By: Meghan Holden

Dinkytown businesses were surprised Thursday after a city panel voted against the approval of a mixed-use apartment complex.

Minneapolis City Council’s Zoning And Planning Committee voted 3-2 against staff recommendations for the proposed Opus Group project, which would replace businesses on 14th Avenue Southeast and 5th Street Southeast. The full council will vote August 2.

Those opposing the project said the meeting was a critical day for Dinkytown.

“I’m pleasantly surprised,” said Kafe 421’s James Sander. “I’m feeling hopeful.”

Other community members left the meeting frustrated.

Laurel Bauer, House of Hanson owner, said she expected the committee to approve staff recommendations for rezoning.

Bauer also owns the Book House and The Podium properties, which moved out last month.

“I hope they come to their senses,” Bauer said. “Nothing historic is leaving Dinkytown.”

Bauer planned to close House of Hanson July 31 to make room for the six-story student housing complex, but is now unsure.

For more on business, community and developer reactions to the vote, pick up Wednesday’s Minnesota Daily.