Businesses near George Floyd Square are suing Minneapolis for $30 million in damages

MINNEAPOLIS — Business owners in the struggling corner where a Minneapolis police officer murdered George Floyd in 2020, the city is suing to demand that it take over their properties and compensate them.

In a lawsuit filed last week in Hennepin County, the owners of the Cup Foods convenience store and other businesses operating near 38th Street and Chicago Avenue claim the city’s failure to address blight and crime in the neighborhood has destroyed their businesses and constitutes a illegal taking of their property without just compensation. They are demanding $30 million in damages.

The area, now known as George Floyd Squarehas become a place of pilgrimage for social justice advocates from across the country, and the store has renamed itself Unity Foods. But business owners say they have not benefited, while activists and officials remain divided over how to transform the intersection while preserving it as a permanent memorial.

Floyd died after Derek Chauvina white officer, pinned his neck to the sidewalk outside Cup Foods for 9 1/2 minutes despite the black man’s pleas of “I can’t breathe.” The ensuing protests, which turned violent at times, tested Gov. Tim Walz’s leadership at one of the state’s most fraught times and sparked a nationwide reckoning with racism and police misconduct. Chauvin was convicted of murder.

The lawsuit argues that the companies have lost turnover, property value, reputation and tenant and rental income. It claims the city’s decisions led to higher crime rates and created a “no go zone” for police in the area. It replaces a previous court case of the companies that were laid off two months ago.

Michael Healey, the attorney representing the companies, told the Star Tribune there are two possible outcomes. The companies “could conceivably keep the property if a settlement is reached with the city on the diminished value,” he said. The other option is that the city could begin the process of taking the properties and compensating the owners.

A city spokesman said in a statement that while it cannot comment on pending litigation, “the city understands the challenges that residents and businesses have faced in the wake of George Floyd’s murder.”

Since Floyd’s killing and the construction of George Floyd Square, the city has been anticipating the future of the intersection. It has lasted a series of community workshops to hear the public’s feedback, as well as met with business owners in the area.

The city’s current vision is to redesign and rebuild the intersection to preserve it as a gathering place in Floyd’s honor, while increasing community safety and allowing “clear and reliable access for residents, businesses and visitors,” according to a draft plan published last month.

The project timeline currently extends into 2027.

Note: The video above was originally broadcast on May 27, 2024.