Northfield council approves sale of downtown building to Loon Liquors

Two years after acquiring the Northfield News’ longtime home at 115 5th St. W., the Northfield City Council has unanimously approved plans to sell the building to popular, homegrown distillery Loon Liquors.

Hailed by Economic Development Coordinator Nate Carlson as “emblematic of the city’s commitment to working with the local business community to create winning scenarios for all involved,” the sale is expected to pave the way for Loon to stay and expand in Northfield.

The final purchase price will come in at $960,000, which, while well in line or even above recent valuations, is significantly less than the $1.2 million for which the city purchased 115 5th St. W. from Adams Publishing Group using funds “borrowed” from its own sewer fund.

To ensure the sewer fund can be fully reimbursed, the council approved a motion to apply for tax abatement from Rice County. With Loon’s improvements projected to more than double the site’s value, the abatement is projected to be able to cover that funding gap within 12 years.

About Loon Liquors

Launched by Northfield High School graduates Mark Schiller and Simeon Rossi more than a decade ago, Loon Liquors was Minnesota’s first organic distillery. Today, its recognizable brand can be found in more than 300 bars, restaurants and liquor stores across the state.

Since its inception, Loon has been housed at 1325 Armstrong Road, alongside Northfield Automation Systems and several other businesses. Rossi said that this home was never intended to be more than an “incubator space” for what began as a small startup business.

“When we started 10 years ago in our current warehouse home, we always imagined that we would expand out of that space.” Rossi said. “We wanted to prove the concept, and I think we’ve proven that there is something bigger in our futures.”

Already, Loon draws the large majority of its customers from outside the Northfield area. In the former Northfield News building, the distillery will enjoy a downtown location with ample room for growth, paving the way for an expansion that could draw even more tourists.

In preparation for the endeavor, Schiller and Rossi have been touring other “destination distilleries'' like Tattersall Distilling in River Falls, Wisconsin. Schiller expressed confidence that he and Rossi could build a destination distillery of that or greater quality in Northfield.

Expansion plans

Under plans laid out by Carlson, Loon would, after acquiring the property, build out the interior and purchase new equipment. Total project cost could come out to around $4-5 million, with the new facility supporting around 35 jobs and including more than 100 seats for customers.

With the extra space, Loon will be able to couple the organic craft spirits and non-alcoholic beverages which have secured it a devoted following throughout the Upper Midwest with a commercial kitchen, gift shop and other amenities.

At its new site, Loon could be a cornerstone of a reimagined downtown, with plans also in the works for parks that more fully take advantage of the riverfront and new developments which could include additional apartments, retail space and even a boutique hotel and restaurant.

Given Loon’s ironclad commitment to locally sourcing its products, businesses well outside the downtown are set to benefit from the expansion. Local organic farmers Bryan and Tammy Lips of LP Farms, longtime Loon Liquors suppliers, offered glowing praise for Schiller and Rossi’s business model and approach.

“The commitment of Loon Liquors to providing local and organic products aligns perfectly with the values of our community and I believe that their continued presence will further enrich the culture and economic fabric of the city of Northfield,” said Tammy Lips.

Councilors heaped praise on Schiller and Rossi for building from scratch a business which has earned a sterling reputation and expressed gratitude for city staff for moving aggressively to retain a hometown business that had been courted by other communities throughout the region.

“Three words came to mind as all of you were speaking… quality, commitment and vision,” said Councilor Kathleen Holmes. “ I think that has been embodied by the work that Loon Liquors has done.”