In the fall of 1996, several families came together to discuss the possibility of starting a new church. The group was interested in forming a congregation and began looking for a place to meet. A church facility in Brooklyn Park was rented to hold two services per week.
In 1999, Spirit of Grace Church was incorporated in Minnesota. In August 2001, the congregation rented and remodeled a store-front facility on 109th Avenue in Blaine, Minnesota. In December of 2001, they purchased approximately two acres of land adjacent to Woodcrest Drive NW in Coon Rapids, Minnesota. In October of 2004, they began to build on their property in Coon Rapids. The congregation moved into the new building in the spring of 2005.
In 2009, Pastor Tim Sanders joined the congregation as senior pastor. Pastor Gary Weisbrod was named pastor emeritus.
Spirit of Grace Church is a 501(c)(3) corporation for Internal Revenue purposes and is registered as a tax exempt organization in the State of Minnesota.