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Micro-brew and brewpub

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Vivian Moon View Drop Down
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    Posted: Apr 01 2015 at 1:05pm

Posted: 6:20 p.m. Tuesday, March 31, 2015

Middletown developer opts to do micro-brew first

By Ed Richter

Staff Writer

MIDDLETOWN 

    An Illinois developer whose company owns two key downtown buildings opted to switch things around this week when submitting his application for state historic tax credits.

    According to city officials, William Grau opted to submit an application for the tax credits to renovate the former Dan Snider Ford/Sonshine Building into a brewpub and micro-brew in the March award cycle. The deadline to submit applications was Tuesday.

    “He wanted to focus on the brewery to get it up and running as it will attract tourists to the Manchester,” said Denise Hamet, the city’s economic development director, in an email. “He continues to move forward with planning for the Manchester and will submit for the historic tax credits at a later date for that project.”

    Hamet said that “he looked at a lot of different factors, and the best answer was to break out the brewery building and run with it.”

    The total anticipated investment for the brewpub and micro-brew is about $6.3 million and about half of that cost is for the brewing equipment. Hamet said Grau is applying for about $630,000 in state tax credits.

    Grau had been working on securing the financing commitments from investors for the $10 million Manchester project before Tuesday’s deadline. The next application cycle deadline is in September to apply for the tax credits.

    Hamet said Grau’s group, Snider Building LLC, which was the previous name of the Sonshine Building, is planning to restore the three-story, 32,376 square-foot building to its original look, renovating it into a 160-plus-seat brewpub on the first floor; an outside beer garden for 100 people; a 30 bbl brew-house with a small brewing system with canning/bottling lines, packaging and storage on the first floor and lower level; and a 1,200-square-foot event room for 100 people. In addition, there will be meeting and event rooms, offices and storage on the second floor. The kitchen will serve pub fare such as burgers, wings and flat-bread pizza.

    Grau said the development plan is to partner with a brewer to produce and self-distribute the beers locally and regionally, with a capacity of 50,000 bbl a year. Approximately 3,000 square feet of the former auto showroom will be utilized as a taproom/brewpub that is expected to employ 28 full- and part-time workers and up to 50 full-time workers by year five. The project completion date is set for fall 2016.

    Hamet said the Manchester project will be part of a separate tax credit application to be filed at a later date.

    She recently said if Grau chose to apply for the tax credits in September or later, his intention was to start pre-construction repairs to the building, based on what is allowed by the historic standards, so that the project continues to move along.

    Hamet said that Grau is also continuing to review a variety of options for the hotel flag or brand, management company, restaurant, etc. in order to determine the optimum structure for the facility. She said he has several choices for the flag but has not made a selection yet.

    The 93-year-old Manchester Inn hotel on Manchester Avenue has been closed for nearly four years.

    Since acquiring the hotel, Grau and his ownership group have made repairs to the building’s leaking roof and treated it for mold. In addition, the various metal awnings that once adorned the building have been removed to prevent water damage to the structure. Plans for the Manchester include renovating it back into a hotel along with a restaurant, banquet facilities and office space. The former hotel has been nominated to be included on the National Register of Historic Places.

    The city was asking $325,000 for the Manchester, but accepted Grau’s $1 offer earlier last year. Grau also acquired the adjacent Sonshine Building for $1. He plans to invest $10 million into the property.

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spiderjohn View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote spiderjohn Quote  Post ReplyReply Direct Link To This Post Posted: Apr 02 2015 at 8:39am
6.3 to do a micro brewery in THAT building/location?
If the guy can't get 10 mill for the Manchester(understandably), how can he raise 6 for this project, in a building that honestly has nothing "historic" about it other than it should have been "history"(leveled) years ago?

And no real plans on the table for either project?

hmmm....

"Coming Soon!"
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acclaro View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote acclaro Quote  Post ReplyReply Direct Link To This Post Posted: Apr 02 2015 at 10:44am
Coming soon- good comment.

No individual who is doing a cap raise goes to investors if the business plan illuminates a decent return. When you dilute ownership, you marginalize financial returns, and there is limited value associated with such efforts, unless seeking tax shelters and mitigation of tax exposure.

Coming soon- to a theater near you:

1) Sorg restoration; still doing a cap raise heading south, not north.
2) The Illinois Grau properties, Manchester et al; still doing a cap raise heading south, not north. How is the Manchester going to lease high market rate rentals against the east end project against the KY developer? On micro-brewery, build it, and they will come won't work; access demographics to acquire beer. Awaiting influx of the young professionals and students which to date, ARE NOT APPEARING in Middletown.
3) C State---complexities of pass-through on ownership and price defies logic, and projections nowhere close to expectations (students)
4) Coming soon- completion of asphalt for bike trail from Franklin down, but no funds in sight.

Leaving soon? A few failing downtown restaurants.

Observation- city relying on passing levies and receiving state funding to gain taxes on short term income tax on building. This includes school, river park and water fountain, rest area, NTE, and the AKS Innovation project to come. Short term tax income is not sustainable.

Needed and coming soon, said 35 years- businesses, property buyers. Residential values continue to plummet.

Coming soon- exodus of residents and population decline.

Don't pass library levy in May. Best library around, besides King at Miami? Lane in Fairfield.  
'An appeaser is one who feeds a crocodile, hoping it will eat him last.' - Winston Churchill
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Dean View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Dean Quote  Post ReplyReply Direct Link To This Post Posted: Apr 02 2015 at 11:33am
What is happening downtown in my opinion, is the city worked with investors to set up LLC's for ownership to pass ownership, who in turn, are given years to raise capital on projects which won't be developed.  Or awaiting some back-end funding mechanism from friends of city, from state government and grants. Got milk? Got tax credits, to those in need, as carrot for development. Years awaiting investment dollars. You might consider it the John Kerry plan, a bad deal and delay strategy. JMO.   
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Factguy View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Factguy Quote  Post ReplyReply Direct Link To This Post Posted: Apr 02 2015 at 1:42pm
Not correct. All investments will be made and projects completed. Ask Denise H.
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Post Options Post Options   Thanks (0) Thanks(0)   Quote VietVet Quote  Post ReplyReply Direct Link To This Post Posted: Apr 02 2015 at 2:50pm
Originally posted by Factguy Factguy wrote:


Not correct. All investments will be made and projects completed. Ask Denise H.


Fine. When and how much taxpayer money will be used in lieu of private party money? Will there ever be an announcement from any downtown developer where the timeline published ever matches the actual timeline accomplished?

Oh, and going by history and announcements that never came true Factguy, I wouldn't put too much credence in what Denise Hamet says. She has shown she has been relatively ineffective as to Econ. Dev. Dept. accomplishments.

Now, give us your standard "defender of the city" answer.
I'm so proud of my hometown and what it has become. Recall 'em all. Let's start over.
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Trotwood View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote Trotwood Quote  Post ReplyReply Direct Link To This Post Posted: Apr 07 2015 at 4:37pm
I heard it was going to be a co-op brewery? Factguy or others, can you confirm?

I'm just wondering because 5th St. Brewpub in Dayton has experienced tremendous success with this model. It allows thousands of people to claim they "own" a microbrewery. 

Anyways, here's a link to their story on NPR:
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swohio75 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote swohio75 Quote  Post ReplyReply Direct Link To This Post Posted: Apr 07 2015 at 4:59pm
there's a separate project to do a co-op brewery.
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