The aftermath of a massive water main break in Minneapolis continues to ripple through the local business community, with a second business now confirming permanent closure due to flood damage caused by the incident.
The break occurred in February 2024, when a 36-inch city-owned water main ruptured at the intersection of 50th Street and Penn Avenue South. The resulting flood inundated multiple businesses and apartments in the surrounding area, leaving behind significant structural damage and forcing several tenants to shut down operations indefinitely. The latest business to confirm its permanent closure is Sparrow
Café, a beloved coffee shop that had served the Fulton neighborhood since 2013. Owners Jasper and Sarah Rajendren announced the decision in early July, citing extensive damage to their space and insufficient support from insurance providers and the City of Minneapolis.
“We’re heartbroken,” Jasper Rajendren said in a public update. “This wasn’t just a business. It was a gathering place, a community hub. But the damage to the building was devastating, and we simply can’t afford to rebuild from scratch.” Sparrow Café had been known for its locally roasted coffee, cozy atmosphere, and strong
neighborhood ties. But Rajendren said that recovery efforts were hindered by the scope of the flooding and what he described as a lack of meaningful assistance from city officials. Insurance, he said, fell far short of covering the true cost of repairs, and the uncertainty surrounding the building’s future made relocation difficult. The café’s closure follows a similar announcement from Broders’ Terzo, an Italian restaurant located in the same building. Broders’ Terzo, owned by the Broder family restaurant group, was heavily damaged during the water main break. In June, the family confirmed the restaurant would not reopen.
In a statement, the Broders described the interior of Terzo as “unrecognizable” after the flood. The cost of repairs, combined with the long recovery timeline and business uncertainty, ultimately led to the decision to close permanently. The group’s two other restaurants — Broders’ Cucina Italiana and Broders’ Pasta Bar, both located across the street — remain in operation.
Another tenant, The Paperback Exchange, is still evaluating its options. The independent bookstore had operated in the building for nearly 50 years and lost tens of thousands of books in the flood. Owner Andrew Hersey launched a fundraising campaign to help recover from the loss, and while nearly $60,000 has been raised, he has not confirmed whether the store will reopen at the same location or relocate elsewhere. Other businesses affected by the flooding include Lake Harriet Florist, Scuba Center, Lake Harriet Pizza, and Theisen Renovation. Of those, only Theisen Renovation has confirmed plans to return to the building once it is fully repaired.
The building’s owner, Carroll Peterson, said that most of the apartments above the commercial spaces have already been repaired and leased out, but the future of the ground-floor businesses remains uncertain. Peterson also confirmed that the city has not provided compensation to affected tenants, despite owning the pipe that failed.
For thebusiness owners, the financialtoll is compounded by frustration over what they see as a lack of accountability. Severalhave
called on the city to take responsibility for the damage and provide financial assistance, but so far, no such relief has materialized.
What began as an infrastructure failure has now turned into a small-business crisis in one of Minneapolis’ most vibrant neighborhoods. As residents mourn the loss of familiar local landmarks, questions remain about how — or if — the city plans to support recovery efforts and prevent future disasters of this kind.
