YOUR CO-OP, YOUR COMMUNITY, OUR FUTURE!
Manna Food Co-op operates a vibrant retail storefront in downtown Detroit Lakes and has served the community since 2016.
We’re expanding to 801 Washington Avenue in 2025 and asking for your support to supercharge our mission to foster health and wellness while supporting local entrepreneurs and farmers. We’re a business with a mission – independently owned by over 1,000 local families.
Let’s Grow, Let’s Go
Three Ways to Support Our Capital Campaign:
invest
Preferred shares are direct investments and pay dividends.
DONATE
Charitable donaters support our development and are tax deductible.
join
One-time $150 membership: unlocks all benefits to the coop.
Levels of Sponsorship
I’ll chip in (any contribution over $50)
- Receive an entry to win the World’s Best Co-op Christmas Gift Basket (value $500)
Rock-Solid Supporter (any contribution of $500 – $2,499)
- Shout-out in our social media (over 3,500 FB followers) and in our eNewsletter (over 1,400 subscribers).
- Your business logo or name on our website
- Your choice of a thank you gift of Manna tote bag, camp mug, or t-shirt.
- Receive a change to win World’s Best Co-op Christmas Gift Basket (value $500)
Investor Club (any contribution of $2,500+)
- Acknowledgement with signage in new store showcasing your support
- Invitation to our in-store investor celebration
- Shout-out in our social media (over 3,500 FB followers) and in our eNewsletter (over 1,400 subscribers).
- Your business logo or name on our website
- Your choice of any two thank you gifts of tote bag, camp mug, or t-shirt.
- Receive a change to win World’s Best Co-op Christmas Gift Basket (value $500)
FAQ’S
Do I receive anything for contributing?
Yes, we have thank you gifts and incentives for your contribution!
We have 3 sponsorship levels for you to show your support via any type of contribution (Investment, Donation, or Joining as a member):
I’ll chip in (any contribution over $50)
- Receive an entry to win the World’s Best Co-op Christmas Gift Basket (value $500)
Rock-Solid Supporter (any contribution of $500 – $2,499)
- Shout-out in our social media (over 3,500 FB followers) and in our eNewsletter (over 1,400 subscribers).
- Your business logo or name on our website
- Your choice of a thank you gift of Manna tote bag, camp mug, or t-shirt.
- Receive a change to win World’s Best Co-op Christmas Gift Basket (value $500)
Investor Club (any contribution of $2,500+)
- Acknowledgement with signage in new store showcasing your support of our community-based organization.
- Invitation to our in-store investor celebration
- Shout-out in our social media (over 3,500 FB followers) and in our eNewsletter (over 1,400 subscribers).
- Your business logo or name on our website
- Your choice of any two thank you gifts of tote bag, camp mug, or t-shirt.
- Receive a change to win World’s Best Co-op Christmas Gift Basket (value $500)
Let’s grow. Let’s Go!
What will the new store look like?
Our vision is to make Manna Food Co-op a solid and visible anchor tenant in the downtown business district that we can all be proud of.
Our current retail space is 1,700 square feet and the new space at 801 Washington Avenue is 6,000 square feet on the main floor. With this space we will double our retail space, providing space for wider aisles, a larger produce section, clear double check out area, upgraded smoothie/drinks area, and a generous seating area. The remaining space will accommodate the shared commercial kitchen, our walk-in cooler and freezer on the main floor, and our receiving area in the back. See layout to the right.
We are uncovering some of the historic elements of this building which will provide some real character to the shopping environment including the overhead windows on the north wall (left). We also plan to restore the front to the original all-glass storefront and uncover the original tin ceiling.
What is the purpose of the capital campaign fund?
Simply put, we need to make investments in equipment and improvements to transform a 100-year-old building into a grocery store and build out a shared commercial kitchen to support our local farmers, suppliers, and local food entrepreneurs. Based on estimates from contractors, these improvements will cost between $600,000 and $650,000. Since selected to receive a USDA grant for the shared commercial kitchen portion of the project, that leaves $300,000 to $350,000 to cover estimated costs.
Financing all the costs of the expansion would more than double the co-op’s current debt and add a significant monthly cost and strain daily operations. Not unlike all cooperatives that have undertaken significant expansions, we look to our member-owners for support at this time. All businesses need additional investments and this is our time to support our cooperative.
How much do you need to raise?
The capital campaign funds will cover the direct costs of fitting up the new retail space. After receiving estimates from contractors, we estimate that our expansion will cost between $600,000 and $650,000. We have been awarded a $304,000 USDA grant for the commercial kitchen portion of the project, so this leaves approximately $300,000 to $350,000 necessary to cover our total project.
Costs fall into three main categories:
- Equipment: The lion’s share of equipment expenses will be installing much larger walk-in coolers and freezers to NSF-certified kitchen and processing equipment for the shared commercial kitchen. But we’ll also have we’ll be adding some grocery equipment like freezer space. Price tag: $280,000.
- Construction: To turn a former hardware store into a licensed food-grade kitchen and grocery, we will need new floors, new lights, and food-grade wall coverings. We’ll also install a new glass storefront along Washington and Front St together with new signage. Price tag: $250,000.
- Utility upgrades: The main electrical line coming into the store needs an upgrade to 400 amps to power our equipment plus an entirely new HVAC system. Price tag: $80,000.
This funding will give us the flexibility to grow into our new downtown location and continue to serve our community effectively.
Why are we moving now?
Our current location at 823 Washington Avenue has served us very well, but this expansion is necessary for our long-term success:
- More space. Our current location is 1,700 square feet and we have simply outgrown it. The new space is 6,000 square feet on the main level which will provide more than 3,500 square feet for the store and ample space for the shared commercial kitchen, storage, and receiving.
- A long-term location of our own. We started operations in 2017 renting 105 Barbara Avenue on the northside of Detroit Lakes and moved to 823 Washington Avenue in 2021. By no means do we intend to keep moving every four years, which takes both effort and money, but, as a new business, we need to expand.
- Opportunity is now. Our 5-year lease at 823 Washington Avenue is ending at the end of 2025. We expected our rent and maintenance costs to increase in our lease renewal and a purchase of 801 Washington with payments starting at the end of 2025 allows us time for construction between now and our move. When the property at 801 Washington Avenue came on the market, we took the once-in-a generation opportunity to expand into one of the only downtown Detroit Lakes properties that would work for an expansion of our store.
The co-op board, staff, and members view this relocation and the associated store improvements as not only an exciting expansion of a store, but also an opportunity to better fulfill our mission.
Will Manna Food Co-op own the building?
Yes, in time, Manna Food Co-op will own the building.
Currently, Ryan and Maree Pesch, our treasurer and general manager respectively, are the owners of the building. Their passion for the co-op and its success inspired them to take the risk of purchasing the property under a contract for deed to make this expansion possible. The contract is with the Beug family who have operated Ace Hardware at 801 Washington since the 1980s.
Manna Food Co-op was not in a position to acquire the building in the short period of time it was on the market. Instead of allowing the opportunity to pass, the Pesch’s stepped up to buy the building with the intention to transfer the property to the co-op when the time was right. When the co-op is in a financial position to acquire a mortgage, the co-op can buy out both the Pesch’s and the Beug parties and own the building outright. In the meantime, the Pesch’s as landlords will provide a rent-to-own lease also known as a lease-option agreement. Basically, a portion of each month’s rent will go towards principal payments.
How was the decision made to undertake this expansion?
In short, the board of directors.
Board members first toured the property in October, 2023 when 801 Washington Avenue came on the market. Knowing that our current lease was ending in 2025, this opportunity seemed worth investigating. After an initial look, we solicited estimates from contractors to price out the cost of improvements. Our treasurer, Ryan Pesch, negotiated with the Beug family who owned the building on terms of any possible lease or purchase over the ensuring 7 months, keeping the board of directors informed of developments at our monthly board meetings.
At its March meeting, the board of directors unanimously approved of the idea moving forward with the expansion should the building be acquired. Due to need to move quickly in negotiations and due to their ability to garner funds for a down payment, Ryan and Maree Pesch closed on a contract for deed with the Beug family at the end of June. Any lease contract between the Pesch family and Manna Food Co-op will be executed in 2025.
Who can help me with my investment or donation?
Please contact Ryan Pesch, capital campaign co-chair and board treasurer of Manna Food Co-op, with any technical or financial questions you may have at 218-770-4398 or lidafarmer@gmail.com
Certainly feel free to reach out to any capital campaign committee member you may know personally: Ruth Solie, co-chair; Katerina Renner, Mindi Jensen, Bonnie Juma, Dawn Finn, Casey Brodsho, or Lori Botzet.
What’s the history of 801 Washington Ave?
Built in 1920, 801 Washington was originally a JC Penney. Mid-century the building transitioned to a hardware store and was acquired by the Beug family in 1986. The Beugs were operating a hardware business at the time in the Glicks building and simply moved across the street.
Upstairs are 8 apartments that were last rented out in the early 1980s. In a fairly dilapidated state, the space is very interesting and historic with original woodwork throughout, two skylights, and a lot of charm. The upstairs remains an opportunity for partners to bring these apartments back to life or convert to another use. Give Ryan a call if you want to explore ideas at 218-770-4398.
What We’re All About
Organic Products
We offer a wide range of organic products, ensuring that our customers have access to the healthiest and most natural food options. Our selection includes fresh fruits and vegetables, dairy, grains, and more.
Local Produce and Goods
Supporting local farmers is at the heart of Manna Food Co-op. We proudly stock products sourced from nearby farms, providing fresh and sustainable food options while supporting our local economy.
Community Wellness
Manna Food Co-op is more than just a grocery store. We are a community hub dedicated to promoting wellness through educational workshops, wellness products, and community events.
Natural Groceries
Our store provides a range of natural groceries, free from artificial additives and preservatives. We strive to offer products that maintain their natural integrity, supporting mindful and health-conscious choices.
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