Minneapolis, MN
Minneapolis cuts red tape for developers turning office buildings into housing • Minnesota Reformer
Minneapolis Mayor Jacob Frey signed an ordinance Tuesday that will ease the regulatory burden on developers who want to turn empty office buildings into apartments.
The move is expected to cut costs for developers and signal to private investors that Minneapolis is “open for business,” said Michael Rainville, a Minneapolis City Council member representing parts of downtown.
U.S. cities are still dealing with the fallout from the COVID-19 pandemic. The number of people working from home is well above pre-pandemic levels, and the value of office buildings is dropping as companies opt to downsize or sell their spaces. That has significant implications for the city’s budget, which depends both on sales taxes and commercial property taxes.
Declining Minneapolis office tower values are pushing the city’s property tax burden onto homeowners. Homeowners paid around 47% of the city’s tax levy in 2023, and this year will pay more than 51%, Axios reports.
Nationwide, offices are increasingly becoming housing, but developers face city zoning restrictions, challenging construction and relatively high (but falling) interest rates.
Minneapolis leaders hope the conversion of empty office buildings into housing will increase the number of people downtown, stabilize tax revenues, attract more businesses and increase safety.
“This is no longer going to just be a place where people come in to work at 8 a.m. and leave at 5 p.m.,” Frey said.
Under the new rules, commercial-to-residential conversion projects will not be subject to public hearings — instead, the plans will only require approval by city staff. The ordinance will also exempt projects from intensive traffic studies and from an inclusionary zoning ordinance that requires developers to designate a portion of apartments as “affordable housing” or pay large fees instead.
Converting an existing office building into housing doesn’t need the same level of public input and traffic study as a brand-new building, Frey said.
“Time is money and uncertainty is money,” Frey said. “If we can cut down on the uncertainty and cut down on the time frame that it takes to get this done, more owners and developers will choose to make that shift.”
City leaders and developers also want more incentives from the state and federal governments. A bill (SF5194/HF5191) introduced in the 2024 legislative session would have created a tax credit for developers who convert vacant or underutilized buildings into housing or mixed-use spaces. The bill did not pass.
A Minneapolis man who pleaded guilty to murdering a high school student in 2022 was sentenced to nearly 30 years in prison on Monday.
It was the second time Cody Fohrenkam was sentenced for fatally shooting 15-year-old Deshaun Hill. He was convicted and sentenced to more than 38 years in prison in February 2023, but the Minnesota Court of Appeals later reversed the conviction and granted him a retrial based on illegally obtained incriminating statements.
Fohrenkam, 33, agreed to a plea deal as his second trial was set to start, pleading guilty to one count of second-degree intentional murder in exchange for Monday’s 340-month sentence. The judge presiding over the hearing gave him credit for 1,476 days already served.
Fohrenkam shot and killed Hill while Hill was walking to a bus stop just blocks from Minneapolis North High School, where Hill was a star quarterback and honor roll student.
One of Hill’s aunts said in a statement shortly before the judge sentenced Fohrenkam that her nephew was “full of life.”
“When he spoke, you listened. He had a soft spirit and a good heart,” she said. “Deshaun was an artist who, as you all know, he took his education seriously. He had dreams and goals. He worked hard to make his family proud.”
This story will be updated.
A man is now charged with murder after prosecutors say a robbery inside a Minneapolis apartment building ended in a fatal shooting.
Prosecutors say the man was on conditional release after being charged with first-degree armed carjacking for an incident in Minneapolis last September.
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The killing happened Feb. 24 inside the Abbott Apartments lounge area on the 100 block of East 18th Street, where police found an adult man dead from gunshot wounds after reports of a shooting.
Court documents state the victim and a friend went to the building to meet 20-year-old Abdirahman Khayre Khayre. A witness stated Khayre left the room several times and appeared to be stalling before three armed men entered and demanded property. The men were described as carrying two Glock-style handguns with extended magazines and an AR-style rifle. During the robbery, the suspects demanded a Louis Vuitton bag belonging to the victim. When the victim resisted, a struggle broke out. The witness stated that two guns were taken from him during the robbery.
The witness told investigators Khayre was handed one of the stolen guns and then pointed it at him, causing him to flee into the lobby. Moments later, multiple gunshots were heard. The witness returned and found the victim shot. Surveillance footage from other areas of the building reportedly corroborated key parts of the account, and the witness later identified Khayre in a photo lineup, according to the complaint.
PREVIOUSLY: Man Shot and Killed Inside Minneapolis Apartment Building
Authorities say Khayre was on conditional release at the time of the killing in a separate Hennepin County case involving a September 2025 armed carjacking.
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In that earlier case, prosecutors alleged Khayre and others confronted a woman in a garage near 19th Street and Nicollet Avenue, pointed handguns at her and forced her to give up the keys to a Dodge Challenger before fleeing in the stolen vehicle. Officers later located the vehicle and arrested multiple suspects, including Khayre, who was identified as the driver.
Court records show Khayre posted a $75,000 non-cash bond and was released under conditions requiring him to remain law-abiding, have no possession of firearms or ammunition, avoid alcohol and controlled substances and complete treatment.
Khayre is now charged with second-degree murder without intent while committing a felony and first-degree aggravated robbery. He made an initial court appearance Friday, where a judge set bail at $1 million. If convicted of second-degree felony murder, he faces a maximum sentence of 40 years in prison.
The homicide investigation remains ongoing. Authorities have not yet released the identity of the victim. Anyone with information is asked to contact Minneapolis police by emailing policetips@minneapolismn.gov or calling 612-673-5845. Anonymous tips can also be submitted through CrimeStoppers at 1-800-222-TIPS or online. Information leading to an arrest and conviction may be eligible for a financial reward.
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