E-Malt.com News article: USA, CA & VA: Council approves first pieces of Stone Brewing deal

After some pressure from Stone Brewing Co., the Richmond City Council voted unanimously to approve the first set of ordinances related to the California-based craft brewer's plans to open a new facility in Richmond's East End, timesdispatch.com reported on October, 27.

Several council members voiced concern that the governing body didn't have enough details on a complex economic development deal that will ultimately require 15 pieces of legislation, but the administration of Mayor Dwight C. Jones stressed the need to show Stone the city is ready to get the project rolling.

"I do believe very strongly it's important to them from a business perspective to get this one piece done as a show of faith and commitment on behalf of the city," said Grant Neely, chief of staff to Mayor Dwight C. Jones.

The two ordinances approved were a performance agreement laying out what Stone must do to qualify for roughly $2 mln in city incentives and a measure to reduce wastewater fees for breweries, cideries and distilleries. Officials have explained the latter ordinance by saying that the byproducts of breweries are beneficial to the wastewater system.

Stone representatives pressed the council to move fast, saying the company needs to get the new facility up and running quickly because demand for Stone beer is outpacing capacity at its brewery in the San Diego area.

"I have to start placing tanks wherever I'm going to build, either here or in our plan B location, starting early to mid summer to allow us to basically not lose beer, or sales of beer," said Stone Chief Operating Officer Pat Tiernan.

Tiernan added that he needs to have a site "cleared" by November.

"My reality is I've been waiting to hire people from Richmond now. Engineers. Project managers," Tiernan said. "I need an address to send $40 mln worth of equipment to."

Councilman Jonathan T. Baliles, 1st District, had asked that the initial approvals be delayed to allow for the council to get a better handle on the deal. But his position softened after the council held a closed session on the matter and he elicited a pledge that the administration be forthcoming with information.

"It's been a little slow in coming and if this deadline is going to be met with the urgency that you all say it's going to be met with, we can't have any holdups with any of the information," Baliles said.

"Our commitment is to make sure you have everything you need," Neely said.

Others advised against anything that could be seen as the city dragging its feet.

"I think this is a vitally important project and this body is not here to rubberstamp something," said 3rd District Councilman Chris A. Hilbert. "But we are here to keep the wheels of government turning in a positive direction. And I think this could send the wrong signal."

The Stone brewery planned for the Greater Fulton area in the city's East End is expected to be operational by late next year or early 2016. A riverfront restaurant and beer garden would follow within a year or two of the brewery's opening.

In total, the project is estimated as a $74 mln investment that will create more than 288 new jobs.

Several council members pointed out that there will be several more votes on the Stone deal, namely on financing, land acquisition and road issues.

"We are not precluded from performing our due diligence relative to the finances," Newbille said, speaking at the meeting by telephone because she was scheduled to receive an award elsewhere.

The brewing facility will be built by the Richmond Economic Development Authority and funded by $23 mln in city bonds. Stone will pay back that amount through a lease on the building.

Several council members noted that they would be willing to hold special meetings as needed to get the Stone project done.




29 October, 2014