Brooklyn Center revokes hotel license after finding homeless medical respite facility inside

The Brooklyn Center Fire Department responded in June to a fire alarm at a hotel — and were surprised to discover homeless residents receiving medical support inside.

Care Chexx, a state-enrolled medical respite provider, had opened inside the extended-stay Suburban Studios that month, advertising 125 beds. The facility offers short-term care for residents with unstable housing who are recovering from surgery or illness.

By the end of June, the City Council had revoked the hotel’s license, throwing the facility’s future into limbo amid a fight over zoning and a lawsuit threat.

Council Member Dan Jerzak said city staffers’ finding that the hotel had violated the city zoning code, which only allowed for a hotel, was enough to revoke the license. He said the decision had nothing to do with “the merits of how wonderful the background is and the things they do and their mission.”

Bryan Huntington, an attorney representing the hotel owner and Care Chexx, sent a letter to the city Wednesday saying they plan to challenge the license revocation in court. He asked the city stay its decision pending judicial review.

“Without immediate resolution or relief, the city’s action threatens to jeopardize both the continuity of care for vulnerable individuals and the viability of hotel operations at the property,” Huntington said in an email.

City officials decided the care facility does not comply with the hotel use under city code and must cease operations after 21 days.

Huntington said Care Chexx has since furloughed roughly 30 nurses and medical staffers, security employees, housekeepers and others. The center has started relocating recuperative care guests.

Jen Amundson, a spokesperson with the Minnesota Department of Human Services, confirmed that Care Chexx is an enrolled recuperative care provider with the state.

She said about 35 providers are participating in the program that launched in 2024 with legislative approval. Care costs are reimbursed for residents experiencing homelessness who have been discharged from a hospital but need a stable place to recover.

The state allows recuperative care services in any setting, including shelters or congregate care centers, as long as they meet several requirements for staffing, services offered and more. Residents are referred to the facilities by hospitals and clinics.

Communities across the country have looked to increase medical respite care as they try to tackle rising homelessness, and as states seek to avoid preventable emergency room visits for Medicaid patients. People experiencing homelessness report spending nights on the street while trying to recover from serious illnesses and injuries.

Hotels have been used for recuperative care facilities, as well as for emergency shelters as several cities have found them easy to convert in order to increase beds.

Care Chexx co-founder Keith Lattimore told the Brooklyn Center council that recuperative care facilities also connect residents with social workers to help with transitional housing and government referrals.

Amundson said providers must follow state and local regulations.

Last fall, a medical respite facility in Minneapolis’ Uptown business district sought city approvals to open, drawing protests from neighbors.

Care Chexx signed a three-year agreement with the Brooklyn Center hotel owner in late May, naming the care provider as the exclusive operator of the building.

City staff said the hotel, at 2701 Freeway Blvd., operates under a development plan that states it cannot be used for any other use without rezoning or other amendments. The hospitality license also requires all guests renting a room to use a credit card.

City officials said the hotel is no longer operating as a hospitality business, and that the hotel owner and operator did not request such approvals.

The hotel license allows for lodging, but not “jails, hospitals, care facilities, senior living centers, residential treatment facilities” or other similar operations.

City staff said a recuperative care facility would likely fall under the zoning code allowing for nursing homes.

But Huntington argued the “city’s interpretation of its ordinances to categorically exclude recuperative care services for all hospitality operators throughout the city is contrary to state and federal law.”

“State statute is clear that recuperative care services may be offered in any setting,” he said in an email. “Hotels are a proper setting for these services.”

Lattimore, the Care Chexx founder, told the council the business remains a hotel and rooms are still available for typical reservations. He declined an interview and deferred questions to his attorney.

On Wednesday, rooms at the hotel were listed as available to rent for about $60 a night on the Choice Hotels website.

Jay Patel, the hotel owner, told the council he is passionate about serving residents in need, and that his building is ideal for recuperative care services because people are allowed extended stays.

Huntington, in a letter to the city, said the business continues to meet the hotel definition, adding that recuperative care clients are “occupying hotel rooms and receiving hotel-like services.” He said the care provided is consistent with other hotel offerings, such as “room service, wellness amenities, and guest check-ins.”

Huntington also argued that the city cannot restrict who uses the property based on socio-economic status.

“It is discriminatory,” he said.

Council members, though, said they trust city staffers’ interpretation of zoning codes.

“If this council would decide not to do anything, that could also be considered a precedent in the future,” Jerzak said.