Hennepin County approves sale of Federal Plaza to People Serving People for 55‑bed family shelter

The Hennepin County Board of Commissioners on July 14 declared the downtown Federal Plaza property surplus and authorized its sale to the nonprofit People Serving People for use as a 55‑bed family shelter.

County staff told the board the site had been purchased by the Hennepin County Housing and Redevelopment Authority in 2020 and used as a pandemic shelter and later for family shelter operations. Staff said the property was vacated in May 2026 and an RFP earlier this year produced a preferred proposal from People Serving People based on alignment with county priorities, proposed terms and an advantageous timeline.

Staff outlined the financial terms the board approved: a $5,500,000 purchase price, with $4,500,000 of that structured as a deferred loan that is conditional on the property remaining in family‑shelter use for at least five years. County staff said the deferred portion is intended to preserve long‑term shelter use while minimizing upfront costs.

The county indicated its goal is to have the property online for family shelter use by October 2026; staff said there is work to be completed to ready the building and that the immediate approval is intended to speed the transfer and reduce costs and risks. County staff emphasized this site will be part of the county’s family shelter system and used to augment capacity during periods of high demand.

Commissioners praised the county’s stewardship of pandemic funds and the repurposing of the facility. One commissioner thanked staff for acknowledging the building’s recent history and the families who had lived there; another said the reuse shows federal COVID funds delivered a lasting community benefit. The board voted by voice to approve the sale.

The motion to declare the property surplus and authorize the sale passed by voice vote. The board did not record a roll‑call tally in the transcript; the chair called for those in favor and members responded "aye."