Stearns Bank filed a foreclosure lawsuit Sept. 10 over the HmongTown Marketplace property at 217 Como Ave. in St. Paul and asked a Ramsey County court to appoint a receiver while the case proceeds. If granted, the request could place rent collection and property management under court-supervised control. The Pioneer Press, in a report carried by Twin Cities, said the bank alleges that the ownership group owes about $6.5 million, including loan principal, interest and late charges.
The lawsuit names founder Toua Xiong, co-defendant Nou Vang and seven limited liability companies associated with the marketplace. Xiong referred questions to attorney Tim Maher, who told the Pioneer Press that the defendants had not yet been formally served when the complaint was filed. The bank seeks a money judgment, replevin, mortgage foreclosure and appointment of a receiver, according to the report.
What the bank is claiming
The reported loan arrangement began with a promissory note issued in November 2023 for $5.56 million. The terms were modified or extended in November 2024, and Stearns Bank alleges the balance has grown by approximately $1 million through interest, late charges and other fees. Minneapolis law firm Winthrop and Weinstine filed the case for the bank. These are claims in a pending lawsuit, not a court finding that the defendants owe the stated amount.
Minnesota law provides a mechanism for appointing a limited receiver during a mortgage-foreclosure case when the mortgage meets specified conditions. Section 576.25 generally covers mortgages securing at least $100,000, subject to exclusions including certain homesteaded residential and agricultural property. If the statutory requirements are met and a receiver is appointed, the receiver must be or retain an experienced property manager and may collect rents, manage the property, maintain it and pay specified expenses. The Minnesota statute does not itself decide whether Stearns Bank will prevail in the foreclosure.
The related Maplewood dispute
Maher told the Pioneer Press that HmongTown’s financial problems followed Stearns Bank’s withdrawal from financing for a planned expansion at the former Sears site next to Maplewood Mall. Xiong bought the 14-acre property for $5.25 million in November 2023 through HmongTown 2, according to Hoodline. The proposed project included a multilevel marketplace and other amenities, according to the Hmong Times account cited by Twin Cities.
The Maplewood project is also the subject of a separate lawsuit filed by Maplewood Partners LLC in December 2025. The case alleges breach of contract, unjust enrichment, negligent misrepresentation and fraud; Xiong and other defendants deny the allegations and have sought damages and attorney’s fees, according to the Pioneer Press report. The report said the defendants dispute the treatment of an easement and access between the Macy’s building and the mall. A settlement conference was scheduled for Jan. 8, with a possible March 15 jury trial if the case was not resolved.
A marketplace with a wider role
HmongTown Marketplace opened in 2004 on a six-acre site in St. Paul’s Frogtown neighborhood. It is described as the first Hmong-owned and operated marketplace in the United States and was designed around the atmosphere of markets in Laos and Thailand, according to its Wikipedia entry. The Pioneer Press report said the site has as many as 125 Southeast Asian vendors, including retail booths, food stands, farmers-market sellers and meeting rooms.
The site also includes the Hmong ABC Store, which was founded on University Avenue in 1995 and has been described as the first and only dedicated Hmong bookstore in the world by Streets.mn. In 2024, Stearns Bank opened a loan and deposit production office at the marketplace with Hmong-speaking employees, part of the bank’s broader culturally focused banking efforts, according to Twin Cities Business.
HmongTown’s place in Frogtown
City records place the marketplace within the neighborhood’s broader civic and planning context. A City of Saint Paul planning document lists a HmongTown Marketplace visit on Jan. 10, 2017, as part of community engagement for the Scheffer Community Center project. The document provides evidence of the marketplace’s role as a community destination, but the supplied city material does not provide demographic statistics or a quantified measure of commercial change around Como Avenue. The City of Saint Paul Parks & Recreation says the Frogtown Community Center now occupies the former Scheffer Recreation Center site and offers recreation, meeting and event space.
The foreclosure and receivership requests could determine who collects rents and manages the property while the lawsuit continues. The supplied reports do not include a response from Stearns Bank, a ruling on the receiver request or direct comment from marketplace vendors.
