E-Malt.com News article: USA, WI: St. Francis Brewing Co. hoping namesake community could help it with funds for expansion

St. Francis Brewing Co. is facing a $1.7 million gap in its financing plan for a new brewery and banquet hall, and city officials in its namesake community are considering the company's request for public cash, Journal Sentinel reported on July 15.

The city could provide money through a tax incremental financing district, with property taxes on the new $8.7 million development paying back those city funds, St. Francis Brewing owner Rick Michalski said.

He also said the city could authorize an industrial revenue bond sale to help finance the new brewery's equipment. Under that arrangement, the company's lender would accept a lower interest rate from St. Francis Brewing because the bonds would be exempt from federal and state income taxes.

The city would not be a lender or guarantor of that debt.

Michalski made a presentation to the St. Francis Community Development Authority's board at its meeting on July 14. The board entered closed session to discuss negotiations with the company, which is allowed under the state open meetings law.

Board members didn't act on the request, but will likely meet again after obtaining more information from the company, said Mayor CoryAnn St. Marie-Carls.

St. Francis Brewing opened in 2009 as a brewpub at 3825 S. Kinnickinnic Ave.

The company wants to build the new 20,000-square-foot brewery in a neighboring building it owns at 3815 S. Kinnickinnic Ave. to meet the rapidly growing demand for beer, which it sells in liquor stores, supermarkets and other retail outlets. St. Francis Brewing now contracts with Sand Creek Brewing Co. in Black River Falls to brew and bottle its brands.

St. Francis Brewing now has 55 to 60 employees and plans to add 45 to 60 jobs if it expands, Michalski said. Most of those new jobs would be in the banquet hall, which would seat about 230 people, he said.


16 July, 2014