AGP Executive Report

Local Business Impact: Rochester City Council will vote on funding to help businesses hurt by Mayo Clinic’s downtown expansion and the long Second Street construction mess, as several shops have already closed and others say they can’t survive another year before the bus rapid transit line opens next August. Minnesota Economy & Housing: Minnesota homeowners are facing the steepest insurance rate hikes in the country, adding pressure to household budgets. Healthcare Costs: Minnesota Medicare plan changes this fall could affect more than 300,000 plans, with major shifts in individual health plan pricing also expected. State Policy & Tech: Minneapolis council advanced a robotaxi ordinance that would require human drivers, but the mayor is expected to veto. Business & Community: Minnesota’s Chamber of Commerce narrowed its “Coolest Thing Made in Minnesota” contest to four finalists, spotlighting locally manufactured products from small and large firms. Immigration & Labor: A report highlights the economic ripple effects when deportation and work-authorization changes hit Black Caribbean immigrant families, including Minnesota-linked cases.

Steel & Jobs: President Trump announced a $15 billion Mesabi Metallics steel plant in Iowa, tied to iron ore from the company’s Minnesota mine, with plans for 1,750 permanent jobs and thousands more during construction. Minnesota Politics: Attorney General Keith Ellison campaigned in Winona, pitching affordability and “shared prosperity” ahead of the November AG race against Ron Schutz. Healthcare & Consumer Costs: Delta’s long Boston-to-Honolulu route is being cut back again, underscoring how hard it is for airlines to make some long-haul schedules pencil out. Public Finance & Fraud: A former senior aide to Minneapolis Mayor Jacob Frey, Abdi Nur Salah, was sentenced to 33 months for his role in the Feeding Our Future fraud scheme. Local Business & Permits: Minneapolis-area film and surveillance controversies kept popping up, including a city vote to pause a downtown film production after residents complained about disruptions. Sports Business: Minnesota’s Little Brown Jug win over Michigan drove major fan buzz, while the J.J. McCarthy trade fallout continues to reshape NFL quarterback planning and costs.

AI & Free Speech: A federal appeals court blocked Minnesota’s new ban on AI-generated “nudified” images, dealing xAI an early win in its First Amendment challenge. Energy & Environment: Enbridge’s Line 5 reroute hit another setback after crews breached an aquifer in northern Wisconsin, escalating scrutiny of the company’s pipeline work. Healthcare & Insurance: Minnesota’s Medicare market is set for major shifts, with reports pointing to steep 2027 premium increases and plan reductions. Data Centers & Utilities: Minnesota AG Keith Ellison raised fresh concerns about Google’s Pine Island data center deal with Xcel, arguing other customers could be stuck with billions in added costs. Local Business & Growth: Paul Bunyan Communications began expanding its GigaZone fiber network in Hibbing, aiming to bring service to 800+ locations over the winter. Community & Demographics: Eden Prairie’s Somali population has surged since 2000, with school data showing rapid growth in students speaking Somali at home. Public Safety: Minnesota DNR is warning boaters that cold-water conditions can be deadly as the season turns. Sports Business: The Minnesota Wild host the Bruins Saturday, with local betting coverage highlighting player prop markets.

Health Insurance Costs: Minnesota’s individual and small-group health premiums for 2027 are set to jump, with average increases reported around 10% to 21% in the individual market, raising affordability concerns for roughly 200,000 Minnesotans. Healthcare M&A: HealthPartners and Essentia Health are moving toward a merger of their hospital systems, a deal Minnesota health officials warn could push patient costs higher. Energy Affordability: Minnesota’s Cold Weather Rule begins Oct. 1, and Minnesota Power is reminding customers about payment plans and assistance options to avoid disconnection. Rural Housing Preservation: In Tower and Soudan, local and state partners are working to preserve 52 affordable rural rental homes, including Lakeview Manor and Mineview Manor. Life Sciences & Trade Links: Gov. Tim Walz visited Karolinska Institutet with Minnesota partners to deepen research and healthcare collaboration. Cybersecurity: Walz proclaimed October Cyber Security Awareness Month in Minnesota, urging stronger online habits for residents and businesses. Pulsar Helium Expansion: Pulsar Helium advanced plans for an $85.5M rare gas hub in northern Minnesota, targeting helium purification/liquefaction capacity and related CO2 capture. Local Politics & Small Business: A Lakeville forum for state candidates focused on reducing red tape and supporting small businesses and land development.

Cold Weather Rule: Minnesota’s Cold Weather Rule kicked in Oct. 1, shielding eligible customers from electric shutoffs through April 30 if they set up and keep a monthly payment plan, with Minnesota Power pointing customers to assistance programs and reconnection options. Energy & affordability: The state’s winter protections arrive as utilities and regulators face ongoing pressure over costs and reliability. Healthcare accountability: A Minnesota federal court freed UnitedHealth from most of a major securities fraud case tied to Medicare Advantage claims, while separate legal action continues to target alleged misconduct. Drug pricing enforcement: Minnesota’s AG joined a coalition seeking court approval of a $400 million settlement with Sandoz over alleged generic-drug price-fixing and reduced competition. Climate policy fight: States and cities sued the Trump administration over EPA moves rolling back greenhouse gas limits for coal and gas power plants. Local business & community: Fairmont held a water quality workshop on Chain of Lakes runoff, nutrients, and invasive species, weighing experimental lake management approaches. Jobs: Minnesota DEED reported the state added 1,500 jobs in August and 45,041 over the year, outpacing national growth.

Rates & Inflation Watch: U.S. Treasury yields kept climbing as the global bond sell-off continued, with the 10-year note topping levels last seen in 2002; Minneapolis Fed President Neel Kashkari said inflation is still “around a 3% rate” and warned the story hasn’t really changed, even as cooler inflation data nudged rate-hike odds lower. Home Insurance Shock: Minnesota home insurance premiums jumped 13% in the first half of 2026, the biggest increase in the country, driven by hail and thunderstorms and pushing the state’s average annual premium to about $3,987. Healthcare & Consumer Costs: Minnesota AG Keith Ellison urged consumers to file for compensation tied to multistate settlements over alleged generic drug price-fixing. Corporate Moves: nVent completed its $1.75 billion acquisition of Maverick Power to expand data-center power distribution offerings. Local Business & Community: Redpath and Company promoted 35 staffers across levels as it enters FY2027. Agriculture Relief Push: Minnesota senators asked Gov. Walz to temporarily allow farmers to use lower-tax red dye diesel on highways to offset diesel prices above $6/gallon. Election Season (Local Governance): Multiple Chaska and Spring Park races featured candidate Q&As focused on budgeting, transparency, and managing growth.

Healthcare M&A: HealthPartners and Essentia Health announced plans to combine into one system, aiming to improve access, quality and affordability—another major consolidation move for Minnesota’s hospital market. Public Finance & Housing: St. Paul’s mayor faced questions about police operations as Chief Axel Henry sued, while St. Paul also saw a 550-unit Sibley Manor apartment project advance—both tied to how city decisions shape costs and services. Education Funding: Minnesota voters will weigh a Permanent School Fund amendment in November that could boost the trust’s annual payout to schools, a potential lifeline amid budget pressure. Energy & Industry: The Mesabi Metallics/Essar steel push in Iowa is drawing fresh scrutiny from Minnesota and Iowa lawmakers, with debate over whether the “mine-to-steel” promise can avoid past pitfalls. Cyber & Risk: A coordinated cyberattack on Minnesota community water systems highlighted how operational technology security is becoming a business-critical issue, not just an IT concern. Local Business Growth: Maple Grove approved a Dick’s House of Sport concept with interactive retail plus a planned Golf Galaxy and outdoor sports field. Fraud Crackdown: Minnesota AG Keith Ellison charged nine providers in Medicaid fraud cases totaling more than $3 million, including a Duluth man accused of a $2.2 million scheme.

Healthcare & Biotech Dealmaking: Celcuity says REVTORPYK (gedatolisib) is now commercially available in the U.S. for eligible HR+/HER2- advanced breast cancer patients without a PIK3CA mutation, following FDA approval in combination regimens. Clinical Research Tech: Trialynx won DPHARM Idol Disrupt 2026 for its hub-and-spoke “single source of truth” approach aimed at enabling FDA real-time clinical trials. Powering Data Products: OneMedNet announced a seven-figure multiyear agreement to supply de-identified, multimodal real-world data via its iRWD platform for AI model training and derivative dataset licensing. Utilities & Consumer Costs: Minnesota regulators say Xcel Energy’s billing errors have driven rising complaints, delayed credits, and late fees for residents, businesses, and cities, prompting calls for corrective action. Insurance Costs: A new report finds Minnesota home insurance rates jumped more than any other state in the first half of 2026, tied largely to hail and thunderstorms. Local Business Expansion: Armor Equipment plans to expand its Arnold facility after purchasing Dakota Truck Co., adding jobs as it builds new shop space.

Iowa Steel Push: The White House and Mesabi Metallics/Essar announced a $15B (reported $18B in some coverage) steel plant in southeast Iowa tied to Minnesota iron ore, with claims of 5,000–6,000 construction jobs and at least 1,750 permanent roles—while Minnesota lawmakers questioned why the investment isn’t staying on the Iron Range. Medicaid Crackdown: Minnesota AG Keith Ellison charged nine people in a $3M Medicaid fraud case, including a Duluth therapist accused of more than $2.2M in false claims. Housing & Insurance Pressure: Zillow data showed Redwood County’s typical home value rose to $186,072 (+5.2%); separately, Insurify reported Minnesota home insurance premiums jumped sharply in 2026, with some counties up about 20% in six months. Energy Costs Watch: GasBuddy reported premium gas deals in parts of Minnesota (including Olmsted County at $4.89) as diesel prices keep setting records nationally. Corporate Moves: Ameriprise Financial authorized an additional $5.5B share repurchase. Data Center Appetite: A Minnesota-based firm, Geronimo Power, filed for a North Dakota data center permit near Fargo that would use up to 540 megawatts at peak demand. Workforce Pipeline: Minnesota State Mankato will host a career and internship expo Oct. 8 with 280+ employers and 1,400+ openings.

Steel Investment: Mesabi Metallics says it will invest $18 billion to build a fully integrated steel operation in Iowa, tying a new Iowa plant to its Minnesota Mesabi Iron Range mine and pitching major job creation and a stronger U.S. supply chain. Local Economy & Jobs: Gov. Tim Walz is in Denmark, Sweden and Iceland to promote Minnesota business ties, with stops aimed at attracting investment and expanding opportunities for Minnesota companies. Healthcare Costs: A RAND study finds Mayo Clinic charged private insurance more than twice what Medicare pays for outpatient care in 2022, underscoring a wider national pricing gap policymakers are trying to rein in. Consumer Protection: Minnesota’s attorney general race is drawing scrutiny over candidate Ron Schutz’s stock holdings, raising conflict-of-interest concerns for a job that involves enforcing corporate-related laws. Business & Growth: nVent named Courtney Nelson Wills as general counsel, and Hawkins completed its Texas expansion acquisition of Eagle Labs, adding water-treatment capacity in the Dallas–Fort Worth region. Transportation: Amtrak’s Borealis hit 500,000 riders, signaling growing demand for daytime rail between St. Paul and Chicago.

Steel & Jobs: President Trump says Mesabi Metallics will build a $15B steel plant in eastern Iowa, billed as the nation’s largest, with thousands of construction jobs and about 2,000 manufacturing roles—an Iowa political boost coming just before midterms. Minnesota Business Impact: The plan follows Mesabi’s Minnesota-linked operations and incentive concerns raised in Minnesota coverage, while broader steel pressure continues as Stelco idles operations in Hamilton, Ontario, citing market uncertainty. Energy Costs: Gas prices in Minnesota ticked up, with Hennepin County’s lowest midgrade reported at $4.39/gal and diesel costs rising fast—hitting school bus budgets as districts struggle to cover fuel spikes. Health Care Fraud: A Minnesota therapist faces felony charges tied to alleged $2.25M Medicaid fraud from thousands of claims for services not provided. Flood Recovery: Southern Minnesota communities continue cleanup after Sept. flooding; FEMA and SBA join state teams for door-to-door damage assessments starting Oct. 1. Cyber & Data: Mapletree Industrial Trust plans to sell a Minnesota data center property in Eagan for about $9.8M, while Minnesota reported 546 cybercrimes in 2025 totaling $48M in losses. Local Economy: Minnesota tax collections beat forecast in August by $64M, driven mainly by stronger income and sales taxes.

Minnesota Cost Pressures: A new survey finds 57% of Minnesota families expect to spend less on fall outings as grocery and housing costs squeeze budgets, with free admission becoming a key deciding factor for seasonal events. State Economic Outreach: Gov. Tim Walz is heading to Denmark, Sweden and Iceland to push international partnerships tied to healthcare innovation, agriculture, clean tech, higher education and advanced manufacturing. Healthcare Access Gap: A national analysis says 15.1 million Americans live in counties with no general surgeon, highlighting a major rural care shortage that could shape federal shortage-area designations. Business & Investment: Lifecore Biomedical agreed to be acquired by Webster Equity Partners in a deal valued up to $663.7 million, with payments tied to performance milestones. Local Infrastructure: Monticello broke ground on a roughly $45 million drinking water treatment plant to address manganese levels and support future growth. Food Safety Politics: Food safety is becoming a midterm issue after major outbreaks and recalls, raising questions for consumers about whether everyday meals are safe.

Energy Costs: GasBuddy data shows Yellow Medicine County’s lowest E85 price hit $2.29/gal for the week ending Sept. 19, while Minnesota’s average E85 rose to $3.30/gal; other spot checks included Pennington County’s lone E85 station at $5.89/gal and Waseca County’s lowest E85 at $3.04/gal. Local Economy & Housing: Zillow reported Lyon County’s typical home value at $220,187 in August 2026, up 4.2% year over year, underscoring steady regional price gains. Agriculture: USDA’s Quarterly Hogs and Pigs report put U.S. hog and pig inventory at 74.3 million—down 2% from a year ago—while Minnesota ranked second nationally at 9.3 million head. Policy & Business Climate: Gov. Tim Walz is traveling to Denmark, Sweden and Iceland through Oct. 3 to court investment and partnerships in healthcare innovation, agriculture, clean tech, higher education and advanced manufacturing. Legal/Regulatory: The U.S. Department of Justice sued Minnesota, St. Paul and Minneapolis over the state’s 30-day handgun and certain rifle waiting period, arguing it violates the Second Amendment.

Minnesota Politics & Voting: Early voting is off to a strong start across Minnesota, with the state reporting nearly 385,000 absentee and mail ballots distributed in the first week of voting. Public Health & Consumer Safety: Bird flu cases are surging early in Minnesota, with officials noting the state has been preparing since the USDA detected HPAI in 2022. Healthcare Business: A Minneapolis health marketing veteran launched ServingOverSelling, urging health systems to shift promotional spending toward patient support, arguing the sector spends about $10B annually on marketing. Ag & Energy: Agrivoltaics is gaining traction in Minnesota, with a Big Lake solar farm pairing 1-megawatt power generation with cucumber production under 10-year leases. State Economy & Risk: Minnesota’s unemployment rate ticked up slightly in August, while diesel prices continue to squeeze truckers, farmers, and consumers. Data & Cybersecurity: Minnesota is tied to a major Labcorp-related data breach settlement, part of a multistate deal over a 2019 incident involving a debt collector.

Labor & Industry: United Steelworkers said Cleveland-Cliffs steelmaking contract talks will resume Thursday, Oct. 1, after progress on economic issues but “significant work” remains, with Minnesota-area taconite workers affected by separate mining negotiations. Local Business & Housing: Minnesota’s housing market keeps ticking up in pockets, with Zillow reporting Murray County typical home values at $256,708 in August 2026 (+7.9% year over year). Energy Costs: Diesel prices are still squeezing Minnesota-area trucking and farming economics as fuel costs stay elevated. Civic Pressure on Big Business: Rainy protesters outside Target Field urged the Minnesota Twins’ Pohlad ownership to sign a “Business for Democracy Pledge,” tying corporate influence to voting-rights protections. Consumer Safety: A Minneapolis-produced sugar recall covering about 1.7 million pounds across eight states includes Target’s Good & Gather brands, with batch numbers tied to the affected products. Sports Business: Twins starter Pablo López is heading into offseason rehab after elbow surgery, planning a Monday training return as the CBA clock runs toward Dec. 1.

Education Funding Vote: Minnesota voters are being urged to back a constitutional amendment that would modernize the Permanent School Fund and boost annual school payments without raising taxes or draining principal, with supporters saying it could mean “millions and millions” for districts. Tax Crime Case: A Canton man, Ted Lord, was charged with felony counts tied to failing to file income tax returns and pay taxes from 2020-2024, with alleged unpaid income tax exceeding $600,000. Fuel Costs Watch: GasBuddy reported the lowest regular price in Kittson County at $4.09 (week ending Sept. 19), while premium hit a low of $4.59 in Hennepin County; E85’s low was $1.99 in Ramsey County. Diesel Pressure in the North: Northern Minnesota loggers and truckers say record diesel prices are forcing some to park equipment, with lawmakers calling for temporary price relief. Local Government Dispute: Mountain Iron’s council is weighing whether proper steps were followed in removing Steve Giorgi from an economic authority role, with the city attorney preparing options. Health Policy: A proposed shift in HPV vaccine guidance is being discussed nationally, with experts exploring whether one dose could replace two for preteens. Infrastructure Update: MnDOT scheduled a Hwy. 52 closure at the I-90 interchange starting Monday, with detours in place during bridge and pavement work.