The Nicollet Island-East Bank Neighborhood Association, Marcy-Holmes Neighborhood Association and Southeast Como Improvement Association are contemplating merging their operations. (Nicollet Island-East Bank Neighborhood Association)
Neighborhood associations are key to city living as the largely volunteer-staffed groups provide services, events and resources to bring neighborhood residents closer together and keep the neighborhoods vibrant. But at the end of the year, key neighborhood association funding sources provided by the State of Minnesota will sunset, prompting many associations to explore ways to reduce costs and increase efficiencies.
Neighborhoods once received state funds through the Neighborhood Revitalization Program, which targeted maintaining and preserving housing. In 2024, Minneapolis budgeted $15,000 per neighborhood from its Neighborhood Network fund and $5,000 per neighborhood from the Equitable Engagement Fund to encourage participation by BIPOC community members; those monies came from the city’s general fund. Mayor Jacob Frey’s proposed 2025 budget allocates the same amounts.
Consolidating neighborhood associations is one tactic being actively explored by three contiguous neighborhoods, Nicollet Island-East Bank, Marcy-Holmes and Southeast Como. These neighborhood associations will take the idea to residents for a vote in September and October.
But it’s not just less funding that raises questions about consolidation. Jeff Larkey, president of the Nicollet Island East Bank Neighborhood Association, shared his thoughts. “Our board approved consolidation unanimously, but there was some reluctance. The two biggest concerns are governance, and losing the hyper-local autonomy we have. We’re a volunteer organization. Are folks going to volunteer in something 30 blocks away versus ten blocks away? You reduce costs, but there may be volunteer dilution. That’s the trade-off. The board is willing, but mindful of the risk.”
Steven Gallagher, Minneapolis Neighborhood Programs Manager, has seen an increased interest in consolidation. In addition to the three East Bank neighborhood associations, seven other neighborhood associations are exploring the idea, and others are holding informal discussions. At this time, there are 69 neighborhood associations in the city. During his discussions, he’s heard similar concerns but seen positive outcomes.
“Residents fear losing their identity as a neighborhood so the mergers have to keep in mind how to retain that. So far, they’ve done that by maintaining their neighborhood events and continuing what the neighborhoods expect. It’s worked out well. The greatest positive piece when you expand the number of members, they’re receiving more volunteers that work across the boundaries. That is a major benefit. Especially in a heavily volunteer-reliant environment.”
A recent neighborhood association consolidation may provide a blueprint for others to work from.
Katie Kottenbrock has seen the impact of consolidation first hand as a board member of the Lower Northeast Neighborhoods Association, which was formed in 2023 when the Beltrami and Northeast Park neighborhood associations merged. “Overall, I think our consolidation went well. We now have more funding, and more space so we’ve been able to accomplish a lot. It’s been exciting to see the beginnings of what we can become.”
In terms of the impact on volunteer participation, she said, “We’ve actually seen an increase in volunteers. In the past, we found ourselves drawing from the same pool of people, but now we have a bigger pool and additional volunteer opportunities.”
In terms of ensuring neighborhoods maintain their uniqueness, she said, “We worked really hard to listen and understand what things were unique and important in the neighborhood, and to retain those things through our work.
“I’d also say that open communication is the most important thing. If people are concerned about merging, they need to raise those concerns and be heard.”
Residents of the three East Bank neighborhoods will soon have a chance to weigh in on the proposed merger. Each association will use the online service Election Runner to conduct electronic voting by their membership, and voters will have 72 hours to review and submit their ballot.
Consolidation voting begins: Nicollet Island East Bank: Thursday, Sep. 19; Marcy-Holmes: Tuesday, Oct. 1; and Southeast Como: Tuesday, Oct. 1.