MORNING EDITION

Poor Arden Hills. Eyes are turning, inexorably, to the west side of downtown Minneapolis for the (inevitable?) Vikings  stadium. The Strib team of Mike Kaszuba, Rachel Stassen-Berger and Rochelle Olson write: “Gov. Mark Dayton on Wednesday said he is leaning toward Minneapolis' Linden Avenue site as the home for a new Vikings stadium, and the team is giving fresh indications that it is warming to that spot. Speaking for the first time since his deadline to submit stadium plans, Dayton cautioned that all three front-running sites have major problems that prevented him from making a clear recommendation and which could block a stadium solution by the Legislature this year. ‘There's not yet a stadium proposal with a complete and sufficient financial plan,’ Dayton said. ‘No site's sponsor has adequately resolved the major unanswered questions in order to merit the approval to proceed.’ Dayton was firm about the fate of one site: The Vikings' previously preferred site at Arden Hills, he said, ‘is not financially viable.’ The Vikings, he said, could choose to contribute $700 million to the cost of the $1.1 billion stadium — something the Vikings immediately said would not be possible.”

At the PiPress, Doug Belden writes: “The Linden Avenue site got a boost Wednesday. While noting the city and team ‘have said little publicly’ about the idea, Dayton said, but it has ‘significant advantages’ over the Dome. It's a parcel owned largely by Xcel Energy and the city of Minneapolis. The site also has some detractors. Basilica of St. Mary rector, the Rev. John Bauer, said Wednesday that church leaders do not want the stadium so close to their building, and that they are exploring legal options. At least one nearby business owner has expressed opposition. Dayton said he met with Bauer last week and will meet with him again Friday about his concerns. The $995 million project at the site would require bigger investments from the team, $450 million, and state, $395 million than the Metrodome.” Hmmm ... have said little publicly ...

At MPR, Madeleine Baran says: “Dayton raised several concerns about the proposed Arden Hills site and said it's unlikely the state legislature will allow Ramsey County commissioners to increase the general sales tax or the food and beverage tax to help fund the stadium without a voter referendum. He said that would leave the Arden Hills stadium with just two funders — the state of Minnesota and the Vikings. Under that scenario, Dayton said, the team would need to contribute $700 million of the $1.1 billion cost of the Arden Hills project. The governor also urged the Vikings to disclose how they plan to develop the 170 acres of the Arden Hills site that would not be used for the new stadium. ‘If the Vikings truly want to be in Arden Hills, they have thus far missed their opportunity to inspire decision-makers and the public with their vision for the site's entire development,’ Dayton's office said in a statement released shortly after the news conference.”

Redistricting withstanding, Minnesota 8th Congressional District race will get a lot of attention. Mark Zdechlik at MPR writes: “Two years ago, Republican political newcomer Chip Cravaack dealt the DFL a stinging blow by defeating 18-term U.S. Rep. Jim Oberstar. Democrats want the seat back but are concerned a primary battle could hurt their chances. So far, the candidates include former U.S. Rep. Rick Nolan, former state Sen. Tarryl Clark and Duluth City Councilman Jeff Anderson. … there are early indications of an intra-party battle among three DFLers. Only one, former U.S. Rep. Rick Nolan, has made an iron-clad promise to abide by the party endorsement and not run against a fellow Democrat in a primary election. ‘You know, quite frankly running for Congress at this stage of my life was not something that I had ever contemplated ever for a moment,’ he said. Nolan, who served three terms in Congress, chose not to run for re-election for his southwestern Minnesota Congressional seat more than 30 years ago. He left Congress to pursue a career in business. Now he said he wants to return to Washington to help reduce the influence of special interests in politics, to raise taxes on wealthy Americans, and to end what he calls ‘wars of choice.' "

“Mixed” is the assessment of the annual report on “adverse events” at Minnesota hospitals. The Strib story, by Jeremy Olson, says: “Minnesota hospitals reported 26 incidents last year in which doctors performed the wrong procedures on patients — including 10 cases involving the wrong replacement joints, breast implants or cataract lenses. The figure is the highest in eight years of self-reporting by Minnesota hospitals. ... The increase in wrong procedures stood out in an otherwise mixed report, released Thursday by the state Health Department and the Minnesota Hospital Association. The number of adverse events — often called ‘never events’ because they are deemed preventable — climbed to a record 316 in Minnesota's hospitals and surgery centers in 2011, up from 305 in 2010. On the other hand, the number of errors causing disabilities or deaths declined from a high of 116 in 2008 to 89 last year.”

Has Paula Deen ever been to the Minnesota State Fair? Her revelation that she has diabetes has foodies wagging their tongues righteously. The Strib even editorializes about it: “If it’s edible, it’s likely been fried, slathered in bacon or topped with cream-cheese frosting in Paula Deen’s TV kitchen. That’s why the TV chef’s announcement that she has Type II diabetes — a disease linked to an unhealthy lifestyle — has whipped up a big batch of not entirely unjustified schadenfreude this week. ... the piling on by Deen’s critics ignores a critical point: No one was forced to watch her show. Or to eat the recipes she demonstrated. She’s rich and famous because we bought what she’s selling. It wasn’t just unhealthy food. It was a lifestyle elevating feeling good for a moment above everything else. Deen’s success is a symptom, not the cause of the dangerous short-term-gain mentality plaguing our culture and political system.” In other words, she’s a Southern-fried object lesson.

Speaking of inevitable … the Block E movie theaters will not be able to renew their old lease. The Strib’s Janet Moore reports: “The Eighth U.S. Circuit Court of Appeals in St. Paul upheld a previous ruling by District Judge Ann Montgomery indicating the theater does not have the right to extend its lease beyond September. It's unclear whether the action means the 15-screen theater will close or negotiate a new lease. The theater, run by Atlanta-based AMC ShowPlace Inc., is one of the few tenants remaining in the distressed retail complex, which is now being eyed for a possible casino.”

Kathie Jenkins, the PiPress food critic, serves up her occasional list of new restaurant openings, this one of those on the book for 2012. Among the highlights: “Bar Louie (1320 Lagoon Ave., Minneapolis): The hip, Glenville, Ill.-based tavern and grill is going into MoZaic development in Uptown. Like the others in the chain, the menu will be burgers, oversized sandwiches, jumbo martinis and microbrews. Gary Perel, a real estate broker for Indianapolis-based UrbanSpace Commercial Properties, which represents Bar Louie in its search for sites, said to expect four or five more in the Twin Cities during the next couple of years. Hopefully, one will be in St. Paul. Two years ago, the company looked to open a Bar Louie in St. Paul's Lowertown, but "the timing wasn't right," says Perel. ... Smokehouse Brewpub (38th Street and 28th Avenue South, Minneapolis … ): ‘Invest $1,000 and drink free beer for the rest of your life.’ It was an offer too good to resist. Owner/brewer Jamie Robinson had the space and the idea but not the $175,000 down payment on $800,000 needed to start the business. He put the word out about a lifetime of free beer, and the money started rolling in — $1,000 at a time. ‘It's all about social networking and getting other people to talk about it,’ says Robinson, a veteran of Town Hall Brewery. ‘We hit our fundraising goal, and we had a wait list in case we needed it.’ When Smokehouse Brewpub opens in late May, it will have an on-site craft brewery and a menu based on house-smoked meats. Plans include a long oak bar, seating for 75 inside plus another 50 on the patio and floor-to-ceiling windows so customers can watch the brewing in action.”

U.S. Bancorp had a good quarter. Says Bloomberg’s Patricia Clark and Laura Marcinek: “U.S. Bancorp (USB), the nation’s fifth-largest lender by deposits, reported a 39 percent increase in fourth-quarter profit, beating analysts’ estimates as costs linked to souring loans fell. Net income attributable to the bank rose to $1.35 billion from $974 million in the year-earlier period, the bank said today in a statement. Earnings per share increased to 64 cents, excluding a 5-cent net gain linked to items including a litigation settlement, from 49 cents. The average estimate of 30 analysts surveyed by Bloomberg was for 63 cents. ... Full-year profit climbed 47 percent to $4.87 billion, as revenue climbed 5.3 percent.” I thought regulatory uncertainty was crippling banks?

The two write in a follow-up story, based on a conference call with U.S. Bancorp CEO Richard Davis: “The company’s ‘very steady history’ gives Davis confidence that the Fed will approve his request for an ‘aggressive’ dividend increase and share-repurchase program, he said. Davis also said he may be interested in acquiring non-bank assets, including corporate trusts and credit portfolios, and that a larger deal is possible. ... The company reported a $130 million expense related to mortgage-servicing. About a dozen state attorneys general met last week to discuss their mortgage investigations and how they might work together as settlement talks with banks over foreclosures drag on, three people familiar with the matter said at the time. The meeting occurred as state and federal officials negotiate a settlement with the five largest mortgage servicers that would set requirements for conducting foreclosures and provide relief to homeowners. ‘The banks beyond the big five have been invited into the conversations’ with attorneys general and regulators, Davis said in the conference call. “We believe we have something that we need to reserve for.’ ” Will the big mortgage operations finally take a haircut in the foreclosure cycle of pain?