In Crosby, Minnesota, the sweeping ceilings of what was once a small-town church now shelter a new congregation seeking comfort, beauty, and connection. Meet Stephanie and Edgar Morales, the husband-and-wife team behind The Sanctuary, a charming boutique hotel.
Aided by community support and CARES Act Revolving Loan Funding from the North Central Economic Development Association (NCEDA), among others, the couple's journey from Tennessee to Minnesota, and from dreamers to entrepreneurs, is a testament to the power of place and the potential for renewal.
Though Minneapolis has been home for the Moraleses for over 16 years, their shared love of the outdoors first brought them to Crosby. “We weren’t looking for a project like this,” says Edgar. “But it found us anyway. Stephanie fell in love with it right away,” he recalls with a laugh, “I was more hesitant.” Stephanie’s vision ultimately turned the building into what it is today. The financial backing and resources NCEDA (North Central Economic Development Association) provided were key to turning this dream into reality. Their support, along with the support of other grants and financial baking, enabled the Moraleses to push through the more challenging phases of the restoration and bring the vision to life.
Originally built in the 1920s by local miners, the church bore witness to countless weddings, baptisms, and funerals. The history of the building was palpable, from the carpenter’s notes etched on beams to the bowed floors where generations once walked towards the pulpit.
“It’s not lost on us,” Edgar reflects, “that people celebrated here, worshiped here, and mourned here—this place has soul.”
Their plan for the church shifted many times. At first, they considered turning it into a climbing gym, then a duplex, and even a hostel. But every plan ran into practical barriers, not the least of which was zoning. Eventually, the couple made a bold decision: they would transform the church into a luxury micro-hotel. The idea was daunting, especially as the COVID-19 pandemic hit just as construction began. Budgets ballooned, timelines dragged, and uncertainty loomed large.
Support from NCEDA, the Initiative Foundation, and other partners, including Deerwood Bank, was crucial. “I still don’t know how we convinced people to believe in us,” Edgar says, a note of wonder in his voice. “But our community’s funding and belief in our vision made all the difference.”
Crosby’s response to The Sanctuary has been overwhelming. Local residents, some of whom had ties to the church’s early days, have embraced the project. “We had a woman come in whose father was the preacher here in the 1940s,” Stephanie shares. “Another gentleman told us his grandfather helped build the foundation. There’s so much history here, and we’re honored to be part of it.”
“We didn’t want to just cater to tourists,” Stephanie says. “We wanted this to be a place for the community too.” And it is. Whether it's family reunions, weddings, or simply a weekend getaway, the micro-hotel has become a gathering place for locals and visitors alike.
The Morales’s vision and effort offers something truly special—not just a business venture, but a revitalized community space that honors the history of the building and the town it stands in.
Though the hotel operates remotely—guests check themselves in—Stephanie and Edgar are always just a phone call away. Their two managers are on hand to ensure every detail is just right, and the couple takes immense pride in their string of five-star reviews. “People love the space, the snacks, the décor,” Edgar says with a grin. “We love hearing their feedback, it makes it all worth it.”
The transformation of The Sanctuary isn’t just about a building, but about community and connection. As Edgar says, “We’ve been welcomed with open arms. The day someone called me an Iron Ranger—a true nod to this community’s heritage and a badge of honor, I knew we were home.”
Thanks to NCEDA’s continued investment in projects like these, small towns like Crosby are not only able to preserve their history but also build a sustainable and vibrant future.
To learn more about NCEDA lending programs, visit www.northcentraleda.org.