Agate Housing to close Minneapolis homeless shelter, low-income lodging and food shelf

Agate Housing and Services will close a Minneapolis shelter, a low-income housing facility and a food shelf, citing financial pressure on nonprofits that serve the homeless.

The nonprofit group also cited a lack of funds for much-needed rehabilitation of the 100-year-old building at 510 S. 8th St. Operations at the Food Centre, at 714 Park Ave., will also be paused as additional funding opportunities are explored, Agate said in a news release.

The closure of the 42-bed shelter program and 95-bed low-income residence will affect 29 people in the shelter and 53 individuals living in the “low barrier” housing area. Agate expects to lay off about 23 employees.

“This is an incredibly sad day for Agate,” Executive Director Kyle Hanson said. “It is vitally important to us to provide safe, dignified shelter, and the current condition of this building does not allow us to do that. We have sought resources to preserve this important housing and have not been able to find the dollars necessary for repairs.”

Agate worked with local and state entities to identify funding sources to rebuild but was unable to secure the $3 million needed to make repairs, according to the group.

Agate is working with other shelters, lodging providers and rental owners to rehouse clients. Agate will cease operations at the location on Oct. 9.

The closure of 510 South won’t impact the construction of a new facility in south Minneapolis, which broke ground in June. The new shelter with 54 planned beds should open in 12 to 18 months, Agate spokesperson Virginia Brown said in an email. The shelter would not replace the low-income housing facilities.

“We wish there were more community resources to rehab existing shelter and affordable housing that needs it. Agate isn’t the only organization struggling to keep facilities open and safe right now,” Brown said.