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The U actually has the best chemE program in the nation. Other than that, i don't think the U's rankings in engineering is overall low. Either way, the rankings are not really to be trusted or to have a final decision be based on.
What colleges are said to be better, by that source? How much are colleges distinguished by what majors they are strongest in? Minnesota is a reasonably high-population state (above the national median for state population) and the U of Minnesota is indubitably the strongest engineering college in this state full of engineers, so I think it can't be too shabby.
My math tutor who is working on his PhD in ME at Stanford said he thinks that U of Minnesota has better ME program for undergrad than Stanford.
Of course he went to U of M for undergrad, so he might be a little biased, but I went to U of M for summer visit and took a engineering tour and I thought they were very competitive.