I'm not from Minnesota but google maps tells me Maple Grove is a 28 minute drive to the university. I myself would recommend carpooling. Especially with your cheap gas over there in Minnesota.
It depends on if you have enough people willing to drive. Keep in mind parking will cost something. I myself would look into the cost of using school vans or if need be, buses.
The students will enjoy staying in a hotel. But its a cost vs. benefit issue.
On a sidenote, this thread could be merged with the existing Minnesota Regionals thread.