T H E  M I N N E A P O L I S  O B S E R V E R
A Weekly Digest of All Things Minneapolitan
www.mplsobserver.com
Vol. 2, No. 20
December 30, 2002

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THIS WEEK IN THE OBSERVER:
* City Seeks to Block Cable Transfer Plan
* Expanding Block E?
* Vegetarian Institution Will Become Blue-Collar Bar
* Right-Wing Think Tank too Partisan?
* Segregation City
* Local NAACP Head Resigns
Plus: Honeywell and the Axis of Evil, in search of the perfect steamer,
Chief Olson's next job, cushions on Minnehaha, waking the gardener within,
and a New Year's greeting from 1932.

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CITY SEEKS TO BLOCK CABLE TRANSFER PLAN
Time Warner Cable, already in hot water with the city over alleged
franchise violations, now finds itself stymied locally in its bid to
consolidate its holdings nationally.

City officials are blocking a request from the cable giant to transfer the
city's cable franchise to a new company about to be created by the merger
of Time Warner Entertainment and Comcast. They say Time Warner has failed
to convince them that the as-yet unformed corporation is capable of
managing the operation.

In a December 18 letter to Ways and Means Committee chair Barbara Johnson,
chief information officer Karl Kaiser and city coordinator John Moir
counseled the committee and the City Council to deny the request, which
they said could lead to "dire consequences" for city cable subscribers.

Time Warner has not proven that the still-unformed company is "financially
qualified" to manage the city's cable franchise, Kaiser and Moir argue. And
because Time Warner continues to balk at fulfilling current conditions of
its contract with the city, there is little reason to rely on the company's
assurances that the transfer will be painless.

The city has been wrangling with Time Warner on this request since
September, claiming the company has provided insufficient and inaccurate
information about the transfer, has refused to pay the city's costs to
study the proposal, and has refused to clean up current franchise
violations.

The move came as a result of a recent restructuring of AOL Time Warner in
which the company's cable unit, Time Warner Entertainment, was merged with
Comcast, another major cable provider. To consolidate the two companies'
cable franchises, the federal government requires city approval. But if the
city does not act by January 4, 2003, federal regulators will consider it a
done deal.

EXPANDING BLOCK E?
Block E developer Dan McCaffery, whose chain-heavy retail fortress on
Hennepin has been blamed for the continued suburbanization of downtown, is
looking for new territory.

VEGETARIAN INSTITUTION WILL BECOME BLUE-COLLAR BAR
One of the city's first vegetarian restaurants will close in February and
be replaced by a Chicago-style bar and restaurant, reports Scott Russell in
the Southwest Journal (http://www.swjournal.com).

AXIS OF EVIL
Rank of Honeywell among U.S. arms dealers that have illegally sold weapons
to Iraq: 1
--Source: the German newspaper Die Tageszeitung

AN EQUAL OPPORTUNITY EMPLOYER
Center of the American Experiment (CAE), the thriving local right-wing
think tank from which Governor-elect Tim Pawlenty selected 5 of his 13
transition advisors, should be required to surrender its tax-exempt status,
writes Rob Levine in City Pages (http://www.citypages.com).

SEGREGATION CITY
The Twin Cities area now boasts the third-largest income gap between whites
and blacks in the nation.

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Editor: Craig Cox
Deputy Assistant Senior Executive Editor: Sharon Parker
Contributing writers: Chris Dodge, Leo Mezzrow
Equine consultant and coffee shop correspondent: Nora Cox
Perspective: Martin Cox
Thanks to: Katharine Krueger and Kevin Lynch

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