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The article is so poorly written that it doesn't name the town this occurred in. It appears the neighbor doing construction dug right up to the property line despite any setback the town may have.

Minnesota Statutes
https://www.revisor.mn.gov/statutes/cite/561.04

561.04 TRESPASS; TREBLE DAMAGES.

Whoever without lawful authority cuts down or carries off any wood, underwood, tree, or timber, or girdles or otherwise injures any tree, timber, or shrub, on the land of another person, or in the street or highway in front of any person's house, city lot, or cultivated grounds, or on the commons or public grounds of any city or town, or in the street or highway in front thereof, is liable in a civil action to the owner of such land, or to such city or town, for treble the amount of damages which may be assessed therefor, unless upon the trial it appears that the trespass was casual or involuntary, or that the defendant had probable cause to believe that the land on which the trespass was committed was the defendant's, or that of the person in whose service or by whose direction the act was done, in which case judgment shall be given for only the single damages assessed. This section shall not authorize the recovery of more than the just value of timber taken from uncultivated woodland for the repair of a public highway or bridge upon or adjoining the land.

" on the land of another person,"

The way I read this is that the neighbor would have to injure the tree on the owner's land, he can injure the tree on his own land. Didn't see the term "setback" in the statute. That said, if the owner can show the neighbor pulled roots from the owner's land thereby injuring the tree he may have a case.

But the last line of the statute is interesting: This section shall not authorize the recovery of more than the just value of timber taken from uncultivated woodland for the repair of a public highway or bridge upon or adjoining the land.

And since the owner still has the tree he therefore has the just value of the lumber.

It appears the neighbor doing construction dug right up to the property line despite any setback the town may have.

Perhaps there are no setback lines. See the picture in post 5. It looks like the house is 5 feet away from the property line. Although the house looks 100 years old and could have been built before setback lines.