Knit Happens is a really great place if you're an avid knitter. They have loads of beautiful yarns and several shelves full of knitting books and patterns. There's a table in the back where they offer knitting classes (which fill up very quickly!) or where local knitters will come to work on their projects and enjoy each others' company.
The yarns are somewhat pricey but they're all good quality. They also have a wide selection of needles and other accessories in the back.
The staff are very friendly and they can help you if you get in a jam with a certain project.
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