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Cup Foods owners sue Minneapolis over lost business at George Floyd Square

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The owners of Cup Foods and several other businesses near George Floyd Square are suing the city of Minneapolis, alleging that concrete barricades and the lawlessness that flourished within them cut their income and crushed their property values.

The lawsuit accuses Mayor Jacob Frey and other city officials of essentially abandoning the businesses and offering little more than lip service and weak financial help following the 2020 murder of George Floyd by a Minneapolis police officer in front of Cup Foods, now known as Unity Foods.

The lawsuit underscores lingering acrimony over the city’s response to unrest that followed Floyd’s murder; more than three years later, proposed changes to the area around 38th Street and Chicago Avenue, from infrastructure to some form of permanent memorial, are still years off.

The plaintiffs in the suit are Cup Foods Inc.; Menthol Tobacco LLC, which operates inside the corner store; Southside Electronics Inc., which also operates in the store; NMA Investments Inc., which operates out of the same address; and 3759 Chicago Ave. LLC, which owns businesses near the intersection.

The convenience store changed owners earlier this year; the plaintiffs are the longtime owners from before Floyd was killed until the recent sale, their attorney said.

The lawsuit, filed earlier this month in Hennepin County, seeks around $1.5 million in damages from its allegation that the city and Frey were negligent and violated the city’s nuisance ordinance and charter.

Because the city itself erected the barricades, which hampered access to the businesses, and because it knew of rampant crime but failed to police it accordingly — those losses are on the city, the lawsuit reasons.

Casper Hill, a city spokesman, said Tuesday that the city was aware of the suit “but has no comment at this time.”

The city’s approach to the intersection, which organically became a hub for racial justice demonstrations and a much-visited destination, has varied since Floyd’s murder in May 2020. The suit alleges the city allowed a “No Go Zone” for police officers in the area immediately around the intersection, allowing crime to thrive.

The city removed a number of concrete barriers in June 2021, but Michael Healey, an attorney representing the businesses, said the financial losses continued through this year.

“Instead of helping Plaintiffs achieve racial equity and economic prosperity, the City consciously decided to allow concrete barricades to surround Cup Foods for over one year, which economically devastated a minority-owned business in a minority-dominant neighborhood,” the suit states. “The City actively hindered Plaintiffs’ economic success and jeopardized the safety within and surrounding Plaintiffs’ businesses.”

The city offered $50,000 forgivable loans to businesses in the area. In 2021, Cup Foods took one such loan, “but that amount is not nearly enough to compensate Cup Foods for the economic turmoil,” the suit states.

The suit claims the value of the properties plummeted from $2 million before Floyd’s murder to less than $200,000 last year.

Healey said the city was served with the complaint a year ago, a move that typically offers the parties a chance to settle before going to court. No settlement was reached.



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FBI investigation spurs debate over possible kickbacks in recovery housing

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“DHS and our state and federal partners have seen evidence that kickbacks are happening in Minnesota,” Inspector General Kulani Moti said in a statement. “That’s why we brought an anti-kickback proposal to the Minnesota Legislature last session. We will continue to work with the Legislature next session on ways to strengthen the integrity of our public programs.”

Nuway Alliance, one of the state’s largest nonprofit substance use disorder treatment providers, pays up to $700 a month for someone’s housing while they are in intensive outpatient treatment, the organization’s website states. The site lists dozens of sober housing programs clients can choose from.

Nuway leaders said they got an inquiry from the government about two and a half years ago indicating they are conducting a civil investigation into the housing model.

But officials with the nonprofit said in an email they believe what they are doing is legal and clients need it. More than 600 people are using their assistance to stay in recovery residences, Nuway officials stated. They said having a safe, supportive place to stay is particularly important for the vulnerable people they serve, more than half of whom reported being homeless in the six months before they started treatment.

Health plans knew about, approved and even lauded their program, Nuway leaders said, noting that health insurer UCare even gave it an award.

“The state of Minnesota has been fully aware of our program for a decade,” the organization said. “Since payors are fully aware of, and support the program, we struggle to see how anyone could argue it is improper, let alone fraudulent.”



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100 racist deeds discharged since Mounds View required it before sale

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Mounds View, the first Minnesota city to require homeowners to discharge racist language buried in deeds before they sell their homes, is celebrating a milestone: at least 100 homeowners have completed the process.

Officials say discharging the language is a symbolic step, but an important one.

“How could we call ourselves an inclusive community with the words ‘This home shall not be sold to a non-white person’ buried in the deeds?” Mayor Zach Lindstrom said at the state of the city address Monday.

Racially restrictive covenants, found in deeds around the Twin Cities and Minnesota, were legally enforceable tools of racial segregation for the first half of the 20th century. They barred homes’ sale to, and sometimes even occupancy by, anyone who wasn’t white until 1948, when they became unenforceable. Mapping Prejudice, a University of Minnesota research project uncovering these covenants, has found more than 33,000 of them in Minnesota, including more than 500 in Mounds View.

Many local cities have partnered with Just Deeds, a coalition that helps cities and their residents learn about and discharge covenants. In 2019, the Legislature passed a law allowing homeowners to add language to their deeds that discharges racist covenants but doesn’t erase them from the record. Earlier this year, Mounds View was the first to pass an ordinance requiring it. The city is also helping residents navigate the process.

Just because these covenants are no longer enforceable doesn’t mean they haven’t had long-lasting consequences, Kirsten Delegard, Mapping Prejudice project director, said at a Mounds View City Council meeting this summer: Minneapolis homes with racial covenants are worth 15% more than those without, she said. And neighborhoods with covenants remain the whitest parts of the Twin Cities.

Mounds View residents Rene and Steven Johnson were troubled to learn from Mapping Prejudice that their house, and many homes in their neighborhood, had racially restrictive covenants on them. It took some effort, including a trip to the Ramsey County Recorder’s Office, to find the document, which not only contained race restrictions but barred unmarried couples from owning the home.

The couple got their covenant discharged, and educated the city about the process, Rene Johnson said. That helped lead to the ordinance requiring covenants to be discharged before sale.



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Oat mafia emerges in Minnesota’s Driftless Region. Can they get any help?

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ZUMBRO RIVER VALLEY, MINN. – From his combine on an October afternoon, harvesting dried-out soybeans the color of dust, Martin Larsen points to a hillside where his ancestors from Scandinavia homesteaded.

History might be happening again on the Larsen farm.

Last year, on this plot of land along the Zumbro River, the 43-year-old farmer from Byron grew oats. Not oats for hogs or cows. But oats for humans. He hauled the oats to a miller across the state line into Iowa. A previous year, Larsen even had a contract with Oatly, the trendy Swedish maker of milk alternatives.

Something of an oat renaissance has been occurring down in the fields west of the Mississippi River. During winters, Larsen — through his job with the Olmsted County Soil and Water Conservation District evangelized to fellow farmers on the humble small grain.

His friends and neighbors were listening. As of this fall, over 60 farmers, covering 6,000 acres across southern Minnesota, have joined Larsen’s informal coalition to grow food-grade oats. They call themselves the “oat mafia.”

Star of breakfast food, children’s books and, increasingly, those nondairy lattes, oats are easier on the environment, requiring less nitrogen than corn, which means a lot in the karst-rich hill country of southeastern Minnesota, where the U.S. Environmental Protection Agency has tasked state officials with cleaning up drinking water.

“Nitrates come from this,” said Larsen, driving his gray Gleaner combine on a patch of soybeans beneath a hillock just beyond the suburban sprawl of northwest Rochester on a recent warm Friday afternoon. “I’m not going to beat around the bush anymore. That’s what the data says.”

But as the oat mafia looks to the future, they’re struggling with a basic marketing question: Who will actually buy these oats they’re growing?



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