I assume you are driving up from Iowa. I would actually drive around what is called the Grand Rounds if you have a nice afternoon free. This goes all around Minneapolis's famous lakes and along the Mississippi River. Any of the lakes make a nice stop as does the Eloise butler Wild Flower Garden or the Peace Garden by Lake Harriet.

If you are at all interested in art, the Walker Art Center is adjacent to Loring Park in downtown. There is a marvelous sculpture garden there. The Stone Arch Bridge in downtown is also a nice walk on a nice day. Mill City Museum is also downtown. You could access these by taking the light rail in and then walking. Or, you could just drive in and park in a lot downtown. If it is not rush hour it is an easy 15 minute shot up 35W from Bloomington.

Those were day time suggestions. There really aren't any slum/ghetto type areas in downtown Mpls. Just use your typical big city at night smarts and you should be fine. There are a number of interesting theatres in downtown if that is your interest for an evening out. Classical music fans should check out what is playing at Orchestra Hall which is right on Nicollet Mall in downtown.

Starling - I can't make any hotel recommendations. I live in Mpls, so I've never had to stay in one in town. I don't think any areas of downtown are horribly bad, but in general, the Warehouse District (First Avenue between Washington and 5th Street) is sketchier at night. That's where a lot of clubs are - I doubt you'd be walking around over there after dark anyway.

As julies said, there's a lot of stuff downtown to keep you busy. If you're on the light rail, you could also stop and check out Minnehaha Falls. Get off at either 46th or 50th street - the falls are about halfway between the 2 stations.