The cooperative mercantile system, an integral part of the economic history of Utah, was first put into practice in Lehi. Israel Evans, son of Mormon Bishop David Evans, visited a cooperative mercantile in England while on a mission for the Mormon Church from 1853-57. Upon his return, he advocated for such a mercantile in Lehi. The outgrowth of this, the Lehi Union Exchange opened at 189 W. Main Street in 1868. Within the larger framework of the LDS Church, Lorenzo Snow, then a member of the Church’s governing body, the Quorum of the Twelve Apostles, was advocating a similar cooperative system. The co-op system was significantly expanded during 1868. In that year, Zion’s Cooperative Mercantile Institution (Z.C.M.I.) was organized at Salt Lake City and Lehi’s Union Exchange became a branch of that organization.

In 1903 Lehi’s largest mercantile, the People’s Co-operative Institute (P.C.I.), which owned both an uptown and downtown complex, completed construction of a 22,000-square-foot building at 151 East State. It was one of the first stores in Lehi to be wired for electricity. The 4 June 1903 Lehi Banner commented that it was a nice place to do business because there were “no dark corners.” It was also the first building in Lehi to have cement sidewalks. “This is something new in our city,” noted the 9 April 1903 Lehi Banner “and we hope to see our merchants on main street soon do likewise and help make our city look more metropolitan.” 

In 1904 former Co-op manager, W. E. Racker, purchased the downtown Co-op branch and opened Racker Mercantile there. To advertise the consolidation of its business interests, the People’s Co-op announced in the August 4, 1904, Lehi Banner that “The ‘Branch is dead,’ long live the MAIN STORE of People’s Co-op on State Street.” 

In 1912 the People’s Co-op, under manager S. I. Goodwin’s direction, purchased nearly an entire block of property immediately to the west of their large store. This included the Union Hotel, Peter Larsen’s Butcher Shop, and the three Wines’ Cottages on the west side of First East.  

In the mid-1920s, PCI business began to dwindle. The reasons were rather complicated. A gasoline pump and two six-hundred- gallon tanks were installed in front of the store in 1916, however, the “age of the automobile” made it easy to shop in other communities. Although the Co-op remained Lehi’s largest mercantile, other local stores began to successfully compete for business. 

In the single decade of 1926-1936, the troubled PCI had at least six different managers- Sam Goodwin, A. K. Chatfield, Ward Evans, Jr., C. E. Walker, Charles Robbins, and Armond Webb. In 1929 the store listed numerous departments: yard goods, grocery, butcher shop, furniture, hardware, and ready-to wear clothing. 

As the Depression descended on America, economic hardship struck ZCMI, parent company of the People’s Co-op. In the fall of 1937 ZCMI management announced that it was abandoning 20 retail branches, including the Lehi business. “The change in policy was made,” announced vice-president and general manager, Richard W. Madsen, “because independent merchants in smaller communities preferred not to buy from us because we were competitors in retail lines.” Many of the former ZCMI branches were quickly sold, in their entirety, to local merchants. But the large Lehi property, with its numerous buildings, was sold piecemeal. 

The largest Co-op building at 151 East State became a roller-skating rink in February of 1939. “The Niagara,” with a new hardwood floor, advertised “Come to the Niagara and watch the falls.” In the fall of 1940, the place was the Lehi Roller Skating Rink, operated by the Smuin brothers. In November of 1944, James Comer purchased the building for a farm machinery display room. He was killed in an automobile accident before the business got started, however, and his widow Frances re-leased it to the Smuin brothers for a skating rink. 

In July of 1948, Harry Grass leased the place and established Grass Furniture, which featured household furnishings, carpeting, drapery, and the slogan, “Oh, Go to Grass.” In 1955, a wholesale war surplus store was opened.[x]  In 1960, Christensen Department Stores purchased the building and operated a wholesale warehouse for their chain of stores and also for 65 other establishments throughout the western states. On Mar. 4, 2005, Osmond Designs opened for business in the historic building on State Street and remains there today.