The Red Wing Police Department said officers were responding to remove something unwanted on 21st Street when they saw a vehicle, traveling "at a high rate of speed" on northbound Bush/Plum Street near 10th Street.
By the time the officer turned around to follow the suspect, the vehicle was traveling through the intersection of 4th and Plum Street and then hit Liberty's Restaurant "at a high rate of speed," causing people in the building to evacuate.
No one was injured and the driver was taken into custody.
Roads in the area, including 3rd and Plum Street and Highway 58/63 have been closed, as a structural engineer assesses the building. The American Red Cross is assisting the tenants who are displaced.
More information about the incident is expected to be released Thursday, police said.
Liberty's restaurant has been in operation in Red Wing since 1975, according to nonprofit Red Wing Downtown Main Street, which is raising funds to help support the Noreen family, employees and the people who live in the apartment. Donations can be made here.
Note: Details provided in this story are based on the police's latest version of events, and may be subject to change.