Minneapolis is approved for a town government by the territorial legislature (it became a city ten years later). The legislature also forms three counties: Lake County, named for Lake Superior; McLeod County, named for Martin McLeod, a fur trader and member of the territorial legislature; and Pine County, named for the extensive pine forests of the region or perhaps for the Pine River and Pine Lakes.

The Theory of the Leisure Class: An Economic Study of Institutions, authored by Thorstein Veblen, is published. A graduate of Carleton College, Veblen earned recognition as a dynamic economist and social theorist, and his book remains influential in the twenty-first century.

"Runaway Train" by the Minneapolis band Soul Asylum wins a Grammy for best rock song.

Patrick Des Jarlait is born on the Red Lake Reservation. As an artist, he painted colorful, stylized images of traditional Ojibwe life.

The first state capitol building burns. Three hundred people escape safely, but the building, including the law library, is a total loss. Luckily, most of the Minnesota Historical Society's artifacts are rescued from the basement.

The territorial legislature incorporates the St. Peter Company, which is authorized to engage in milling and waterpower work and to develop real estate. The company's stockholders hope to move the state capital to St. Peter, but their efforts are thwarted by Joseph Rolette (see February 27). James J. Hill purchased the company's charter in 1901, hoping that its real estate powers would prove useful to the Great Northern Railway.

The first issue of the St. Paul Daily Dispatch is published. This newspaper appeared in various editions until 1984, when it merged with the St. Paul Pioneer Press.

Waseca County is formed, named with a Dakota word meaning "rich in provisions." Also on this day, a humorous episode in Minnesota's history begins. Joseph Rolette, a fur trader representing Pembina in the territorial legislature, steals the text of a bill to move the capital from St. Paul to St. Peter. Although the bill had been passed, it had not been signed by the governor.

Relatives and friends of Robert Asp sail his replica Viking ship Hjemkomst into the harbor of Bergen, Norway, completing a journey from the Great Lakes. The ship is later installed in the Heritage Hjemkomst Interpretive Center in Moorhead.

The Catholic Diocese of St. Paul is created.