The Minneapolis City Council voted 8-5 on Thursday to renew the liquor licenses for two prominent downtown hotels, ending weeks of heated debate over allegations that the establishments housed federal immigration agents during a recent enforcement surge.
The decision to approve the renewals for the Canopy by Hilton and the Renaissance Minneapolis Hotel, The Depot, followed a period of intense scrutiny from progressive council members and activists. Despite testimony from hotel workers and community members regarding safety concerns, a majority of the council ultimately agreed with city staff and legal advisors that there was no lawful basis to deny the licenses.
Legal and Economic Concerns Carry the Vote
The approval was a victory for those who argued that the city’s licensing power should not be used as a political tool or a means of retaliation against businesses for the clientele they serve. City licensing officials and legal counsel repeatedly warned the council that the hotels had met all regulatory requirements for liquor license renewals and that withholding them based on the presence of federal agents could expose the city to significant legal liability.
Council Member Michael Rainville, who represents the downtown district where the hotels are located, was a vocal supporter of the renewals. Following the vote, Rainville expressed relief that the council had avoided what he characterized as a potentially costly legal error.
“I’m thankful the council got it right,” Rainville said in an interview. “It was clear that we had no legal authority to deny these licenses. After talking to the operators of both hotels, it was evident they care very much for their staff and are working to maintain a safe environment. We cannot punish businesses for following the law.”
Council Member Elizabeth Shaffer echoed these sentiments, noting that targeting specific businesses could damage the city’s reputation as a reliable place for commerce. Shaffer warned that delaying or denying the licenses sent a “negative message” to the business community and risked further destabilizing a downtown economy that is still recovering from the pandemic and recent civil unrest.
“What we say up here on this dais, what we say in the media, and what we say on our social media pages definitely affects businesses,” added Council Member LaTrisha Vetaw during the meeting. “We have to be responsible with our platform and stick to the facts of the licensing process.”
A Divided Council
The debate was sparked by “Operation Metro Surge,” a federal immigration enforcement operation that brought an estimated 3,000 agents to the Twin Cities. Protesters and union representatives from UNITE HERE Local 17 alleged that ICE agents staying at the Canopy and The Depot created a hostile and unsafe environment for staff, many of whom are immigrants or from mixed-status families.
City Licensing Manager Amy Lingo informed the council that an investigation into the hotels found no “extraordinary safety concerns” or increases in emergency calls that would justify a denial. While Lingo acknowledged that some workers reported feeling anxious about the presence of armed agents and unsecured weapons in rooms, she noted that such issues pertained to hotel operating licenses rather than liquor licenses.
“There is no good cause to deny these renewals, and I am unable to recommend any conditions to place on the liquor licenses,” Lingo testified.
Joining Rainville, Shaffer, and Vetaw in the majority were Council Members Jamal Osman, Jamison Whiting, Soren Stevenson, Linea Palmisano, and Pearll Warren.
Dissenting Voices Highlight Worker Safety
The five council members who voted against the renewals—Aurin Chowdhury, Aisha Chughtai, Jason Chavez, Elliott Payne, and Robin Wonsley—argued that the council had a duty to investigate the safety claims further. They contended that the presence of federal agents, particularly those who reportedly brought weapons into common areas or behaved aggressively toward staff, constituted a public safety issue relevant to the city’s oversight.
Council Member Aisha Chughtai praised the hotel workers who came forward to testify despite fears of retaliation.
“I want to thank sincerely the very courageous and brave hotel workers who brought this issue to our attention,” Chughtai said. She emphasized that the concerns raised were about the “real danger to public safety” and the psychological toll on employees working in proximity to agents involved in family separations and local arrests.
Council Member Aurin Chowdhury defended the council’s decision to delay the vote earlier this month to allow for public testimony. “I just want to say, ‘I hear you. I understand your fears’,” Chowdhury told workers during the hearing. “Do we want to take a moment to do due process and investigate the situation that our constituents throughout the city have raised up as a grave concern, or not?”
The Path Forward
The controversy has highlighted the deep divisions within the Minneapolis City Council regarding the city’s “separation ordinance,” which prohibits city resources from being used to assist federal immigration enforcement. While the council majority determined that liquor licensing does not fall under the scope of that ordinance in this instance, the debate has prompted calls for a broader review of how the city monitors businesses that contract with federal agencies.
For now, the Canopy by Hilton and The Depot will continue their liquor operations without interruption. Management at both hotels, which are owned or operated in partnership with Sherman Associates, previously stated they have attempted to mitigate worker anxiety by keeping staff separate from federal guests where possible.
As the city moves past the vote, the focus of the council’s progressive wing appears to be shifting toward legislative directives aimed at tracking federal activity more closely and providing financial relief to small businesses impacted by the enforcement surge. A proposal for a $7 million small business support fund, championed by Council Member Jason Chavez, is expected to be a primary focus in the coming weeks.
I was very concerned when I heard that the Mpls City Council was considering discontinuing liquor licenses because a business may or may not have had Federal Agents as their customers. The thought that could have been even possible to consider is alarming. Feels very corrupt and punitive. I hope city residents can vote better than this in the future
At least there’s one city council member who veers toward rationality over radicalism.
Excellent article. At this point the Minneapolis Times is a better source for Minneapolis news than the Star Tribune. One typo caught my eye, it’s Council Member Jamison Whiting, not Jason Whiting. Thanks!
Thanks for the catch, the article is updated. And, thanks for the kind words.
Agree! Appreciate this outlet so much.