State funding snub leaves deal over Roof Depot site in Minneapolis in the lurch

Protests, lawsuits and marathon City Council deliberations over control of a former roofing-supply warehouse have defined a decadelong struggle between the city and environmental activists in the centrally located East Phillips neighborhood of Minneapolis.

The city struck a conditional deal two years ago to sell the Roof Depot building at 1860 28th St. E. and 2717 Longfellow Av. to the East Phillips Neighborhood Institute for $11.4 million. The neighborhood group raised millions in private donations, but had been banking on state bonding for the lion’s share of its obligation. Those efforts stalled out in 2024 and — with the close of this week’s special session — funding proved elusive yet again.

Community organizers, city officials and legislative members of the Minneapolis delegation acknowledged the problem this poses for the sale and peaceful resolution of the protracted Roof Depot conflict. But none had immediate ideas about what comes next.

“We’re disappointed and reviewing options for next steps,” city spokesperson Allen Henry said in a statement.

The city had extended the closing date on the property’s purchase from July 2024 to this fall, contingent on the East Phillips Neighborhood Institute securing funding commitments by the end of May. That deadline was extended again to July 1 in hopes money would materialize through the special session.

Dean Dovolis, board president of the East Phillips Neighborhood Institute and owner of DJR Architecture, said his group is “still working toward a full sale.” He declined to detail funding strategies, saying more information may come later.

“The inability to secure the funding needed to complete the Roof Depot purchase was one of many disappointments coming out of this legislative session,” Rep. Samantha Sencer-Mura, DFL- Minneapolis, said in a statement. “Our Minneapolis delegation fought hard for the funding, but we were ultimately not successful given the political dynamics of the Legislature this year. Nonetheless, we made a commitment to help neighbors realize their vision for the site, and we will continue to be a partner at the table with the city and community to move the project forward.”

The city and environmental activists had long held opposing plans for the 7.6-acre Roof Depot site. Minneapolis’ Public Works Department wanted to build a new water yard with offices, a fueling station and storage for equipment and trucks. Environmental activists organized community pushback against the city’s plans by highlighting the East Phillips neighborhood’s history of pollution and health disparities caused by local highways and heavy industries next to its low-income residential areas.

The East Phillips Neighborhood Institute scored a win in 2023 when the city agreed to sell Roof Depot to the group. But a major condition was that the Minneapolis delegation had to make good on its pledge to obtain $5.7 million from the Legislature to help the city build its water yard somewhere else.

The East Phillips Neighborhood Institute envisions developing an indoor urban farm with aquaponics and a cooperatively owned solar array at the Roof Depot site.