HATTON (AP) - When word spread that Jack & Jill Grocery was closing at the end of October, the reaction was immediate and loud.

"The locals got excited," said Scott Cranston, president of the local economic development group. "They waved us down on the street and wanted to know what we were going to do about it."

They did plenty.

They purchased the building and inventory from owner Leon Stensland. After selling the inventory, the net cost was about $30,000. They worked out a deal with a new grocer. And they added muscle to brainpower, with about a dozen volunteers toiling to empty the basement of contents that had accumulated over decades.

"When we started the economic development group (in 1998), the purpose was to attract new businesses, but that's been a tough road," Cranston said. "Instead, we've been helping existing businesses.

"But this is exactly what economic development is for - when the community cries out for help. We have received zero opposition to us getting involved."

The result is that a SuperValu is scheduled to open in the second week of December, leaving this Traill County town without a grocery for only six weeks.

"This is such a perfect fit," said Karen Naastad, one of the heavy-lifting volunteers. "A grocery store is one of the sustainers of a community, something needed to keep the town intact."

Without a grocery, leaders wondered what might happen to property values. They wondered if they would be able to keep their elderly and attract new residents.

"We felt it could be a domino effect," Cranston said.

And it was a quality of life issue - the alternatives being driving 12 miles to Northwood, 14 miles to Mayville or 35 miles to Grand Forks for groceries.

Leaders first considered a community-owned grocery. It's a concept that has been used in Munich, among other small towns, to keep groceries and cafes open. The original plan was to sell 250 shares of $1,000 each to the public.

But the prospect of selling those shares - and the tasks involved in ownership - was daunting.

"We have a diverse group on EDC with a lot of business backgrounds, but none of them is a grocer," said Cindy Skjoiten, the economic development coordinator.

The Hatton EDC operates with an estimated $15,000 annually for its one-half share of Hatton's 1-cent sales tax. The city gets the other half.

The EDC, which owns the building, will lease it to Jeff Miller and Torri Reutter, with the first five years being rent-free. Miller owns the Mayville SuperValu and is a partner with Reutter in the Cooperstown SuperValu.

Miller said it's almost impossible to make a living on a stand-alone, small grocery such as existed in Hatton. But he has the benefit of the economy of scale with three groceries.

"You take the efficiencies of the other stores, such as purchasing products, advertising, accounting and the bakery, and it should work," he said.

The store owners also are making a big investment, although they don't own the building. They're adding a deli and expanding other departments.

"We're hoping our store will attract people to town and create activity," Miller said. "We hope to help get things rolling because this is a beautiful town with lots of potential."

In neighboring Northwood, Parnell Uglem, 89, is thankful his hometown still has a grocery store. A year ago, there was some doubt.

"This means a lot to me," he said. "You pay a little more, but it's worth it."

That feeling, shared by Uglem and others, is why Northwood and Hatton have taken extraordinary measures to keep a grocery in their towns. Their methods were different, but their goal was the same: Retain a grocery for their citizens and their towns' future.

"A grocery is a big part of Main Street in a small town," said Bob Wallace, CEO of Agvise, a private soil-testing company in Northwood.

Agvise was a partner with the city's economic group and the grocers, Lonnie and Joan Guenthner. "Sometimes, you have to get creative," Lonnie said.

The Guenthners, doing business in the town since 1984, solved the problem of a leaking roof by moving to a new building in February.

Agvise spent $425,000 to build a downtown store of 8,500 square feet. Agvise owns the building and rents the space to the Guenthners.

The couple invested another $400,000 for new equipment. And the Northwood Development Association helped by buying down the interest rate on the Guenthners' loan. Over time, the association will contribute $26,000 to secure the lower interest rate.

Wallace said his company's gesture was "payback to the community" for its help.

In late 1996, a fire destroyed Agvise's facility. The next year, the city of Northwood provided $10,000 to help the company rebuild.

"Northwood stepped up to the plate to get us back up on our feet, so we considered this payback," Wallace said.

The economic development group also kicked in money to make the grocery store deal work.

"And don't forget the Guenthners for putting a lot of their money into this, too," Wallace said. "They stepped to the plate, too. They could have taken their insurance check and walked away."

Lonnie and Joan, both 57, didn't want to handle the entire debt of starting new.

"It would have been bold to go out on the limb for everything," Lonnie said. "The building made everything possible. It made it acceptable for us to risk our amount."

Northwood's population, once at 1,200, has dipped below 1,000. But the population has stabilized recently, and even grown some.

There's still a risk for small-town groceries, especially those in bedroom communities such as Northwood. Many of its residents work in Grand Forks or elsewhere. Only four of Agvise's 30 core employees live in Northwood.

"You have to keep folks at home to shop," Lonnie Guenthner said. "We need to offer the right inventory and the right quality."

That's easier to do now with twice the floor space, 2,000 more offerings and no dripping water from above.

"It's nice not to have to go elsewhere for groceries, especially in the winter," said Northwood resident Rose Bjoralt said. "More variety helps, and so does a big parking lot and having no steps to get into the store."

In Hatton, Karen Naastad calls a grocery store a community artery.

"You can't cut that off," she said.