Lake Street businesses report sales plunge amid ICE surge
A Minneapolis/St. Paul Business Journal piece reports that many of the roughly 2,000 businesses along Lake Street in south Minneapolis have seen monthly sales drop by as much as 80% since the Department of Homeland Security “flooded” the corridor with immigration‑enforcement agents under Operation Metro Surge. Developers and business owners are now publicly asking for coordinated support to keep doors open, warning that the federal dragnet — aimed at immigration targets, not local code violators — is scaring away customers, including U.S. citizens and long‑time residents. The story frames the impact not as a one‑day blip but a sustained collapse in normal commerce across one of the city’s main commercial arteries. It also underscores an emerging split: federal officials insist the surge targets serious offenders, while on the ground, immigrant‑serving retailers and restaurants say the visible show of force is turning Lake Street into a no‑go zone and threatening the long, uneven recovery from 2020’s civil‑unrest damage.
đź“Ś Key Facts
- The Lake Street corridor has about 2,000 businesses, according to developers and local groups.
- Some of those businesses are reporting monthly sales declines of up to 80% since DHS ramped up ICE presence on Lake Street.
- Developers and business owners are actively appealing for support to survive the enforcement surge and its customer‑deterring effect.
đź“Š Relevant Data
Minneapolis has the largest Somali-American community in the United States, with approximately 80,000 Somalis living in Minnesota as of 2023, representing about 2% of the state's population.
Somali population - Cultural communities — Minnesota Compass
The ICE enforcement surge in Minneapolis, involving 2,000 federal agents, is tied to allegations of fraud in federal programs, particularly involving Somali residents in schemes like Feeding Our Future.
2,000 federal agents sent to Minneapolis area to carry out 'largest immigration operation ever,' ICE says — PBS NewsHour
The Feeding Our Future fraud scheme in Minnesota involved the theft of over $250 million in federal funds intended for child nutrition programs during the COVID-19 pandemic.
Federal Jury Finds Feeding Our Future Mastermind and Co-Defendant Guilty in $250 Million Fraud Scheme — U.S. Department of Justice
Somali Minnesotans generate at least $500 million in income annually and pay about $67 million in state and local taxes, contributing significantly to the local economy.
Somali Minnesotans drive economic growth, pay $67M taxes annually — KSTP
Approximately 89% of Somali immigrant families in Minnesota use welfare programs, compared to lower rates among other groups, with per capita welfare usage higher due to factors like poverty rates and resettlement concentration.
Refugee flood isn't smart policy, it's the gift that keeps on taking — Fox News
Lake Street in Minneapolis has seen significant demographic changes with an influx of Latinx and Somali immigrants, revitalizing the area through immigrant-owned businesses that contribute to the local economy.
East Lake Street — Meet Minneapolis
đź“° Source Timeline (1)
Follow how coverage of this story developed over time