Black men arrested at Philly Starbucks are settling with city for $2

The two black men whose arrest at a Philadelphia Starbucks last month set off a wave of protests against the coffee giant for discrimination have reached a settlement with the city, the mayor's office said Wednesday.

They will each be paid $1.

In addition, Donte Robinson and Rashon Nelson, both 23, will release the city and employees of all claims in exchange for the creation of a $200,000 fund that, through the help of a nonprofit organization, will assist young entrepreneurs in Philadelphia.

Robinson and Nelson will also serve on a committee to establish and award the grant, which will focus on creating a pilot curriculum for public high school students to attain the skills to become business owners.

The mayor's office said neither Nelson, Robinson nor their attorneys will receive any payment from the grant funds. The money will come from the budget of the city's Finance Department.

"I am pleased to have resolved the potential claims against the City in this productive manner. This was an incident that evoked a lot of pain in our City, pain that would've resurfaced over and over again in protracted litigation, which presents significant legal risks and high financial and emotional costs for everyone involved," Mayor Jim Kenney said in a statement.

He added that Robinson and Nelson approached the city with the idea "in an attempt to make something positive come of this."

Nelson and Robinson could not immediately be reached for comment. Starbucks also did not immediately respond to the announcement.

The coffee chain on May 29 plans to close more than 8,000 U.S. stores for an afternoon to train nearly 175,000 workers in "racial-bias education."

Starbucks has also apologized for the April 12 arrests of Nelson and Robinson while they sat inside a Starbucks in the Rittenhouse Square neighborhood waiting for a business meeting. A video of the incident went viral, and provoked accusations of racism against police and the company.

Philadelphia Police Commissioner Richard Ross also apologized for the arrests. He told reporters that the men had not purchased anything and refused to leave. The men were eventually let go after about eight hours in police custody, and Starbucks did not press any charges.