On February 17, your Chamber executed on a fabulously successful Annual Meeting. It was so wonderful to see so many of you in person, and the energy throughout the evening was palpable.  As you know, our keynote speaker was General Paul Nakasone, the Director of the NSA and Commander of US CYBERCOM.  Looking back, the timing – and our speakers’ much bigger responsibilities – gives me pause.  Up until the very day of the event, we were preparing for the potential of a virtual appearance from the General. Now we know why, don’t we? Despite the international crisis that subsequently ensued, General Nakasone still chose to take the trip to Minnesota to talk to you. I find that extraordinary. His message: business is vulnerable to cyber intrusions, take steps to protect your business.
 
And today? All eyes are focused - with horror – on the Russian invasion of Ukraine. No one more so than our Minnesotans with Ukrainian ties. The juxtaposition, one week to the next, grips me.
 
To add to my ruminations, last week I read a commentary by The New York Times communist German Lopez, Putin vs Democracy. Lopez speaks to the “global retreat” of democracy worldwide for the past 15+ years. The invasion of Ukraine — the largest war in Europe since World War II — is a significant escalation even among the world’s increasingly ruthless authoritarian leaders. The country’s fall would mark a violent end to one of the world’s democracies. “Maneuvers like Putin’s, as well as insufficient pushback from other governments, have fostered this global democratic decline, experts say. Just one in five people now live in countries designated as “free,” down from nearly one in two in 2005, a new report from Freedom House found.” 
 
Freedom House is the oldest U.S. organization devoted to the support and defense of democracy around the world. It originally was established in New York in 1941 to promote American involvement in World War II to fight against fascism. Its current president, Michael Abramowitz, said to The New York Times in that same article, that the invasion of Ukraine is “a taste of what a world without checks on antidemocratic behavior would look like.”  
 
Note that President Biden will deliver his first State of the Union address on Tuesday at 9 p.m. I will be watching to learn more about the U.S. and world response.
 
See you in the trenches.
B

​Public Safety:

• St. Paul Area Chamber public safety listening sessions: register for a session in your ward.  We need your input!
• Governor Walz hosted public safety roundtable in Brooklyn Park.  He spoke to his $300M grant package to fund a variety of public safety initiatives.

 
Federal:

• The St. Paul Area Chamber has signed on to a letter authored by the National Association of Manufacturers, urging action to protect manufacturers’ ability to immediately deduct research and development expenses from their taxes. Starting this year, these expenses must be amortized over a period of years, which will negatively impact manufacturers’ ability to innovate, grow, and create high-paying jobs.

 
State:

• Total State ARPA money:  $73 billion came to Minnesota from three big federal laws: the CARES Act of March 2020; the Coronavirus Response and Relief Act of December 2020; and the American Rescue Plan Act of March 2021. 
• A showdown is brewing over temporary vs permanent tax cuts. Minnesota Senate Republicans rolled out a proposal Thursday to reduce the first-tier income tax rate from 5.35% to 2.8% and eliminate the state tax on Social Security benefits.

 
Regional

• Last week Mayor Carter gave his annual State of the City address. He outlined ongoing priorities around public safety and called for changes to the rent stabilization ordinance including exemption for new construction.  
• Last week St. Paul’s City Council shared that $4.5 million of Federal ARP dollars awarded to the City would be used to fund grants for tourism geared toward bringing visitors back to Saint Paul.  In Scott County: After two intensive works sessions, the Scott County Board provided direction on how ARPA funds should be invested in programs. See page 22 of this report.  
• Transit ridership began to recover in 2021. Met Council staff presented the full ridership report (PDF) at the February 14 Transportation Committee meeting.

 
Read more updates in our weekly Chamber Advocacy Update.

This past week I’ve been full of random thoughts. It was a big week on several fronts.
 
First off, Happy Presidents Day. Many of you have the day off; if you do, warm wishes for a relaxing day as the snow falls.
 
Last Thursday evening was the Chamber’s 154th Annual Meeting. We had the great honor of welcoming as our keynote speaker General Paul Nakasone, the Director of the NSA and Commander of US CYBERCOM.  The evening was a great success, and the energy in the room was palpable. The event extended far beyond the formal program; people really enjoyed coming together!  Some of the memorable moments I’ll take with me:

• The evening was anchored in the themes and priorities that thread through my conversations with you – RE: resilience, readiness, reconnecting, reimagining. You are demonstrating both the ability and the desire for all. And we celebrate you!  See our Community Report here, and our introspective video here. 
• Realization that, as of last Thursday, we’ve been in “COVID mode” for 706 days. You heard me. And we paused to acknowledge all that we have lost these past 2 years.
• Quote from Duchesne Drew, MPR, and our 2021 Board Chair: “As business and community leaders we have an obligation and an opportunity to change that reality. [Or] we’re not going to have the workers we need, we’re not going to have peace in our streets. We have to be committed and aligned. And that requires building relationships and understanding. This is the Chamber’s work.”
• Priority conveyed by Marcia Droege, Land O’ Lakes, and our 2022 Board Chair: we are establishing a Small Business Committee, to prioritize issues central to small business success.

My own assertion that, large or small, we are in community - a feeling of fellowship with others, as a result of sharing common interests and goals.

• Quote from our keynote speaker on the priority of cyber security: “You’ve seen the cyber-headlines that have dominated the news… By the time I finish reading this sentence, a business will have fallen victim to a ransom ware attack.  About 43% of small businesses were targeted last year…. These incidents threaten not only our economic well-being, but also our national security.”  
• The After Party at the St. Paul Grill that lasted, well, a long time. It feels like we’ve turned a corner in terms of coming together again!

 
Sunday also marked the Closing Ceremonies of the 2022 Olympics.  What to say about this one? Some of the finest athletes ever to compete, yet the Games were shadowed by politics and COVID – and illegal drug accusations. Norway broke the record for the most gold medals at a single Olympic Winter Games at 37! Team USA finished in the top 5 in the medal mix, and we saw outstanding performances from so many, including: Nathan Chen winning his first career gold; Afton native Jessie Diggins bringing in the final medal (of 2 she won this year); the historic recognition of Elana Meyers Taylor as she earned her 5th Olympic medal in bobsledding, making her the most decorated African American Winter Olympian; Erin Jackson becoming the first Black gold medalist in individual speed skating; Team USA’s Mixed Team Aerials, the underdogs, bringing home the Gold. And so many others.
 
The Olympic motto is, “Faster, Higher, Stronger – Together.”  Let that inspire us as we continue our work together.
 
See you in the trenches.
B

Public Safety:

• In order to inform our public safety advocacy, we are inviting all businesses with a physical presence in St. Paul to participate in listening sessions to share their experiences, concerns, and ideas. These meetings will be held via Zoom, starting in March and running through the end of June. These meetings are business/employer focused. (In this case, business/employer = for-profit, non-profit, company, LLC, etc.). To participate, fill out this form and a calendar invitation with the Zoom link will be sent from [email protected].  
• The federal jury trial for 3 Minneapolis police officers involved in George Floyd’s murder proceeds with defense testimony in downtown St. Paul. Saint Paul Police continue to provide information through a blog on the police department website which can be found at https://www.stpaul.gov/news. 

 
State:

• Redistricting: On Tuesday, February 15, new congressional and legislative district boundaries were released effective for the 2022 election through the 2030 election.
  • Congressional Districts not altered in a fundamental way. That said, according to FiveThirtyEight, redistricting reportedly has created 11 more Democratic-leaning seats nationally, 3 fewer Republican-leaning seats, and 8 fewer highly competitive seats.
  • In Minnesota, according to MPR, new political district maps will shake up Minnesota politics. And here is Minnpost’s take on redistricting.
  • Senate: 67 seats redrawn; 8 senators now find themselves paired in the same district as one of their colleagues, based on home addresses.
  • House: 134 seats redrawn; 38 representatives now paired in the same district.
• Governor’s emergency powers could change after COVID-19 crisis. As the pandemic moves toward a more-hopeful phase, the Legislature is contemplating changes to the emergency powers laws that gave Walz tremendous leeway to impose restrictions, spend money and mostly guide the health response on his own.  

 
Regional​:

• The Mayor’s office has established a 41-member rent control stakeholder group to advise the city on the roll-out of this ballot measure. 
• Tis the season for State of the City addresses: 
  • St. Paul - Mayor Carter will live-stream from the city's facebook page tomorrow (Tuesday) at 10:30am. 
  • Roseville - Mayor Roe will present to the Roseville Business Council on Wednesday the 23rd at 7:30am. RSVP here for the zoom link.
  • Woodbury Mayor Anne Burt will present at the amphitheater inside Central Park, on Thursday, March 3 at 6:30 pm.
  • Maplewood event was presented by Mayor Abrams on February 15. See the replay here.

 
Read more updates in our weekly Chamber Advocacy Update.

7. Building Capacity

• Federal Funding Hub
  • Apply ASAP: Due to the high volume of applications, EDA strongly recommends that applicants contact their local representative to discuss their region’s availability of funds.  While the Notices of Funding Opportunity for the Economic Adjustment Assistance and Indigenous Communities programs advise to submit applications no later than March 31, 2022, EDA strongly recommends applicants to submit proposals as soon as possible for these programs. 
  • For more information on ARPA/federal funding opportunities, check out the Federal Funding Hub!  
• The latest on the former Ecolab University Center tower: was slated to become a 17-story apt bldg. over retail space, but the developer and project - are in trouble. The project now is in receivership.
• Hillcrest: City and Port Authority working towards making this a carbon-free housing and jobs provider. First is city approval of the Hillcrest master plan, hopefully as soon as April.

Happy Valentines Day! And congrats to L.A. Rams.  A great game – that last drive was epic.
 
Most of you know our annual meeting is this Thursday. We are thrilled to welcome our keynote speaker, General Paul Nakasone – Commander of the U.S. Cyber Command, Director of the National Security Agency (NSA), and Chief of the Central Security Service.  
 
There’s a story there…  
40 years ago I was 18 years old, preparing to graduate from Woodbury High School and head off for an upcoming freshman year at the College of St. Benedict. No clue about a life plan. Four years later as I approached graduation,  I was the co-cadet commander of my ROTC battalion, the Fighting Saints. I shared that rank with our keynote speaker and friend, Paul Nakasone (a graduate of White Bear Area High School). A rather serious, focused, smart young man, Paul always seemed to be certain about his path forward.
 
That intimidated me because I had no clue about my own life’s plan. I was a late starter. My progress largely was defined by: “in the absence of clarity, just do the next right thing.” As I did that, time and again the path forward would become clear.
 
Along the way and from a distance I’ve watched Paul’s professional career. In his journey is something for all of us to take away: regular, knowable people can do extraordinary things. Like Paul. Like you. 
 
Speaking of extraordinary people, I’d like to introduce you to Kalyn Hove of Comcast. Listen to her interview on B’s Table Talk – and find out what 5 words she uses to describe her 2021. Hint: one of them is “Resilience”!
 
See you in the trenches.
B

​Public Safety:

• SPPD Chief Axtell writes to Mayor Carter they are down 100 officers from sworn strength of 619… and are losing officers to better paying jobs at other agencies.

​Federal

• Government funding: To avoid a shutdown on Friday, the Senate will need to pass — and Biden will need to sign — the House-passed legislation to fund the government through March 11. What we're watching: There's no expectation the stopgap measure will fail, but there are a couple themes to keep your eye on looking ahead. First, a number of public works projects authorized by the bipartisan infrastructure law were not covered by the continuing resolution, putting their start dates on hold as lawmakers draft an omnibus spending package for the current fiscal year. Second, while lawmakers have announced agreement on a top-line figure for the omnibus legislation, it hasn't been written yet, setting up potential haggling in the coming weeks.

 
State:

• A bipartisan effort to refill the Unemployment Insurance trust fund took a big step forward this week, as SF2677 was passed out of Finance committee on an unanimous 10-0 vote. The bill could be taken up on the Senate floor as early as this week. 
• What you need to know about Minnesota redistricting. See how proposed plans would affect you.

 
Regional

• Minneapolis, St. Paul end vaccination-or-test order for bars, eateries. Masks are still required in indoor public spaces.  Mayor Carter discusses his decision.
• Details on Rent Control are still illusive in St. Paul.

 
Read more updates in our weekly Chamber Advocacy Update.

Public Safety:

• Carjackings used to be so rare that police didn’t track them uniquely. That’s changed. Cities across the U.S. have reported carjacking spikes. In St. Paul, there were 55 carjackings reported in 2019, 73 in 2020, and 101 in 2021. Minneapolis numbers actually doubled in 2021. Meanwhile, 2,635 vehicles were reported stolen in St. Paul in 2021, and 2,774 in 2020. Most people involved are teens, and it’s not unusual for them to be too young to even have a driver’s license. Ramsey County is trying a new, “focused deterrence” approach.
• In response to the officer involved shooting of Amir Locke on Feb 2, protesters marched, and Governor Walz has issued Executive Order 22-02 authorizing the Minnesota National Guard to provide public safety assistance during the ongoing federal civil rights trial. NG members will not assume posts at this time; instead, the MNNG will be able to deploy resources as necessary – intended to shorten the response time.​
• St. Paul federal trial is continuing without incident. Saint Paul Police continues to provide information through a blog on the police department website which can be found at https://www.stpaul.gov/news.

 
Federal

• Government funding: Lawmakers face a Feb. 18 deadline - one week from Friday - to pass legislation to avoid a government shutdown.  What we're watching: It's looking increasingly likely that appropriators will move forward with a short-term stopgap measure to keep the government open as talks on a broader deal continue. On top of government funding, the brinkmanship over a full-year measure has also delayed discussions of the Biden administration's planned request for another COVID-19 relief bill. 
• Senate is deadlocked on the Build Back Better bill, the core of President Biden’s legislative agenda.

 
State:

• Unemployment Trust Fund: Both the Senate (SF 2677) and House  (HF 2728) have introduced bills related to replenishing the unemployment trust fund, freezing the unemployment tax rate, assessment, and taxable wage bases; employer ratings; and appropriating money. Both houses have hearings scheduled on Feb 7 to review the respective bills. The legislature has until April to act before the new rates are applied to business owners.
• Workers Comp: both the Senate and the House have passed legislation (HF 1203, SF1203) to extend workers comp protections for employees who contract COVID while on the job, the “COVID-19 presumption statute.” The Governor signed it into law on Friday.

Regional

• St. Paul business owners learned last week that, effective today, Feb 7, a series of city fees are on the way up - during the mandate period. ​

 
Read more updates in our weekly Chamber Advocacy Update.​

• Fortune names Most Admired Companies in 2022: Target, 3M, Xcel Energy, Medtronic, Best Buy, Fastenal, General Mills, C.H. Robinson are tops among Minnesota companies. Ecolab, U.S. Bank, and UnitedHealth lead in their categories. Well deserved for all recognized companies. Read here for the full list.

 

• Our biggest event of every year is our Annual Meeting. More crucial than ever today is cyber security, and we’ll be hearing about that this year from this country’s preeminent voice: Join us on February 17 at RiverCentre to hear from the Director of the NSA/Cyber Command, General Paul Nakasone.

 

• Leadership Saint Paul’s 2022 class (best class ever?) kicks off in March.  If you looking to participate in this phenomenal leadership program and build a cohort of relationships to stay with you for the rest of your career, check it out! Applications can be submitted through the end of the month.  ​ ​

•  CEI is awarded $5M by JPMorgan to help firms owned by Black and Latina women grow their businesses. CEI hopes to help 60 businesses by 2025, including the establishment of an investment fund.

 

• Emergency Broadband program transitions to the Affordable Connectivity Program (ACP) as of March 1, 2022.  ACP is an FCC benefit program intended to ensure that households can afford the broadband they need for work, school, healthcare, and more. For eligibility and enrollment, go to the FCC Consumer Information page (Link).

 

• Twin Cities’ only Black-owned bank, First Independence, has opening date: Feb 22, at 3430 University Ave SE, in Minneapolis.

The Minnesota Chamber's annual Session Priorities event was hosted on Monday night, and your Chamber public affairs team was happy to be back in person for this annual event. Special thanks go out to Board Chair Marcia Droege and Representative Keith Franke for joining our table. 

The program included a panel discussion with the four legislative leaders: House Minority Leader Kurt Daudt, Speaker Melissa Hortman, Senate Minority Leader Melisa Lopez Franzen, and Senate Majority Leader Jeremy Miller. The four leaders have some major and minor differences over policy (paid family leave, recreational marijuana, size of the bonding bill) but also seemed to agree on quite a few topics, including two that are top priorities for our Chamber: public safety and the need to refill the Unemployment Trust Fund without putting a tax increase on our member businesses. All four agreed that the UI issue should be fixed "soon." 

Governor Walz was interviewed by KSTP's Tom Hauser on a laundry list of topics. I found the Governor's remarks to be candid. When asked about looking back on the decisions he made in the first year of the pandemic, he defended the decisions, but also expressed regret for things that could have been done to support businesses.  “In retrospect, if we were asking businesses to close in the name of public health, we absolutely had the responsibility to make sure we try to offset some of that revenue loss. And we didn’t. That said, in Minnesota, we struck a pretty decent balance. Across the 50 states, MN ranked among the top 5 states in terms of mortality rates, hospital capacity, days in the classroom, and economic activity. We made our decisions based on the best knowledge we had at the time.”

All in all, I thought the discussion was positive, and there seem to be places for the legislature to work together. We'll see if that goodwill gets extended into the session. With every member of the legislature and the Governor on the ballot this year, the stakes are bound to be a lot higher. Your Chamber team will be engaged throughout the session, so if you have a question on an issue, feel free to reach out to me, Shannon or JP. 
​  
See you in the trenches.
B

Public Safety:

• Hennepin County judge released a defendant from custody who subsequently disappeared. Questions are being asked….
• Three ex-cops’ trial in Floyd killing enters second week. Road closures continue and, thus far, two organized demonstrations. The prosecution appears to be slightly over halfway through its witness list. At this point, the anticipated timeline of 3-4 weeks of testimony is on track.
• Here is where carjackings happened in St. Paul in 2021 – there were roughly 100 carjacking incidents in the capital city last year.

 
State:

• Today is the start of the 2022 legislative session. Another year as the only divided state legislature in the country. Key this year will be big surplus and big stakes for the projected $7.7B budget surplus. To my way of thinking, of particular interest will be consideration of inflation – not reflected in the budget forecast. Inflation alone is expected to increase the cost of existing state programs by $1.1B over the next biennium.
• For this session: what’s at stake, issue by issue.

 
Regional

• Candidates line up for St. Paul legislative races in advance of precinct caucuses.

 
 Read more updates in our weekly Chamber Advocacy Update.​