The developers of a planned downtown Washington square brewpub cleared the first hurdle Monday in their quest to acquire $350,000 in city funding for a complementary $1.25 million project.
The Washington City Council held a first reading of a redevelopment agreement with Grist Mill Ventures and CL Real Estate Group. Grist Mill purchased buildings at 120 and 126 Walnut St. for $172,500 and $140,000 in November 2022 and plans to convert them into an event and retail spaces, and two short-term residential units.
The building at 120 Walnut, which was constructed in 1917, is a former Knights of Columbus hall. The building at 126 Walnut, built in 1964, formerly was the home of Prep Freeze Cook.
Most of the work in the project would involve renovating the interior and exterior of 120 Walnut into an event space with a tentative maximum capacity of 132. There are plans to convert the parking lot at 126 Walnut into a courtyard that could accommodate another 132 for an event.
Only the exterior of 126 Walnut would be renovated in the project. Interior work in the building would be done after the needs of a retail tenant are determined.
Alderperson Lili Stevens expressed concerns about another event space coming to town to compete with Five Points Washington, a multi-purpose facility built in part by four taxing bodies which is still recovering financially from the pandemic.
Mayor Gary Manier said it wasn't an "apples to apples" comparison, noting that Five Points' banquet capacity is 450 and Countryside Banquet Facility in Washington has a capacity of 400-500 in its building and an adjacent tent.
The developers of the Walnut project say they expect it would create three full-time and 20 part-time jobs, and generate an estimated $15,000-$22,000 annually in home rule sales tax revenue and $8,000-$12,500 in state shared sales tax revenue.
The city's financial contribution to the project would come from TIF funds. Exterior and interior improvements eligible for TIF funds total an estimated $424,000, but the city has capped its contribution at $350,000, at the direction of City Council.
The city anticipates a return on its investment in 10-12 years.
Unlike the brewpub project, which is getting $980,000 in TIF funding from the city based on milestones in the project, the TIF funding for the Walnut project would be paid out in three $116,666 installments after it's completed.
The first payment would be made within 60 days after completion. The second and third payments would be made one and two years after completion, so long as the event and retail spaces are still operating.
Another caveat is a repayment of funds to the city if the buildings are not used for event and retail spaces from the first TIF payment date through the seven-year anniversary of the first payment.
City Council will vote on the redevelopment agreement for the Walnut properties Dec. 4.
The brewpub has a Dec. 1, 2023 grand opening date in its redevelopment agreement with the city. The facility at 140 Washington Square and 112 Walnut isn't expected to open until late next year.
Annual property tax increases paid by property owners within a TIF district go into a TIF fund and not to taxing bodies.
'223' property leased again for cash rent farming
Also Monday, City Council approved a cash rent lease agreement for the "223" property with high bidder Aaron Vercler, who has farmed the land since 2018.
There were five bidders for the 2024 growing season and two mutual one-year options. Vercler's high base rent bid was $376 per acre for 192.88 tillable acres, a reduction from 208.46 acres in past years.
The number of tillable acres has been reduced because of the beginning of work on the Nofsinger Road re-alignment project.
Vercler and the city also agreed to profit-sharing formulas for corn and soybeans.
The "223" property, which the city purchased in 2013, is along both sides of U.S. Route 24.
