The two black men who were arrested while waiting in a Starbucks last month have reached an agreement with Philadelphia: The city will spend $200,000 to help young entrepreneurs.

And the men, Rashon Nelson and Donte Robinson, both 23, will each be given $1.

That is what they asked for when they approached city officials and agreed not to file a lawsuit against Philadelphia or its employees after they were arrested in an episode that ignited widespread criticism of Starbucks and the city’s police.

“I am pleased to have resolved the potential claims against the City in this productive manner,” Mayor Jim Kenney of Philadelphia said in a statement. “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.”

Also on Wednesday, Starbucks said it had reached an agreement with Mr. Nelson and Mr. Robinson that “includes a confidential financial settlement.”