Laced with Magic by Barbara Bretton

This book has a sad, story line.  I like the idea of a city filled with paranormal creatures, but had I known the story was heavily based on the sadness of the loss of a child, I would probably have skipped this one.
Once into the book, I was hooked and couldn't put it down.  I wanted to find a good ending.  The ending wasn't what I expected.

Knit shop owner and sorcerer's daughter Chloe Hobbs felt the Fates finally got it right when she met Luke MacKenzie. And no one could have convinced her otherwise-including the trolls, selkies, or spirits who also call Sugar Maple, Vermont, home. But then out of nowhere Luke's ex-wife suddenly shows up, claiming to see the spirit of their daughter, Steffie-a daughter Chloe knows nothing about.

Steffie's spirit is being held hostage by a certain Fae leader. And if Chloe weaves a spell to free her spirit, her nemesis will also be free-free to destroy her yarn shop and all of Sugar Maple. But if she doesn't, Steffie won't be the only one spending eternity in hell. Chloe'll be joining her, cursed with a broken heart.