CITY COUNCIL MEMBERS ANNOUNCE FUNDING PROPOSAL TO ADDRESS PERMANENT CLOSURE OF DOWNTOWN BOARD AND LODGE/SHELTER 

This funding proposal would provide a $1.5 million grant for the rehabilitation of Agates Board and Lodge Transitional Housing and Shelter Facility at 510 S. 8th Street. 

MINNEAPOLIS: Minneapolis City Council members Jason Chavez (Ward 9), Jamal Osman (Ward 6) and Council President Elliott Payne (Ward 1) are proposing a $1.5 million rehabilitation grant to avoid the closure of a building owned and operated by one of the city’s largest providers of housing, shelter, and food assistance.

The grant proposal is in response to an Aug. 15 announcement by the Agate Housing and Services board of directors that it would be closing its 42-bed shelter program and 95-bed board and lodge program at 510 South 8th St. The organization cited increased financial pressure on nonprofits serving the homeless community and the need for more than $3 million in repairs to safely operate the 100-year-old building. The building is slated to close Oct. 9, affecting more than 80 residents and 23 employees.

This grant would be contingent upon Agate Housing and Services, Inc. securing at least $1.5 million in additional funds by Dec. 31, 2025, for the rehabilitation project. The grant agreement between the city and Agate would include standard contingencies and require an operations plan acceptable to the City’s director of the department of community planning and economic development.

The proposed Agate Housing and Services Rehabilitation Project will be brought to the budget committee at a meeting Sept. 16 at 1:30 p.m.

Despite working with local and state entities to identify funding sources for improvements, Agate was unable to secure the at least $3 million needed to make critical repairs. The Minneapolis City Council is stepping up with resources to preserve this important housing service and prevent its permanent closure.

“We hope that other governmental partners step up, join the Minneapolis City Council, and prevent the permanent closure of these needed services. As encampments continue to be shuffled around our city, we cannot afford to lose critical transitional housing and shelter services. We need to do everything in our power to create more capacity, not less.” said Council Member Jason Chavez, Chair of the Public Health and Safety Committee.

Agate Executive Director Kyle Hanson expressed gratitude for the support from the city. “When we made the announcement, it was the hardest day of my professional career,” Hanson said. “Not only did we have to tell residents and shelter guests that they would need to be housed elsewhere, we had to announce employee layoffs. This grant gives us hope that we can reopen the 510 quickly and continue to offer a safe and stable environment for future residents.”

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.

“Our neighborhoods are seeing a growing number of people living outdoors in tents, which creates significant health and safety concerns for everyone. As winter approaches, the need for safe, indoor shelter options will become even more urgent. Despite ongoing discussions about encampment removals, the city has not provided adequate housing solutions for our unhoused neighbors. Residents of Ward 6 and surrounding wards cannot afford to lose critical resources like Agate.”” said Council Member Jamal Osman, Chair of the Business, Housing, and Zoning committee.

“Words alone will not solve the crisis of unsheltered homelessness in our City. The City Council is committed to doing everything in our power to address this crisis, including putting our money where our mouth is to stop the loss of over 100 beds at Agate’s Board and Lodge Transitional Housing and Shelter Facility.” Council President Elliott Payne said.

For additional questions, contact:

Ivonne Hernandez, Ward 9 City Council Aide
ivonne.hernandez@minneapolismn.org

or

Virginia Brown, VP of External Relations
virginia.brown@agatemn.org or 612-840-3058