►
Description
Minneapolis Economic Development & Regulatory Services Committee Meeting
A
Approvals
item
number
6,
which
are
the
liquor
license.
Renewals
item
number
7,
which
are
the
business
license.
Approvals
and
item
number
8,
which
are
the
business
license.
Renewals
will
also
move
items
9
and
10,
which
are
the
gambling
license.
Approvals
and
renewals
items
number
11
and
12
are
referrals
to
staff
on
items
that
came
to
us
from
the
city
council
meeting
with
that
I'll
move
all
of
the
consent
agenda
items
which
are
numbers
5
through
11.
Are
there
comments
or
questions
on
the
consent
agenda,
seeing
none
all
in
favor
signify
by
saying
aye?
A
B
You,
madam
chair,
the
first
item
is
prize
Brewing,
Company,
LLC,
doing
business
as
prize
brewing.
It's
located
at
1401,
West,
River
Road
north
in
Minneapolis.
They
have
a
current
on
sale,
taproom
license
with
a
class
c1
entertainment,
Sunday
sales
and
off
sale
malt
liquor.
The
application
is
to
permanently
expand
the
business,
so
it
will
have
a
patio
area
that
is
located
on
private
property.
That's
immediately
adjacent
to
the
tap
room,
the
seating
will
be
440
seats
and
the
hours
of
operation
will
be
Thursdays
from
3
to
11
p.m.
B
Friday,
from
3
to
midnight,
Saturdays
from
11
a.m.
to
midnight
and
Sundays
from
11
a.m.
to
10:00
p.m.
they
do
not
plan
to
have
any
speakers
or
entertainment
in
their
outdoor
area.
The
there's
a
public
hearing
acquired
notices
were
sent
to
property
owners
within
300
feet
of
the
residents.
We
did
not
receive
any
responses
to
this.
The
inspector
of
Phil
Cottle
prepared
a
report
and
is
making
recommendation
to
approve
this
license
are.
A
There
any
questions
from
is
Robert's,
seeing
none.
Thank
you
for
your
report.
We'll
open
up
the
public
hearing
on
item
number
1,
which
is
a
permanent
expansion
of
premise
for
Prioress
brewing
at
1401
West,
River
Road.
Is
there
anyone
here
to
speak
to
this
issue?
Please
step
forward
state
your
name
and
address
for
the
record.
C
Hi
I'm
Alex
Jacobi
of
price
Burton
company,
one
of
the
owners
in
the
general
manager.
We
are
at
1401
West,
River
Road
north
of
Minneapolis.
We
opened
in
June
2017,
it's
been
a
great
year,
we've
been
happy
to
be
part
of
the
community
and
we
just
think
that
this
small
expansion
of
the
patio
will
be
a
great
boon
for
the
business
right.
A
A
B
You,
madam
chair,
the
item
number
two
is
for
Starbucks
corporation
Starbucks
coffee
number,
49
134,
which
is
located
at
47
12,
Cedar
Avenue.
South.
The
application
is
to
extend
the
operating
hours
for
their
existing
restaurant
license
so
that
it
can
open
earlier
than
the
hours
that
are
allowed
and
the
hour
that
they'd
like
to
open
is
in
the
morning
which
is
5:00
a.m.
so.
It
would
be
that
they
would
be
opening
regularly
one
hour
earlier
in
the
morning
to
serve
coffee.
This
application
had
been
reviewed
and
a
public
hearing
is
required
for
that
expansion.
B
A
A
B
You,
madam
chair,
yes,
the
item
number
3
is
an
amendment
that
is
before
the
council
today
to
consider.
There's
a
report.
That's
been
submitted
for
a
review
on
the
specific
ordinance
language
and
I
just
like
to
speak
briefly
about
what
the
need
is
and
speak
specifically
about
how
this
is
going
to
help
small
businesses
in
our
our
Minneapolis
area.
Sometimes,
city
ordinances
are
not
as
innovative
and
creative
as
our
emerging
businesses.
B
It's
a
good
thing
that
the
city
of
Minneapolis
staff
and
City
Council
have
a
touch
of
creativity
in
them,
especially
when
it
comes
to
being
innovative
too.
For
our
small
businesses,
the
business
licensing
division
was
approached
by
Nicholas
Campbell
from
the
innovation
team
about
a
year
ago,
with
this
idea
of
having
a
pilot
or
a
probationary
period
for
small
businesses
that
have
innovative
ideas.
B
This
idea
came
to
him
as
he
was
talking
to
small
businesses
that
saw
this
permit
and
as
an
opportunity
to
address
the
hurdles
that
some
of
our
businesses
are
facing.
Nick
shared
with
us
that
that
emerging
businesses
need
a
mechanism
to
pilot
their
concepts
and
to
not
get
that
flat.
No,
it's
not
allowed
when
they're
approached
with
when
they
approach
the
city
with
a
new
concept.
So
the
nuts
and
bolts
of
how
this
might
work,
if
approved,
is
each
emerging
business
would
need
to
apply
for
a
permit.
B
No
variance
is
going
be
allowed
for
alcohol
or
food
laws.
Staff
will
then
make
a
recommendation
on
that
emerging
business
application
and
it
will
come
before
this
committee
conditions
may
be
placed
on
the
permit,
and
if
there
is
a
liability
or
a
safety
issue,
that's
presented
from
their
operation,
the
permit
can
be
revoked.
Staff
will
have
a
year
to
evaluate
the
operation
of
that
emerging
business
and
recommend
ordinance
amendments.
B
For
example,
should
we
allow
retail
food
trucks
to
operate
in
the
city
of
Minneapolis,
and
if
we
saw
that
retail
trucks
had
the
same
positive
impacts
as
our
food
trucks
have
had
in
unmoving
small
businesses
from
a
mobile
area
into
brick-and-mortar?
We
may
consider
after
a
year
that
that's
a
worthwhile
thing
for
us
to
change.
B
I'm
excited
about
how
this
permit
will
help
develop
the
relationship
that
my
division,
business
licensing
has
with
a
small
business
team
I
though
Till's
Swatow,
Abdi
and
Angie
earlier
here,
and
they
may
talk
about
the
contacts
that
they've
had
and
been
able
to
track
and
log
about
how,
when
we
work
closely
together.
Having
the
experiences
of
this
doesn't
quite
work
with
any
of
the
things
that
we
have
right
now.
But
I
still
want
to
pursue
this
application.
How
it
can
enhance
and
are
already
positive
and
supportive
and
innovative
business
climate
that
we
have
in
Minneapolis.
B
In
fact,
I
think
as
I
look
out,
there's
a
few
that
are
here
that
may
want
to
share
those
experiences
with
us
during
the
public
hearing,
the
ordinance
we
require
public
hearing
notice
and
and
and
those
notices
were
sent
out
to
neighborhood
and
business
associations,
we've
received
no
responses
to
this.
I
am
available
for
questions.
If
you
have
any
are.
E
Thank
You
Troy
Goodman
mr.
Roberts
I
just
want
to
clarify
so
most
businesses
that
get
started
don't
actually
require
any
kind
of
license
or
business
permit
right.
So
the
this
is
only
for
businesses
where
there's
some
sort
of
either
use
of
the
right-of-way
or
some
sort
of
public
health
implication
and
where
we
would
think
that
we
were
to
require
a
license,
but
it
feels
like
a
little
bit
of
a
challenge
to
think
I'm
just
trying
to
conceptually
understand
which
businesses
would
have
to
and
sort
of.
B
B
The
retail
truck
that
had
approached
the
city
wanted
to
be
able
to
go
to
festivals,
operate
at
brew
establishments
and
coffee
shops,
in
the
same
way
that
our
food
trucks
do.
But
there
are
zoning
requirements
or
ordinances.
That
say
you
can't
have
outdoor
sales
or
an
ordinance
in
the
food
truck
that
says
you
have
to
sell
food,
and
this
business
didn't
want
to
do
either.
One
of
those
things
that
wanted
to
operate
in
that
same
manner,
so
I
think
that
we
will
see
businesses
and
business
ideas
that
will
be
more
similar
to
that.
B
E
And
I'm
glad
you
mentioned
uber
because
I
think
that's.
The
other
question
is
that
one
of
the
things
I
want
to
make
sure
I
understand
the
timeline
of
so
a
business
has
an
idea
and
what
we've
seen
more
and
more
is
startup
companies
just
launching,
as
we
saw
this
morning,
for
example,
with
scooters,
so
I'm
sort
of
wondering
how
this
ordinance
interacts
with
these
sort
of
disruptive
tech
startups
that
are
just
and
introducing
a
new
business
model
that
we
think
we
probably
do
need
to
regulate
through.
B
The
chair,
yes,
that's
a
great
question
and
there's
something
very
specific
in
the
code
that
says
that
we
are
trying
to
support
the
emerging
small
business,
so
we
use
the
same
definition
that
the
council
has
used
before
about
what
is
a
small
business.
So,
as
you
were
saying
those
bigger
companies
that
just
kind
of
come
in
and
say
you
know,
this
is
what
we're
doing
that.
But
that
would
not
be
what
this
would
be
for
we're.
B
A
F
Members
of
the
committee
so
teal
currently
manager,
the
small
business
team
and
I
have
been
with
the
innovation
team
in
the
past.
I
know
this
was
an
idea
where
Chicago
has
something
called
innovation
lanes
and
I
think
that
they
use
it
a
little
bit
more
broadly
to
encompass
food
businesses
as
well
and
have
a
few
more
licensing
requirements.
But
really
this
was
I
need
an
idea
to
say:
hey.
You
know
this
business
doesn't
fit
in
any
of
our
boxes.
F
We've
gotten
a
few
different
inquiries
that
when
we
looked
back
when
we
talked
to
those
entrepreneurs,
we
had
to
say
yeah,
you
really
can't
operate
your
in
Minneapolis.
The
current
rules
and
regulations
wouldn't
allow
for
you
to
do
your
business
so
far.
Those
that
we
think
may
fit
with
this
new
emerging
business
permit
are
also
in
that
model
of
mobile
services
and
retail,
but
the
nature
of
it
is.
We
won't
know
what
kinds
of
businesses
folks
have
ideas
for
that.
F
They
want
to
use
this
for
until
it's
a
viable
option,
and
they
know
that
that
there
may
be
a
path
forward.
So
we
do
have
one
of
those
folks
who's
contacted
our
team
here
today.
I'm
not
sure
if
there
are
others,
but
just
to
say
this.
This
allows
a
little
bit
of
flexibility
to
say:
let's
try
something
and
see
if
it
works
before
either
shutting
it
down
or
rewriting
everything
to
accommodate
great
well.
Thank
you.
A
G
My
name
is
Amy
apt
and
I
live
in
Uptown
Minneapolis.
What
is
your
address
for
our
own
three
2:08?
Is
this
private
Grand
Avenue
south
Minneapolis,
five,
five,
four?
Oh
eight,
so
I
am
the
owner
and
founder
of
modulae
Marsh
a
mobile
and
it's
kind
of
a
mouthful,
but
it's
the
Twin
Cities
first
mobile
French
market
and
we
sell
primarily
pick-your-own
flowers,
but
things
like
candles,
soaps,
Turkish,
towels
and
local
handmade
goods.
G
And
it's
because
of
this
opportunity
that
we
were
actually
able
to
launch
a
handful
of
weeks
ago
and
in
this
short
amount
of
time,
we've
already
received
rave
reviews
from
the
city
of
Minneapolis
from
everyone.
We
come
in
contact
with
there's
just
widespread
enthusiasm.
So
we
are
super
fortunate
to
have
this
opportunity,
but
I
feel
like.
At
the
same
time,
the
community
is
just
embracing
something
just
like
this.
G
You
know
we
sell
pick-your-own
flowers
which
bring
joy
to
people
on
the
streets
and
it's
it's
such
a
fun
experience
for
my
company,
but
also
for
the
community
of
Minneapolis.
They
do
have
a
couple
photos
I
feel
like
the
the
mobile
flower
truck
kind
of
speaks
for
itself
as
well,
so
I'd
love
to
share
those.
A
H
G
This
vintage
appeal:
it's
kind
of
eye
candy
as
soon
as
you
come
across
it
and
then
in
the
back
we
sell
the
flowers
a
little
better,
it's
kind
of
hard
but
yeah.
So
it's
you
know
it's
just
a
fun
little
charismatic
mobile
flower
truck
that,
like
I
said,
brings
joy
to
people
and
without
this
opportunity
we
wouldn't
be
able
to
run
our
business
so
well,.
A
H
My
name
is
Kuching.
My
address
is
two
eight
one:
five
noon:
I'm
new
North
Minneapolis,
so
I'm
here
to
speak.
I
have
a
business
model
that
I
want
to
share
with
you
guys
on
there's
many
of
these
other
area.
If
you
guys
ever
heard
of
dent
wizard
and
they
do
ten
repairs
on
vehicles
with
their
mobile
mobile
vehicle,
so
I
want
to
copy
their
model,
but
in
in
me
app
is
here.
They
don't
allow
a
moat
and
a
mobile,
auto
repair
shop.
H
You
would
have
to
have
a
commercial
garage
to
run
to
operate
the
shop
so
I
want
to
so
to
what
I
do
is
I
repair
dance
as
well
with
various
tools.
You
know
the
only
chemicals
or
hazardous
waste
that
I'm
going
to
be
using
is
denatured,
alcohol
and
auto
polishing
compounds.
You
know
that's
very
low
in
hazardous
waste
compared
to
painting
a
panel
outside
and
all
the
tools
I
I'll
be
using
will
be
stored,
Tim
stored
in
chunk
of
an
SUV
or
a
large
sedan,
and
what
I'll
do
is
hour.
H
H
H
You
know,
Drive
are
probably
as
of
right
now.
You
all
may
know
that
many
people
do
repairs
in
their
garages
and
then,
if
we
allow
this
to
happen,
you
know
it's
easier
to
start
up,
businesses
for
mechanics
and
our
Auto
Detailers
and
it'll
catch
the
cash
flow
for
our
economy.
So
we
know
where
all
the
money
is
going.
Thank.
A
J
Hi
hi,
my
name
is
Dona
I'm,
a
47:33
Humboldt,
Avenue,
South
and
I'm.
An
old
entrepreneur
I
just
wanted
that
I
just
found
out
about
this
meeting
today.
So
I
don't
really
have
a
prepared
thing,
but
I'm
trying
to
open
a
first
market
business
right
now
in
Minneapolis,
and
these
are
just
three
of
the
license
applications
I've
started
with,
because
nobody
knows
what
I
am
so
there's
a
lot
of
this
and
everyone's
been
out
really
helpful.
J
J
We
need
to
have
some
more
flexibility
in
terms
of
Licensing
and
giving
some
of
these
businesses
the
opportunity
to
to
do
something
new
and
with
mine,
it's
incredibly
capital
heavy,
so
having
to
chase
around
all
this
stuff,
while
I'm
trying
to
chase
their
own
money
and
grants
and
all
that
kind
of
stuff
it
just
it
would
just
be
so
much
easier
again.
My
business
is
all
different
than
these
guys,
but
I
think
I
think
you
guys
are
getting
the
message.
That's
great.
We
could
expedite
it
a
little
bit.
A
Basically
wanna
say
thank
you
for
being
here
today.
Is
there
anyone
else
here
to
speak
to
this
issue,
anyone
anyone
seeing
none
I'm
going
to
close
the
public
hearing
and
move
approval?
Does
anyone
have
anything
they'd
like
to
say
about
this?
If
not
I
do
want
to
say
what
I
hear
and
I
see
more
than
anything
in
my
ward.
Is
that
the
smaller
businesses
they
follow
the
rules
and
then,
when
the
rules
are
not
clear,
it
makes
it
more
difficult,
but
some
of
these
big
businesses
they
don't
care
about
the
rules.
A
I
mean
the
SCOOTER
thing,
is
a
perfect
example.
I
saw
about
20
of
them
on
my
way
and
this
morning
already
blocking
people's
pedestrian,
ingress
and
egress
out
of
buildings.
They
have
the
lawyers
and
the
ability
to
just
do
what
they
want,
and
then
we
have
small
businesses,
people
who
have
really
cool
unique
entrepreneurial
ideas
who
are
afraid
actually
to
implement
their
ideas,
and
then
they
don't
have
the
lawyers
and
lobbyists
and
they
don't
have
the
ability
to
report.
A
K
You,
madam
chair
and
committee
members,
I
appreciate
having
a
moment
to
speak
on
this,
not
being
a
part
of
this
committee,
but
I'm
just
just
so
happy.
This
ordinance
is
coming
forward
today
and
really
want
to
thank
our
staff
for
this
I
want
to
thank
our
small
business
team,
Linda
Roberts
for
all
your
work
on
this.
This
is
exactly
what
we
were
thinking
of
with
the
small
business
team.
K
And
so
this
is
just
one
of
I
expect
many
ordinances
that
will
come
out
of
that
work,
but
I'm,
just
so
appreciative
of
the
day-to-day
efforts
and
manifested,
especially
in
today's
action,
to
try
to
make
our
city
better
for
small
businesses
and
also
big
shout
out
small
business
owners
today.
Thank
you
for
doing
business
in
Minneapolis
and
for
working
with
the
city
in
partnership
to
try
to
make
it
easier
for
others
that
come
behind
you
as
well
and
especially
Amy
I
know.
K
You've
been
working
really
closely
with
our
staff
on
this
ordinance,
so
I'm
glad
to
see
your
truck
up
and
running.
I
saw
you
the
other
day
out.
Downtown,
look
really
fantastic
and
just
again,
thank
you
all
so
much
for
what
you're
doing
we
know
the
vast
majority
of
jobs
are
created
by
small
business
owners
and
we
want
you
to
not
only
start
but
be
really
successful
in
Minneapolis
and
hopefully
grow
and
inspire
others
as
well.
With
your
success,
Thanks
and.
A
L
Good
afternoon,
chair
Goodman
and
committee
members,
I'm
Nick
Marino
from
regulatory
services.
Today
we
have
a
rental
license:
denial
for
five
properties
that
are
on
22nd
Avenue
South.
This
particular
case.
The
hearing
officer
is
recommending
that
the
appeal
actually
be
dismissed
as
moot
the
applicant.
In
this
case,
Mystikal
Holdings
LLC
did
would
claim
the
properties
back
to
the
original
owner,
Equity
Residential,
Holdings
LLC,
and
so
we
had
a
very
quick
hearing
back
in
May
and
staff
is
asking
you
to
adopt
the
hearing
officers
recommendation
that
the
appeal
be
dismissed.
Thank.
A
M
A
Are
there
any
questions
for
mr.
Marino?
Seeing
none
thank
you
for
being
here
today
we
will
open
the
quasi-judicial
public
hearing
and
ask
if
mr.
Moresco
or
any
of
mr.
mariscos
representatives
are
here
today
is
mr.
Moresco
or
a
representative
of
mr.
Moresco
here
today.
Last
call
mr.
Moresco.
If
you
are
here,
this
would
be
a
good
time
to
speak
up,
seeing
that
mr.
Moresco
is
not
here.
I
am
going
to
close,
yes
I'm,
going
to
close
the
quasi-judicial
public
hearing
then
and
move
mr.
McGrew
knows
recommendation
that
we
dismiss.
Is
that
correct?
Mr.
M
A
A
A
N
Thank
you
very
much,
madam
chair.
My
name
is
Jim
Terrell
with
the
business
develop
division
of
C
ped
before
you
is
a
request
for
approval
of
extending
exclusive
development
rights
to
actually
the
the
927
building.
Llc
the
927
west,
broadway
LLC
or
a
related
entity
is
in
the
report
before
the
committee
and
they
will
be
using
multiple
common
single
asset
entities
and
the
one
that
will
be
used
for
this
particular
project
is
actually
titled.
N
N
We
have
roofs
to
be
fixed
periodically
in
air-conditioning
units
and
so
we're
glad
to
have
a
possibility
now,
with
this
proposal,
this
exciting
proposal
to
have
this
building
activated
and
back
on
the
market.
The
background
indicates
that
there
are
three
phases
to
this
proposed
development
and
the
first
one
phase
one
is
the
renovation
of
the
927
West
Broadway.
Building
there
will
be.
N
The
partnership
will
be
adding
a
three-story
addition
to
the
rear
of
the
building
it'll
serve
as
the
offices
and
headquarters
for
three
of
the
development
partnerships
for
partners,
the
new
headquarters
for
the
J
and
Rose
Phillips,
Family
Foundation,
the
new
headquarters
for
try
construction
and
an
expansion
of
the
business
activities
in
North
Minneapolis
by
new
rules.
We
won't
speak
much
other
than
answer
questions
on
phase
2
and
phase
3.
They
are
later
in
the
process,
but
to
the
extent
that
you
have
questions,
we'd
be
happy
to
respond
to
those.
We
are
again
very
excited.
N
This
was
as
a
result
of
an
RFP
process
that
began
earlier
this
year
and
we
had
a
fair
and
open
competition.
We
received
four
proposals.
This
was
unanimous
by
the
internal
review
committee
as
the
strongest
and
the
only
one
that
we
would
put
forward
for
recommendation
to
the
neighborhood
groups.
Both
Nurik
and
WBC
were
able
to
see,
presentations
and
support
this
proposal,
and
this
development
we
were
not
able
to
meet
with
a
Jordan
Area
Community
Council,
but
we'll
do
so
as
a
part
of
the
ongoing
process
and
sharing
the
final
design.
N
Representatives
from
the
various
aspects
of
the
partnership
are
here
from
the
Phillips
family
foundation,
from
new
rules
and
from
try.
Construction
and
appetite
for
change
is
not
here
and
they're,
not
involved
in
the
927
aspect
of
phase
one,
but
would
be
involved
in
Phase
two
and
possibly
Phase.
Three
I'll
certainly
stand
for
questions
and
they
are
ready
to
briefly
discuss
this
exciting
project
are.
O
O
A
D
I'm
gonna
keep
it
really
brief.
You
know
as
we're
looking
at
development
coming
to
North,
Minneapolis
I
think
you
know.
D
A
P
Thank
you,
madam
chair
members
of
the
committee,
madam
chair,
invited
Michael
Coxon
with
fakeri
to
come
here
and
talk
to
the
committee
about
lessons
learned
in
a
tenant
remedies
action
filed
on
behalf
of
tenants
living
into
two
different
rental
portfolios,
where
the
city
initiated
rental
license,
revocation
so
without
further
ado.
Well,.
A
A
Okay,
just
take
a
break,
get
the
presentation
queued
up.
That's
all
good
I'll
know:
we've
been
joined
by
the
city
attorney
Susan
Segal,
the
regulatory
services
director
Noah
Shakman,
the
cpad
executive
director,
david
frank
and
mr.
Furst
from
the
Star
Tribune.
Anyone
else
in
the
room
would
like
to
introduce
themselves
can
feel
and
the
civil
rights
director
Velma
Coral.
P
Q
Madam
chair
members
of
the
committee,
thank
you
for
having
me
today.
As
you
may
know,
our
firm
has
a
long-standing
tradition
of
representing
tenants
in
property
disputes
with
their
landlord
in
a
variety
of
contexts
and
I
thought.
It
might
be
worth
your
time
today
to
hear
a
little
bit
about
some
lessons
that
that
I've
learned
as
an
attorney
in
doing
some
of
this
litigation
that
if
I
were
you
I,
would
want
to
maybe
hear
a
little
bit
about
I'm
gonna
assume
familiarity
with
the
general
litigation.
Q
Q
In
1996,
in
my
third
year
of
law,
school
I
started
working
at
a
landlord-tenant
clinic,
so
my
third
year
of
law,
school,
every
Friday
and
Monday,
was
spent
doing
that
and
it's
something
that
I've
been
really
focused
and
passionate
about
ever
since
it
being
such
a
critical
need.
Both
you
know
in
Southeast
DC,
whichever
I
started
in
in
in
various
pockets.
The
Minneapolis
as
I
live
here
today.
Q
So
about
two
and
a
half
years
ago
we
were
approached
by
a
neighborhood
organization
who
were
aware
of
some
tenants
who
are
not
living
in
exactly
the
best
of
circumstances.
So
we
started
a
single
tenant
remedies
action
on
behalf
of
the
neighborhood
organization
and
that
led
us
down
a
path
of
what
I
thought
was
gonna,
be
a
two
or
three
day
trial
to
try
to
just
fix
a
simple
building.
Get
the
pests
out
get
some
of
the
other
challenges
dealt
with.
Q
What
it
turned
into
would
be
a
class-action
lawsuit
that
we
would
file
not
quite
two
years
ago
and
what
we
learned
and
what
we
discovered
is
that
back
in
2012,
when
the
city
had
revoked
three
rental
licenses
held
by
Spiros
4-ball
us
instead
of
the
appearance
that
was
created
by
mr.
servos
and
mr.
friends,
mr.
Q
Bhalla
had
in
fact
retained
an
80%
ownership
interest
in
the
ongoing
portfolio
of
approximately
60
buildings,
and
we
concluded
that
that
probably
was
not
consistent
with
city's
ordinances
in
terms
of
him
having
a
valid
license,
and
our
investigation
develop
the
legal
theory
that
these
licenses
had
in
fact
been
procured
by
fraud
and
under
at
least
one
legal
theory.
They
were
void,
void
ab
initio
and
if
they
were
going
to
have
an
issue.
Q
Oh
then,
he
had
absolutely
no
legal
right
whatsoever
to
collect
rent
from
tenants
for
a
period
of
about
five
years
and
at
sixty
buildings
for
five
years,
we're
talking
about
fifty
four
hundred
or
so
tenants
who
have
been
paying
rent
that
they
weren't
legally
obligated
to
pay
so
that
form
of
the
basis
of
the
tenant
remedies.
Action.
Q
We've
also
done
a
lot
of
satellite
litigation,
both
with
mr.
friends
and
some
other
folks
that
have
come
in
to
purchase
of
his
properties
and
we've
also
done
some
work
on
the
con
portfolio
in
North
Minneapolis.
So
this
is
an
aggregation
of
thoughts.
We've
developed
at
fey
agree
on
the
work
that
we've
done
and
what
we've
seen
that
might
be
relevant
for
you.
Q
So
one
of
the
surprising
elements
in
the
litigation
was
there
were
three
distinct,
distinct
areas
of
City
action
that
were
used
affirmative
lis
by
defendants
as
somehow
the
city
blessing
the
the
condition
of
various
units.
So,
for
example,
in
one
case,
the
original
TR
a
case
that
we
had
at
thirty
fifty
seven
14th
Avenue
South.
The
defendants
actually
held
out
the
notion
that
there
were
no
open
housing
code
violations
as
somehow
a
clean
bill
of
health
being
issued
by
the
city.
Q
Now
it
wasn't
terribly
hard
to
point
out
that,
just
because
I
didn't
get
a
speeding
ticket
today
doesn't
mean
I
didn't
speed
on
my
way
to
work,
so
the
courts
are
savi,
did
not
you
know,
get
bent,
but
it
was
a
surprising
sort
of
unintended
consequence
of
some
of
the
housing
code,
violation
processes
that
were
in
place.
So,
for
example,
at
the
time
we
took
the
deposition
of
one
of
two
city
inspectors
at
the
time
he
didn't
have
physically
the
resources
to
go
back
and
Riaan
SPECT.
Q
Q
When
this
particular
notice
went
out
to
the
tenants
that
said,
no,
these
licenses
are
valid.
Now,
as
I
read
between
the
lines,
it's
more
along
the
lines
of
no.
This
is
still
your
landlord
we're
going
to
keep
this
business
operating
until
it's
all
over,
but
you
know
certainly
the
city's
not
taking
a
position
in
our
litigation
that
somehow
we
were
wrong.
But
of
course,
the
defendants
tried
to
use
that,
if
that's
exactly
what
they
were
trying
to
do
and
then
the
tearing
system
that
came
out
recently,
you
had
had
an
interesting
by-product.
Q
So
as
I
understand
the
tearing
system
and
I
know,
the
algorithm
has
been
you
know
modified
over
the
over
the
years.
It's
really
meant
to
sort
of
a
prioritization
and
a
focal
point
for
red
flags,
but
because
of
the
enormous
number
of
buildings
that
were
still
in
the
tier
1
system.
The
defendants
used
that
again
as
a
clean
bill
of
health
from
the
city
as
if
they
were
running
a
great
operation,
and
our
experts
certainly
differed
with
that
conclusion.
Q
Q
That
would
have
a
legal
impact
down
the
road
if
they
wind
up
not
being
true
one
of
the
things
that
we've
been
wondering
about
and
I'm
not
here,
to
make
any
policy
suggestions
at
all,
but
really
test.
The
question
oftentimes
in
a
market
transaction
for
fewer
than
four
units,
there's
an
automatic
inspection
and
there's
a
list
of
things
like
a
punch
list
of
things
that
need
to
be
done
for
this
transaction
to
move
forward
and
for
the
licenses
to
be
granted.
Q
One
question
we
have
just
to
pose
is:
is
there
any
reason
not
to
do
it
for
the
larger
residential
units
as
well,
where
you
have
an
opportunity
to
recover
the
inspection
fee,
so
there's
no
real
out-of-pocket
cost
to
the
city,
and
you
can
leave
it
to
the
buyer
and
the
seller
to
figure
out
who's
gonna
pay
for
what
that
may
not
be
in
compliance
with
a
code.
You
know
a
market
transaction
could
clean
up
a
lot
of
code,
compliance
issues
that
nobody
wrote,
maybe
paying
attention
to
something
to
think
about.
Q
Okay,
so
one
of
the
things
that
happened
recently
is
the
city's
taking
a
much
more
proactive
position
on
doing
tenant
remedies,
actions
and
other
statutory
remedies
that
are
available
in
Minnesota
law
and
I.
Think
that's
great
because
in
a
lot
of
instances,
you've
got
most
of
the
folks
that
we've
been
representing,
which
are
the
statutory
neighborhood
organizations
which
have
certain
limitations
number
one.
Q
There
aren't
that
any
of
them
and
there
are
geographic
restrictions
on
their
ability
to
step
in
in
place
of
one
or
more
defendants
or
to
actually,
you
know,
vindicate
the
needs
of
the
building.
Obviously
the
city
isn't
so
constrained.
They
have,
you
know
great
standing
to
come
in
and
just
do
that
individual
individual
tenants,
oftentimes,
don't
know
what
their
rights
are.
They
don't
know
what
the
housing
code
is
necessarily
going
to
provide
them,
they're,
not
going
to
necessarily
have
the
resources
or
the
know-how
to
implement
their
legal
rights.
Q
Obviously,
the
many
barriers
of
court
that
people
of
of
low
means
may
have
specifically
in
one
of
the
TRA
actions
we've
brought
out
of
the
friends
portfolio.
There
was
an
administrator
appointed,
but
the
referee
in
that
case
didn't
give
building-wide
relief
to
this
disgorgement
theory
of
not
having
a
valid
rental
license.
So
that's
a
barrier
that
that
particular
actually
to
tenants
faced
in
the
30:57
tra.
Q
Our
client
ix
was
able
to
obtain
rent
abatement
for
everybody
and
so
you're,
subject
to
a
lot
of
differences
depending
on
what's
going
on
in
a
particular
case,
the
city
just
doesn't
face
those
hurdles.
City
gets
to
go
in
and
I
would
argue
and
suggest
that
litigation
is
a
natural
tool
in
the
regulatory
and
enforcement
toolbox
that
the
city
has
available
to
it
and
I'm
thrilled
to
see
them
doing
the
things
that
they're
doing
now
in
some
of
these
cases,
sort
of
geek
out
a
minute,
there's
really
not
standing
challenge.
You
know.
Q
Neighborhood
organizations
need
to
get
written,
consents
by
a
majority
of
the
tenants
in
the
building.
The
city
can
just
file
because
they're
the
city
and
they
have
the
enforcement
standing
to
do
that.
The
city
isn't
constrained
about
individual
damages
or
challenges.
They
can
look
at
a
global
portfolio
and
certainly
the
building
itself,
there's
great
support
for
for
the
city
and
any
frankly,
state
actor
to
get
restitution
for
whatever
is
appropriate.
Q
So
we
have
all
these
rules
we've
great
ordinances.
They
say
great
things.
We
have
great
state
laws,
they
say
great
things,
but
implementing
them
effectively
to
effect
a
total
solution
to
cases
isn't
always
easy,
and
my
partners
can
tell
you,
from
the
amount
of
pro
bono
hours
we've
put
in
the
last
three
years
and
other
hours
on
this
class
action
that
that's
just
true
administrators
are
a
wonderful
remedy,
that's
available
in
their
number
of
different
statutes.
They
get
to
come
in
in
place
of
a
bad
landlord
and
do
the
things
that
need
to
be
done.
Q
They
get
to
hire
professionals,
they
get
to
get
it
up
to
code.
They
collect
rent,
they
evict
tenants
who
don't
pay.
They
operate
functionally
as
a
landlord.
The
challenge
that
we
found
is
sometimes
the
rent
associated
with
that
particular
building
isn't
enough
to
finance
what
needs
to
be
done
and
in
the
convert
folio
in
particular
the
referee.
Q
There
is
a
revolving
fund
of
the
city.
There
are
philanthropic
avenues
available
to
provide
short-term
funds
or
a
longer-term
commitment.
Those
get
tapped
pretty
quickly
in
a
large
unit
building,
and
so
one
of
the
things
that
we
found
in
the
one
of
the
friends
offshoots
was
that
the
title
was
clouded.
So
even
though
we'd
been
able
to
go
ahead
and
find
a
lender,
a
philanthropic
lender
who
was
prepared
to
hand
over
the
money
and
all
they
wanted,
was
a
security
interest
to
satisfy
that
obligation.
Q
Okay,
this
is
the
big
one
for
me.
I
didn't
know
before
this
case
started
that
children
are
Canaries
when
it
comes
to
lead
paint.
I
didn't
know
that
lead
paint
violations
issued
by
the
Minnesota
Department
of
Health
or
the
city
of
Minneapolis
or
the
EPA
for
that
matter
are
generally
preceded
with
a
kid
who's
already
too
late.
Q
What
happens
is
a
kid
gets
infected
the
blood
the
blood
levels
are
passed,
whatever
the
number
is
and
they're
a
doctor
and
they're
having
whatever
developmental
problems
that
they're
going
to
have
and
all
of
the
things
that
are
going
to
drastically
change
the
course
of
their
young
lives,
and
it's
at
that
point
where
things
get
reported
up.
The
chain
and
the
appropriate
regulatory
bodies
go
out
and
look
at
the
school
where
they
live
and
try
to
figure
out.
Where
did
this
child
get
exposed
to
lead?
Q
So,
in
January
of
last
year,
mr.
friends
had
two
buildings
that
had
been
cited
by
the
city
for
lead
violations,
both
of
which
were
preceded
by
sick
kids.
And
so
you
know
one
question
you
know
we
have
is
the
the
number
of
instances
are
not
clear
and
others
a
lot
of
articles
that
have
come
out
in
the
last
six
months
or
so
about
where,
and
parts
of
Minneapolis
are
more
and
less
affected
by
this.
But
when
you
consider
the
gravity
of
the
impact
of
a
single
case,
the
other
stating
are
drastically
changing
somebody's
life.
Q
It's
worth
thinking
about
so
some
dorky
regulatory
stuff.
If
you
have
buildings
that
are
pre,
1978
construction
and
much
of
Minneapolis
has
that
they
are
presumptively
by
law
assumed
to
contain
lead
in
asbestos.
So
what
does
that
mean?
What
means
you
have
to
test?
So
if
you're
gonna
disturb
six
square
feet,
which
is
like
two
by
three
right
and
I
have
rambunctious
boys
and
they
can
break
into
a
wall
that
that
big,
no
problem,
if
you're
gonna
disturb
that
much
or
more
of
law
or
other
structures.
Q
You
have
to
test
to
see
if
there's
lead
paint
or
asbestos
presidents
and
if
you
don't
and
I'll
tell
you
most
people
don't,
but
if
you
don't,
the
law
presumes
that
it's
there.
You
have
to
assume
that
it's
there,
if
you
don't
test
in
the
tester
chief
and
they're
easy
to
do,
but
you
have
to
be
trained
and
licensed
to
do
it.
So
if
you
don't
test,
it's
got
lead
and
asbestos.
So
what
do
you
have
to
do?
You
have
to
use
special
sheeting?
You
have
to
use
special
breathing
apparatus.
Q
Q
You
have
to
do
and
if
you
don't
do
it,
you
can
create
huge
problems
and
the
problem
with
asbestos
is
I'm
not
going
to
know
and
you're,
not
gonna
know
if
you've
been
exposed
to
asbestos
until
forty
years
when
you
develop
horrible
respiratory
problems,
so
in
the
middle
of
our
class-action
lawsuit,
we
got
a
call
and
somebody
had
reached
out
to
a
client
and
said
you
know
what
I
used
to
work
in
a
friend's
building.
They
paid
me
cash
I,
wasn't
legal,
it
wasn't
licensed
and
we
remodeled
the
entire
building.
Q
Q
I
I
Q
Q
Our
experts
reviewed
the
video
and
concluded
that
this
presented
significant
health
hazards.
Their
expert
agreed
part
of
the
what
they
did
is
they
got
a
building
permit
to
replace
120-minute
fire
doors
in
the
building
at
an
expected
cost
of
forty
seven
thousand
dollars.
Not
for
what
we
see
in
these
videos.
So
I
forwarded
the
video
to
a
city
official
and
the
response
I
got
back
was
this
is
the
building
permit
that
exists?
It's
got
a
forty
seven
thousand
dollar
scope
to
be
dealing
with
doors.
Q
I,
don't
know
that
I
agree
that
the
scope
and
value
seemed
to
be
consistent
with
what
was
viewed
in
the
videos.
My
understanding
is
the
renovation
costs
to
this
building
was
in
excess
of
a
million
dollars,
not
the
forty
seven
thousand
dollars
that
would
show
up
in
the
work
permit.
They
did
some
drive-bys,
they
didn't
see
any
activity.
That
was
the
point.
Q
The
entire
point
of
this
operation
was
to
prevent
the
city
from
discovering
that
this
was
going
on,
depriving
the
city
of
building
permit
fees,
depriving
the
state
of
increased
property
tax
fees
we
can
go
on
and
on
and
on
about
that,
the
challenge
is
into
that.
That
happened,
and
it
was
a
lackluster
response
from
the
city.
The
challenge
is
who's
supposed
to
be
on
top
of
this,
because
the
EPA
has
a
bunch
of
stuff
on
it.
Q
Hud
has
a
bunch
of
stuff
on
it,
the
state
does
the
county
does,
and
the
city
does
so
I
come
to
you
with
something
that
I
would
just
ask
about,
as
we
know
that
this
creates
such
a
huge
health
problem
and
there's
not
a
clear
set
of
inspectors.
Certainly
at
the
city
level,
we've
interviewed
one
of
them.
He
doesn't
have
training
in
this
stuff.
A
A
I'll
say
that
I'm
going
to
suggest
at
the
end
of
any
conversation
that
we
have
I'm
already
working
on
the
one
of
the
issues,
the
truth
and
Salem
housing
for
buildings
of
four
or
greater
and
I've
had
an
opportunity
to
talk
to
staff
about
that,
as
well
as
I've
been
working
on
the
TRA
issue
for
quite
a
long
time
now
and
we're
making
a
lot
of
progress
on
that
I
know.
Councilmember
Gordon
has
shown
a
lot
of
leadership
over
time
on
lead
issues
and
so
I,
don't
know
those
three
efforts.
A
I
think
we're
going
to
get
underway
as
a
result
of
what
you
have
suggested.
I'm,
not
sure
we
need
a
formal
motion
in
order
to
do
that
when
there
are
council
members
who
are
very
passionate
about
doing
that
work,
but
I
very
much
appreciate
your
work.
As
you
know,
306
is
in
my
ward
and
I
was
made
aware
via
video
and
I
did
pass,
that
on
to
staff
and
the
result
we
got
the
same
response.
A
A
Would
like
you
to
leave
them
behind
if
you
would
and
I
also
just
want
to
note
for
our
leadership
staff
too.
This
is
not
any
kind
of
negativity
or
indictment
about
the
job
that
the
city's
done
and
you
shouldn't
take
it
as
such.
No
one
up
here
is
mad
or
angry
or
screaming
that
there's
some
sort
of
giant
problem
that
has
to
be
solved.
These
are
some
very
targeted
interventions
that
I
think
everyone
would
agree.
A
It
would
be
good,
I
mean
I,
don't
think
anyone
has
been
pushing
the
TRA
thing
more
than
Susan
over
the
past
two
years,
so
we're
not
getting
resistance
from
staff,
but
I
think
it's
important
to
daylight.
What's
going
on,
so
that
this
does
not
happen
again
and
poor.
Mr.
shuckman
has
been
through
this
with
Sparrow
Savalas
and
then
with
Steve
friends,
I,
don't
I
think
he
probably
has
stress
from
dealing
with
this
in
the
first
place.
Q
And
I
would
just
add
that
the
challenge,
of
course,
is
you
know
the
rules
that
are
on
the
books
work
best
when
most
of
us
do
what
I
think
most
of
us
do.
We
try
to
follow
them
and
if
we
color
outside
the
lines
a
little
bit,
we
deal
with
those
consequences
and
move
on
when
somebody's
prepared
to
come
in
and
completely
obfuscate
ownership
and
activity.
Q
R
R
Post
it
on
the
agenda,
so
then
that
people
can
go
back
and
review
some
of
those
recommendations.
One
of
the
things
that's
going
on
here,
a
little
bit
I
think
is
that
it's
the
Health
Department
and
our
health
inspectors,
who
are
most
experts
in
lead
and
what
to
look
for
and
what's
going
on
and
it's
hard
for
them
to
always
get
in
buildings
a
lot
of
times.
E
Think
you,
madam
chair,
I,
also
want
to
thank
you
for
putting
this
presentation
together.
This
was
very
informative.
I've
been
thinking
a
little
bit
about
one
of
the
things
you
talked
about.
That's
obviously
one
of
the
things
we
should
take
very
seriously,
which
is
what's
the
city
doing
that's
actually
making
it
harder.
You
know
that's
really
good,
so
that
was
a
really
interesting
kind
of
way
to
open
this
and
I
was
trying
to
picture
what
I
think
it's
very
challenging
to
come
up
with
language.
E
I
E
Q
I
can't
even
tell
you
that
the
city
was
aware
of
our
legal
theory
when
that
notice
came
out
right,
so
I.
Don't
think
that
that
was
even
a
thought.
So
I
would
have
said
something
like
you
know.
This
business
will
continue
to
operate
until
further
notice
through
the
appeal
period
or
whatever
the
city's
position
was
going
to
be
when
services
license
revocation
took
place.
The
city
stayed
enforcement
of
the
revocation
through
the
full
appeal
to
the
United
States
Supreme
Court,
so
he
was
allowed
to
continue
to
operate.
Q
For
you
know
a
little
over
two
years
after
the
original
revocation
took
place.
You
know
so
you're
dealing
with
a
big
chunk
of
time,
where
there's
probably
some
uncertainty
with
tenants
and
what's
gonna
happen,
and
when
is
the
appeal
going
to
come
down.
I
think
speaking,
to
tenants
and
in
less
legalistic
form
would
have
been
a
simpler
solution,
but
I
was
into
the
room
and
I,
don't
know
who
knew
what
but
I
think
the
tearing
system
is
something
that
surprised
me
to
write.
I'm
tier
one
I,
don't
know
what
that
means.
Q
So
I
had
to
call
the
city
and
figure
out
what
that
meant
and
as
it
turns
out,
not
a
ton,
it
means
you're
not
on
the
naughty
naughty
list,
you're,
not
on
the
radar.
For
that
yet
so
I
don't
know
that
I
have
a
suggestion,
but
it's
just.
It
was
sort
of
funny
to
see
that
those
hurdles
presented
themselves.
D
Yeah,
madam
chair,
thank
you
for
the
presentation.
I'll
just
reiterate
that
and
thank
you
for
coming
to
given
this
presentation
yeah
there
are
a
number
of
us
that
are
on
the
council
that
are
working
on
tenant
protections,
to
figure
out
how
we
have
this
happening
less
and
less
I.
Think
a
lot
of
tenants
have
led
the
fight
and
advocating
for
themselves,
which
I
think
is
how
it
should
be,
but
also
you
know
unfortunate
that
they're
put
in
that
situation
advocate
for
themselves.
D
One
of
the
things
that
sort
of
comes
up
in
conversations
as
you
start
to
talk
about,
you
know
what
what
could
tenant
protections
look
like.
Is
this
this
idea
that
you
know
sir
Bhalla
friends
mark
Wilkins
said
this?
Is
you
know
these
are?
This
is
not
really
happening
on.
You
know
any
kind
of
scale
that
that's
like
far
outside
of,
like
you
know,
just
a
handful
of
names
that
we
could
probably
list
off
on
on
two
to
four
hands,
but
I'm
skeptical
that
I
don't
think
it
is
like.
D
You
know,
totally
out
of
control,
but
I
wanted
to
know
from
your
experience
in
dealing
with
this.
Do
you
think
that
there's
much
much
more,
that
is
not
being
revealed
that
we're
not
catching
or
do
you
think
that
you
know
sort
of
the
the
names
that
bubble
to
the
surface
are
the
ones
that
are
the
main
perpetrators.
Q
It
just
can't
be
done,
and
so
I
would
say
that
to
the
extent
the
system
can
make
those
declination
--zz
less
dramatic.
It
almost
won't
matter
how
nefarious
certain
people
might
want
to
be
because,
as
long
as
the
conditions
are,
what
the
tenants
are
paying
for
bad
intentions
will
hopefully
not
matter
much
anymore.
Q
I
think
what
what
I've
seen
in
some
of
the
transactions
that
are
troubling
in
the
various
litigation
is
people
are
looking
at
it
not
as
an
asset
purchase
and
not
a
condition
of
property.
There's
not
appraisals
that
are
going
along
with
this
you're,
not
getting
a
lot
of
conventional
financing.
You're
looking
at
cash
flows,
how
much
can
I
keep
that
cash
flow
going
until
somebody
may
come,
knocking
and
I?
A
A
I
just
wanted
to
see
if
anyone
on
our
leadership
team
who
was
here
wanted
to
say
something.
This
is
not
a
rebuttal
by
the
way
or
a
condemnation
of
the
city,
but
some
ideas
about
what
we
could
do
to
move
forward
and
I
think
that's
the
appropriate
thing
to
do,
and
then,
when
we
have
experts
in
our
community
working
for
free,
basically
for
us
you're
not
working
for
free.
Ultimately,
we
should,
you
know,
dwell
upon
what
you're
doing
and
try
to
use
that
expert.
A
A
Hopefully,
because
they're
hearing
I
mean
when
you
have
the
city
attorney
the
Reg
services
director
that
the
director
of
cpad,
the
civil
rights
director,
the
deputy
city
attorney
here,
I-
think
we
should
just
see
if
they
have
anything.
They
want
to
add
they've
all
been
passionately
working
on
this
as
well.
But
thank
you
so
much,
and
did
you
want
to
introduce
your
team
who's
here
today?
So.
A
S
Susan
Siegel.
Thank
you,
madam
chair
I,
want
to
thank
mr.
Coxon
and
the
his
wonderful
group
of
lawyers.
This
is
not
the
first
time
that
fakery
has
come
in
on
a
pro
bono
basis.
I
remember
the
TJ
Waconia
tenant
remedies
action
where
we
were
able
to
get
a
result
there.
We
have
learned
and
grown
a
lot
over
the
last
few
years
and
our
eyes
have
been
opened
and
the
three-strikes
ordinance
was
already
in
ordinance
when
I
became
City.
S
I
know
all
of
us
city
staff
into
learning
and
in
doing
better.
In
this
whole
issue
of
housing
and
affordable
housing,
I
mean
it
is
a
huge
issue
and
it
is
being
placed.
You
know
right
on
your
shoulders
as
policymakers,
as
the
federal
government
has
completely
I'm
not
completely,
but
continually
reduce
their
investment,
which
is
outrageous,
and
you
know
the
the
state
also
probably
has
not
stepped
up
to
the
plate
here,
leaving
a
lot
of
it
on
municipalities
really
well.
A
It's
also
about
the
regulatory
structure,
that's
in
place
as
we
move
forward
with
affordable
housing,
and
we
have
an
opportunity
on
this
committee
to
really
make
some
positive
change
to
help
people
who
are
already
living
in
this
housing
and
need
to
be
living
in
better
conditions.
So
we
don't
have
to
have
a
group
resenting
them
in
the
future.
So
if
anyone
on
the
committee
is
interested
in
the
issues,
I
brought
up
and
I
know,
councilmember
Gordon,
I'll
assume
he'll
be
working
on
the
leather
shoe.
A
Why
don't
we
talk
privately
about
what
the
next
steps
will
be?
But
I
want
to
thank
you
for
being
here
today
and
just
see
if
anyone
else
has
any
closing
thoughts
or
questions,
seeing
none
we'll
move
to
receive
and
file.
The
report
on
the
tenant
remedies,
actions
against
MOC,
Mouton
and
Steven
Franz
further
comments
or
questions,
seeing
none
all
in
favor
signify
by
saying
aye,
and
he
opposed
that
has
been
receiving
file,
seeing
no
furthers
business
before
us.
We
are
adjourned.