows, concerts and more. This year, the program will continue in Harmon Place and Loring Park while also expanding to 1st Ave North as well as into Uptown at Hennepin Ave. and West Lake Street. Each will feature dynamic quarterly programming, transforming vacancy to vibrancy in Minneapolis.

2025 Awardees and their project locations:

• Evergreen Audio at 300 1st Ave. North –   Evergreen Audio will encourage community participation by offering access to professional-grade audio creative tools and performance spaces and recording studios through free or low-cost events.

• Modern Day Me at 401 1st Ave. North –   Moder Day Me (MDM) plans to expand their existing programming, using the space to bring people together through creativity, creating a vibrant hub for connection, celebration, and collective growth.

• Grainline at 1621 Hennepin Ave – Grainline is both a storefront and a workroom for garment development. Their goal is to cultivate an ecosystem that platforms artistically crafted goods, the skill of garment development, and the knowledge on how to make a successful and financially viable career within the fashion industry.

• Strange Loop Projects at 1629 Hennepin Ave – Strange Loop Laboratory programming will offer diverse performing arts experiences anchored by an evening length immersive dance-theater production. This show will engage audiences of up to 75, inviting them to explore the entire space and reflect on the deeper meaning of human connection as the action unfolds around them.

• Center for People and Craft at 519 Oak Grove Street – Center for People and Craft, a new folk school will operate as a community-based education hub offering hands-on classes in traditional folks taught by artisans living in our community. The classes will include woodworking, fiber arts, herbalism, storytelling, and folk music, and will be rooted in cultural heritage, ecological sustainability, and accessible skill-building for learners of all ages.

• Zoma House at 1426 West Lake Street –  Zoma House is a newly imagined multidisciplinary creative space brought to life by the efforts of 3 Black-led arts organizations in the Twin Cities: ZOMA Studios, NEO Narrative, and The Heartcraft Collective. ZOMA House will have a storefront with a rotating selection of products from local artists and our principal collaborators.

• True North Studios x Curioso Coffee Bar at 3001 Hennepin Ave – True North Studios x Curioso Coffee Bar will provide a space for guests to explore art, joy, coffee, and connection in a delightful and welcoming environment. The studio will be run by ARTrageous Adventures, in partnership with Lucent Blue Events + Design, which will cater to families and adults (from Gen Z to Baby-Boomers) as well as to local visual artists, musicians, creators, and makers. It will offer classes, birthday parties, workshops and a wealth of other resources to fuel the local creative and entrepreneurial community.

• Cruise at 3008 Hennepin Suite B – Cruise is a hybrid contemporary art space and multipurpose retail gallery that reflects a “Third Coast” perspective connecting Minneapolis to other cities along the Mississippi River and the Upper Midwest to the Great Lakes more broadly. Exhibitions are the backdrop for experiential art making. Cruise’s “art gym” model provides arts-and-crafts much like a fitness center. This increasingly common business model de-emphasizes traditional fine arts mastery and emphasizes skill sharing and social connection.

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.