I think the two premises don't quite mesh
Actually, they mesh nicely once you look at the asterisk. The Twins were a market limited team in the old stadium so they had to occasionally let internally developed talent go when they hit too costly a stage. That's Johan at $20+ MM for multiple years before the stadium was built. Now that they have the new stadium, they are letting the payroll expand naturally, like the Phillies have done, retaining the talent developed through the system. Bottom line is they have gone from one of the lowest budget teams to top half primarily by retaining arb eligible players at least through arb if not long term. That describes Morneau, Mauer, Cuddyer, Liriano, Blackburn, Kubel, Baker, Slowey, Span, Crain (who is a potential FA this year after making $2 MM). They've retained Nathan, too, once acquired. That's where their budget comes from, not really from their FAs (O-Dog, Rauch, who else?).