I'm pretty sure Heartland has banquet rooms in their new space. I think that would be great, but may hit the top of your budget.
M Street Cafe (basement of the St. Paul Hotel) can be rented for private dinners, and I like their food.
WA Frost and Forepaughs.
And some old threads with relevant info:
What's coming to mind at the moment is W. A. Frost. Absolutely beautiful space, and I've had consistently excellent service (though a few others on this board have not). The food was consistently excellent for years, then became inconsistent for a few years, ranging from excellent to mediocre - I'm not sure what the current status of the food is as I've only been there once in the past year (but the food was wonderful then). Never having eaten at Piccolo or La Belle Vie, I am not certain whether this is on your price range - it might be a bit high.
I thought maybe Muffaletta in St. Anthony Park, but according to their website, your group exceeds their capacity. I'm sure others will have some other good ideas for you.
La Belle Vie
510 Groveland Avenue, Minneapolis, MN 55405
I went to one at Jax last summer and it was mediocre. Overcooked filet mignon smothered in a generic brown sauce. Not terrible, and I think everyone else liked it, but for what they surely paid, eh...
On the Italian front, try Luci Ancora. They are always good for solid pasta, though some of their entree offerings can be a bit predictable.
Axel's in Roseville does a nice enough job at a lower price point. They did our wedding, and it was very affordable.
2060 Randolph Avenue, St. Paul, MN 55105
1928 University Avenue, Minneapolis, MN 55418