HEDRA provides assistance for Spiral expansion

By John McLoone

The Hastings Economic Development and Redevelopment Authority gave the approval to financing to help Spiral Food Cooperative expand its business.

Work is underway on renovation of Spiral Coop in the space adjacent to its current location at 1250 S. Frontage Rd. It will be moving into the space that formerly housed the MGM Liquor Store at 1222 S. Frontage Rd., The move next door gives Spiral much better visibility from traffic on Hwy. 55 and gives them the opportunity to expand not only the shopping space and offerings but service options as well. The new store will be nearly triple the size of the current store at 5,272squrefeet, with more than

Photo by Bruce Karnick 4,000 square feet of retail space. The Spiral plan incorporates a premade deli section for food on the go. Accessibility will be better for those with mobility issues, and there will be a seating area in the new store.

HEDRA unanimously gave its stamp of approval to a $25,000 working capital loan that’s payment and interest free for one year and then has a fixed rate of 3.5 percent over three years and a $25,000 machinery and equipment loan for 10 years, with the first year payment free.

Total project cost was estimated at $634,800, with Vermillion Bank providing a $180,000 loan. Spiral also secured approval of an Economic Injury Disaster Loan from the UW Small Business Administration in the amount of $199,700. The Metropolitan Consortium of Community Developers is proposing another loan at $50,000 to help with development of the project.

In a memo to HEDRA members, city staff deemed, “Spiral Foods is a stable business.”

Spiral Foods Cooperative has been in business in Hastings since 1979, originally at a downtown location. It has 1,657 member owners, who make up 65 percent of the company’s $1.2 million in annual sales. Sales projects are expected to reach $3 million within years of opening of the new store.

Spiral employs 12 people, seven full time and is expected to add five fulltime positions when the new location is up and running. It remains open during construction at its current location.

“They’ve proven the concept,” City Economic Development Coordinator Eric Maass said of Spiral.

The space Spiral currently occupies will be renovated into two business spaces, one for a chiropractic office and the other still undecided.

April 27, 2022