Downtown retail tenants negotiating with Frazee EDA
News | Published on April 29, 2025 at 4:08pm EDT | Author: frazeevergas
0EDA confirms Red Willow lot donation to Fuller House

Karey Smagacz is the owner of Home Sweet Bakehouse that is scheduled to open this year in Frazee.
By Robert Williams
Editor
The Frazee Economic Development Authority (EDA) entered a closed session during its monthly meeting Tuesday, April 22, to discuss requests for financial compensation from its two newest tenants and a secondary list of requests for consideration as both tenants are negotiating a delayed buildout of three months of their two rental spaces in the downtown retail building.

Sara Erickson is the owner of Mama’s Pizzeria N Scoops coming to downtown Frazee in 2025.
Both tenants were hoping to be in the building and operating their businesses in May, looking to take advantage of the higher income producing months of the summer. Construction delays from awaiting state approval on plumbing work to having to create two spaces with commercial kitchens, something the original designers did not consider, and other issues like insufficient electrical capacity have the tenants and EDA in negotiations.
The tenants are not seeking the same things, but do come together in some issues like being compensated for significant loss of income in the form of rent abatement over six months.
Both parties projected an estimated loss of income between $75,000 and $100,000.
The EDA discussed the negotiations at length during Tuesday’s meeting but did not disclose any of the contents of their discussion when the meeting was again opened to the public.
Keeping the tenants in the building and filling the one smaller, remaining space, were key points made by Mayor Mike Sharp and the city council at the first April meeting.
Having to approve the issuance of taxable general obligation bonds at a total borrowing amount of just over $2 million to complete the infill construction of the building has erased a lot of the feel good upswing in downtown businesses that started in 2024 and all parties are attempting to work together to create a solution to this issue.
Once permitting is completed and construction begins Bristlin Construction will be holding biweekly update meetings on the infill project, according to City Administrator Stephanie Poegel.
Red Willow
The EDA held a public meeting regarding its donation of a lot at 1107 Red Willow Circle to Fuller Center for Housing of Detroit Lakes. There was no public comment.
Fuller Center is a non-profit organization dedicated to providing affordable housing solutions for individuals and families in need. They work to address housing insecurity and improve living conditions within the community.
The organization typically chooses a family in need and builds that family a new home through partnerships and volunteer efforts. They also choose up to five local houses and spend up to $5,000 on improvements for each house.
Fuller Center’s total investment would be approximately $250,000 to $300,000. One request of the city would be for the EDA to donate a lot for the construction of the new home.
The Fuller Center for Housing was founded after Habitat for Humanity founder Millard Fuller and his wife Linda parted ways with Habitat’s then board of directors. Fuller was determined to return to the grass-roots, Christian principles with which he had started Habitat for Humanity.
This recommitment to those principles was affirmed by The Fuller Center’s board of directors. Instead of affiliates, local chapters of The Fuller Center would be deemed “covenant partners” and were simply required to also commit to those Christian principles, while being allowed to function without bureaucratic interference from The Fuller Center’s headquarters.
The non-profit accepts applications from families in need and uses that information to choose the next recipient of a home.