The Little Gnome Closure
Update: June 2025
The City of Spring Grove has undergone many months of conversations and hurdles regarding the Little Gnome closure. The biggest challenge facing our community at this point is whether or not the building can be purchased by a private or public entity; at this time, the building is bank-owned.
Additionally, while county-wide there is a child care shortage, here in Spring Grove, the question of how to establish more child care spots remains elusive. In order to help provide some direction on bringing more child care services to town, whether it’s re-opening a center, adding hosted spaces for additional family daycares, researching SAC and additional preschool options, or building a brand new (albeit smaller scale) child care “pod”, the City is in the process of consulting with an outside entity. This opportunity will allow for further exploration into the feasibility of re-opening a full-scale center and to then plan a growth and stability blueprint for that business. Alternative options will be explored in this 6 week study, and a community engagement and presentation process will happen at the conclusion.
For more information regarding this process, which is set to start in July 2025, please contact the Spring Grove EDA. If you are a child care provider, or are looking to start your own licensed child care business, please reach out to Jayme Longmire, EDA Director.
August 12th 2024
The City of Spring Grove and the Spring Grove Economic Development Authority learned of the Little Gnome’s sudden closure after being notified of the Facebook post made on Saturday, August 10. The City was not informed of this decision in advance of the closure and city officials are actively trying to gather more information; we will provide further updates as they come in.
In the meantime, here are some resources to help address the immediate needs of the affected parents and employees:
Parents:
Use this search tool to find licensed child care centers and in-home providers. Be sure to select under “type” either Family Child Care or Child Care Centers.
Employees:
Workforce Development, Inc can provide free help for dislocated workers. The closest office is in downtown Caledonia (110 East Grove St.) or you can contact Erin Hoefs at 507.765.0100 / ehoefs@wdimn.org.
Downtown Fire Site Update - Dec 2024
An initial rendering of the site with mural shortly after the fire.
It has been two years since Mulqueen’s Hardware Store burned on Main Street, and thanks to our courageous emergency responders and neighbors, we remain grateful that no human lives were lost and the rest of our historic downtown was saved. Since the fire, our City has been working with a number of partners exploring many different opportunities for rebuilding on the site. Recently the City has been considering a public-private partnership where the City would utilize grants and donations to build a new city hall, library, and retail incubator space as the base of the building, and partner with a developer to build, own, and operate apartments above.
This model is becoming more common in rural communities because it:
Allows the use of charitable donations and grants that cannot be put into private development, helping to offset the high costs of construction
Generates new tax base (and much-needed housing) while filling key municipal needs
Spreads development costs between two partners, so things like site prep and elevator infrastructure can be shared
Creates a condominium agreement for ownership and ongoing maintenance
The gallery below is a slideshow from ISG Architects with background on the conceptual design process, some potential floorplans of the new space, and an estimated budget. These are all DRAFTS and there has not been Council approval to move forward with anything except the next phase of design and fundraising.
FAQ About the Downtown Site
Wait a minute…why can’t we just rebuild the hardware store? We met with many hardware store brands (True Value, DoItBest, Ace, etc) as well as regional stores (Fisk Farm & Home, etc) and none were interested in the space. They cited the Main Street location as problematic due to the smaller potential store footprint, lack of outdoor merchandising space, and lack of parking; in short, most hardware stores are built as pole sheds on bare ground with a large parking lot and outdoor space to display merchandise like grills, shovels, etc. (Think of Mabel’s Village Farm and Home and Caledonia’s True Value as examples of this.) The good news is that we have an opportunity for a new hardware store in Spring Grove that meets these requirements (more to come on that soon!), but we needed to shift our focus for the downtown site.
Why is the city even involved? Isn’t it privately owned? The site is currently privately owned, and the group of local investors who purchased the site from Bud Mulqueen initially intended to rebuild a hardware store with apartments above. Due to the aforementioned issues, they shifted focus to look at other types of commercial ventures, local business partnerships, and many different ratios of commercial to residential. Unfortunately, no matter how you slice it, the high costs of construction, high interest rates, and low market rental rates made the project unviable with private capital alone. If the City moves forward with the project, it would buy the site from the current owners and do a request for proposals to find a developer to partner with for building the residential units; the City would not own and operate the apartments.
But if it can’t work for the current owners, how would it work for the City? As a municipality, the City qualifies for grants and donations that a private developer doesn’t. Creating a public purpose within the space, such as a public library, allows the City to access funding that would not be available to private development. To date, the City has secured approximately $1.4million in grants and identified several million more. At the December 2024 council meeting, the council voted to continue fundraising and grant writing for the site as well as the next phase of design with architectural firm ISG. Grant funding from the Blandin Foundation will cover these design costs.
How much would this cost? How can we afford it? The project will likely cost between $8-10million for the City’s portion. We know, that’s a lot of money! The only way the City could afford this is to raise the majority of funds through grants and charitable donations, which it will be actively working on in the coming year. The council does not intend to raise taxes to cover the project; the financial viability of the project will likely be determined later in 2025 after an initial fundraising phase.
Do we actually need a new library and city hall? While both current sites are adequate, there are several issues that a new building could help solve. The library rents space from Spring Grove Communications, so while they have been an excellent partner there is no guarantee for that space to be ours in perpetuity. The library could also use more space to expand their collection and programming in more meaningful ways; the downtown vision includes a children’s area, a makerspace classroom, and meeting/event rooms so the library could offer more youth programming, arts classes, and other unique events. The current city hall lacks private meeting and office space, and has issues with handicapped accessibility compliance.
What happens if we don’t continue this public-private partnership idea? The site will likely remain undeveloped until a new buyer, or a new use, is identified. The City would work with the owners to ensure the site remains safe and secure for pedestrians.
So what’s next? Over the next few months, the City will continue working with ISG on the schematic design plans and applying for grants to support the project. (If the project does not continue, these grant funds would be returned to the funders.) The City will be creating a public engagement strategy to share the designs and gather feedback, launch a fundraising campaign, and keep the citizens informed of the progress.
We want to hear from you! Please share your thoughts and questions below and stay tuned for more updates.
Downtown Commercial Space for Lease!
Contact Courtney with the EDA (courtney.bergey@cedausa.com) if you need assistance with business planning and financing!
Grants for In-Home Child Care Providers
In the wake of the Little Gnome closure, there may be teachers or individuals interested in starting their own in-home child care business. There are several grants and resources available for this purpose:
Facility grants from Houston County to support providers with necessary expenses. Check out this flyer and contact WDI for more information.
Training grants from Houston County - contact Allison Wagner at the Houston County EDA for an application (EDA@co.houston.mn.us / Office: 507-725-5836)
Low-interest loans are available from the Spring Grove EDA and the Houston County EDA
Families First have regional & startup grants available.
Emergency Grants may also be available year-round to help cover costs associated with emergency situations based on the availability of funding.
Startup Grants are available year-round depending on funding to cover items required to open a child care license and to help cover startup costs.
Regional Grants are offered annually and are awarded on a competitive basis to qualified child care programs. Grant applications are available September 1 of each year and must be submitted by September 25 for consideration.
First Children’s Finance provides technical assistance, resources, and grants to child care providers. An Access to Technology grant is available starting September 25.
Southern Minnesota Initiative Foundation (SMIF) has a number of resources for child care providers, including free technical assistance, low-interest business loans, and grants for eligible expenses. Visit their website to learn more.
NEXT COMMUNITY MEETING
The Spring Grove City Council will hold a Workshop with members of the Spring Grove Community on Sunday, August 18th, at 7:00 p.m. at the Fest Building, 110 Division Avenue. The purpose of this meeting is to bring together community members, school representatives, and other stakeholders to discuss ideas related to daycare concerns. This meeting is intended for information gathering and discussion only; no decisions will be made. This is a public meeting.
Grant funding available for your business!
The Chamber of Commerce was awarded 2023 Fix Up Fund dollars for their beautiful facade project on Main Street.
The Spring Grove Economic Development Authority (EDA) is proud to announce that funds have been committed in the amount of $10,000 towards the 2024 Fix Up Fund. The purpose of the Fix Up Fund is to provide incentives to local businesses to improve the appearance of their building facades and stimulate private investment. From 2013 to date, the EDA has granted $68,085 in Fix Up Fund dollars, which leveraged over $250,595 of private investment.
Businesses can apply for up to 50% in matching funds, up to $2,500, to support eligible façade improvement projects. The deadline for application is May 7th, 2024. Applications will be reviewed by the EDA at the May 14th board meeting. All work must be completed by the end of the calendar year with invoices presented to the EDA for reimbursement.
Applications and additional information are available at www.springgrovemn.com/economicdevelopment or at City Hall. Questions and completed applications can be sent to Rebecca.Charles@cedausa.com.
2023 EDA Annual Report
CLICK HERE TO DOWNLOAD THE 2023 EDA ANNUAL REPORT!
The Spring Grove Economic Development Authority (EDA) had a very busy 2023! The year began in recovery mode from the December 2022 fire, when EDA and City staff immediately began assembling economic development tools to support redevelopment. In addition to a $250k state recovery grant and a state sales tax exemption on building materials, EDA staff successfully authored a $313k DEED Redevelopment grant and began preparatory documentation for tax increment financing that will pave the way for a new, three-story, mixed-use building. Staff have also been working to identify a new hardware store owner and store location, meeting with three different franchise brands and a number of interested entrepreneurs.
Over the past few years, the EDA has been working hard to attract more dining establishments to the community, and in fall 2023, Fiesta Rosita opened in downtown Spring Grove! Marketing efforts and the creation of the Restaurant Challenge program brought in more than 25 interested parties, and of those 25, eight were given tours of vacant spaces, five requested and received support on business planning and financing, and we assisted two with negotiating a potential lease agreement. Ultimately Fiesta Rosita was able to occupy the former Doc’s and Norski’s spaces, and hungry Spring Grove residents rejoiced. Fat Pat’s Brewery, who received Restaurant Challenge grant funding, will open in a new downtown location in spring 2024.
In addition to business development, the Spring Grove EDA has also dedicated staff time to the Spring Grove 2030 subcommittee, administering an $80k grant from the Blandin Foundation. Grant funds are currently being used for community engagement, planning, and a feasibility study for community and cultural center amenities.
“How do you grow a small town? Spring Grove is finding out.” This was the title of an article published on the front page of the Star Tribune newspaper in late 2023. Despite the challenges in recovering from the fire and the layoffs at Northern Engraving, there remains a feeling of hope and progress in Spring Grove.
We have a lot to be proud of! Thank you for your continued support of the Spring Grove EDA and dedication to the City of Spring Grove.
With gratitude,
Courtney Bergey Swanson and Rebecca Charles
RFP for ENGINEERING SERVICES
ENGINEERING SERVICES FOR INDUSTRIAL PARK EXPANSION
The Spring Grove Economic Development Authority and the City of Spring Grove are requesting proposals for engineering services as we look to expand our industrial park. DEADLINE IS THURSDAY, FEBRUARY 15 at 4PM. To learn more, contact Courtney Bergey Swanson at 507-251-9272 or courtney.bergey@cedausa.com
Recording of event "What's Happening in SG?!" from November 27, 2023
Watch the recording of the November 27, 2023 “What’s Happening in SG?!” event here: https://www.youtube.com/watch?v=21bhanrXP1M&t=46s
You can also download the powerpoint presentation here.
Update: Spring Grove SCDP Survey Closed
*SURVEY IS CLOSED. Spring Grove will not be moving forward with the grant application this year. Thank you to those who filled out the survey; your information has helped us determine the needs for property rehabilitation in our community. We will contact you if the City is able to try again next year.*
ATTENTION SPRING GROVE BUSINESS OWNERS and HOMEOWNERS!
The City of Spring Grove is working with Community and Economic Development Associates to apply for Small Cities Development Program funding. If we are awarded, eligible homeowners and business owners will be able to use grant funding on property rehabilitation projects including painting/siding, windows, roof, foundation, electrical, plumbing, etc. It might sound too good to be true, but it's not!
Surveys were sent to all property owners in Spring Grove, but we have been getting word that some have not yet arrived. Due to this delay, we have extended the deadline to be turned in by Friday, October 6th. You can download and print the survey below that pertains to your property (commercial or residential; housing rental units are not eligible). You can mail the completed survey to CEDA (PO Box 483 Chatfield, MN 55923) or email it to cora.boelman@cedausa.com
DOWNLOAD THE SURVEYS HERE:
Did you know your property may be eligible for energy rebates?
The City of Spring Grove and MiEnergy have a number of rebates available for energy efficiency projects. See the info and links below!
MiEnergy Co-op’s website has information on rebates for residential and business property owners.
The City of Spring Grove has an appliance rebate application form on the website for property owners.
The City of Spring Grove also has a specific program for commercial businesses in need of energy efficiency updates. Businesses can apply for up to 50% of the cost of the project with a maximum rebate per project of $5,000. Applicants must provide supporting documentation for energy savings, and the rebate will be based on the cost of the energy saving fixture/equipment and not the labor. Approval from the council is required. For more information on this, contact City Hall!
Want to host an event? Spring Grove has space!
If you’re looking to host an event, social gathering, or meeting, there are plenty of spaces to rent in Spring Grove. Check out the list below or download it here!
What's Happening in Spring Grove?! Presentation available for download!
On July 19, 2023, about 200 community members attended the “What’s Happening in Spring Grove?!” event at the Spring Grove Cinema. What a wonderful event full of ideas and community support! Presentations were given by the City/EDA, School, Chamber, and Spring Grove 2030. Thank you for a great evening!
If you missed the event or would like to revisit the information shared, click the button here to download the presentation and Q&A from the evening!
Giants of the Earth Heritage Center -- Passport to Other Cultures: Hmong Diaspora--RESCHEDULED
** Please note that this special event has been rescheduled to THURSDAY, MARCH 30! Date and times in the article have been updated. **
This March, Giants of the Earth Heritage Center is honored to temporarily display much of the collection of a locally-curated Hmong cultural exhibit that grew out of a partnership between the La Crosse Public Library and Hmoob Cultural and Community Agency (HCCA).
On Thursday, March 30 at 6:30 p.m., local experts Yia Vue and Tria Meier are instrumental in bringing this experience to life right here in Spring Grove and will take us through the history of Story Cloths, textiles, and artifacts as they pertain to the migration of the Hmong. Rev. Mike McElwee, Ann Delwiche, and Sibbie will share the history of La Crosse Christ Episcopal Church and their “Friendship Program” that sponsored so many refugees and helped with integration into the La Crosse area. The Hmong textiles and artifacts pop-up exhibit will remain on display for the entire month of March.
This program is open to all ages at Giants of the Earth Heritage Center, 163 W. Main Street, Spring Grove. The building is handicap accessible.
Schedule:
6:30 p.m. – Viewing of Hmong Diaspora exhibit in the Welcome Center
7:00 p.m. – Presentation in Immigrant Hall with our special guests
7:45 p.m. – Question and Answer Time
8:00 p.m. – Samples of Hmong cuisine and beverages, chatting with special guests
Thank you to the following for helping Giants of the Earth celebrate the Hmong culture and heritage this month:
Tricia Babinski family
Heart Rock Coffee
Lane & Mary Zaffke
Charles & Nora Beckjord
Doug & Laurel Rusert
Jean & Sean Young
Abrian & Lara Mendez
Bob & Roxanne Finnesgaard
David & Rachel Storlie
For more information on this: www.giantsoftheearth.org
The "Lion's Roar" from Spring Grove Public Schools
Each week Spring Grove Public Schools creates a newsletter to celebrate, inform, and connect with our parents and community. Now, we want to share this newsletter with you. We will be posting a weekly link that will help you to dive into school happenings. You can find this week’s Lions Roar here:
https://drive.google.com/file/d/1tdC5Jyx4fEfyApmNJi5J1L89gqpDf6IM/view?usp=sharing
Hope you enjoy!
EDA Changes Meeting Time
SPRING GROVE ECONOMIC DEVELOPMENT AUTHORITY
PUBLIC NOTICE FOR CHANGE OF REGULAR MEETING TIME
NOTICE IS HEREBY GIVEN that the Spring Grove Economic Development Authority (the “EDA”) will change their regular meeting time from 5:30pm to 6:30pm commencing with the March 2023 meeting. Meetings will continue to be held on the second Tuesday of each month at Room 100 of Spring Grove Communications, 166 W Main St, Spring Grove, MN 55974. The next regular meeting will be at 6:30pm on Tuesday, March 14, 2023.
EDA Fix Up Fund applications now available!
The Spring Grove Economic Development Authority is proud to announce that funds have been committed in the amount of $5,000 towards the 2023 Fix Up Fund. The purpose of the Fix Up Fund is to provide incentives to local businesses to improve the appearance of their building facades and stimulate private investment. From 2013 to date, the EDA granted $68,085 in Fix Up Fund dollars, which leveraged over $250,595 of private investment.
Businesses can apply for up to 50% in matching funds, up to $2,500 to support eligible façade improvement projects. The deadline for application is April 4th, 2023. Applications will be reviewed by the EDA at the April 11th board meeting. Reviews will only occur once annually. All work must be completed by the end of the year with invoices presented to the EDA for reimbursement.
E-mail Rebecca.Charles@cedausa.com with any questions or concerns.