St. Joseph Ends Community Center Project, Returns $4M State Grant After Fundraising Falls Short

(KNSI) – After years of planning and anticipation, the City of St. Joseph has officially pulled the plug on its dream of having a community center due to an insurmountable fundraising shortfall.

Monday’s decision marks the end of what city leaders had designated as a strategic priority to create a regional community center in partnership with the St. Cloud Area Family YMCA. The city council voted to terminate all contracts associated with the project and directed staff to return a $4 million state bonding grant.

According to the council, despite years of effort, private donors pledged only about $3 million toward the project. That was only half of the $6 million needed to fund Phase One of construction.

City staff told the council there was no viable path to raising the remaining $3 million needed to close the gap. The council had previously agreed in late 2025 to revisit the project at the end of the year, stating that if there wasn’t significant progress in fundraising and a reasonable assurance that goals would be met in 2026, the city would need to make a decision. That deadline arrived with the fundraising still far short of its target.

The urgency of the decision was largely driven by the expiration date of the state funding. Minnesota awarded St. Joseph $4 million through the 2022 bonding bill specifically for the community center, but those funds were only available through December 31st, 2026. Without the local matching funds in place, the city risked losing the state money entirely.

Rather than let the grant lapse, city officials chose to formally close the bonding award and return the funds to the state.

To formally end the project, the council approved four resolutions terminating agreements with key partners. The St. Cloud Area Family YMCA’s facility lease was ended with no financial obligation, as operations never began. The city also terminated its contract with Ruis Consulting Group, hired to provide fundraising services. The consultant agreed to waive the standard three-month termination clause, allowing the contract to wrap up at the end of the month. HMA Architects, Ltd. and construction management from W. Gohman Construction also had contracts terminated, with the city responsible for any work performed up to the termination date. No outstanding bills are currently known.

The proposed facility would have been around 45,000 square feet, located on city land near Kennedy Community School. The plans included a gymnasium, indoor walking/running track, fitness center with cardio and weight equipment, a swimming pool, locker rooms, youth program spaces, and social areas.

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