Committee on Jobs and Economic Development [Source] Translate

The committee on jobs and economic development convened to discuss the economic impacts of Operation Metro Surge on Minnesota. The chair emphasized maintaining decorum and outlined guidelines for attendees. A quorum was confirmed, and the agenda included presentations from business owners and city officials regarding the operation's effects. Mayor Kali Her of St. Paul testified about the significant negative impact on small and immigrant-owned businesses, reporting a 60-70% drop in revenue for many. She highlighted the emotional toll on the community and the targeting of ethnic businesses by federal immigration enforcement. The city has initiated a survey to gather data on the economic impact, with preliminary results expected soon. Mayor Her called for state legislative support for local business recovery. Paris Dunning from the Eastside Business Association noted the fear among immigrant workers and a drastic decline in foot traffic at the Hmong Mall, urging for substantial financial relief. Mayor Jacob Fry of Minneapolis reported an estimated $203 million in economic losses due to the operation, including declines in small business revenue and food security issues, and emphasized the need for support to mitigate these impacts. The meeting focused on gathering more data from affected businesses to inform legislative action. Mayor Fry mentioned that while crime rates have decreased, the operation has led to canceled conventions and significant economic impacts, with direct costs to the city around $6 million due to increased policing overtime. There is a noted need for mental health support, with an estimated impact of $2.3 million. Senator Muhammad expressed gratitude for the economic impact assessment conducted by the city, emphasizing the importance of understanding financial harms to workers and small businesses. The discussion included calls for a statewide economic impact study. Local business owners Daniel Del Prado and Ricardo Hernandez Espinosa testified about severe financial strain in the restaurant industry, with Del Prado reporting a drop in sales of up to 90% and emphasizing the need for emergency tools rather than handouts. Mayor Supple from Richfield reported revenue losses of 50-100% for local businesses, calling for support for small business relief funds. Lauren Bennett-Magenti from Explore Minnesota discussed challenges in the tourism industry, noting a decrease in visitor volume and disruptions related to the federal operation. The meeting highlighted a rise in cancellations and reduced bookings, with one in five businesses reporting these issues, compounded by decreased tourist traffic and spending. Data indicated that 46% of potential visitors are likely to avoid U.S. destinations with visible enforcement presence. While some Minnesota businesses expressed optimism for the upcoming season, many remain less hopeful. The discussion included inquiries about the economic impact study's scope, particularly regarding small minority-owned businesses, with a call for a comprehensive statewide assessment. Scott Marquardt from the Southwest Initiative Foundation emphasized the critical role of immigrant and refugee-owned businesses in rural Minnesota, noting significant revenue losses and the need for emergency relief funding. Amanda Quam from West Central Initiative highlighted the contributions of immigrants and refugees to the local economy and the fear caused by federal enforcement activities. The meeting underscored the urgent need for targeted recovery strategies and support for affected businesses. Various speakers discussed the economic challenges faced by small businesses, particularly in rural areas, due to the impacts of the COVID-19 pandemic and federal enforcement activities. The success of programs administered by Deed during the pandemic was noted, with hopes for similar future initiatives. Senator Pratt addressed the economic consequences of fraud, while Senator Gustafson shared concerns about the fear experienced by small business owners due to federal actions. Senator Pa raised issues regarding federal agents staging in parking lots of minority-owned businesses, leading to economic disruptions. The chair clarified that they are still constructing the bill and gathering input from stakeholders. The meeting concluded with an announcement of the next hearing scheduled for March 2nd, featuring the University of Minnesota's data science team discussing artificial intelligence, followed by a session on unemployment insurance on March 4th. The meeting was adjourned early, with thanks to all participants.