Nonprofit Agate to open new affordable housing, shelter complex in south Minneapolis

Agate Housing and Services aims to start construction in the new year on a $25 million emergency shelter and affordable housing project in south Minneapolis, part of an effort to boost help for a growing number of Minnesotans in need.

The project, slated to open in 2026 with 48 apartments and 54 shelter beds for adults, comes as homeless encampments continue to grow and shelters fill up across the state, said Michelle Perrin, Agate's director of outreach and shelter. She added that more than 2,600 people are homeless in Hennepin County alone.

"The need is definitely there," she said. "As prices rise due to inflation, we're going to see an increasing number of people experiencing homelessness, if we can't house the people who are currently homeless. That number is going to continue to grow."

The project still needs approval from various government entities before construction can begin in 2023 in the Longfellow neighborhood.

Agate, a Minneapolis nonprofit formed in 2021 by the merger of St. Stephen's Human Services and House of Charity, is fundraising and requesting public aid to meet the project cost.

In the last legislative session, $10 million was included in a bill to support the project, but the bill didn't pass. Now that state officials are reporting a historic $17.6 billion surplus, Agate leaders are hopeful for state funding, said Paul Verrette, the nonprofit's director of advancement and community engagement.

Verrette said Agate plans to cover three-fourths of the project's costs with city, county and state funds, with the balance coming from donors, foundations and corporations.

"We really are appreciative of all the public support we're getting for this," he said.

The Minneapolis City Council last week approved 9% tax credits to incentivize investment in the project that could translate into about $8 million in equity for Agate. A donor also gave $1.5 million to purchase the partly vacant site in the 2800 block of 27th Avenue S.

The project, which is being developed by Trellis Co. and UrbanWorks Architecture, will be Agate's third shelter in Minneapolis. An existing shelter it was intended to replace will remain open, allowing Agate to expand the number of its beds for people in crisis.

Agate held focus groups with homeless people and shelter providers to gather feedback on how the new development might better serve people in need. That input led to a design plan with ample storage and quiet private spaces to decompress, rather than large lounge rooms.

The facility will have 54 shelter beds in small dorm-style rooms, reflecting a growing trend away from congregate-style shelters with rooms packed full of cots. While offering more privacy adds to the cost of the project, Perrin said she hopes it will be a more effective model in terms of helping people in need land on their feet.

"It's worth the investment," she said. "Think about when you're having a rough day and you have to have that rough day in a room full of 40 other people. It's really hard to navigate through that crisis. ... Every single person we serve is in crisis."

The 48 subsidized apartments — a mix of single-room occupancy, studios, one-bedroom units and shared suites — will connect residents to case managers and other resources.

The Agate development is one of a number of recent nonprofit projects planned to help Minnesotans struggling with homelessness. Avivo opened private indoor "tiny homes" at Avivo Village in 2020 in Minneapolis, while Catholic Charities of St. Paul and Minneapolis opened a new shelter with mostly private rooms for homeless youth this year. Simpson Housing Services will break ground in June on a 70-bed shelter and 42-unit apartment complex in Minneapolis.

Even so, Perrin said there still won't be enough beds for every Minnesotan who needs a safe place to stay.

"The need is so great. ... I hope to see more projects like this in our community," she said.