‘Clubhouse’ programs for people with mental illness continue to operate, for now

Earlier this year, Corey Sauer read an article in the Pioneer Press explaining that without about half a million dollars, state funding cuts would cause the closure by June 30 of two “clubhouse” programs for people with severe and persistent mental illness.

Sauer, a retired cartoonist who serves on the board of his family’s foundation, decided that he had the means and the motivation to keep the centers open at least a little bit longer.

The clubhouses, operated by Vail Communities, serve as drop-in sites where people with mental illness can socialize, take part in structured activities and find meaningful employment. There’s one in St. Paul’s Rondo neighborhood, one in Minneapolis’ Uptown, and one in Hopkins. (The Hopkins location, which receives funding from Hennepin County, was not at risk of closure.) 

Members’ concerns about losing their clubhouses held special resonance for Sauer. “I am a life-long sufferer from depression and anxiety,” he said. “I get it. I understand the need for community and support.”  So he decided to make a $500,000 donation from his personal accounts. 

The same week that Sauer’s donation was finalized, Vail learned they would also receive six months of bridge funding from the Minnesota Department of Human Services, said Ashley Trepp, Vail Communities’ executive director. The state money is aimed at helping the organization operate through the end of 2026 while DHS makes changes to its grant funding.  

Related: For 30 years, this Minneapolis center has been making life more livable for people with severe mental illness

Trepp explained that Sauer’s donation will extend Vail’s timeline further. “It will allow us to have a longer runway so that we won’t be fully dependent on DHS funding and we will have time to develop a sustainable, diversified funding system,” she said. 

A place where everyone gets it

The email announcing Sauer’s gift felt like a bolt out of the blue. “We thought it was spam at first,” Trepp said. “It was one of these miracles that still almost feels too good to be true.”

Following his donation, Sauer visited the clubhouses for the first time. He met with members and heard about how the program has impacted their lives. “People told me that Vail was a place where they didn’t have to explain themselves, because everyone got it,” he said. “It was a community.”

Related: Faced with closure, Vail Communities’ Minneapolis and St. Paul Clubhouses scramble to secure funding

April Cooley is a member of Vail’s St. Paul clubhouse (known by members and staff as RamCo). Before joining, she had lived in an assisted-living program and spent her days working in a supported workshop. Since joining, Cooley said she’s moved into her own apartment and gone back to school.  She now runs the clubhouse’s front desk and coordinates member outreach. 

“I attribute a lot of my success to Vail RamCo,” Cooley said. “They’ve supported me through everything that I’ve done.” 

Cooley met Sauer when he visited the program and she liked that he talked about his own mental health struggles. “He’s just like all of us,” she said.

Ongoing financial uncertainty

In recent years, Vail’s clubhouses have survived a number of dips and turns. As early as 2015, state lawmakers crafted legislation compelling DHS to develop a Medicaid benefit that covers clubhouse services, but the effort stalled. In 2024, new legislation was introduced to push the effort forward, including calling for a study that looked into clubhouse programs’ effectiveness.

In the meantime, the Minneapolis and St. Paul clubhouses were funded by one-year state contracts. Trepp, who stepped into the executive director role in December 2025, said she’s been meeting regularly with DHS to stay clear on their funding status.

By the end of March, Trepp said that she and her colleagues were informed that the state would not be able to renew their contract because of increased federal scrutiny of “sole-source funding,” or funding offered without a competitive bidding process. Trepp was frustrated by the decision, she said, because Vail Communities is “the only accredited provider of clubhouse services in the state. That’s how we meet the criteria for a sole-source contract.” 

Related: Vail Communities’ new St. Paul clubhouse is up and running

Trepp expressed understanding of the department’s caution and gratitude for its support, but said, “When  you overcorrect for fraud, people get harmed.”

Moving forward, Vail Communities hopes to borrow a page from its Hopkins Clubhouse, whose partnership with Hennepin County has provided a steady funding source and added stability. Vail leaders have spoken with Ramsey County officials about setting up a similar partnership in St. Paul, Trepp said. But like DHS, the county said it cannot offer sole-source funding. 

Still, the county is soliciting applications from community support programs, like Vail, for local dollars. Trepp said that Vail Communities intends to apply. “We’d like finally to get off this roller coaster,” she said.

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