St. Paul City Council Explores Tiered Licensing and Drive-Thru Regulations Amidst Local Startup Challenges
- Meeting Overview:
The St. Paul City Council’s Organizational Committee meeting focused on changes to transportation network company (TNC) licensing and the regulation of drive-thrus in the city. A significant proposal to amend the TNC ordinance includes a tiered structure for licensing fees. Additionally, the committee debated potential restrictions on drive-thrus, particularly in high-density areas, to enhance pedestrian safety and urban design goals.
The conversation began with a discussion on proposed amendments to the TNC ordinance, initially established in 2014. The amendments aim to address the evolving market and improve public safety by ensuring drivers are vetted and vehicles meet safety standards. A key aspect of the proposal is the introduction of random, unannounced inspections. These inspections would allow city inspectors to independently verify compliance by arranging rides through TNC apps and conducting on-site checks. This move would shift the current reliance on documentation provided by TNCs to a more direct verification process. If issues are identified, drivers would be required to submit their vehicles for further inspection within 48 hours.
The meeting also addressed the restructuring of licensing fees for TNCs, acknowledging the financial strain these fees impose on smaller operators. Currently, TNCs pay a flat fee of around $35,000 annually. The proposed amendments suggest a tiered fee structure, with the highest tier potentially decreasing to approximately $12,500 annually. This change aims to reflect the growing number of operators and ensure the fees are equitable, aligning with the resources required for enforcement.
Representatives from the local rideshare startup Move participated in the discussion, highlighting the financial challenges posed by the existing licensing fees and insurance requirements. Move’s CEO advocated for a tiered fee structure to support the growth of smaller businesses, emphasizing the company’s focus on community-centric services, such as providing free rides for students with good academic performance.
Shifting the focus to drive-thrus, the committee explored their impact on urban design and community safety. Currently, drive-thrus are prevalent along major thoroughfares, with only a few existing in St. Paul. Concerns were raised about conflicts with the city’s comprehensive plan policies, which emphasize high-quality urban design and reduced car ownership. Historical incidents, such as the 2016 drive-thru Starbucks approval, were cited as examples of challenges associated with such establishments, including vehicle congestion and blocked bike lanes.
The committee considered several policy options, including prohibiting drive-thrus for restaurants and coffee shops while allowing them for pharmacies and banks. This measure aims to balance environmental policies with an inviting business atmosphere. Discussions also proposed requiring indoor walk-up service during all hours that drive-thrus are open to ensure accessibility for pedestrians. The potential impact of these restrictions on investment and development was debated, with some members emphasizing the need to balance consumer needs and business viability with urban design goals.
Further discussions revolved around zoning districts and the allowance of drive-thrus in high-density areas like T3 and T4. The rationale for permitting drive-thrus in these areas is to financially support larger residential developments. Design standards were proposed to ensure pedestrian-oriented streetscapes, requiring drive-thrus to be positioned at the side or rear of buildings and separated from residential areas by a distance of 300 feet. This proposal faced controversy during planning commission discussions.
Melvin Carter
City Council Officials:
Anika Bowie, Rebecca Noecker, Saura Jost, Mitra Jalali, HwaJeong Kim, Nelsie Yang, Cheniqua Johnson
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Meeting Type:
City Council
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Committee:
Organizational Committee
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Meeting Date:
01/21/2026
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Recording Published:
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Duration:
71 Minutes
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Notability Score:
Routine
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State:
Minnesota
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County:
Ramsey County
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Towns:
St. Paul
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