Businesses call it quits months after Minneapolis water main break; owners disappointed in city's lack of support

CBS News

06-07-2025

Businesses on West 50th Street and Penn Avenue South in southwest Minneapolis say the future is uncertain after a water main break badly damaged their building this winter.
"It's sad to see this whole corner just devastated like this," Paperback Exchange owner Andrew Hersey said.
Hersey lost 100,000 books in the Feb. 13 flooding. Months later, a lot is still up in the air.
"There's a lot to do, a lot to figure out," Hersey said.
At least four businesses were displaced — as well as residents living in the five apartment units above.
"The city just left. I mean, damaged all these businesses and just took off and said they are not responsible, and we're just left to figure out what to do on our own," Hersey said.
Inside Paperback Exchange in Minneapolis after a water main broke early in the morning on Feb. 13, 2025.
WCCO
Hersey is hopeful he'll reopen Paper Exchange, whether it's on 50th and Penn or not. It's community support — from loved ones, neighbors and book lovers — that keeps him going. Paperback Exchange has been a staple on the corner for 50 years and in his family for 34.
Hersey says he's disappointed in the city's lack of support.
"It would have been nice for someone from the city to show up and say, 'We value your business. We want you to reopen, what do you need in order to do that?' That never happened," he said.
While Paperback Exchange is holding onto hope, others in the building are calling it quits.
Terzo, an Italian restaurant owned by the Broder family, announced its closure at the end of May.
"We have realized that the time, energy resources needed to rebuild Terzo are beyond our capacity," a Facebook post read. "As we close this chapter, our story continues on the corner of 50th and Penn. Our focus and commitment to the Broders' legacy is stronger than ever."
Sparrow Cafe is also leaving.
In an online fundraiser, the coffee shop said, "It'll be of little surprise that at this point Sparrow cannot re-open. From the politics of blaming the city, to uncooperative insurance or underinsured, the damage done is well outside of what insurance has covered for our business."
Instead of serving customers on a packed patio Sunday morning, owners Jasper and Sheila Rajendren were packing up what was left. They say they couldn't have survived without the community support.
"Even with that, and what insurance has covered for us, it's not enough to rebuild a space and then open a restaurant on top of that," Jasper Rajendren said.
The husband-and-wife duo say "never say never" to reopening somewhere else, with the current economic climate, a perfect opportunity would need to arise.
"There's been zero support from the city, as far as I know," Jasper Rajendren said. "They just, you know, cared about the sidewalk and the road more than they do about helping out with the building."
Their landlord and owner of part of the building, Carroll Peterson, feels similarly.
The outside of a Minneapolis building housing four businesses nearly five months after a water main broke nearby.
WCCO
"The city came in and said, 'No, we're not going to pay anything.'" he said.
Peterson says he was led to believe he'd possibly get compensation from the city since it was their water main that caused the damage. He says some parts of the city have been helpful. Peterson said Ward 13 council member Linea Palmisano helped as much as she could, but overall it's been a horrible experience.
"It was their main that blew through the ground and blew in our wall and you know, created a, basically a fountain," Peterson said. "The whole building was a giant fountain or was going up in the air. So, we assumed that the city would take responsibility for it, but they decided not to."
As of this month, Peterson has some renters back in the apartments above, but it will be months before any new tenants — or businesses — will be up and running on the block again.
"We had hoped that we would save the building, and in spite of the odds, we did," he said. "You know, it's a classic building, we're glad we did that. It's and if I just do it over again, I would, but I did. I didn't realize it was going to be as arduous and painful as it has been."
In a statement, Council Member Linea Palmisano, Ward 13, wrote in part:
"Per our Public Purpose Doctrine, we cannot use your taxpayer dollars to benefit an individual or business directly. Meaning we can't just give them money. I have done my best to expedite the restoration process, answer questions, give referrals, and provide business support resources to everyone to give them all the best chance to succeed. I cannot force them to participate in our programs or follow-up on suggestions. My fiduciary responsibility is to the City and its residents."
WCCO reached out Sunday to the city of Minneapolis for comment.