With the Minneapolis City Council’s unanimous approval of Mayor Frey’s $1.8 billion 2024 budget in December, the city has charted a course that attempts to tackle some of its most difficult issues year-in, and year-out—homelessness, affordable housing, economic development and inclusion, police reform and public safety.
“2023 has been one for the books—literally the record books,” said Mayor Jacob Frey in his end-of-year wrap up. “We are doing nation-leading work when it comes to our affordable housing production, we have tripled our funding in local climate action, and we are the first city ever to allow a public call to prayer,” he added.
On affordable housing and homelessness
Last year, the city had the highest number of affordable housing units under construction in any given year—ever. In 2023, the city funded 23 projects that are estimated to eventually provide 2,221 units for families and individuals across Minneapolis.
The mayor’s 2024 budget added an additional $4 million to the Minneapolis Public Housing Authority, bringing the total continuing funding to $5 million.
The mayor touted a $5.8 million investment in the Minneapolis Homes program, which is designed to increase opportunities across the city in helping residents access, create and sustain homeownership while reducing racial disparities. In his 2024 budget, the mayor is investing $2 million in the program. In December, the city was awarded $11 million for the Minneapolis Homes program, which serves homebuyers, developers and homeowners, more than half of whom identify as BIPOC.
In December, the city approved $18.3 million in affordable housing investments through its Affordable Housing Trust Fund (AHTF). This money will help create or preserve 876 units of affordable multi-family rental housing units across Minneapolis. The AHTF creates new and preserves existing affordable housing for low-income renters with incomes at or below 50 percent of AMI—$62,100 per year for a family of four.
Although the crisis is far from over, Hennepin County has reduced the population of the most vulnerable people living on the streets by almost 36 percent in two years.
In response to the opioid crisis, the city allocated $1 million in the budget to address homelessness among those struggling with addiction. The funding will help provide housing, treatment, and long-term recovery support.
In addition, the mayor announced a $500,000 investment in Turning Point, a North Minneapolis-based organization that provides culturally specific addiction treatment services, supporting residents on their journey to recovery.
Economic development, inclusion and recovery
Last fall, Mayor Frey and city leaders celebrated the historic reopening of Nicollet Avenue following the demolition of the former Kmart building in South Minneapolis. The New Nicollet Redevelopment Project will reconnect Nicollet Avenue between Lake Street and the Midtown Greenway. Construction on the road and bridge over the Midtown Greenway is anticipated to begin in 2025.
Over the summer, the mayor announced recommendations from the Vibrant Downtown Storefronts Workgroup, which looked at underutilized storefront space downtown to reinvent the storefront and skyway experience. The recommendations include eliminating buses from Nicollet Mall and adding pop-up shops to highlight local artists. The mayor has committed roughly $730,000 to implement the recommendations, beginning in 2024.
In 2023, planning began for parts of the Upper Harbor Terminal project in North Minneapolis, including a community performing arts center and affordable housing. Construction on both projects is set to begin in 2024.
Mayor Frey and Council President Andrea Jenkins kicked off the city’s third annual Black Business Week. The event brought residents, business owners, aspiring entrepreneurs, and leaders together to focus on Black economic development and inclusive economic recovery.
Community safety and police reform
In March, Mayor Frey and the Minneapolis City Council approved terms of a court-enforceable settlement agreement with the state that outlines policy, budgetary and training requirements that the Minneapolis Police Department (MPD) and the city will undertake.
The City Council approved the mayor’s proposal to move forward with rebuilding the Third Precinct at 2633 Minnehaha Avenue. The site is estimated to cost $14 million to purchase and will take approximately nine months to one year to build out.
While the budget includes funding for a public safety center in the Third Precinct, it did not include controversial recruitment and retention incentives and bonuses for MPD officers. However, the city did set aside $16 million in 2024, for settlements related to the Department of Justice (DOJ) consent decree and the state’s Department of Human Rights agreements.
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