What Happened
Carbone's Pizza is suing the City of Hastings for forcing them to close without following proper legal procedures.
The basics: The city bought Carbone's building to build a water treatment plant for PFAS contamination. But Carbone's had a valid lease until 2029. The city told them to leave by June 30, 2025—no hearing, no formal process.
The Timeline
April 2024: Carbone's renews lease until 2029
November 2024: City buys the building
March 2025: City orders Carbone's out by June 30th
June 2025: Carbone's closes
Zero income for 5+ months
$200,000+ to build out new location
Employees lose jobs for 6 months
City pays $25,000
October 2025: Lawsuit filed
What the Lawsuit Says
Carbone's makes five claims:
Illegal taking - City took their lease rights without fair compensation
No due process - No hearing or chance to make their case
Illegal eviction - City forced them out without proper authority
Business destroyed - City's actions caused massive financial damage
Wrong process - City should have followed formal legal procedures
The Core Fight
Carbone's: "You can't force us out without following the law."
City: "We bought the building. Your lease ended. Talk to your old landlord."
Here's the email exchange that sums it up:
Carbone's lawyer: "How can you force my client out without proper legal proceedings?"
City attorney: "I guess we disagree. The lease ended when we bought the building."
Why It Matters
If City Wins: Cities could buy buildings, declare leases ended, and force out tenants without hearings or proper compensation.
If Carbone's Wins: Cities must follow strict procedures—including hearings and fair compensation—even when buying property with tenants.
This affects every small business in Minnesota that leases their space.
Both Sides Have a Point
The City:
PFAS is a serious health crisis
Had to act quickly
Bought property legally
Gave $25K and helped find new location
Carbone's:
Had valid lease until 2029
Just renewed and invested in future
$25K doesn't cover $200K+ in losses
Constitutional rights matter even in emergencies
What Happens Next
The city will file their response. Both sides will exchange evidence. This could settle or go to trial.
Timeline: 1-2 years for final resolution
What's at stake: Whether Minnesota cities must follow constitutional procedures when displacing businesses, or can skip them by buying the building first.
The Bottom Line
Carbone's wants fair compensation and formal recognition that their rights were violated.
The city wants to quickly address public health without lengthy legal processes.
The court will decide where the line is between government power and business rights.