05/13/2026
On the Street Where You Live
The building that houses Raphael's Bakery and Café has been serving the everyday needs of Bemidji residents since 1908, when a partnership called Kline, Hagberg & Hormann constructed a meat market on this spot. It was no ordinary butcher shop — the new one-story compressed-brick building featured tile floors, steel-plate walls, and a large ice box, built at a cost of $6,000 to $7,000. The Bemidji Pioneer called it "one of the finest markets ever built in this section of the country."
The building's transformation came in 1921, when proprietor Alex Doran expanded it into a full two-story structure stretching 140 feet to the alley. The upper floor held eight modern apartments, each with disappearing beds and built-in kitchen. Downstairs, the Palace Meat and Grocery became a Minnesota Avenue fixture for decades. There were labor disputes, a fire in 1936, and a legendary Christmas window in 1937 painted by Roy Bly — a thirty-foot forest scene with Santa and softly falling snow. Larry Phelps, who had first come to work at the Palace back in 1921, eventually became sole owner, running the business until a new chapter began. Today, Raphael's carries on that long tradition of welcoming hungry Bemidji folks through the door.