Down By the Old Mill Stream

You can tell by the way owner Donald Schmidt talks about his family's 41-year-old gift store that it occupies an affectionate, well-worn place in his heart, almost like a beloved pet. "This old mill," he says when he speaks of it. He never uses its proper name, the Red Mill Gift Shop. No, it's always "this old mill."

That may be because the 1855 building, nestled in the woods of Little Hope, Wisconsin, doesn't just house his family business; it's his home as well. The top two floors of the converted grist mill are devoted to the gift shop, for a total selling space of about 5,000 square feet, while the bottom floor serves as living quarters. Located on the shore of the Crystal River, both store and home partake of a rural charm that can be found in few places in the world. "Downstairs in the apartment, you can open the window and put your fishing pole out and get trout," Schmidt boasted. While browsing through the shop's selection of country gifts, home accents, candles, lamps, greeting cards, books, afghans, and children's products, customers are likely to see canoes and inner tubes drifting by, or perhaps a splashing swimmer.

The saga of this unusual retailing spot began in 1855, when the Crystal River Mill was built to process grain from farmers in the new settlements of Little Hope and nearby Waupaca. Farmers would drop off grain and pick it up later, or else hang around and pass the time trout-fishing. Meanwhile, the mill's two metal waterwheels were hard at work — one processing flour, cornmeal, and graham, and the other grinding feed. Schmidt still has an original millstone and some of the old flour sacks from this busy period. The Crystal River Mill ran continuously for more than 100 years, finally shutting down and being put on the auction block in 1959.

It was at that point that Sterling Shrock, a local builder, bought the mill. Enter Delmar and Edna Schmidt, Donald's parents. The Schmidts had been in the furniture business for two generations, and Delmar and Edna had embarked on semi-retirement. But the mill in Little Hope caught their eye; they felt that it would make an excellent furniture and furnishings store, and bought it from Shrock. "This was kind of a retirement thing for them, but it got bigger than we thought it would be," Donald explained.

So the Red Mill Gift Shop opened in 1960, even as renovation was underway. Shrock and Kenneth Schroeder, another local builder, set to work. In 1963 they built a wooden waterwheel, a carefully crafted replica of one used in the 1700s in Indiana. Unfortunately, deterioration of the wooden hub has stilled the wheel, but for 12 years it charmed patrons as it scooped water from the river. Another important project was the creation of an authentic covered bridge over the river in 1970. In 1974, the new addition was the Chapel in the Woods, a meditative spot with a cross-shaped window that looks out into the natural beauty beyond. Customers of the Red Mill Gift Shop love to go there and sit and think. The Chapel also plays host to weddings (modest ones, as the tiny building only seats 20). Schmidt charges about $100 per wedding, and there are usually three or four weddings each Saturday.

In fact, Schmidt's woodsy enterprise is so idyllic that it's not only a purveyor of giftwares, but a focus of them. Over the years, images of the Red Mill, the covered bridge, and the Chapel have been featured on many calendars and puzzles. And Donald Schmidt, who has run the business solo since his parents passed away, does his best to continue the ambience inside the mill as well. Playing up the museum aspect of the experience, he has dotted the store with antiques, player pianos, and old instruments; sometimes he plays for the customers. One room is set up as a replica of an old-fashioned country store, and another is devoted to Christmas year-round.

Of course, there are challenges to running a retail operation in such a remote area. Since the largest town in the area, Waupaca, only has some 6,000 residents, Donald can't count on much local business. Summertime, with its influx of tourists, is his busy season, and he usually hires some part-time employees to get him through. October is the high point, thanks to the lovely fall color in the region. Still, Donald admitted, "It's kind of quiet here in the winter."

The Red Mill Gift Shop took in roughly $75,000 in 2000. "It's nip and tuck," Schmidt said. "We've been here 40 years, so I'm trying to keep it going. Some people, they've been coming here for 40 years. … It means so much to people. It's an inspirational place."

To that end, Schmidt has established a Save the Red Mill Fund, and he also holds a well-attended Christmas open house every year. But he marks his success not so much by the cash register as by the guest book, which holds the delighted praise of customers ranging from celebrities to religious groups and hailing from as near as Wisconsin and as far as Thailand. He takes particular pride in the words of one TV star, who had been all over the world: "This is the single most beautiful spot I've ever seen on Earth."