Couple’s perseverance and partnerships bring accessibility to northeast Minnesota’s great outdoors
The Learys spent over two years building their resort to universal design standards to offer a wilderness destination, adaptive outdoor activities, and BWCA access for people with or without physical handicaps. Cabin main levels, patios, screen porches, boardwalk, dock, and trails are wheelchair accessible.
Sean and Jill Leary want you to know that the newly opened North of North Resort & Outfitters offers a true northwoods experience for everyone, including people with physical disabilities.
Their three-unit property sits on 11 acres with over 1000’ of lake front on Birch Lake. Although it’s only about 15 minutes from Ely proper, you’d never guess it from the miles of natural, unoccupied shoreline abutting Superior National Forest and, just beyond, the Boundary Waters.
Besides the stunningly peaceful setting, what sets this resort apart is its universal design. Each of the three cabins sleeps up to eight with main floor living, kitchen, bedroom and bath that are fully accessible for guests using wheelchairs, walkers, etc. An accessible boardwalk leads visitors to dock and lake access. All trails accommodate wheelchairs, too.
The couple emphasizes, though, that North of North isn’t only for people with disabilities.
Both Jill, a teacher, and Sean, an environmental consultant, are lifelong outdoors adventurers.
“Universal design means it works for parents with young children in strollers, grandparents, people of any age with or without adaptive equipment,” said Sean, who has been wheelchair-bound since a car accident at age 18.
Both Jill, a teacher, and Sean, an environmental consultant, are avid, lifelong outdoors adventurers, a love they’re passing on to their two children. It was during a trip to Montana that the couple began to think seriously about how to bring wilderness access to more folks back home in Minnesota.
They found totally undeveloped lakeside acreage in 2021, but the price seemed out of reach. Undeterred, they wrote a “love letter” to the seller that moved her to work with them. Still, acquiring the land was just the first step.
“We didn’t have a ton of equity,” admits Sean. “I understand the concept of loan risk and knew that even with strong backing from our bank, we would need extra help.” explained Sean.
“That’s where Northland Foundation was really critical. Amanda and Michael were awesome to deal with, start to finish.” — Sean Leary
Sean and Jill put in all the money they could, along with hours of sweat equity, and got connected with non-traditional lenders to bridge the financial gap. Northland Foundation was among their financing partners, coming in with two separate loans for construction. Community support has marked every step of the journey. Sean and Jill worked with local contractors, hired a local property manager, and developed great relationships with service and resource providers.
Each unit includes a private sauna.
The Learys are also helping reduce another barrier: cost. They founded Adaptive Wilderness Within Reach to help lower expenses for individuals to expand ADA access to the BWCA, Superior National Forest, and activities like kayaking, fishing, cycling, and dog sledding.
“The most satisfying aspect of this job is meeting people like Sean and Jill,” said Amanda Vuicich, “and being part of a small-but-mighty group of lenders all focused on helping the Leary’s realize their goal. The end result is a sight to see.”
Ely’s shops and restaurants are nearby, but North of North is a world away. A peaceful, pristine lake. Protected forests. Abundant wildlife. Starry “dark skies” at night.
“By building an accessible property, folks of all ages and walks of life can experience all this without the barriers they would normally face,” said Jill. “It’s incredible to share this special place with others.”
Closed loans headline here
___ area businesses and two regional nonprofit organizations recently closed on financing totaling $____.
Bake of the Woods, International Falls
Hawkins Hauling, Duluth
North Country Directional Drilling, Warba
Eye Clinic North, Virginia
Second Harvest Northland, Duluth
North St. Louis County Habitat for Humanity, Virginia
To learn more about Business Services and all the financing tools available, please email Amanda Vuicich or Michael Colclough.
Client Story, Promise Act Opportunity and Closed Loans
Wired Whisker: northeast Minnesota’s first cat cafe
From left: Misha Smith cut the ribbon on her new venture this spring. The cafe serving beverages and snacks is separate from an enclosed cat lounge. Amanda Vuicich meets a furry friend.
The story behind Wired Whisker is one of both hustle and heart. Misha Smith worked full time in tech marketing by day while volunteering after-hours with animal rescue organizations. This past year, Smith landed on the purr-fect way to meld her two passions into one cool business.
Cat cafes, introduced in Asia, are gaining popularity in the U.S. They pair the low-key atmosphere of a coffee shop with the option to interact with four-legged friends. Wired Whisker not only cultivates calm – pets are proven mood-boosters – it also directly supports cat shelter and adoption.
It was a fast track. Smith found a building in Duluth’s Endion neighborhood and set to work. She and her family (her dad is a general contractor) renovated top to bottom. She closed on the sale in November and opened Wired Whisker in June.
Several regional organizations contributed financing and technical assistance: Northland Foundation, Member’s Cooperative Credit Union, Entrepreneur Fund, and City of Duluth 1200 Fund. Northland participated in a term loan originated and serviced by MCCU.
“There is such a strong resource network for small businesses in our region, this project being a great case in point.” — Amanda Vuicich, Northland Foundation Small Business Lender
“We were able to apply U.S. Department of Treasury CDFI capital since the building is located in a qualified census tract,” explained Amanda Vuicich, who worked with Misha and financing partners to pull the loan package together.
In the waiting area between the cafe and cat lounge, Smith (right) describes to Michael and Amanda the rescue mission behind the fun coffee-and-cats theme.
The coffee shop is up front, separate from the enclosed cat lounge in back. There’s also a pet friendly patio. The divided design meets health and safety guidelines and helps maintain a stress-free environment for both cats and humans. People wanting a feline-fix can book lounge time online for a minimal fee or even take a yoga-with-cats class. The shop is staffed by a half dozen employees serving hot and cold beverages plus treats from a local bakery.
Cats-in-residence (preparing or currently up for adoption) are are brought in from several rescue organizations which help manage adoptions. Smith is introducing a volunteer program, too, and adding beer and wine to the menu.
In its first two months in business alone, countless cups of coffee and tea were consumed, and 10 adoptable cats found new homes. Hustle and heart. Wired Whisker is open 7 AM-7 PM Tuesday through Sunday (closed Mondays) at 1823 E. Superior Street, Duluth.
Low-interest Promise Act Loans
The Northland Foundation has available 3% small business loansof up to $500,000 for owner-occupied commercial construction and rehabilitation projects.
Capital is made available through the State of Minnesota’s Promise Loan Program. Eligible borrowers must have been in business at least since 2021 and had less than $1 million in revenues as shown on their 2021 tax returns. Contact Amanda Vuicich or Michael Colclough for more details. Loans can be used for:
Land Acquisition, Development, Redevelopment
Demolition, Site Preparation
Predesign, Design, Engineering
Repair, Renovation of Real Property, Capital Improvements, Relocation
Over $1 million in loans support growth
Four area businesses and two regional nonprofit organizations recently closed on financing totaling $1,046,302.
Bake of the Woods, International Falls
Hawkins Hauling, Duluth
North Country Directional Drilling, Warba
Eye Clinic North, Virginia
Second Harvest Northland, Duluth
North St. Louis County Habitat for Humanity, Virginia
To learn more about Business Services and all the financing tools available, please email Amanda Vuicich or Michael Colclough.
Client success story + closed loans
Business services client brings fresh Asian fusion menu to Lincoln Park neighborhood
Nevi Mariadi is not only one of Duluth’s newest restaurateurs, she’s also introducing a cuisine that’s new to many local palates: Indonesian. Bali Asian Cuisine, which opened this fall in the Lincoln Park crafts district, brings the traditional, mouth-watering flavors of Mariadi’s home country to northeast Minnesota.
Her unique Asian Fusion menu is a combination of Balinese dishes like chicken sate with peanut sauce, bakwan jagung (crispy corn cakes), and rendang (savory beef stew, pictured) with other Asian fare such as sushi and ramen.
The warm brick-and-wood space, located at 1931 W. Superior Street., features seating for 85, a sushi counter and a full bar.
Bringing the concept to life was a group effort. Her partner, Kelly Reinarz, did most of the interior finishing work and members of Nevi’s family traveled from across the country to help her prepare for the opening.
Funding the start-up costs, build-out, and equipment was also a joint undertaking. Although Mariadi has 15+ years of experience – she immigrated to the U.S. at age 18 and opened her first restaurant in Colorado in 2014 – like many start-ups, Bali Asian relied on owner equity and regional nontraditional financing to get off the ground.
The Northland Foundation’s business lending team worked closely with Mariadi to provide financing for equipment, inventory, initial working capital and other soft costs.
Northland was able to utilize the Minnesota Loan Guarantee Program (MNLGP) for the deal, a state-administered program that guarantees 80% of the principal for qualifying small business loans made by MNLGP enrolled lenders.
Just recently Mariadi collaborated once again with the Northland Foundation, this time for technical assistance with preparing her pitch for a Kiva crowd-funded loan. She successfully funded an $8,000 loan in a matter of days toward the purchase of a larger cooler.
“This was a neat project for us—one that ticked many boxes,” explained Amanda Vuicich, Small Business Lender. “Bali Asian Cuisine fills a niche in the local dining scene, repurposes an older building, provides jobs, contributes to the tax base, and is a great reminder of how diverse people and cultures add so much to our communities.”
Recently closed loans total nearly $1 million
In recent months, the Northland Foundation has closed loans totaling $980,000 to support two business expansions and two start-ups in the region.
Veteran-owned Deer River resort builds on family history, receives SBA Award
Surrounded by forest on a tranquil bay of Sand Lake – a premier fishing destination – near Deer River, MN, there has been a resort on the site of Lakewood Lodge for over a 100 years. In 2020, Preston and Aimee Osborne, Army veterans retired from military life and ready to settle down in one place, made it their new business and home.
The decision to purchase this particular resort was not strictly business—it was a return to Aimee’s roots. Her grandparents once owned Lakewood Lodge, and she and her parents lived next door. Helping at the resort and making friends with the families vacationing there was part of her “northwoods” childhood. Now, the Osborne’s own youngest daughter gets to experience it for herself.
Navigating startup financing presented some challenges, but with support from the Northland Foundation and other partners, Aimee and Preston turned obstacles into opportunities. As an enrolled lender in the DEED Small Business Loan Guarantee program, Northland was able to provide credit.
From a more modest property back in the day, Lakewood Lodge has evolved to 15 modern cabins with AC and Wi-Fi, sandy beach, lodge building, boat launch, and beautiful grounds, catering to guests of all ages and interests. In their short time here, the family has been making their mark on both the resort and the community. They give back by serving on local boards, being involved in the chamber of commerce, coaching little league and cheerleading, and much more.
In recognition of Preston and Aimee’s business success, as well as their military and community service, the Small Business Administration named Lakewood Lodge as Minnesota Veteran-owned Small Business of the Year.
Brian McDonald, SBA District Director (center) visited the resort in late April to make the official presentation.
Said couple of the award, “This is an honor. We’re both proud of our military service, and we are grateful to have had access to financing help, as veterans, that enabled us to purchase Lakewood Lodge.”
As they gear up for another bustling season, the Osbornes are eager to welcome guests, old and new. For Preston and Aimee, Lakewood Lodge is much more than a business venture. It’s a legacy they’re thrilled to continue.
Recently closed loans total nearly $1 million
Three area small businesses – two start-ups and one existing – have recently closed on flexible financing through the Northland Foundation. All three business loans utilized Northland’s Low-interest Commercial Construction & Rehabilitation Gap Loan funds which may be used for costs associated with commercial property renovation or construction including site prep, demolition, design, engineering, and more.
Basecamp du Nord, LLC, d/b/a Camp du Nord, Grand Marais
To learn more about Business Services and all the financing tools available, please contact Amanda Vuicich or Michael Colclough.
Business Services News
Update 2023: what we’re seeing in the region now
After the crushing blow of 2020 shutdowns and general uncertainty, many business owners found 2021 into 2022 to be positive for cash flow.
As 2023 gets underway, increased costs and logistics are providing some challenges. The spirit of growth, however, is alive and well. People all across the northeast Minnesota are still wanting to start, purchase, or expand businesses. Deal flow has been steady.
“The entrepreneurial ecosystem remains strong. The pandemic was hard on most small businesses, but it also nudged a lot of folks to make the leap into business ownership,” said Northland Foundation President, Tony Sertich.
Working capital and construction-related financing are a heavy focus at the moment, from mature businesses investing into their operations, to small start-ups just getting going, to ownership transitions.
“It’s encouraging to see that, despite rate increases by the Fed, a growth mindset continues in the region.”
Tony Sertich, President
Michael Colclough, who’s led the Northland Foundation’s lending program for over seven years, touts northeast Minnesota’s concentration of financing and economic development organizations as a major asset for entrepreneurs trying to sustain their businesses in lean times or manage growth in boom times.
“We have a solid network – banks and credit unions, the ARDC, Northspan, Entrepreneur Fund, Northland SBDC, and others – with a common goal to help businesses get the support they need be successful,” stated Colclough.
Responsive lending staff able to turn approvals around relatively quickly without a lot of red tape.
Less restrictive loan policy around collateral or other typical lending requirements.
Flexibility and cost-consciousness in a time of rising interest rates.
Willingness to fill gaps, for example, with construction or equipment cost over-runs Northland might step in to extend additional credit and keep projects ticking.
“Being a small and nimble shop, with the ability to take a second position, for example, or be looser about collateral, makes us a good option anytime,” Colclough added. “Our role is arguably most valuable when economic conditions are more challenging.”
Recently Closed Loans
In recent months, the Northland Foundation has closed loans totaling $340,000 to benefit five small business expansions and one new start-up business in the region.
To learn more about Business Services and financing tools available, please email our Economic Development Specialist/Small Business Lender, Amanda Vuicich or Business Services Director, Michael Colclough.
Three recent loans; New owners purchase Itasca County business
Recently Closed Loans
The Northland Foundation closed on three recent loans totaling $290,000 to support Northeast Minnesota small businesses. They are:
Alicia Ziebol d/b/a Ziebol Child Care, Cloquet
Unclaimed Freight North of Aitkin, Inc., Aitkin
Lester River Brewing Company, LLC d/b/a Lake Superior Brewing, Duluth
To learn more about Business Services and loan tools available, please email our Business Services Director, Michael Colclough.
Client story: Grand Rapids Tire and Auto
Grand Rapids Tire and Auto is a staple of the Grand Rapids community. It opened in 1984 as a small, one-stall shop selling and servicing tires. In 2005, a new building accommodated expansion to five stalls. The business provides automotive repair featuring a team of technicians and state-of-the-art equipment and sells top-brand tires for everything from passenger cars to commercial trucks, buses, agricultural equipment, ATVs, and trailers, along with a full line of Interstate batteries.
When the longtime owners decided to retire and sell in 2021, it turned out to be perfect timing for another Grand Rapids couple, Darrin and Shar Anderson, to follow their dreams.
“We had talked about wanting our own business for years. We researched the business and talked to community members. We heard nothing but great things, not only about the business but also about Bruce and Linda Anderson, the original owners,” said Shar.
The lion’s share of the Anderson’s financing was provided by Members Cooperative Credit Union (MCCU), who approached the Northland Foundation to help round out the loan package. The Andersons spotted the ‘For Sale’ sign in September and financing closed within six months.
“It’s great to see smooth ownership transitions like this keeping businesses local. With equity from the Andersons and gap financing from the Northland Foundation, the deal came together quickly and seamlessly,” said Al Bastien, Business Services Officer with MCCU.
“We are very optimistic about the future.”
Darrin Anderson, co-owner
Shar and Darrin officially took over operations in February 2022.
Darrin graduated from the Universal Technical Institute in Phoenix, Arizona and later received Advanced Mercedes Benz Training. He has been working as an auto technician in the Grand Rapids area for 16 years. Shar’s background is in Business and Human Resources, to which she added an MBA in 2020.
“It just fit. Darrin works as a technician and oversees the shop while I am able to put my education and experience to work running the front office,” explained Shar.
They view customer service and quality work as their top priorities.
“We have a great crew of five and over 30 years of combined automotive experience. We will strive for excellent customer service by providing honesty and transparency in every aspect of servicing your vehicle needs,” stated Darrin. “We are very optimistic about the future.”
Darrin and Shar Anderson became the proud owners of Grand Rapids Tire and Auto (below) in February.
Business Services News: $1.28 million in loans closed
Recently Closed Loans
The Northland Foundation closed three loans totaling $1, 280,000 since July, providing flexible financing to help bolster a diverse, thriving economy and support job expansion in northeast Minnesota.
Eye Clinic North, PA, Virginia
Midwest Partners, LLC, d/b/a Red Rocks Hotel & Suites, Hibbing
The Northland Foundation closed on one new loan since the July 1st, the start of our new fiscal year.
Dougherty Accounts is a bookkeeping and payroll business located in Duluth. Owner Katherine Dougherty received a loan from the Northland Foundation toward purchase of the building the business currently rents.
The Northland Foundation closed on 5 loans totaling $731,500 during the last quarter to support the expansion of Northeast Minnesota businesses. They are:
In Harmony, Duluth
Rudi’s Pizza, Hibbing
Haver Sourcing, Grand Rapids
Zen House, Duluth
Grand Rapids Tire, Grand Rapids
To learn more about Business Services and loan tools available, please email our Business Services Director, Michael Colclough.
Client story: In Harmony Wellness Center opens in Spirit Valley neighborhood
After 18 years as a licensed physical therapist assistant in Minnesota and Wisconsin, Debbie Merrick wanted to reach clients in a different, more holistic setting than the more clinical sites where she had previously worked.
In 2019, she launched In Harmony Reiki and Inner Wellness and in 2021 opened In Harmony Wellness Center at 5628 Grand Avenue in the West Duluth neighborhood’s thriving business district. The studio is located in a historical building with original hardwood floors and exposed brick.
Her years in physical therapy along with along with Master Level Reiki and Life Coach Certifications have given Merrick a unique skill set to serve a diverse population, meeting them where they are to help guide them to strategies and techniques for stress reduction and healthy outlooks for physical, mental, and spiritual wellness.
While she had established her service business, Merrick searched out technical assistance to help her move her enterprise to the next level. She worked closely with Vicki Hagberg of the Northland Small Business Development Center and, when the time came for financing assistance, Merrick applied to the Northland Foundation for a business loan to get her studio up and running.
In the stress and uncertainty of a pandemic-impacted world, In Harmony has a wide variety of wellness options for all ages and backgrounds. These include yoga, reiki energy healing, life coaching, workshops, and much more. Individuals and groups alike can take advantage of regular services, as well as special events. Among workshops and individual sessions on tap are instruction in posture, body mechanics, stretching, and safe functional movement specific to seasonal activity like snow shoveling — something northern Minnesotans can definitely use at this time of year.
“Vicki helped me with my basic business plan and, once she had a more complete picture, she helped me seek out financing. I ended up connecting with the Northland Foundation. It was a very smooth process.”
Debbie Merrick, owner
“Opening a new location in the middle of a pandemic has been challenging, but the people who connect with us are happy to have found us and are excited about using other services, too,” explains Merrick, who continues to build what is offered at In Harmony, such as recently added quigong classes which is a Chinese practice of guided movement, breathing, and exercise. She also opens the studio to community members to drop in for coffee and conversation on Saturday mornings, as well as rents out the space to others.
This motivation to help people live their best life comes from Merrick’s own personal journey and wanting to offer clients a more individualized, accessible, and simpler process to achieve their wellness goals.
Debbie Merrick, owner of In Harmony
Recently Closed Loans
The Northland Foundation closed on loans totaling $228,500 during the last quarter, supporting the expansion of three businesses in the region. They are:
Grand Rapids Hotel Properties, LLC, Grand Rapids
Doc Witherspoon’s Soul Food Shack, LLC, Duluth
MCKB Properties d/b/a Reed Building, Hibbing.
To learn more about Business Services and loan tools available, please email our Business Services Director, Michael Colclough.
Borrower feature: financing collaboration supports new ownership and expansion at Cloquet business
With 40 beverage flavors plus a wide assortment of breakfast and lunch fare and sweet bakery treats, “variety” is a perfect word to characterize the mouthwatering menu at Bearaboo Coffee Escape in Cloquet, MN.
It is also a fitting descriptor for the financial package that helped Natalie Swanson recently finalize her purchase of Bearaboo. A variety of partners contributed to the deal: Swanson with equity, and Frandsen Bank & Trust, the City of Cloquet, and the Northland Foundation with loans.
After the previous owner passed away unexpectedly in 2019, Swanson began working at Bearaboo Coffee to help his widow manage the business. Although Natalie had a highly successful track record running home-based, direct sales businesses, owning a bricks-and-mortar shop was not necessarily in her sites.
“In the beginning, it wasn’t on my radar to buy Bearaboo. However, our family has always talked about how much fun it would be to own a coffee shop, because my husband and I are big fans,” Swanson explained.
When the late owner’s wife expressed the desire to get out of the business, and quickly, Natalie took the opportunity. Originally it was structured as a contract for deed, and in early 2021 both parties opted to move forward with permanent financing.
Frandsen and the City had already approved loans for purchase of the building and some improvements, with an SBA-guaranteed loan anticipated to cover the balance of the acquisition costs. Unfortunately, due to timing issues the SBA guaranty requirements could not be met. The bank referred Swanson to the Northland Foundation, and the last piece of the financing puzzle was put in place.
Since then, Swanson has added a new dining room, larger kitchen, and much-needed storage by annexing square footage from a former self-serve car wash next door. Future projects on Swanson’s wish list include enlarging the parking lot, as well.
Today, Bearaboo is buzzing with caffeine and satisfied customers. The 22 part-time staff serve breakfast, lunch, and baked goods while keeping the coffee flowing until 6 p.m. daily. Find business hours and more details on Bearaboo’s Facebook page.
