We work in consensus which is as far as you go from the current structure of business and government. You are totally in your rights for asking why this situation is happening, and what it means in terms of the power of the police, and what that means to freedom in general. I basically assume that power is blunt, secretive, and generally stupid. I am way to far from the dynamic to gauge what the police would want to do by doing this. If SLC wants to go the way of LA and privatize all the fucking public spaces in town, one way to do it is to fill the parks with dealers, call it a threat to public safety, and close 'em down.
First thing is to ask somebody what is going on and why.
Take your hypothesis that there is a reason there has been an increase in drug activity and that you think there is something fishy going on. Or their customers. Serve people food and converse with them about this stuff. They will obfuscate and say bullshit because if they DO know what's going on they aren't going to say. Tell her what you see is happening and ask her to give you a call.