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Trust in public institutions is built on results. When residents are asked to fund government programs through their taxes, they expect competent management and measurable outcomes. Too often in Minneapolis and across Minnesota, that confidence is wearing thin.

One example is the financial strain facing Hennepin Healthcare. We have invited Hennepin County Commissioners Jeff Lunde and Angela Conley, so far without success, to discuss the situation. Both commissioners have warned that closing the Level I Adult and Pediatric Trauma Center is a possibility if additional funding does not come from the state legislature.

The safety-net hospital is projecting a $50 million budget shortfall by the end of March. The system has already laid off 100 full-time employees and eliminated five medical programs. Commissioner Conley summarized the situation starkly:

“Hennepin County cannot afford to absorb those costs, nor can we increase our property tax levy enough to even cover those costs without revenue to replace the ongoing losses… The hospital will not remain open.”

Minneapolis Public Schools are facing a similar challenge. The district now expects a deficit approaching $50 million, up from roughly $30 million projected only months ago. Layoffs of teaching staff are being discussed as one way to close the gap. The 2026–2027 budget must be approved by June 15.

These pressures raise broader questions about competitiveness. Minneapolis Public Schools compete with suburban districts, charter schools, and private schools. If families lose confidence in the quality of education, they will look elsewhere, and new families may choose to settle outside the city. A strong school system remains one of the foundations of a thriving city.

Concerns about performance extend beyond schools and healthcare. Consider the Metropolitan Council. Few residents would say the Green Line has been managed without significant problems. Former Met Council Chair Charlie Zelle retired in September, and Governor Tim Walz appointed Robin Hutcheson, previously a Minneapolis public works director, as his replacement. We’ve invited Chair Hutcheson to join us for an interview about the council’s priorities and what improvements residents should expect.

At the same time, residents deserve credit for stepping up to support neighbors and small businesses affected by Operation Metro Surge. The full economic impact of the immigration enforcement actions is still unfolding, but the disruption has been significant. Recovering from that disruption will require Minneapolis to strengthen its role as a vibrant hub for education, healthcare, and businesses of all types.

Recent developments in downtown real estate highlight deeper concerns. Target paid $110 million to exit its lease at City Center, which is now up for sale. At one time, Target was the largest employer downtown, and the decision to leave City Center reflects how dramatically office work has changed. Most employees are no longer working five days a week in the office, and many companies have permanently shifted to hybrid schedules.

Yet there has been little public discussion about how the city will sustain spending if property tax revenue from major commercial buildings continues to decline. There may be little sympathy for out-of-state investors such as Samsung SRA Asset Management when they lose money on these properties, but falling property values also reduce the tax revenue those buildings generate. When assessed values drop, the city must either cut services or raise taxes elsewhere to make up the difference.

To compete for new investment, Minneapolis needs a clear edge. That advantage could come from strong infrastructure, excellent schools, or a highly educated workforce. Right now, many leaders struggle to define what that edge is. At the recent Next26 event hosted by Greater MSP at the Guthrie, there was a great deal of praise for the spirit of Minneapolis residents, but little discussion of concrete ideas for how to attract businesses to the city.

Businesses frequently cite familiar obstacles: heavy regulation, a high tax burden (Minnesota ranks 44th in tax competitiveness), concerns about public safety, and the rising cost of childcare, now the seventh highest in the country.

Residents deserve a serious conversation about how Minneapolis plans to address these challenges and rebuild trust that local governments can deliver results. Rebuilding that trust may require leaders willing to step outside traditional party lines and focus on practical solutions rather than political orthodoxy.

Survey Results

Our March 1 newsletter, “Avoid Saying Recession,” included a survey to gauge how readers view Minneapolis today. The results suggest a community that still cares deeply about the city but is increasingly uneasy about its direction.

* When asked about the overall direction of Minneapolis, 58% of respondents said they felt somewhat or very negative.

* Confidence in the city’s economic rebound was also limited. Not a single respondent said they were extremely confident, and the average rating was 2.63 out of five, essentially neutral.

* When asked what matters most for recovery, support for local businesses ranked first (32%), followed by public safety (26%). Job creation came in third at 13%. Other ideas included infrastructure investment, tax changes, and creating a friendlier environment for both small and large businesses.

* The responses are particularly notable because most participants are long-time residents. Seventy-four percent have lived in Minneapolis for more than 20 years, suggesting that the people who have invested the most in this city are also among those most concerned about where it is headed.

* There were also some encouraging signs. Fifty-two percent said they plan to stay, including 22% who said they love Minneapolis and will never leave. At the same time, 27% said they would move elsewhere if they could, and another 22% said they occasionally think about leaving.

Taken together, the responses paint a picture of a city whose residents remain committed but increasingly uncertain about its future.

Here are a few of the general comments:

“Minneapolis’s recovery, if it happens, will be despite the council majority. Thankfully, there are forces outside their control.”

“Property taxes to fund the pet projects of the city council majority need to stop. Focus needs to be applied to initiatives that bring in visitors and businesses, not to those that keep people in the suburbs.”

“In my mind, the city needs to prioritize the following: 1) Public safety - the police department is still extremely understaffed and is generally viewed as incompetent. I think this is definitely a factor in businesses closing. People do not want to hang out in areas that feel unsafe or have homelessness encampments . . . 2) Improved infrastructure and planning . . . 3) Responsible Budgeting . . .4) Functional City Council . . . Overall I feel like the city government needs to think very carefully about how their actions impact people’s desire to live and work within the city. It seems like there is less and less of a reason to live within city limits as opposed to living in nearby suburbs.”

“I live in uptown, have for 30 years. We need to get businesses back, do something about public safety, and the homeless. I have zero confidence in today’s DFL, and there isn’t an alternative. Sigh.”

“Could be a tough stretch ahead, but this city has too much going for it to not make it through. Downtown business activity is important for the tax base, which positively impacts other factors.”

“It’s been amateur hour from elected officials in Minneapolis for years since we moved here in 2021, and frankly, we are tired of it . . . The reality: For the first time in our adult lives, we’re questioning whether or not we made an unwise financial investment for buying a house in Minneapolis. Our concerns are centered around a major lack of public safety, an unfriendly business climate, and a constant state of activism on behalf of elected officials and a vocal minority that they seem to only listen to.”

“Why would anyone want to open a business in Minneapolis? With restrictive and complicated permitting, constant regulations coming towards them (like the Labor Standards Board) from the City Council, and then having to remove human excrement and graffiti from their business entrance day after day -- what is the point?! . . . Constant protests, constant political graffiti, constant grandstanding and blowhard behavior. We are over it.”

“I have never thought of leaving Minneapolis until recently. Although I have a solid retirement income, rising property taxes and overall cost of living increases, along with a lesser quality of life in the city proper (public safety issues, sense of civic disorder being tolerated, keeping the city clean, no encampments, property crime issues, less neighborhood and community unity, divisiveness and a really dysfunctional group of folks on the City Council, East Lake corridor and small businesses suffering for years post-George Floyd, etc.) for the first time has me thinking to look across the River to St. Paul.”

“The City needs really strong, clear political leadership, and we have a real problem still with the faction of the City Council that is at war with the Frey administration, basically -- and who do not listen to or care about the actual realities and experiences of their Ward constituents. That dynamic is the #1 thing that needs to change for the City to ever move forward as a connected City.”

“The city needs to become more economical in its decisions, less idealistic. Stop promoting self-interest over stability.”

“We are actively divesting our capital investments and primary businesses from Minnesota. Many business owners we know are doing the same. The 2023 legislative session forever changed the economic and social trajectory of Minnesota - Minnesotans will, as a result, be more equal but also more poor.”

Building for the Future

Our readership reflects a wide cross-section of Minneapolis. Readers vary in age and financial circumstances, but they share two things: they follow the city closely, and they care deeply about its future. We take that feedback seriously. The responses from our recent survey closely matched what we hear in conversations with neighbors and friends.

Minneapolis is facing an unprecedented challenge with Operation Metro Surge. But many of the city’s financial pressures and policy challenges existed long before the surge began.

If Minneapolis hopes to avoid falling further behind, the mayor and City Council will need to work together more effectively than they have in recent years. That may prove difficult. The council is divided into factions that often express open distrust of one another during meetings. Resentment toward the mayor, particularly over his perceived closeness to landlords, is often expressed openly during council discussions. Addressing complex problems will require a shift in tone and priorities — and that change will likely happen only if residents press their elected officials to focus on practical solutions.

At the March 5 City Council meeting, 7 members voted to extend the eviction notice requirement from 30 to 60 days. During the lengthy debate, Council Member Chowdhury spoke about how Operation Metro Surge highlighted the economic stratification within Minneapolis.

She is correct that the divide exists, and it deserves attention. But it is also a national challenge. The most effective steps the City Council can take locally are those that improve public safety and create an environment where businesses feel welcome to invest and grow.

One notable result from our survey: not a single respondent mentioned President Trump. While local leaders often point to federal policy debates, residents appear more interested in what the city government can control. People want progress on issues that affect daily life, such as clean and safe streets, sensible regulations, and predictable tax and spending policies.

As voters consider future candidates, the focus must shift from ideology and party affiliation to experience and capability. Do candidates have a record of solving complex problems? Have they managed large budgets or led organizations through difficult decisions?

If Minneapolis wants strong schools, a stable public hospital, and an economy that can compete nationally, it will need leaders with proven records of achievement — and residents willing to support them.

Minneapolis is shaped by the people who care enough to engage, speak up, and push for better. The challenges ahead are real, but so is the opportunity to build a city that works for the people who live here.

That will require trust in local government — and trust must be earned through responsibility, transparency, and results.

Thanks for reading and caring about Minneapolis.— Better Minneapolis

Interview Overview

In this wide-ranging interview, longtime prosecutor Diane Krenz outlines her bid for Hennepin County Attorney after more than four decades in the office. She argues the office has drifted from its core mission and calls for a renewed focus on prosecuting repeat offenders, strengthening relationships with law enforcement, and prioritizing victims’ rights. We discussed diversion policies, limited use of extended juvenile jurisdiction, and what she views as politically influenced charging decisions. Drawing on her experience in gang, gun, property, and white-collar crime cases, she frames her campaign as an effort to “right the ship” and restore consistency, accountability, and trust in the justice system.

Summary

In this extended interview, Diane Krenz, a candidate for Hennepin County Attorney, presents herself as a steady, experienced prosecutor aiming to restore focus and credibility to an office she served in for more than 40 years. A Wisconsin native who began clerking in the Hennepin County Attorney’s Office in 1983, Krenz built her career there across multiple divisions, including juvenile prosecution, adult criminal cases, the gang unit, gun crimes, property offenses, nuisance actions, and white-collar crime. She retired in April 2025 but says she is running because she believes the office has drifted from its core mission.

Krenz describes her motivation for becoming a prosecutor as rooted in advocating for victims. While some attorneys are drawn to public defense to represent the underdog, she says her focus has always been on those who were harmed — people who were abused, robbed, defrauded, or otherwise victimized. That lens shapes her critique of current policies. She argues that victims are too often left out of the process, sometimes learning about plea deals only when they arrive in court. Reestablishing strong communication between prosecutors and victim advocates, she says, is essential to restoring trust.

A major theme of the interview is accountability for repeat offenders, particularly juveniles. Krenz acknowledges that diversion and restorative justice can play an important role, especially for first-time or low-level offenses. However, she expresses concern that some youth are being diverted multiple times without meaningful consequences. In her view, young people need swift and certain sanctions to change behavior. She questions whether extended juvenile jurisdiction (EJJ) is being used effectively and raises concerns about cases in which juveniles commit new serious offenses without facing revocation of prior leniency. The closure of the Hennepin County Home School and the shift toward community-based alternatives, she suggests, have left a gap in meaningful interventions for high-risk youth.

Krenz also focuses heavily on rebuilding relationships with law enforcement across Hennepin County’s 33 jurisdictions. Having worked directly with police departments for decades — including on complex, multi-agency gang and identity theft investigations — she argues that she has credibility with officers who feel alienated from current leadership. She opposes blanket policies that decline certain charges, such as cases stemming from traffic stops, if the stop is constitutionally valid and leads to the recovery of guns. She also questions policies that require attorneys to be present before police interview juvenile suspects, arguing that such rules may hinder investigations and ultimately disadvantage victims.

On high-profile cases and the interaction between state and federal authorities, Krenz emphasizes practicality over political theater. She explains that federal prosecutors often have more resources and discretion to select cases, while county attorneys must take a broader range of matters. While she stops short of directly accusing current leadership of grandstanding, she suggests that some recent disputes with federal authorities may be more political than productive.

White-collar crime is another priority for Krenz. In her final years in the office, she prosecuted fraud cases involving large volumes of financial records and significant losses. She argues that the county could and should play a larger role in prosecuting complex fraud cases rather than deferring to federal authorities. She notes that the white-collar unit has been depleted and calls for renewed investment in that work, framing fraud enforcement as both a fiscal responsibility and a matter of public trust.

Throughout the interview, Krenz returns to the idea of refocusing the office on its foundational responsibilities: holding offenders accountable, protecting public safety, vindicating victims’ rights, and maintaining ethical independence. She is critical of what she sees as politicized decision-making, citing a recent diversion decision in a high-profile vandalism case as an example of inconsistent standards. While acknowledging that the county attorney is an elected position, she argues that prosecutorial decisions should not be driven by political considerations.

Ultimately, Krenz frames her candidacy as an effort to “right the ship” — to bring the office back to what she views as a balanced, professional, and justice-centered approach grounded in decades of courtroom experience.

To learn more about the candidate, visit the website:

https://www.dianekrenz.com/

On Friday, Minnesota released updated budget projections, and at first glance, they looked surprisingly strong. For FY 2026–27, the state is projecting a $3.7 billion surplus, $1.3 billion more than estimated in November.

That surplus provides breathing room. But it doesn’t erase the underlying concerns.

Even with the short-term cushion, Minnesota still faces a structural imbalance, with spending projected to outpace revenue by FY 2028–29. And the numbers come with uncertainty. The state is currently in a dispute with the federal government over $259 million in withheld Medicaid funds. It’s money Governor Walz has called “totally illegal and unprecedented.” Federal officials say the move is intended to push the state to strengthen anti-fraud efforts.

At the city level, the picture is more complicated. Minneapolis has tallied more than $200 million in lost revenue tied to Operation Metro Surge. Millions in city funds are being redirected toward small business and rental assistance programs. Private donations for food and housing support continue to flow, a sign of both generosity and strain. In downtown real estate, the historic Lumber Exchange building recently sold for $1 — a symbolic marker of a market still searching for its footing.

Add to these pressures a war in the Middle East. History shows that when oil prices spike, the ripple effects move quickly through transportation, food, and consumer goods. Given how deeply energy costs are embedded in the broader economy, even a modest increase can tighten household budgets and slow growth.

We may not be in a recession. But the prudent posture for local governments is to plan as though growth will be harder to come by.

What Exactly is a Recession?

Economists typically define a recession as two consecutive quarters of shrinking GDP accompanied by rising unemployment, weaker consumer spending, declining corporate profits, and an increase in business failures.

At the city level, the indicators are less precise but just as important. Minneapolis has experienced significant economic disruption tied to recent immigration enforcement actions. The actual number of ICE remaining and the level of activity are difficult to assess. While detentions have lessened, the fear still exists. It will take months before we see comprehensive data showing whether business activity has rebounded.

We are likely to see some increase in unemployment, even though not all affected workers may qualify for state benefits. Several major employers have announced layoffs in recent months, including Target, American Public Media Group, Shop HQ, the Star Tribune, Bluestem Brands, OMG Midwest, and Old National Bank. While we don’t yet have full data, anecdotally, we are hearing about more layoffs than hires over the past year.

Large corporate profits appear relatively stable. Smaller businesses tell a different story. Restaurants in particular seem to be closing at a faster pace. D’Amico & Sons, Zen Box Izakaya, Café Ceres, and Mesa Pizza are among those that have recently shut their doors. Many local businesses are openly urging residents to shop and dine locally — a sign of both resilience and necessity.

At the same time, we hear little discussion from elected leaders about how artificial intelligence and automation may reshape the local job market. Some analysts warn that advances in AI could accelerate job displacement in white-collar fields such as administration, customer service, writing and media, technical analysis, translation, and paralegal work. Whether those predictions materialize or not, the pace of technological change suggests the conversation should be happening now.

We meet regularly with readers over coffee or at happy hour. In recent weeks, those conversations have taken on a different tone. People who are deeply invested in their neighborhoods feel unsettled. The Surge is part of it. But there are deeper concerns about the city’s trajectory and its ability to rebound.

Some have told us plainly: if not for family ties or business commitments, they would consider leaving Minneapolis. That’s difficult to hear, especially from people who have volunteered their time, money, and hearts to improve this city.

The Pulse

With so much shifting in Minneapolis — economically, politically, and socially — we want to pause and listen. We’ve put together a short survey to understand where our readers are right now. Your perspective helps shape what we cover and how we cover it. We hope you’ll participate.

City Direction and Economic Recovery Survey – Fill out form

We last interviewed Community Safety Commissioner Todd Barnette in August 2024. At that time, he was focused on improving coordination among Police, Fire, 911, Emergency Management, and Neighborhood Safety, while strengthening internal processes and building out the Neighborhood Safety Department. Recruitment for the Minneapolis Police Department and launching the Lake Street Community Safety Center were also top priorities. In this follow-up conversation, our focus shifted to the impact Operation Metro Surge has had on those departments and how the city is preparing for future large-scale federal enforcement activity.

The interview was prompted in part by Commissioner Barnette’s recent commentary in the Star Tribune, where he outlined what he believes should guide both authorities and residents during moments of uncertainty. We wanted to better understand how those principles translate into day-to-day decisions inside City Hall.

One ongoing source of public frustration is the slow progress on reopening the Third Precinct Community Safety Center. Barnette acknowledged that concern and encouraged residents to use the Lake Street Safety Center at 2228 E. Lake Street while construction continues. Additional information about the city’s response to federal immigration enforcement is available through the website: http://Minneapolismn.gov/federal

Interview Summary

In our latest interview, Community Safety Commissioner Todd Barnette described the “murky gray area” Minneapolis has been navigating during the recent federal immigration surge. Because of the city’s separation ordinance, MPD does not coordinate with federal immigration enforcement on civil matters, yet officers are still responsible for protecting life and preventing serious harm when situations escalate. With thousands of federal agents arriving at one point, the scale and tactics changed quickly, forcing the city to adapt in real time. Barnette explained that officers responding to 911 calls must make fast legal judgments, often without knowing what happened before they arrived, while trying to de-escalate tensions and avoid crossing legal lines themselves.

The operational impact has been significant. Overtime costs have climbed across Police, Fire, 911, Emergency Management, and Neighborhood Safety, with the Emergency Operations Center running 24/7. Barnette acknowledged morale concerns as vacations were postponed and staff worked extended hours, calling the recovery period long-term rather than something that will resolve in a few weeks. He also addressed the long-delayed Third Precinct community safety center in south Minneapolis. Construction is expected to begin this summer, with a goal of opening by late 2026. Barnette admitted frustration with the timeline, noting that officers have been operating out of a temporary space for too long and that residents deserve a fully functioning precinct where they can file reports and access services. The new facility is intended to better reflect the city’s commitment to community safety and provide a modern space for officers and partners.

On neighborhood safety, Barnette said the department is in a stronger position than it was a year ago. Under Director Amanda Harrington, the office has tightened contracting procedures, clarified priorities, and rolled out safety ambassador pilots along key corridors. Early feedback has been positive, though formal evaluation is still underway. Expansion to areas like Uptown remains uncertain as the city reassesses its budget following the surge. Barnette described the ambassadors as a valuable tool but cautioned that financial constraints may require reprioritization. His broader message was clear: Minneapolis is adjusting under pressure, but rebuilding capacity, restoring morale, and strengthening neighborhood-based safety efforts will take sustained focus and resources.

Competence rarely goes viral. It does not dominate headlines or trend online. But steady, smart governance is what allows cities and states to function, and voters tend to notice when it disappears.

In Minnesota, Operation Metro Surge may carry long-term political consequences for Republicans. While the goal may have been short-term gains, the tactics used have likely deepened resistance in a state that already leans Democratic. Whether by design or miscalculation, the result could be that Republicans are shut out of state-wide office for many years to come.

Nationally, the political landscape remains volatile. Current projections for the U.S. House of Representatives suggest Democrats could regain control if they win the 208 seats currently rated in their favor by the Cook Political Report and capture at least 10 of the 18 toss-up districts. Given President Trump’s weak polling numbers driven by controversies surrounding Epstein, ongoing corruption allegations, immigration policy, tariff disputes, and persistent inflation, Democrats are expected to make gains. Failing to do so would raise serious questions about the party’s strategy and message.

The Senate presents a more difficult path. Democrats would need to win the 11 races where they are currently favored, secure all four toss-ups, and flip at least two Republican-held seats. That outcome is possible but unlikely. Even so, control of the House alone would provide a check on executive overreach and shape federal priorities for the next two years.

For Minneapolis residents, stability and competence still matter. The quality of governance at every level — federal, state, and local — directly affects budgets, public safety, infrastructure, and the economic health of our communities. Political strategy may grab attention, but effective leadership is what sustains cities over time.

How Could Democrats Lose Their Advantage?

If Democrats want to squander the advantage they currently hold, the most effective way might be to overestimate the appeal of an anti-Trump, pro-immigration message while underestimating how much voters value competent governance of everyday essentials: schools that balance their budgets, hospitals that remain open, safe streets, and an economy that creates opportunity.

Minneapolis may be viewed nationally as a bold symbol of resistance to federal immigration enforcement, but resistance alone does not make a city functional. No wave of admiration is forming around our school finance practices, hospital solvency, or economic competitiveness. That contrast should give DFL leaders pause. Cultural and political signaling may generate headlines, but voters ultimately judge those in power by whether streets are safe, budgets are balanced, and institutions are competently run.

Political analyst Ruy Teixeira of The Liberal Patriot argues that Democrats’ deeper problem is not messaging — it is governance. Fraud, he writes, is only one visible symptom of a broader issue: when ideological commitments and interest-group pressures outweigh the practical demands of running government well. Voters, he suggests, ultimately judge a party by whether it delivers results.

Put more plainly: if a voter wants safe streets, competent administration, efficient public services, and projects completed on time and on budget, is their first instinct to think of Democratic leadership? In many places, including Minneapolis, that confidence appears to be eroding.

Governance is political advertising. When government functions poorly, it weakens the case for those in charge.

Several recent developments have raised legitimate questions about whether the DFL and its elected officials are getting the basics right:

* Minneapolis Public Schools recently announced that its projected 2026–27 deficit has grown from $30.3 million to $50.5 million. The district’s finance division experienced 50% turnover under its former leader, who departed after disciplinary action. To stabilize operations, the board has approved $830,000 for an outside consulting firm. For families and taxpayers, this does not inspire confidence.

* Hennepin Healthcare, operator of Hennepin County Medical Center and now the largest downtown employer following Target’s downsizing, is laying off 100 full-time employees amid a $50 million shortfall. The system provides roughly $100 million in uncompensated care annually. The Hennepin County Board assumed control last year due to financial instability, and additional uncertainty — including the dissolution of UCare — could further strain the system. If conditions worsen, the greatest burden will fall on residents with the fewest resources.

* Downtown economic recovery remains fragile. High vacancy rates persist, and businesses continue to struggle. Against that backdrop, the Minneapolis City Council’s public debate over reviewing liquor licenses for two hotels that served federal immigration officials struck many observers as politically performative. Whatever one’s stance on immigration enforcement, the episode raised concerns about how the city presents itself to employers and investors at a time when job growth is urgently needed.

* Ongoing fraud investigations have uncovered an alarming number of conspirators and oversight failures. Rapidly escalating reimbursements and minimally vetted providers should have triggered scrutiny earlier. Residents are still asking why accountability has been limited. Republicans have centered this issue in their campaigns, and it continues to erode public trust in state government.

The common thread running through all of this is not ideology but competence. Voters may share Democratic values, but shared values are not enough. What sustains political support over time is transparent budgeting, operational stability, real accountability, and sound economic stewardship.

If the DFL wants to maintain its position in Minneapolis and Minnesota, it cannot assume that opposition to Trump will carry them. They must demonstrate that they can run complex institutions well.

That is the standard voters ultimately apply.

DFL Glide Path

Minnesota’s DFL candidates for governor and U.S. Senate may have a favorable political landscape ahead of them, but strong state and federal prospects do not lessen the importance of getting local governance right.

Consider the Nicollet Avenue bridge over Minnehaha Creek. Beginning March 3, the bridge is scheduled to close for two years for a long-overdue rehabilitation project estimated at $55.2 million. More than 14,000 vehicles per day will be rerouted into surrounding neighborhoods during construction.

Two years is a long time for residents and businesses to absorb disruption. And fair or not, projects like this shape public perception. When voters see extended timelines and rising costs, they do not instinctively think government is operating at peak efficiency. That perception problem extends beyond a single bridge or a single party, but it is particularly relevant for the party that currently dominates state and local government.

We moved to Minneapolis from the East Coast twenty years ago because of the city’s reputation for good schools, affordable housing, and a strong economy. The fact that it was a drop of blue in a sea of red appealed to us politically, but that was not the primary reason we came. We came for work, for stability, for a place to build a life.

We want families and entrepreneurs around the country and the world to see Minneapolis — and Minnesota — as a world-class place to start something. To regain and sustain that reputation, we need leaders focused less on symbolic battles and more on the steady work of maintaining infrastructure, managing budgets responsibly, and ensuring that public systems function well.

Competence rarely electrifies a crowd, but it determines who earns the public’s trust. When families weigh which leaders can deliver opportunity and manage the fundamentals of daily life, they reward performance. If the party in power fails to produce tangible results, voters will hand that responsibility to someone else.

Signal: bttrmpls.33

The Minneapolis City Council suspended its regular committee meetings on January 26, citing “ongoing community needs” related to the presence of federal immigration agents in the city.

Since then, the Committee of the Whole has wrestled with whether to withhold liquor license approvals for two downtown hotels — Canopy by Hilton and the Depot Minneapolis, a Renaissance hotel. At issue is whether the city can use its licensing authority to pressure private businesses not to cooperate with federal immigration enforcement.

On February 17, after a lengthy debate, the committee voted 7–6 to send the matter to the full Council without a recommendation.

The Committee of the Whole determines which items advance to the full Council and, if so, whether they do so with a recommendation. The full Council is scheduled to take up the issue on Thursday, February 19, at 9:30 a.m.

When we stopped watching to finish this newsletter, the debate had stretched into its fifth hour. The packed agenda was partly due to delays tied to Operation Metro Surge.

Business Fallout from ICE Controversy

In this section, we examine two actions that reflect how the Council is responding to businesses connected to ICE activity.

The first involved Council Member Wonsley’s proposal to block the appointment of Michael Berk to the Stadium Village Special Service District Advisory Board. Berk is part of the management group for the Graduate Hotel on Washington Avenue, where ICE agents stayed and where multiple noise protests later occurred.

An internal message from Berk to hotel employees — leaked on Reddit last month — asked staff to treat ICE agents as they would any other guests. The message sparked significant backlash online, with some commenters sharply criticizing his stance.

It is unclear how much that online reaction influenced the Council’s decision. During the meeting, however, City Attorney Quinn O’Reilly cautioned members against screening advisory board appointees based on their political views. Council Member Wonsley argued that the “criminalization of protesters” had taken place and that the hotel’s management bore at least some responsibility.

Council Members Rainville, Palmisano, Vetaw, and Warren voted against blocking the appointment. Council Member Whiting abstained.

Mixing Liquor and Guns

After the vote on Berk’s appointment, the Council turned to the legal and ethical arguments surrounding whether hotels could be denied liquor license renewals for providing rooms to ICE agents. The matter will be decided at the full Council meeting on February 19. By a 7–6 vote, the motion was forwarded without recommendation. Council Members Whiting, Warren, Rainville, Osman, Palmisano, Shaffer, and Vetaw voted to move it forward. The remaining six members sought additional time for investigation.

Council Member Warren expressed frustration with the review process, saying members were “throwing confetti in the air to see what sticks to the static balloon.” She called the effort “ridiculous” and “discriminatory,” and warned the city was “shooting itself in the foot” with these types of actions.

Tensions among members were evident throughout the debate. Council Member Vetaw said, “We’re doing what Trump did to Jimmy Kimmel. We’re using what power we have to get rid of what we don’t like.” She cited the city’s prior attempt to suspend the liquor license of Merwin Liquors at North Lyndale and West Broadway after community complaints about crime associated with the business. At that time, the Council ultimately granted the license based on legal advice that the establishment had not violated city rules. Vetaw argued that disregarding similar legal guidance now would represent a shift in standards.

City Attorney Quinn O’Reilly was repeatedly asked to clarify legal questions. He noted that occupation is not a protected class under the law — a point some members interpreted as meaning businesses could legally refuse service based on someone’s employment with ICE.

Council Member Chowdhury emphasized safety concerns, referencing the presence of firearms carried by federal agents in hotel spaces where alcohol is served. One speaker testified about reports questioning ICE’s hiring and training processes, arguing that inadequate screening could increase the risk of injury. Of the ten people who testified, most described the presence of ICE as creating unsafe working conditions. Multiple representatives of Unite 17, which represents hotel employees, spoke in support of that view.

The first speaker, however, expressed concern about job security as a banquet server, warning that reduced business would mean fewer hours and lower pay. Council Member Rainville returned to that theme several times, saying hotel owners had told him that businesses were canceling future events because of uncertainty surrounding the liquor licenses. Council Member Chughtai questioned that assertion and said she wanted to verify whether events had in fact been canceled and for those stated reasons.

We are necessarily summarizing a lengthy debate. Council Member Shaffer distilled the argument for approving the licenses: “We’re sending a message that Minneapolis is not a stable environment for business.”

Supporters of the license restrictions framed their concerns primarily around safety and accountability. Opponents warned that using licensing authority in this manner could establish a precedent in which the city weighs political considerations alongside regulatory compliance. The tension between expressing community values and maintaining predictable business standards is likely to shape the final vote.

Council members appear united in their belief that ICE’s presence and tactics have harmed the city and its businesses. How to respond and what response is justified remain open questions.

Signal: bttrmpls.33

Note: We are featuring photos of New Mexico in this issue. Frank Spring is based there, and we lived in the state for five years after college. Los Alamos is the birthplace of the atomic bomb. The New York Times recently published an article about New Mexico’s fight with the U.S. Department of Energy over cleaning up radioactive waste that still sits in massive pools dating back to the 1940s. It’s worth a read: “New Mexico Rebukes Federal Agency Over Nuclear Waste at Los Alamos.”

“The continued presence of a large volume of unremedied hazardous and radioactive waste demonstrates a longstanding lack of urgency by the U.S. Department of Energy,” regulators wrote in a statement, “and elevates the risk of waste storage failures” at the lab, in northern New Mexico.

In case you missed it (ICYMI): The only remaining arms control treaty between the United States and Russia expired last week. The Department of Energy is planning to produce nuclear bomb cores at Los Alamos as part of a $1.7 trillion federal effort to modernize the nation’s nuclear weapons. Critics argue this represents another step backward in national policy.

There Are Facts, and Then There Are Government Reports

Disputes over how many people have been detained by the Department of Homeland Security are fueling disagreement and mistrust. Some government sources have claimed that 4,000 people in Minnesota have been detained. That number has been widely questioned and has contributed to growing distrust in government information. The dispute over this figure is not the only one people are debating. In the financial world, there are also doubts about reported employment numbers, job creation, and inflation.

A 2025 Gallup/Bentley University poll found that only about one-third (31 percent) of U.S. adults say they have “a lot” or “some” trust in the federal government. Recent actions by ICE agents in Minnesota, along with misleading public statements made by Kristi Noem and others about those actions, may have pushed that number even lower. Many people say they are frustrated when public officials share inaccurate figures or conflicting accounts. This frustration adds to broader skepticism about government reporting and transparency.

What has been on display for some time now is that shaping the narrative often takes priority over confronting reality. There appears to be little motivation to pursue solutions grounded in facts. Instead, the goal seems to be charting a path based on how President Trump and his allies want events to be understood. That dynamic is one reason we featured Frank Spring in today’s newsletter. Spring is a founding partner at Altum Insights and managing partner and cofounder of Undaunted Ventures. He has built his career studying how people’s attitudes and biases influence elections. His focus is on identifying the gap between facts and perception and on understanding how beliefs drive behavior.

The stories we tell ourselves about events can be more powerful than the events themselves. This administration has placed heavy emphasis on shaping those narratives. What we have seen in Minnesota is a shared determination among residents to define that narrative for themselves. The broader lesson is clear: collective action can shape public understanding. When people come together to tell their own stories, they can influence how their community and the wider world interpret what is happening.

Interview Summary

In this interview, I speak with Frank Spring, a narrative consultant who studies how stories shape political beliefs and behavior. Spring explains that politics is not just about policies, but about the stories leaders tell and the stories voters tell themselves about who they are and what their country represents. He says the current administration believes there is a “silent majority” of Americans who feel threatened by immigration and social change. In response, leaders have tried to create strong narratives about crime, disorder, and the need for crackdowns in cities like Minneapolis.

Spring argues that this strategy has not worked as planned in Minneapolis. He says many Americans are not strongly anti-immigrant but instead want an orderly and fair immigration system. When federal agents used force in Minneapolis and officials defended those actions, Spring believes it caused what he calls a “moral injury.” By that, he means people saw authorities harm others and then deny or misrepresent what happened. He says this deepened public anger and distrust, especially when videos and firsthand accounts contradicted official statements.

The conversation also explores the future of media and public trust. Spring says traditional news outlets are struggling, and more people are turning to citizen journalism and social media for information. While this shift creates risks, he believes new forms of independent and community-based journalism could emerge. He also notes growing concern about artificial intelligence and its potential to spread misinformation. Overall, he predicts higher civic engagement, stronger grassroots organizing, and significant political consequences in upcoming elections.

It would have been fitting if the monks who walked from Fort Worth, Texas, to Washington, D.C., to promote peace had been able to stop in Minneapolis along the way.

Governor Tim Walz has said he believes ICE agents will be leaving the state within days. If that proves true, the Minnesota left behind after Operation Metro Surge will be markedly different from the one federal immigration agents first encountered. For many residents, their presence has felt less like a law enforcement action and more like a natural disaster — sudden, disruptive, and terrifying.

Schools and businesses have emptied. Some storefronts are boarded up. Families are staying inside, afraid to draw attention to themselves. At the same time, neighbors have banded together, delivering food and medicine and checking in on one another. In many practical ways, people are doing what they can to protect those around them.

The bonds formed in moments like this between neighbors, friends, and like-minded residents resisting what feels like a hostile invasion are likely to outlast the operation itself. Long after the SUVs with tinted windows and obscured plates have left our streets, those relationships will remain, shaped by a shared experience of fear, solidarity, and care.

There are, of course, important differences between what Minneapolis is experiencing and a natural disaster. For one, residents are not waiting for help from the federal government. If anything, many are acting on the assumption that no help is coming. Congress is struggling to agree on basic guardrails for immigration enforcement, such as whether agents should be allowed to conceal their identities. The federal government appears paralyzed and may partially shut down.

Where the comparison does hold is in what comes next. As with any disaster, the cameras will leave. The reporters will move on. Minneapolis, meanwhile, will be left to reckon with the aftermath: an estimated $100 million carved out of the local economy, families forced to navigate the costly and painful process of reunification, and residents who have spent weeks in a state of crisis now expected to return to something resembling normal life.

Instead of federal aid, the response is coming locally. City leaders are proposing a temporary ban on evictions and would like to commit an additional $1 million toward preventing displacement. The city is shifting $500,000 from the Fire Department’s budget to fund legal defense and exploring the creation of a $5 million pool to support small businesses struggling to survive the disruption.

These measures may help, but they also underscore a stark reality: Minneapolis is being asked to absorb the costs of a federal action largely on its own. The state legislative session begins February 17, and it remains an open question whether lawmakers will deliver additional local government aid to help cities recover.

Stemming the Tide of Tyranny

We don’t pretend to know the single best way to halt what feels like a growing slide toward authoritarianism in this country. The expanding presence of ICE with its increased budget, broader mandate, and aggressive tactics is only one visible manifestation of a larger pattern.

That pattern is evident elsewhere as well: in the erosion of democratic norms, in the casual acceptance of self-enrichment and political favoritism, and in the insistence that truth itself bends to power. In a recent Atlantic essay, “Yes, It’s Fascism,” Jonathan Rauch explains why he has come to believe the term applies to Donald Trump. Central to his argument is the deliberate demolition of norms and the open glorification of force and violence as political tools.

That worldview is echoed by Trump adviser Stephen Miller, who has described politics in starkly amoral terms:

“We live in a world, in the real world, that is governed by strength, that is governed by force, that is governed by power.”

We contrast that belief — that might makes right — with the example set by the several dozen Buddhist monks who walked 2,300 miles to Washington, D.C., to raise awareness of peace, loving kindness, and compassion. Along the way, they endured extreme weather and even a tragic accident that cost one monk his leg. Their leader, Bhikkhu Pannakara, explained that the walk was not a protest, but an effort to “awaken the peace that already lives within each of us.”

At our most optimistic, we believe messages like this can still reach people who have traded compassion for the political rewards of coercion. At other moments, that optimism falters. What sustains us are the many forms of peaceful resistance already taking shape — from marches and vigils to quieter acts of solidarity, like knitting circles raising funds for local immigration aid by knitting red resistance hats like those worn by Norwegians in the 1940’s.

We don’t know which actions will matter most. It may be marches, music, or mutual aid, or more likely a combination of all the various tactics being used.

At a minimum, we can insist on adoption of the basic guardrails now being proposed by Democrats in the federal spending bill, including judicial warrants for home entries, visible identification for agents, a ban on masks, and meaningful local oversight. These are not radical demands. They are basic rights and reasonable limits on a federal agency that has expanded rapidly with little resistance — until it arrived in Minneapolis.

The tragedy unfolding in Minnesota as a result of overzealous immigration enforcement has, for now, strengthened the Democratic Party. Moderate and more left-leaning factions have united in opposition to government overreach and illegal ICE tactics. However, turning this unity into electoral success will require vigilance around a familiar vulnerability: fraud. Republicans will use it aggressively against them.

Unity around how to confront and prevent fraud would improve Democrats’ chances in the midterm elections and strengthen the state overall. Republicans are offering a timely example of how a party can erode support from the political center by allowing extremists to set the agenda.

Extremism is a Failed Playbook

Republicans have taken a page from the Democratic playbook in turning public support into aggressive opposition. If they had kept their focus on fraud and mismanagement—issues they leveraged into removing Tim Walz as a candidate for governor—and avoided pivoting to supercharged immigration enforcement, they might have had a chance to win statewide races.

Instead, Republicans failed to understand that many people who hold racist beliefs do not want to be seen as racists. This miscalculation has left only the most extreme members of the party willing to openly support Republican candidates. Where they could have expanded their appeal, they instead managed to shrink it.

There is a lesson here for Democratic leadership. What Republicans have engaged in is a kind of political self-immolation: allowing the loudest, most extreme, and most aggressive voices in the party to set policy and direction. Governing by the likes and comments of a social media feed is a recipe for failure—regardless of party.

Now is the moment for Democrats to attract voters who have abandoned the party in the past, if they can demonstrate a willingness to clean up government, curb wasteful overspending, and put common-sense oversight of social programs in place. Democrats owe it to the families of Renee Good and Alex Pretti to keep MAGA-style Republicans out of office and prevent them from enacting policies that are undermining the economic, social, and political foundations of our state and country. To succeed, Democrats must expand their base, and that requires stepping back from condescending virtue signaling and focusing instead on programs and policies that demonstrate practical, competent governance.

Operation Metro Surge has been a disaster on multiple levels. It has shown the country, and even the world, the worst impulses of the Republican Party. It has revealed the extent to which Republicans are willing to disregard the Constitution, the law, and long-standing democratic norms. Resistance from Minnesotans appeared to catch them off guard, and the response was increased brutality. Trump’s memes, along with those of his right-wing influencers, have laid bare the depth of their racism, whether further proof was needed or not. This will not fade away. The midterms will be the first real opportunity for Democrats to reject it. They cannot afford to hand momentum back to Republicans, which could easily happen once federal agents withdraw from the state.

Holding onto the High Ground

If Democrats want to maintain the moral high ground they currently occupy, they must be consistent in demanding accountability and transparency in social programs. Consider the findings from the recent review of claims in high-risk social programs administered by the Department of Human Services. The Star Tribune reported, “Ninety percent of claims that Medicaid-funded autism intervention providers billed the state for over a four-year period veered from acceptable standards.” That level of fraud or incompetence cannot be ignored. Government officials failed badly in their responsibility to manage taxpayer funds, and the department heads overseeing these programs should lose their jobs. The politicians who sponsored the legislation creating these programs would best serve the state by becoming the loudest advocates for cleaning up the rot.

John Connolly, the agency’s deputy commissioner and the state Medicaid director, said during a press briefing that the findings will be shared with the state Attorney General and the U.S. Attorney’s Office. He added that mass resignations of federal prosecutors have complicated efforts to prosecute fraud in Minnesota. The Star Tribune further reports:

The report excludes the names of providers but identifies the types of programs vulnerable to what it calls an “egregious pattern” of irregular claims. Connolly said these range from billing for services that are not clinically justified to documentation that is nonsensical.

The programs that stood out include autism intervention, nonemergency medical transportation, and housing stabilization services.

The state shut down the housing stabilization program in October amid allegations of widespread fraud . . . Connolly said it could take years for the state to reimagine its social service programs in ways that prevent further wrongdoing, an issue that is expected to be a major focus of the upcoming legislative session.

Years of Cleanup

Democrats could easily misread their current level of public support and fumble the moment. Most people oppose detaining individuals simply because of the color of their skin. They also oppose overcrowded detention facilities that bear an unsettling resemblance to concentration camps. People want warrants and strong protections for the First, Second, and Fourth Amendments.

At the same time, many people also want a functional immigration policy that rewards those who follow the rules and recognizes that deportation is justified in certain cases. They want those carrying out deportations to remove their masks, operate transparently, and be held accountable for their actions.

Most people are also strongly opposed to the theft of taxpayer dollars, especially when they themselves are struggling with high taxes, rent, education costs, and health care. The massive fraud that has occurred in this state will remain an issue for years. It will be a sledgehammer Republicans use repeatedly. Democrats must find a way to contain fraud, waste, and extremism within their own ranks if they want a chance to win back control of the U.S. Senate and the presidency. They cannot rely on Republicans to continue destroying themselves. Instead, Democrats must stay ahead of the narrative by clearly explaining that helping those who need it most requires functional social programs that distribute benefits as intended.

Signal: bttrmpls.33

The Minneapolis small business community, particularly its restaurants, is feeling the effects of Operation Metro Surge. While immigrant-owned businesses along Lake Street appear to be facing the sharpest downturn, with the Lake Street Council estimating that 50% of the 1,652 businesses have closed in the last two months, restaurants and small businesses across the city are also being impacted.

This conversation with French Meadow Bakery owner Marlene Leiva highlights how precarious the moment has become, not only for business owners but for the entire network that depends on them, including delivery drivers, farmers, and other small vendors.

Although some relief efforts are underway, such as the GoFundMe for Mercado Central, and support from the Minneapolis Foundation and the ConnectUp! Institute, they are unlikely to be sufficient on their own. Without a meaningful economic recovery plan from the city and state, the damage now unfolding risks deepening into a broader economic crisis.

The Community Call Fundraiser

A community response supporting local businesses and the people who work for them

SATURDAY, FEB 7, 2026 — 2:00 - 6:00 PM; Mayor Jacob Frey to attend @ 2:30

At French Meadow’s Nord Social Hall, 2610 Lyndale Avenue S

Raffle, Silent Auction, DJ, Food

Suggested Donation $20+ or pay what you can

Interview Summary

Marlene Leiva became the owner of French Meadow Bakery in September 2025, stepping into restaurant ownership just as Minneapolis entered another period of upheaval. A longtime resident who built her career in real estate, Leiva was drawn to the restaurant business by a belief in food as a way to build community and bring people together. But only a few months into ownership, she finds herself navigating challenges she never anticipated, ones that go far beyond the already thin margins of the restaurant industry.

Leiva says the increased ICE presence in the city has had an immediate and severe impact on her business. Staffing has become unpredictable, with some employees, citizens included, afraid to travel to work. Vendors are affected as well, as reduced sales force smaller orders throughout the supply chain. On top of that, cancellations of private events have surged, often from out-of-state customers who believe Minneapolis is unsafe based on news coverage. Since she took over, Leiva estimates foot traffic at French Meadow has dropped by roughly 40 percent, a decline that makes day-to-day operations increasingly unsustainable.

Despite the strain, Leiva continues to push forward, supporting a payroll of roughly 75 employees and drawing on income from her other businesses to keep the restaurant afloat. She worries, however, that if conditions persist for months, many small restaurants won’t survive. Leiva is frustrated by the lack of visible city support for businesses like hers and says words alone won’t pay vendors or employees. Still, she remains committed to Minneapolis, organizing a fundraiser for struggling small businesses and insisting the city is safe and worth supporting. For her, keeping French Meadow’s doors open is about more than one restaurant—it is about preserving a sense of normalcy, dignity, and community in a city she calls home.