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Council advances 50‑year lease for downtown patio at 211 Commerce amid objections over public land and no rent
Summary
The council approved second reading of a 50‑year lease for a downtown patio at Third and Commerce that includes building a fire substation; supporters cited activation and first‑responder benefits while opponents said Metro gives away public land with minimal direct revenue.
The Metropolitan Council approved the second reading of an ordinance authorizing lease agreements between Metro and PNH Properties LLC for outdoor patio space at 120 Third Avenue North and 211 Commerce Street, moving the matter forward after committee review and a council amendment.
Proponents said the proposal will activate an underused downtown patio and provide an underground fire substation that the city has requested. Sponsor Councilmember Koopin told the council the space is currently passive and that the operator will program events, manage operations and build the substation, which officials said will provide operational benefits for first responders.
Councilmember Evan Siegel moved an amendment adopted by the council that requires the park to remain open to the public when private events are not occurring, updates insurance provisions periodically and reduces the buyout amount should Metro terminate the lease (the buyout would be reduced by revenue the lessee had received). After the amendment passed, Koopin renewed his motion and the second‑reading vote passed as amended.
Opponents argued the agreement amounted to giving away public park space for decades while the city would not receive direct rent payments. Councilmember Welsh questioned the financial trade‑off, noting the lease runs decades and that the lessee would keep revenue. “Once what is built there is built there, that is going to increase the value of that particular piece of property,” she said, and argued Metro should secure more direct compensation for long‑term use.
Supporters said the lease contains protections added during committee consideration and that programming and the substation would provide public benefits. The ordinance includes provisions approved in committee and the council amendment to limit impacts on public access and add periodic review of insurance levels.
Action: The ordinance authorizing the two leases was approved on second reading as amended; the lease term is long‑term and contains public‑access requirements and insurance/update provisions per the council amendment.
Ending: The ordinance will return for a third and final reading at a future meeting; council members who opposed the measure said they would continue to press for stronger direct financial returns to Metro when public land is leased long term.
