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City Council Renews Hotel Liquor Licenses After Heated Debate Over ICE Housing

After a contentious debate over hotels housing federal immigration agents, the Minneapolis City Council voted to renew downtown hotel liquor licenses, highlighting deep divisions over worker safety, immigration enforcement and downtown’s future.

12:16 AM CST on March 1, 2026

Minneapolis City Hall. (Image: Courtesy of the City of Minneapolis)

Terry White is a regular contributor. He is also the author of the Better Minneapolis newsletter and podcast. He lives in Field.

The Minneapolis City Council voted 8-5 to renew liquor licenses for two downtown hotels after weeks of debate over whether the businesses should be penalized for sheltering federal immigration agents.

Sharp divisions on the council are becoming the norm, not the exception.

"What should have been routine became a flashpoint at City Hall."

Worker safety, ICE activity and downtown’s future collided in a single vote.

Minneapolis City Hall. (Image: Courtesy of the City of Minneapolis)

What is typically a routine renewal became a flashpoint as some council members argued that the hotels’ actions endangered workers and warranted further review. Others said there were no legal grounds to deny the licenses.

Voting against renewal were Council Members Aurin Chowdhury, Elliott Payne, Aisha Chughtai, Robin Wonsley and Jason Chavez.

“Worker safety, ICE activity and downtown’s future collided in a single vote.”

Chowdhury, who led the push to delay reconsideration of the renewals, became emotional during deliberations. She cited testimony from hotel workers who said they felt unsafe at work and feared retaliation for speaking publicly. Some workers asked others to testify on their behalf.

At a Committee of the Whole meeting, workers described being told to avoid certain areas of the hotels and said a window was covered so agents would not see staff members. Chowdhury argued the situation raised potential civil rights concerns and said the city should create a secure way for workers to document incidents if Immigration and Customs Enforcement agents return.

Wonsley echoed those concerns, referring to “Occupation Metro Surge.” She said approving the renewals without further review would amount to the council acting as a rubber stamp.

City officials said a review of 311 and 911 calls showed no documented safety concerns that would justify suspending the licenses. Council Vice President Osman and Council Members Michael Rainville and Jamison Whiting cited the lack of legal grounds as a deciding factor in their support for renewal.

Osman, however, cautioned businesses to “be careful” about whom they partner with to avoid similar controversy.

Several members, including Rainville, said the public dispute had already hurt downtown businesses. Council Member Linea Palmisano said the city should focus on revitalizing downtown.

Some council members also noted that the alleged conduct was unrelated to alcohol service. While the liquor licenses were renewed, the hotels’ business licenses could still be reviewed when they come up for renewal in November.

Committee Assignments Spark Dispute

Appointments to boards and commissions also drew sharp disagreement.

Ward 7 Council Member Elizabeth Shaffer objected to being removed from the Meet Minneapolis Executive Committee, a seat traditionally held by the Ward 7 representative because the Minneapolis Convention Center is located in the ward.

Wonsley, Osman and Chowdhury argued tourism policy should not focus primarily on downtown. Shaffer said Payne had previously assured her she would hold the position and that the change was made the day before the meeting without notifying her.

Ward 4 Council Member LaTrisha Vetaw also criticized Payne, accusing him of misleading her about her appointment to the Municipal Building Commission. The seat instead went to Chughtai.

While Payne has authority to make appointment changes, Palmisano said he did not consult colleagues and was disproportionately favoring more left-leaning members of the council.

Chowdhury defended Payne, saying the organization is called “Meet Minneapolis,” not “Meet Downtown,” and urged colleagues to improve communication.

“Sharp divisions on the council are becoming the norm, not the exception.”

The council ultimately voted 7-6 to amend the agenda item and restore Shaffer to the Meet Minneapolis Executive Committee. Vetaw said she hoped Chughtai would be successful on the Municipal Building Commission, which negotiates with Hennepin County over city building operations.

The contentious debate continued a pattern of sharp divisions that have marked recent council meetings and suggested ongoing tensions at City Hall.

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