Minneapolis struggles as its City Council prioritizes nonsense

Economic woes

News broke this week of continued dramatic decreases in downtown Minneapolis commercial building values. Council member Michael Rainville, one of the few reasonable members, reported to KSTP that this sector of real estate has dropped in value by 45% in just the past five years- $7.5 billion in 2021 to just $4.1 billion in 2026. “It’s terrible,” Rainville said of the situation.

What’s worse is that the decline seems to be accelerating, despite six years having passed since the economic downturn from COVID. City data indicates the five highest valued buildings downtown saw a 20% drop in value in just the past year. The iconic IDS Center, for example, has dropped in value from $135 million to $107 million.

Earlier reporting of this trend was met by dismissive responses by a city spokesperson when asked about the impact of this declining tax base on Minneapolis homeowners.

“When one says that ‘declining market values = homeowners will pay more’ it can be misleading because it implies a direct, automatic shift which is not how the system works.”

Minneapolis City Spokesperson to KSTP April 1, 2026

That response didn’t age well, given recent reports that the percentage of property taxes that Minneapolis homeowners are now responsible for has increased by 6.2% since 2021 – now approaching 56%.

These taxbase woes add to a worsening city financial crisis – one in which the city is facing a $30 million dollar budget deficit going into 2027.

Minneapolitans can be thankful that Councilmember Rainville is showing concern over the issue. The same doesn’t seem to be true for the Council as a whole.

“Priorities”

The real story seems to be this – a City Council comprised of too many 20 and 30 something councilmembers who lack real world experience and who have focused too much energy on nonsense.

Here’s an “off the top of my head” list of things the Minneapolis City Council has prioritized while its commercial real estate market has collapsed – it by no means captures all of the nonsense:

  • Reducing main roadways like Hennepin Ave to one lane in each direction and eliminating parking to enhance bike and mass transit access. It has hastened the demise of once bustling areas like Uptown.
  • Legalizing and promoting bathhouses catering to anonymous gay sex.
  • Resisting Mayor Frey’s policy to prohibit homeless encampments. The ongoing human tragedy playing out under the highway 55 bridge at Cedar Ave, and elsewhere, is inexcusable.
  • Spending time and resources on proclamations and resolutions denouncing a variety of federal policies involving for example Cuba, Gaza, or ICE enforcement.
  • Entered into a $1.4 million contract with a firm to provide coaching and counseling between councilmembers and the mayors office to help these “leaders” govern more civilly.
  • Opposed former police chief Brian O’Hara at nearly every step, despite his hiring being primarily to carry out the terms of the consent decrees that the Council sought to have in place. O’Hara’s recent resignation, coupled with the Council’s opposition to Community Safety Commissioner Toddrick Barnette, makes it unlikely the position will be viewed favorably by many quality candidates.
  • Opposed a community supported plan to re-open 38th and Chicago, referred to as George Floyd Square, to regular traffic after six years of studies and plans to “transform” the intersection.
  • Opposed multiple plans to rebuild the burned-out 3rd Precinct police station which was firebombed by rioters during the 2020 “uprising.”
  • Opposed ordinances or enforcement of livability issues, such as loitering, begging, spitting on sidewalks, possessing drug paraphernalia, and “urban camping.”
  • Proposed allowing homeless individuals with cars to legally sleep in designated parking lots throughout the city.
  • Hosted the first ever transgender “drag show” in Minneapolis City Hall in honor of Pride month 2026.

Takeaway

When the city’s leaders are mired in high-profile infighting and symbolic social activism, they lose the ability to focus on the issues that matter – providing for public safety, establishing a business-friendly environment, and ultimately enhancing the tax base.

Minneapolis voters are facing the direct consequences of the progressive council members they have repeatedly elected.