Business owners at the intersection of 38th Street and Chicago Avenue in Minneapolis—known as the site where George Floyd was killed—have filed a lawsuit against the city and Mayor Jacob Frey. Citing years of escalating crime and neighborhood deterioration, the plaintiffs are demanding that the city begin eminent domain proceedings to take over their properties.
The owners of Cup Foods filed the $30 million civil suit in Hennepin County District Court, alleging that city actions have damaged their businesses, resulting in an unlawful taking of property without just compensation, according to the Minnesota Star Tribune.
The lawsuit argues that businesses in the area have suffered significant revenue losses, declines in real estate value, damage to reputation, and reductions in rental and tenant income due to the city’s handling of the area after Floyd’s death. The complaint specifically mentions the use of concrete barricades that created “George Floyd Square,” and claims that the city effectively established a “No Go Zone” for police, which led to increased violence in the neighborhood.
This legal action, known as a writ of mandamus, follows a 2023 lawsuit that Hennepin County Judge Edward T. Wahl dismissed. Wahl’s ruling dismissed with prejudice claims of negligence and nuisance but allowed further action on the claim of an unlawful taking without formal eminent domain proceedings.
Judge Wahl stated that to pursue this claim, the business owners needed to file a writ of mandamus, which compels a government to fulfill its official duties.
The current filing seeks to compel the city to initiate eminent domain, said Michael Healey, attorney for Cup Foods Inc., Menthol Tobacco LLC, Southside Electronics, Inc., NMA Investments, LLC, and 3759 Chicago Ave, LLC. Healey noted that seven additional businesses are planning to file similar lawsuits against Minneapolis and Mayor Frey.
“There are two possible outcomes,” Healey explained. “One, a settlement allows my clients to retain the properties with compensation for the diminished value. The other is the city grants the writ, initiating an official taking, which would entitle them to compensation.”
Healey emphasized that the $30 million request reflects the compensation his clients believe is fair if their properties are taken by the city, saying, “They’re just looking to be compensated in some way for the diminished value.”
