On August 16, 1885, thirty people met at the home of Erik and Anette Larsen in Section 26 of Fahlun Township and, under the direction of Rev. A.N. Kleven, organized a new Lutheran congregation named Tromso Lutheran Church because many charter members came from the province of Tromso in Norway. They selected Erik Larsen as chairperson, Salomon Salomonsen as secretary, John J. Wick as treasurer, John J. Wick, Nils Mathiesen, and Hans M. Hakensen as trustees, and Ole Haugan, Ole M. Salomonsen, Ellenmarie Salomonsen, Hans M. Haakensen, Marit Haakensen, and Jakobine Haugan as designated song leaders. On October 20, 1885, the St. Paul–Minneapolis and Manitoba Railroad granted permission to build a church on a four acre site in Section 1, Lake Lillian Township, where worship was held until December 3, 1946. In 1946, the congregation relocated to the Village of Lake Lillian, a new church building was constructed, and the congregation's name was changed to Grace Lutheran Church.