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Rushford Weighing Coop Scenarios

July 21, 2025 by Kirsten Zoellner

Rushford Mayor Terri Benson at the July 14 meeting. Photo by Kirsten Zoellner
Rushford Mayor Terri Benson at the July 14 meeting. Photo by Kirsten Zoellner
Rushford Mayor Terri Benson at the July 14 meeting.
Photo by Kirsten Zoellner

The city of Rushford is exploring potential redevelopment options for the former Farmers Coop site. While not formal proposals, the four scenarios provide working models to estimate costs and test possible site uses. These concepts are intended to spark conversation – not to represent final plans or decisions,” said City Administrator Tony Chladek in a report to the city council at their July 14 meeting.

The scenarios include both public and private uses. The first scenario being considered is townhome housing development. This option could provide 22 townhomes through a private development. While this would resolve some of the housing issues noted in the city’s last housing study, it would require trail relocation, provide limited green space, and would have no tourism impact. The estimated cost of scenario 1 is $9.4 million with a development fee of $1.4 million. The potential economic impact is $1.06 million.

The second scenario is a mixed use, private and public development. It includes 12 townhomes and plenty of green space. The space could include a stage/pavilion, active green space, a vendor area, and public parking all with potential for tourism opportunities. The estimated cost for this scenario is $6.5 million for townhome construction, a $975,000 development fee, and $860,000 for park construction, all with a $1.1 economic benefit.

The third scenario is a commercial development including a partial renovation of the brick former feed building and a new commercial addition to the east of it. A stage/pavillion could be adjacent to that with green space around all of it. This scenario also includes a vendor area and public parking. Estimated cost to construct public spaces is $730,000, while the building renovation comes in at an estimated $520,000 and the new commercial construction at $1.9 million.

The last scenario is an active community green space. This public development includes the stage/pavillion, vendor area, parking, and several active green spaces which could house unique features based on community input. There is a tourism opportunity with this scenario. The estimated cost is $1.8 million with a $334,000 estimated economic impact.

The site redevelopment scenarios are posted on city website and Facebook page with the entire report also available at rushford.govoffice.com under the community notices section.

Rushford was selected for a University of Minnesota Empowering Small Minnesota Communities program.

“They will provide technical assistance and leadership development, with some financial contribution from the city, to support community readiness for future uses of the former coop site,” read Mayor Terri Benson from agenda statement. “The focus is on exploring nonprofit governance and support local leadership development/resources if a non-profit operated civic or event space becomes a community supported use of the coop site.

“They’re essentially in our back pocket if we go with scenario 3 or 4 and the community and council decide they want to go forward with those,” added Chladek. “They’re there to help tip up, if necessary, an organization in town to help operate that site;, to move it forward. There was discussion that the city doesn’t want to operate it. This would be an effort to pull together business owners surrounding the site and the interest of community members.”

In other news, the council unanimously approved a microgrant to the Rushford Historical Society in the amount of $2,500 for improving accessibility and upgrades to the restroom facility at the historic depot. The site serves as the visitor’s center and home for the Rushford Peterson Valley Chamber of Commerce.

Acting on a recommendation from the Economic Development Authority (EDA), the council also approved an EDA Revolving Loan Fund Business Subsidy Loan to Green Terrace Realty, LLC/Ryan Ruberg for the purchase of Loken’s Inn, LLC, Loken Rushford Realty at 201 State Road 16. The inn has been for sale for some time. The approval is contingent on a final letter form the bank who is in the process of underwriting for the purchase agreement, but the tentative closing date is September 30.

“The business plan sounds very forward thinking and has positive ideas,” noted Benson.

The council also approved a microgrant to Magpie Company/Allen Parochka, who will be renting business space from at 109 South Mill Street.  The EDA approved the grant for the taxidermy businesses which has been in operation in Chatfield for some time.

Filed Under: Government, News

About Kirsten Zoellner

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