Fine Associates faces $1 million city debt amid tenant lawsuits

Minneapolis residents are questioning how their rent is used while their landlord, Fine Associates, owes the city more than $1 million in unpaid utility bills. The debt covers water, sewer, and trash services at five properties. This financial gap has fueled tension between tenants and the property management company as legal disputes continue.

Councilmember Linea Palmisano identified two downtown apartment buildings as the primary sources of the debt. One building owes the city half a million dollars. The other owes $363,000. City records confirm that both structures are owned by Fine Associates. The total balance across the landlord's five properties exceeds the one million dollar mark.

The Minneapolis City Council voted on Thursday to send all delinquent utility bills to Hennepin County. This administrative step attaches the unpaid balances directly to property tax bills. City officials state that 98% of these combined bills are typically paid. Any remaining balances that are not settled may lead to foreclosure proceedings.

Tenants at Marquette Place and 110 Grant have formed unions and filed lawsuits against Fine Associates. They cite unsafe conditions and delayed maintenance as the core of their grievances. Hannah Crippen, a resident at 110 Grant West, said, "We're receiving invoices, we're paying our rent. So where is that money going?"

Councilmember Elizabeth Shaffer described the unpaid utility bills as a potential slush fund for the landlord. She noted that rent typically includes the cost of water. Shaffer argued that if the landlord collects that money but does not pay the city, the funds remain with the company. "If renters are paying, you know, included in their rent is their water bill and the landlord is not paying the water bill, you know, that's definitely a little bit of a slush fund for them," she said.

Residents report that building issues, including flooding and water damage, have persisted for days or months. Blythe Baird, another resident at 110 Grant West, stated that the building's pool has not been operational since August 2025. She said Fine Associates repeatedly claimed during the lawsuit that the pool was days away from opening.

Fine Associates has not responded to repeated messages from reporters seeking comment. A judge is expected to rule on the outcome of the 110 Grant lawsuit in the next couple of weeks.