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Why is most of the North Loop excluded from the downtown sales tax district?

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Why is most of the North Loop excluded from the downtown sales tax district?


Much of downtown Minneapolis is subject to a special 3% liquor, lodging and restaurant tax. But as downtown continues to see a declining office and retail market, the city has looked to expand the district into the North Loop, where development and entertainment have boomed in comparison to other neighborhoods and the city’s core. 

As Minneapolis faces the crunch of declining post-pandemic commercial property tax revenues, it’s worth asking why the burgeoning North Loop isn’t included in a special tax district that’s been in place for years elsewhere in downtown. 

The district’s boundary currently ends along the Burlington Northern Railroad tracks just northwest of Target Field. This means most of the bustling North Loop’s restaurants, bars and storefronts aren’t included in the downtown sales tax district. For example, the tax is applied at Fairgrounds Coffee and Tea on North Second Street but is not collected at Egg on a Roll at the other end of the same block. 

In last year’s legislative agenda, Minneapolis sought to expand the district. House Bill HF 3715, authored by Rep. Esther Agbaje, and its companion Senate bill, SF 4243 authored by Sen. Scott Dibble, would have amended the boundaries. But the bills were ultimately referred to the Legislature’s property tax committee and never moved past that stage.

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The district would have been expanded on the northwest through the North Loop, with the new cutoff at Plymouth Avenue North. It also would have been expanded on its southeast side into Elliot Park. This legislation also would have reduced the maximum 3% levy to a 2.5% maximum, at least for liquor and food. Lodging and hotel taxes would have remained at 3%. Revenue from the tax is used for economic development. 

It wasn’t the only legislation that didn’t make the cut before the session ended. Many remaining bills were placed in a 1,430-page omnibus bill in less than 10 minutes in the House and 15 in the Senate.

“A lot of the stuff that we were trying to do got cut in order to make the deadline,” Agbaje said. “We’ll probably take another crack at this again. I’m still having conversations with the city.” 

Officials are still looking to make the expanded district revenue neutral, Agbaje noted. While some tax levies for infrastructure projects get put to a vote via ballot referendum, this is not a case where that would happen, she clarified. 

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Revenue from the tax district doesn’t directly offset resident property tax burdens, which is notable in a year Minneapolis Mayor Jacob Frey is proposing a 8.1% increase in 2025 property taxes. Rather, money from this district is funneled into the city’s general fund. The tax was created in 2013 to help finance the construction of the U.S. Bank Stadium. 

At that time, the North Loop looked very different, Agbaje added. 

“When it first started, there wasn’t a whole lot in the North Loop area, but as the North Loop grew and expanded, they wanted to bring it into the North Loop area,” Agbaje said of the sales tax. “It’s an ongoing conversation over what’s included in downtown Minneapolis.” 

The U.S. Bank Stadium project funding was meant to wrap in 2020. While the state has completed its payments on the project, the city “does still have an obligation to U.S. Bank,” Agbaje said. 

Minneapolis is in the process of evaluating its legislative agenda and policies to determine what may need to be changed ahead of next year’s session, according to a city statement sent to MinnPost.  

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“This is a staff and elected official process that will conclude before the end of the year,” the statement read. “Our legislative ask last session was to expand the special restaurant and liquor tax downtown boundary while lowering the tax rate, with the net result being revenue neutral. The city is currently evaluating whether this position is still beneficial for the city, or if this legislative ask should be modified in some way.”

Last week, the president of the Board of Estimate and Taxation (BET), Steve Brandt, was taking time to refamiliarize himself with the city’s tax system when he said he saw the map at the bottom of the state’s revenue sheet for Minneapolis’ special local taxes “and I thought ‘Woah, we leave out a lot of territory between restaurants and liquor establishments.’” 

Brandt asked why and learned the city had been seeking the expansion of this district, at least to the North Loop. He said a case could also be made to include the area around Surdyk’s at University and Central Avenue in Northeast and even into Cedar-Riverside. 

“It just struck me as an equity issue,” Brandt said. “If establishments downtown are already paying the tax, and you’ve got people two blocks away who aren’t, it seems like what’s good for one would be good for another.”

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Icy Roads Expected Across Twin Cities As Freezing Rain, Sleet Move In

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Icy Roads Expected Across Twin Cities As Freezing Rain, Sleet Move In


TWIN CITIES, MN — A wintry mix of freezing rain and sleet is expected to create slick travel conditions across the Twin Cities metro and surrounding areas Sunday afternoon, prompting a Winter Weather Advisory that remains in effect until 4 p.m.

According to the National Weather Service, precipitation will develop late Sunday morning and continue through the afternoon. In much of central and east-central Minnesota, including the Twin Cities, a brief period of sleet is expected before transitioning to freezing rain.

Ice accumulations are expected to remain light, generally limited to a glaze, with sleet accumulations up to one tenth of an inch.

Find out what’s happening in Minneapolisfor free with the latest updates from Patch.

Despite the minor accumulations, roads, sidewalks, bridges and overpasses could become slippery, especially on untreated surfaces. Temperatures are expected to remain in the 20s, allowing freezing rain to create icy conditions during the afternoon travel period.

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The Winter Weather Advisory covers much of the metro area, including Minneapolis, St. Paul, Bloomington, Eden Prairie, Minnetonka, Maple Grove, Brooklyn Park, Woodbury, and surrounding communities, along with parts of central and southeast Minnesota.

Find out what’s happening in Minneapolisfor free with the latest updates from Patch.

The NWS urges drivers to slow down and use caution while traveling. Motorists can check current road conditions by calling 511 or visiting 511mn.org.

Looking ahead, forecasters are also monitoring another potential round of freezing rain late Monday night into Tuesday morning.

Temperatures are expected to be close to freezing, and even small changes could determine how impactful that next system is for travel across the Twin Cities.

National Weather Service

Here’s the full NWS forecast from the Minneapolis-St. Paul Airport:

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Today: Freezing rain likely between 1pm and 4pm. Cloudy, with a high near 31. South southeast wind 10 to 15 mph. Chance of precipitation is 60%. Total daytime ice accumulation of less than a 0.1 of an inch possible.

Tonight: Mostly cloudy, with a low around 24. South southeast wind 5 to 10 mph becoming light and variable after midnight.

Monday: Patchy fog after 5pm. Otherwise, cloudy, with a high near 34. Calm wind becoming southeast around 5 mph in the afternoon.

Monday Night: A 40 percent chance of rain, mainly after midnight. Patchy fog after 8pm. Otherwise, cloudy, with a low around 31. East southeast wind around 5 mph becoming northeast after midnight.

Tuesday: A chance of freezing rain before 10am, then a chance of rain between 10am and 3pm, then a slight chance of snow after 3pm. Mostly cloudy, with a high near 34. North northeast wind around 5 mph becoming west in the afternoon. Chance of precipitation is 30%.

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Tuesday Night: Mostly cloudy, with a low around 24. West wind around 5 mph becoming south after midnight.

Wednesday: Partly sunny, with a high near 38. South wind 5 to 10 mph.

Wednesday Night: Mostly cloudy, with a low around 27. South southeast wind 5 to 10 mph becoming west after midnight.

Thursday: Mostly sunny, with a high near 37. West northwest wind 5 to 10 mph.

Thursday Night: Mostly cloudy, with a low around 22. West northwest wind 5 to 10 mph becoming east after midnight.

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Friday: A 30 percent chance of snow. Partly sunny, with a high near 32. East wind 5 to 10 mph becoming west northwest in the afternoon.

Friday Night: A 30 percent chance of snow. Mostly cloudy, with a low around 19. Northwest wind around 10 mph.

Saturday: A 30 percent chance of snow. Mostly cloudy, with a high near 26. Northwest wind 10 to 15 mph.

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Somalis in Minneapolis say they are facing harassment, threats and empty businesses in the wake of fraud allegations video | CNN

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Somalis in Minneapolis say they are facing harassment, threats and empty businesses in the wake of fraud allegations video | CNN


At Fardowsa Ali’s restaurant in Minneapolis, she said the usual steady flow of diners seeking Somali sambusas or desserts has been replaced with threatening phone calls.

“It’s really sad,” said Ali, who opened Albi Kitchen last summer. “I called police because one guy called here and said he was going to come here and break everything.”

The threats and declining business began after conservative content creator Nick Shirley posted a video accusing day care centers in Minneapolis’ Somali community of fraud – including one in the same building as her cafe, Ali said.

Since the video was posted, Ali and other business owners and families in the state’s deeply rooted Somali community have said they were threatened, harassed and bullied on social media. A day care facility was vandalized and parents are afraid to send their children to school. Somali restaurants and coffee shops that once bustled with patrons were nearly empty last week and people are scared to show up to their jobs.

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The backlash from Shirley’s video has exacerbated the anxiety residents of Somali descent in Minnesota were already feeling after President Donald Trump called the community “garbage” and sent immigration enforcement agents to the state in December, making the Twin Cities the latest target of his deportation push, which was previously seen in cities such as Los Angeles, Chicago, Charlotte and New Orleans.

“This climate of fear is disrupting livelihoods, separating families, and undermining the sense of safety and belonging for an entire community,” Jaylani Hussein, executive director of the Council on American-Islamic Relations’ Minnesota chapter, said of how the nation’s largest Somali diaspora has felt in recent weeks.

Day care centers disrupted by scandal

Some day care providers say Shirley’s video has disrupted daily life for them as they care for children— some of whom come from working class families who heavily rely on child care. They are now fielding an influx of phone calls, threats and media attention while trying to calm fearful parents and children.

Phone calls to day care owner and consultant Kassim Busuri’s facility near Minneapolis have skyrocketed with people asking questions about enrollment, hours of operation and availability, he said.

The callers, he said, don’t seem like genuinely interested parents and are a distraction from the work his team needs to be doing. CNN is not naming Busuri’s day care facility because he is afraid his center could be targeted.

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“It’s just random calls, extra things that we don’t need to focus on,” Busuri said. “We need to focus on our children that we care for.”

The Minnesota Department of Children, Youth, and Families said Friday its investigators visited the child care centers at the center of fraud allegations and found they were operating as expected with the exception of one, which “was not yet open for families.”

The fraud allegations have brought unwelcome attention to a community that prides itself on small business ownership, close-knit families and rich culture, and that has been growing in Minnesota for about 30 years.

Minnesota became an epicenter for Somalis in the early 1990s when the Somali government collapsed and the East African country erupted in violence. Millions of people were displaced or fled to dozens of countries around the world.

Many immigrants found Minnesota appealing because of job opportunities at meatpacking plants in rural areas where demand for workers far outstripped the supply, Ahmed Ismail Yusuf, a Minnesota author, writer and playwright previously told CNN.

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Now, the Minneapolis-St. Paul area is home to about 84,000 people of Somali descent, making it the largest population in the United States, and almost 58% of the Somalis in Minnesota were born in the country, according to the US Census Bureau.

Activists in the Somali community have been adamant about protecting the image of Somali people—who they emphasize are not any more involved in criminal behavior or fraud than any other group. The bad actors, they say, are in the minority.

While Shirley’s claims could not be immediately verified, authorities have been investigating schemes in Minnesota for years. Democratic Minnesota Gov. Tim Walz has spent the past year dealing with backlash from fraud schemes involving some Somali residents. In one instance, federal charges were brought against dozens of people — the vast majority of them Somali — linked to Feeding Our Future, a nonprofit prosecutors say falsely claimed to be providing meals to needy children during the Covid-19 pandemic. Thirty-seven defendants have pleaded guilty, the Associated Press reported, but it’s unclear how many of them are Somali.

Khalid Omar, a community organizer with the non profit ISAIAH, which advocates for racial and economic justice in Minnesota, believes Shirley’s video has only incited hate and “scapegoated” the Somali community because day cares that weren’t named are now being targeted. He also noted he trusts state officials to fully investigate fraud allegations.

“If someone commits fraud, they should be held accountable, period,” Omar said. “But to frame a whole community, it’s wrong, and it’s un-American, because we don’t believe in collective punishment.”

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Edward Ahmed Mitchell, national deputy director of the Council on American-Islamic Relations, said condemning and attacking an entire community for the alleged criminal behaviors of a small group is “pure racism.”

“It’s racism that would never be tolerated against any other community,” Mitchell said.

Hussein said most Somali residents in the Twin Cities are “hardworking families, small business owners, healthcare workers, students, and taxpayers who contribute every day to Minnesota’s economy and civic life.”

“When an entire community is stigmatized, the impact is immediate,” Hussein said. “Families live in fear, businesses suffer, and trust in public institutions erodes.”

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Car fans flock to Minneapolis for Twin Cities Auto Show

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Car fans flock to Minneapolis for Twin Cities Auto Show



At the Minneapolis Convention Center, it’s horns honking, engines revving and car gurus gathering under one big roof. 

The Twin Cities Auto Show began on Saturday. This year, it’s running earlier than normal.

“I like the old stuff, you know, the older vehicles. I love ’em,” said Mickey Strickler of Minneapolis.

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The show welcomes everyone under the sun to “lookie-loo” or wander in with a purpose. Chris Leeman of Zimmerman is getting a look at possible future rides for his wife.

“We came here just to get kind of an all-around fit and feel of what she might like in the next year or two,” Leeman said. “The Toyota cars right now ain’t quite to the standard that I think I want my wife to be in.”

There’s more than 325 vehicles inside the convention center. Nobody is able to sell or haggle on the showroom floor.

“The show reflects the car business in a lot of ways,” said Scott Lambert, president of the Twin Cities Auto Show. “Electric vehicles are in a big reset right now.”

WCCO spoke to some attendees who gave their opinions of the automotive industry’s current state.

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“I think it sucks,” Strickler said. “It’s not like it used to be. It’s hard to find good vehicles now.”

“I like the Mazda 90 because of the inline-six engine,” said Laun Aiken of Sauk Rapids. “I’m old school. I grew up driving inline-six vehicles, and so for them to reintroduce it into their line is kind of interesting.”

The show runs now through Jan. 11. Tickets can be purchased online. First responders get in for free.



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