In an open-ended discussion of several downtown redevelopment projects in flux, the Northfield City Council expressed support for renting out the former Ameriprise Financial building on a short-term basis.
The group, however, was less certain about proposals to acquire the Post Office building.
Loon Liquors
The discussion kicked off on an exciting note, with councilors formally hearing for the first time about newly unveiled plans to sell the former Northfield News building, acquired in 2022 for $1.2 million, to fast growing local distillery Loon Liquors.
Community Development Director Jake Reilly and Economic Development Coordinator Nate Carlson hailed the deal as a centerpiece of the city’s larger efforts to revitalize the historic downtown district while making greater use of the riverfront to attract visitors.
While Loon Liquors’ current location at 1325 Armstrong Rd. has enabled the homegrown business to flourish for over a decade, continued growth post-pandemic left the distillery in urgent need of a new space to enable continued growth and expansion.
Loon Liquors co-owners Mark Schiller and Simeon Rossi were courted by other local communities, which craved the tourist draw offered by a recognizable brand that can be found in more than 300 bars, restaurants and liquor stores across the state.
Moving was always going to be a tough sell for Schiller and Rossi, whose Northfield roots run deep. The two have been friends since attending Northfield High School together, and their beloved craft spirits have always been made with the finest locally sourced ingredients.
In total, 90% of the ingredients in Loon Liquors products come from organic farms within a 10 mile radius of the distillery. In its new space, Schiller said that Loon Liquors would expand its collaboration with local farmers, potentially adding locally sourced foods to its menu.
Already, the distillery draws the large majority of its customers from outside the Northfield area. In larger, more centrally located digs, Schiller said that Loon Liquors will be able to establish itself as a “destination distillery,” offering longer hours, boutique offerings and a gift shop.
City Administrator Ben Martig said the deal was a fulfillment of a successful gambit by the council, enabling the city to much better utilize a building that had previously been “minimally used” at a time when retail space downtown is scarce.
“We’re excited about bringing forward the partnership,” said City Administrator Ben Martig. We know that Loon has been recruited by other cities in Minnesota and outside of Minnesota because they understand what (Loon) can do."
Downtown plans
The future Loon Liquors is just one part of a much bigger redevelopment initiative, which aspires to bring amenities such as a new liquor store and post office, boutique hotel and restaurant, and additional apartments, retail space and parking to the heart of downtown Northfield.
Detailed projects for the sites at Fifth and Washington streets and Fifth and Water streets were laid out by Twin Cities-based developer Michael Lander. However, Lander failed to secure the development agreements needed to move forward with his specific vision.
While the city continues to move forward with this broad redevelopment mission, developers have expressed interest in acquiring at least a portion of the current Post Office site, to couple with the city-owned liquor store and former Ameriprise Financial building on the same block.
Acquiring the Post Office would likely require significant time and expense. Under a proposed letter of intent and real estate exchange agreement provided by USPS, the city would bear responsibility for designing and constructing a new Post Office on an alternate site.
According to a memo shared with the city, such a process would likely require $2-3 million and would take four-to-six years to complete. Several members of the council expressed uncertainty about whether such an investment would truly be wise and worthwhile.
“I feel like there’s a lot that we’re going after, and there’s going to be a lot of strain on this community,” said Councilor Kathleen Holmes. “I think it’s a beautiful building; I would love for it to be part of the picture, but I don’t know that it’s a requirement for us to have an amazing downtown to have that building.”
Councilor Jessica Peterson White said that she could see both sides of the argument. While noting that investing in the property would help the city ensure that it is used in a manner fully in accordance with the city’s broader vision, the price tag still gave her pause.
“I feel more comfortable moving down that path than I feel not moving down that path, (but) I feel uncomfortable that that price tag is right for us as a city to get what we would get out of that acquisition,” she said.
Mayor Rhonda Pownell was most supportive of the idea, arguing that the Post Office’s beauty and historic value add significantly to the area and that the structure would likely be fiercely guarded by the city’s Heritage Preservation Commission.
With development of the site as a whole likely at least three-to-four years in the future, Reilly also asked the council to consider whether short-term leasing options should be considered for the city-owned former Ameriprise building at 411 Water St.
The response appeared to be close to a unanimous yes, though Pownell was the most skeptical. She said that the city must be prepared to move quickly to develop the property and that any lessee must understand the temporary nature of the agreement.
“It needs to be very clear that this is very temporary, and you may need to be ready to move within a short timeframe,” Pownell said. “When things come together, you need to move, and I don’t want anything to hold us back.”
Fixing up the property to rent out would also come at some cost to the city, including for asbestos abatement. However, Reilly suggested that, at least for the retail storefront portion of the building, the cost of required improvements would be relatively minor.
While the upstairs of the building could be restored and used as apartments, Reilly said that to do so would require much more intensive, major repairs. Still, given the dire housing shortage, Councilor Davin Sokup questioned if a way could be found to salvage them.
Peterson White responded that, given the expected short timeframe before the building as a whole is demolished, investing in the apartments likely isn’t worth it. However, when it came to the idea of renting out retail space, she and most of the council indicated support.
“If we aren't moving down a path of imminent redevelopment for this building right now, it doesn't make sense to demolish it,” said Councilor Jami Reister. “One of our goals is to support our local businesses or local residents trying to have a space to start a business.”
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