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Shop on State asks Mitchell County for $620,873 toward new Osage facility; supervisors ask for other funding commitments

June 23, 2026 | Mitchell County, Iowa


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Shop on State asks Mitchell County for $620,873 toward new Osage facility; supervisors ask for other funding commitments
Shop on State, a Mitchell County nonprofit thrift-store operation, asked the Mitchell County Board of Supervisors on June 23 for $620,873 to help complete a new approximately 8,000-square-foot facility in Osage.

Amy Hertel, identified in the meeting as Shop on State’s manager, told the board the organization has purchased lots on the east end of town, poured concrete and secured construction financing, and expects to occupy the new building this fall. Hertel said Shop on State has invested “almost a couple hundred thousand” of its own funds and that the group would prefer not to carry long-term debt that would reduce the funds it returns to local grants and services.

The request presented to the board amounted to about 70% of the project’s cited cost. During questions, board members and staff pressed the group on other fundraising sources, eligibility for state development incentives and the timing of missed grant deadlines. Jenny Baker, Mitchell County Economic Development Director, said state economic-development programs generally favor job-creating industrial projects and are unlikely to cover a new thrift-store facility; she pointed the group toward local foundations and county/city funding options.

County staff also reminded the group that the board cannot make a direct donation to a nonprofit. The county will instead document any assistance as a contract for services that specifies the services to be provided in exchange for county funds.

Shop on State’s presentation emphasized local impact and volunteer engagement. Hertel said the organization draws volunteers and shoppers from across Mitchell County and “we feel very strongly that this project is something that needs to be taken seriously.” She described local fundraising efforts, small grants, a Knights of Columbus breakfast and dialogue with local banks.

Supervisors praised the nonprofit’s track record but said they were not prepared to commit county funds without clearer evidence of other funding sources. One supervisor asked the group to provide updates on city-level consideration in Osage, confirmed plans to pursue local foundation and casino-related funds, and encouraged coordination with a potential city presentation. The board directed staff to draft a contract-for-services approach and asked Shop on State to return to the supervisors after securing additional commitments.

Next steps: Shop on State will continue seeking grants, private donations and local contributions and is expected to present to the city of Osage; the county will draft contract language describing the services that would accompany any financial support.

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