Minneapolis City Council approves funding for struggling businesses
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A $7 million relief fund will soon be available for Minneapolis businesses that are losing money during the federal immigration operation.
The city council voted unanimously Thursday to approve the funding, after a debate at a council committee meeting earlier this week.
Council members who authored the funding resolution said it’s a way to help small businesses get back on their feet, after sales took a dive since the start of the operation.
A city report estimated that restaurants and small businesses lost about $81 million in revenue in January. Business advocates in the city said some businesses – particularly immigrant-owned businesses – lost 90 percent of their revenue, as staff and customers stayed home out of fear.
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The $7 million will come from the city’s downtown assets fund, which typically supports maintenance and other costs for downtown infrastructure, including Target Center and the Minneapolis Convention Center.
Council member Robin Wonsley said in a council committee meeting earlier this week that supporting small businesses citywide is a valid use of that fund, since the money partially comes from citywide sales tax dollars.
“The reality is, if we let these businesses close and take no action, we are, without question, fueling the economic pressures our city is already walking into,” Wonsley said.
The measure passed unanimously Thursday, but some council members have said they’re worried about overspending.
Council member Michael Rainville said he’s worried about passing costs back to residents.
“I don't want our residents impacted by this in a negative way through next year's property taxes, because right now, we are stressing out every low-income and fixed-income person in the city with these continuous 8 percent increases in our property taxes, and it has to stop,” Rainville said.
Mayor Jacob Frey has also cautioned the council against overspending, but said in a statement that he’s supportive of the funding move.
“Operation Metro Surge won’t have the last word — the people and businesses that call Minneapolis home will,” Frey said in a statement. “By using these dollars strategically and quickly, we will help bring these businesses and corridors back so they are teeming with activity and customer support.”
The funding resolution now goes to Frey’s desk for his signature.
Frey, as well as Gov. Tim Walz, has called on the state and federal government to chip in for recovery funds as well. But the federal government has not indicated it’ll help, and any funding from the state Legislature would take months to hit businesses’ bank accounts. Council members said the $7 million in city funding will help businesses stay afloat in the meantime.
The city’s office of Community Planning and Economic Development will manage the fund and take applications from businesses for help. Department staff told the city council earlier this week that the funding could help between a couple hundred and a thousand businesses.
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