Rebuilding Main Street

Communities across Minnesota, including Cold Spring and Pine River, have revitalized their downtowns with state grant funding

By Suzy Frisch | Photography by John Linn

A century-old brick building on Cold Spring’s Main Street is enjoying a second act—this time serving sprinkles, sundaes and smiles. Built in 1893, the once-neglected space now sits in a prime location across from the city’s new splash pad and beside a freshly upgraded walking and biking trail. For the Sabo family, it wasn’t just a building—it was the perfect recipe for an ice cream shop that could draw neighbors together and turn a sweet treat into a community tradition.

Even with confidence in the building’s potential, the renovation list was daunting: heat, air conditioning, electrical, plumbing, bathrooms, and more. As they planned Red Truck Ice Cream, the Sabos discovered the Minnesota Main Street Economic Revitalization Program, administered in Central Minnesota by the Initiative Foundation. A $60,000 grant provided the green light they needed to get the project started.

“To start a small business like that and do what needed to be done, we would have struggled to make sure the project came together without the grant,” said Bob Sabo, who owns the business with his wife, Julie, and runs it with their three children. “Having grant access was a huge part of our decision-making.”

Since opening in 2022, Red Truck has become a destination for hard ice cream, soft serve, dirty sodas and more—drawing customers from across the Cold Spring area and beyond.

Launched in 2021, the Minnesota Main Street Economic Revitalization Program is breathing new life into businesses with its $80 million investment through three rounds of funding. Designed by the Minnesota Legislature to counter setbacks from the COVID-19 pandemic, civil unrest, natural disasters and business closures, the program has funded 625 projects statewide—44 percent in Greater Minnesota and 56 percent in the Twin Cities metro. The Minnesota Department of Employment and Economic Development (DEED) estimates the effort has increased Minnesota’s tax base by $369 million. It’s also credited with creating 8,700 jobs and delivering a $10 return in local investment for every $1 in state funds.

DEED partnered with the Initiative Foundation to manage grants in Central Minnesota for rounds two and three. In 2022 and 2023, the Foundation awarded $4.3 million to support 110 projects in Brainerd, Cold Spring, Little Falls, Long Prairie, Pine River and St. Cloud. A third-round distribution of $500,000 is now underway for projects in Braham, Cass Lake, Isanti, Little Falls and Walker.

Recipients could apply for a 30 percent matching grant of up to $200,000. “DEED’s mission is to empower the growth of the Minnesota economy for everyone, and that is what this grant program did,” said Neela Mollgaard, executive director of DEED’s Office of Small Business and Innovation. “The diversity of the investment, and the density of the investment, have had a compounding impact in communities.”

For the Initiative Foundation, the program’s goals align perfectly with its mission. “We know that downtown revitalization can be a spark to help communities thrive,” said Amy Trombley, vice president for community. “It really was an alignment of our mission and vision as an organization to support vibrant economies and thriving communities throughout Central Minnesota.”

That spark extends beyond brick-and-mortar improvements. Grants have created new partnerships, boosted collaboration and strengthened community connections. “When partnerships happen,” Trombley said, “it creates synergies and a stronger community that people want to come and support and where they feel like they belong.”

For Red Truck Ice Cream, the results are clear. Meeting his renovation goals and adhering to grant requirements was no small task, Sabo said, but the reward has been sweet. “The biggest part of it for us is being part of the community, getting more involved and getting support back from them.”

The Pine River Story

A community revival is readily apparent in Pine River, where 13 entities received about $435,0000 in Main Street grants. One of the key efforts involved renovating a building that sat vacant for eight years to prepare it for a new tenant. A $180,000 Main Street award significantly reduced the $600,000 price tag for the building’s transformation, which previously housed an ALCO retail store. It also paved the way for the owner to land Tractor Supply Company as a tenant and put the long-vacant property back on the tax rolls, said Mike Paulus, executive director of the Cass County Economic Development Corporation.

A restaurant underwent a complete remodel, a pharmacy and couple of real estate buildings received fresh exteriors, and the fitness center and bowling alley got modern upgrades—transformations that infused fresh energy into the entire city.

“It’s truly night and day,” Paulus said. “When you look at Pine River and the $3.5 million that was invested in all, that is life-changing. It’s a completely different city with much more positive vibes and excitement for the future. The Main Street revitalization program is one of the best programs I’ve ever worked with because it provides actual, measurable results.”

A Piece of Pine River History

After spending a career in real estate, Jana Johnson knows potential when she sees it—and she saw it in Pine River. When a downtown restaurant became available, Johnson purchased the building, applied for a Main Street grant, and used the $25,000 award for renovations. She loved that the 1902 building is steeped in history, once operating as a hotel and saloon owned by Pine River founder George Barclay.

With support from the grant, Johnson gave the building a complete makeover—including exterior painting, new plumbing and flooring, and two renovated upstairs apartments. The transformation paved the way for the opening of the Barclay Cafe.

Energized by that project, Johnson purchased a nearby vacant building, renovated it and rented space to Subway. The previous owner had received a $15,000 Main Street grant to remodel the building, and Johnson took over that work. During the renovations, she discovered an upstairs rooming house with six rooms sharing one bathroom. She remodeled them into two apartments.

Johnson has since snapped up yet another building with plans to turn it into a pool hall and restaurant—proof of her confidence in Pine River’s future, even if the project didn’t garner Main Street funding. Her vision is part of a broader wave of community revitalization fueled by grant investments. A $75,000 Main Street award helped breathe new life into the Damsite Supper Club, which reopened in 2023 with live music and a fresh vibe. Other community wins include a revamped playground at Dam Park, all contributing to the town’s renewed energy and momentum.

“I truly believe that Pine River is on the threshold of really remarkable things—not that there was anything wrong with it before,” Johnson said. “The energy and the synergy of businesses collaborating hasn’t been seen for decades.” People’s collective eagerness to invest in their businesses has played a big part in local renewal, she added: “I probably wouldn’t have been as inspired to invest if not for that. There is strength in numbers.”

Thanks to the changes around town, Pine River has more jobs and more opportunities. “People don’t have to leave Pine River for entertainment and food—we’re keeping it local,” Johnson said. “We also want to draw people to Pine River and spend their dollars with us.”

Cold Spring Vitality

In Cold Spring, the Main Street boost goes beyond ice cream. More than a dozen projects have received nearly $500,000 in grants, helping building owners tackle updates to the movie theater, a demolition to prepare for new development, construction of a chiropractor’s office and rental space, exterior improvements to a fitness company, and more.

A few years back, Cold Spring did its part by first improving its two main downtown roads with refurbished streets, new benches, flowers and boulevards with trees, said City Administrator Kris Dockendorf.

The town’s central business district is hopping with every building now occupied.“That’s always been a big part of Cold Spring,” Dockendorf said. “We have a lot of really popular businesses downtown, and it’s always been busy. But I don’t think it’s shined like it does now.”

Local investments have been great for business—and for community morale, she said. “Before, people would come here because we have a great bakery and some really good restaurants. Now they look around and say, ‘This looks really nice.’”

Nic Stang, co-owner of The Great Blue Heron restaurant with his mom, Kathy, and wife, Chrissy, transformed the property’s courtyard and landscaping with the help of a Main Street grant. After 21 years running the 50-year-old establishment, the family set out to craft a welcoming outdoor wedding venue and a beautiful spot for diners to relax. Today, a fresh gazebo, new fencing, vibrant shrubbery brighten the space—turning it into a relaxing retreat that invites guests to linger.

Though Stang said they likely would have completed the work at some point, “it would have probably gotten put further down the list. Sometimes you need a push to make something a priority.”

After completing the roughly $44,000 project—supported by about $8,500 in Main Street funding—The Great Blue Heron began hosting weddings and other events in 2023. It now offers a weekly farmers’ market in its parking lot, drawing people to admire the courtyard and others who ask to have photos taken there. Stang said foot traffic has increased since the remodel, including many more customers visiting the restaurant and Cold Spring from across the state.

The Stang family wanted to improve their building to set up the business for continued success. The effort demonstrates the restaurant’s commitment to Cold Spring—a sentiment shared by other business owners in town, Stang said. “What I see now is more forward thinking of what the next 10, 20 or 30 years is going to bring,” he said. “Everybody is embracing those future changes by investing in their businesses. To be here for that—it’s so fun.”

Mainstreet Momentum

In early 2025, the Initiative Foundation secured a $500,000 grant from Minnesota’s Department of Employment and Economic Development Main Street Economic Revitalization Program. The funding is driving improvement projects in Braham, Cass Lake, Isanti, Little Falls and Walker, with up to 30 percent matching grants available for infrastructure, renovations and other updates. In Braham, the Tusen Tack thrift store is adding a new concrete driveway and refreshed landscaping. In Walker, D&B Outdoors is investing in building repairs and renovations. In Isanti, grant dollars are helping restore The Creamery Crossing, a property that includes apartments, office space and plans for a reopened restaurant.