Request for Committee Action
A briefing memo explaining the purpose, background, and impact of the requested action.
Agate Housing and Services rehabilitation project (RCA-2024-01044)
ORIGINATING DEPARTMENT
To Committee(s)
| # | Committee Name | Meeting Date |
|---|---|---|
| 1 | Budget Committee | September 16, 2024 |
Action Item(s)
| # | File Type | Subcategory | Item Description |
|---|---|---|---|
| 1 | Resolution | Appropriation | Passage of Resolution amending the 2024 General Appropriation Resolution by transferring $1,500,000 from the Contingency Account to the Community Planning & Economic Development Department to provide a grant to Agate Housing and Services, Inc. for rehabilitation of Agate's Board and Lodge Transitional Housing and Shelter Facility at 510 S 8th St, subject to conditions. |
Ward / Neighborhood / Address
| # | Ward | Neighborhood | Address |
|---|---|---|---|
| 1. | Ward 6 | 510 S 8th St, Minneapolis, MN, 55404 |
Background Analysis
On August 15, 2024, the board of directors of Agate Housing and Services announced the closing of its 42-bed shelter program and 95-bed board and lodge program at 510 South 8th St. The last day of operations will be Wednesday, October 9, 2024, unless there is funding to address the issue. Agate will also pause operations at its Food Centre, 714 Park Ave., while exploring partnership opportunities to continue its important mission of relieving hunger.
Agate Executive Director Kyle Hanson cited increasing financial pressure on nonprofits serving the homeless community and the lack of dollars available for a much-needed building rehabilitation as factors leading to the closure of the 100-year-old building.
The building is slated to close October 9, affecting more than 80 residents and 23 employees. Agate worked with local and state entities to identify funding sources for improvements but was unable to secure the at least $3 million to make critical repairs. The replacement of these units would cost upwards of $30 Million dollars if we were to try to build new units so preventing the permanent closure of this site is a practical move.
Building repairs will take 6-12 months, so, even with these funds, the building is still slated for closure on the Oct. 9 timeline. If Agate secures the additional funds for a full rehab, it hopes to reopen its board and lodge program as soon as repairs are complete. In the meantime, Agate is working with local partners to ensure every current resident of the 510 building is placed in another safe shelter facility before Oct. 9.
This $1,500,000 budget resolution would be contingent upon Agate Housing and Services, Inc. securing at least $1,500,000 in additional funds by December 31, 2025, to rehabilitate Agate's Board and Lodge Transitional Housing and Shelter Facility and an execution of a grant agreement between the City and Agate that includes standard contingencies and requires an operations plan acceptable to the City’s Director of the Department of Community Planning & Economic Development. This action also shows the Minneapolis City Council stepping up with resources to preserve this important housing service and prevent its permanent closure.