For more than two decades, HmongTown Marketplace at 217 Como Avenue has been a cornerstone of the Hmong community in St. Cloud, Minnesota. The complex, which began as a lumberyard in 2004, grew into a bustling shopping center with over 200 vendors offering food, clothing, herbal medicine and family‑run businesses.
Bank lawsuit threatens the market’s future
Stearns Bank filed a mortgage foreclosure action in mid‑September, seeking $6.6 million in loans, interest and late fees. The bank also asked a Hennepin County judge to appoint a receiver to collect rent, change locks and potentially sell the property. A hearing is set for Nov. 24 via Zoom.
Owner Toua Xiong, who opened the marketplace to help newly arrived Hmong families start businesses and preserve their cultural heritage, says the bank’s demands have left him unable to meet his obligations. Xiong alleges the bank promised a construction loan for a separate Sears property in Maplewood, then withdrew support, forcing him to use cash from HmongTown Marketplace to cover the new loan.
Impact on vendors and families
Vendors describe the market as a “landmark” and an “economic engine” for the community. Mai Xiong, who runs Annie’s Restaurant with her husband, called the lawsuit “shocking” and warned that the market is the main source of income for many families. Long‑time vendor Pang Lee said the loss of the center would especially hurt elders who rely on a familiar, language‑friendly shopping environment.
Several vendors noted a noticeable drop in foot traffic since the lawsuit became public, and rumors of closure have spread online, adding to the uncertainty. “We don’t know where we would go,” said Yuepheng Xiong, manager of a small bookstore in the market. “It feels like the heart of our community is being taken away.”
Legal battle and possible resolutions
Attorney Tim Maher, representing the Xiongs, filed counterclaims on Oct. 6, accusing Stearns Bank of fraud for promising a loan that never materialized and demanding the Xiongs use their family home as collateral. Maher said the bank’s goal appears to be ownership of the property rather than simply lending money.
Maher added, “We’re actively discussing ways to resolve the dispute without a trial. If the bank truly wants to support the Hmong community, they should work with us rather than push us toward foreclosure.”
Financial pressures beyond the lawsuit
In addition to the bank’s claim, Xiong faces over $550,000 in unpaid Ramsey County property taxes dating back to May 2024. The effort to keep the Maplewood Sears property afloat has drained cash flow from HmongTown Marketplace, halting planned upgrades such as new outdoor market structures, a resurfaced parking lot and a refreshed façade.
“Because of the cash flow that has been consumed at the Sears site, we’re not able to do anything,” Xiong said. “We’re just trying to survive.”
Community response
Local residents and vendors stress the cultural importance of HmongTown Marketplace. The venue provides a space where Hmong families can shop without language barriers and where elders can reconnect with their heritage. Many fear that losing the market would erode a vital link to the community’s roots.
While Stearns Bank’s Director of Marketing Sarah Cords and attorney Andrew Steil declined to comment, the lawsuit underscores the broader challenges small, family‑run enterprises face when navigating large‑scale financing and bank negotiations.
What’s next?
The upcoming court hearing will determine whether a receiver is appointed and whether the property will be sold. In the meantime, vendors continue to seek alternative financing, community support and possible partnerships to keep the marketplace operating.
For the Hmong community of St. Cloud, the outcome of this legal battle will shape not only the future of a beloved commercial hub but also the ability of families to sustain their livelihoods and cultural traditions in the Twin Cities region.
Original reporting: Sahan Journal — read the source article.
