You are correct- this site is based around Harry Potter, not the Hunger Games. Instead of Capitals, we have Spires. Instead of starving children, we have threatened wizard students and grads. Instead of killer bees stabbing people to death we'll have... wait, maybe we'll keep the bees.
But in all seriousness, the Muggle plot should be focused around the Muggles trying to figure out what, exactly, Wizards are. Human fascination and fear begins with acknowledging the unknown. Once the PMC (Private Military Corporation) reveals the truth about Wizards, all the top Universities, underground science lab, every mad scientist will want one for their own experiments. Kind of like a wizard slave trade. We could probably work that in somewhere.
But first, wizards need to be revealed in a presentable manner. Hence, Reality TV. How else would you get people to watch? The show, whatever its called, will be the best method of presenting the concept to the general public. Naturally, many will assume its just a cheap Syfy film... which actually had a budget. But once it starts airing on Fox or CBS, then the muggles will become interested.
One of my personal peeves with HP series is that it never really gives Muggles a chance. In the books, they are but canon fodder. Few of them ever talk. they rarely interacted with the trio. This would give the Muggles more of a presence, which may add to the population of ourtown.