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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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Minneapolis, MN

PTSD leave policy adds financial pressure to Minneapolis Fire Department

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PTSD leave policy adds financial pressure to Minneapolis Fire Department


“You will expose yourself to things that most of the public won’t see, except maybe once in their life. But yep, we’re doing it. Fire departments are doing it on a very regular basis,” said Mike Dobesh, president of MNFire, an organization dedicated to keeping firefighters healthy, mentally and physically, and on the job.  

“The fire service is recognizing that any of those unexpected events that we go to, yes, we sign up to do it, but at the same time, those unexpected events can cause trauma; that trauma can lead to PTSD,” Dobesh said.

However, paying for all those firefighters on mandatory PTSD leave is putting the Minneapolis Fire Department in the red. It’s all the overtime needed to fill in for the firefighters on leave.  

“From the therapists that I’ve talked to, usually eight to 10 visits can get that firefighter back on the rig,” Dobesh said, which is the goal of the mandatory leave with treatment. “But then it’s going to be something that’s going to have to be managed for the… probably the rest of their career, because it’s not something that’s just going to go away.”

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Dobesh says that PTSD was the number one claim MNFire had on its critical illness policy last year.

In 2023, Minnesota lawmakers created the PTSD leave policy in an effort to keep firefighters from applying for permanent duty disability benefits. The policy requires firefighters and other first responders to take up to 32 weeks of paid leave and get treatment first.

“A trauma-informed therapist can meet with a firefighter, desensitize that firefighter, get them back to work,” Dobesh said.

But that policy is costing some fire departments millions. The Minneapolis Fire Department told the city council this week that 7% to 8% of its firefighters are currently out on PTSD leave, and the overtime other firefighters are working to fill in for them has put the department up to $7 million over budget in recent years. It’s projected to go over again this year.

So what are things they can do to maybe prevent some of these problems that they’re having because of PTSD? Speed up access to treatment, according to Dobesh.

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“The sooner we can get in and have that firefighter seen, the more likely they’re going to have a very positive outcome and get back on the job,” he said.

Dobesh says if and when a firefighter needs help varies from person to person, but his organization provides five free treatment sessions for any firefighter who’s struggling.

Minnesota firefighters can call MnFIRE’s helpline 24/7 at 888-784-6634 or visit mnfirehealth.org. 

MFD Interim Chief Melanie Rucker shared the following statement late Wednesday night:

“The utilization of these leaves is often unavoidable and reflects benefits that support the health and well-being of our fire personnel. We take the health and wellness very seriously, including mental health. Through transparent communication with leadership regarding evolving staffing needs and necessary overtime budget adjustments, we can effectively address the budget overages and return to a sustainable path forward.”

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Click here to watch the Minneapolis Budget Committee meeting on May 4.



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Minneapolis, MN

Minneapolis Mayor Jacob Frey signs gun ban ordinance

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Minneapolis Mayor Jacob Frey signs gun ban ordinance


Minneapolis Mayor Jacob Frey signed a new ordinance that carries a ban on assault weapons but won’t take effect unless there are major changes to state law.

Minneapolis gun ban ordinance signed

What we know:

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The Minneapolis City Council approved the ordinance during its meeting last week.

The firearm regulations ordinance includes a ban on assault weapons, ghost guns, binary triggers, and high-capacity magazines. The ordinance also includes safe storage provisions for firearms.

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Big picture view:

Many of the provisions in the law won’t go into effect unless there is a change in state law. Currently, Minnesota law prevents municipalities from enacting gun regulations.

Minnesota law only allows cities to bar the discharge of firearms within city limits and adopt regulations that are identical to state laws. Any regulations that go beyond state law are voided, according to state statute.

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Local perspective:

Action on the gun ordinance was spurred by last year’s shooting at Annunciation Church and School. Two students were killed while attending morning mass at the church and more than two dozen students and parishioners were hurt in the barrage of gunfire.

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Last week, parents of Annunciation students spoke out in support of the ordinance at a public hearing.

Minnesota Gun Owners Caucus threatens lawsuit

The other side:

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Last year, St. Paul passed a similar law. The Minnesota Gun Owners Caucus filed a lawsuit shortly after the ordinance was signed. Arguments were heard last month on the case and a judge has set a trial for next year.

In a statement last week, the Minnesota Gun Owners Caucus said it was evaluating its legal options in Minneapolis.

Minnesota Gun Owners Caucus Chair Bryan Strawser said:

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“The City of Minneapolis is attempting to make a political statement with an ordinance it has no legal authority to enact. Minnesota law clearly preempts the entire field of firearms regulation, and local governments cannot simply ignore state statute because they dislike the policy outcome.

“If the City Council moves forward with this unlawful ordinance, we will evaluate every available legal option to challenge it, just as we did in Saint Paul.

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“The law is not optional, even for Minneapolis.”

Jacob FreyMinneapolis City CouncilPoliticsGun Laws



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Police investigating south Minneapolis shooting that left man wounded

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Police investigating south Minneapolis shooting that left man wounded



A man was hurt in a shooting in south Minneapolis late Tuesday night, according to police.

A report of shots fired brought officers to the 2600 block of Third Avenue South around 9:50 p.m., the Minneapolis Police Department said. They found evidence of gunfire and began investigating.

Later, a man with survivable gunshot wounds showed up at Hennepin Healthcare.

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No one has been arrested.



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