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hello everybody thank you for joining us for put a beer on it brownfields to brew fields redevelopment my name is Erica rippy and I'm the program manager at the Center for Creative Land recycling so just before we dive into our webinar I just want to go over some housekeeping points if you go to the console on the right you'll be able to download the presentation so you can follow along a webinar or the recording of the webinar will also be available on our website at that address and in the follow-up email you'll also get a link to the recording we will also be answering questions at the end of the webinar so please type in any questions you might have and we'll get to it at the end in the follow-up email we'll also send a survey so if you could please respond to that survey to help to help keep our programming fresh that would be great so a little bit about the Center for Creative land recycling we are an EPA technical assistance to brownfields communities grantees and we put on many workshops and webinars like this one like this one today we do policy and research and we also do grant review as well so visit us online at WWDC org and our contact information will be listed at the end of this webinar so get in touch if you have any questions about our services so a little bit about today's speakers we have Mead Anderson who is the brownfields program manager calling in from Virginia and he's going to give he's going to start us off with a big overview of brownfields and the catalyzing effects that bru fields have on communities Sarah Frazier is calling in from North Carolina with New Belgium Brewing and she's going to be talking a little bit about about Asheville the Asheville breweries we Dave McCormick from Waukesha development and he's going to be talking about a few rural breweries in Virginia as well Steve Gill who's the brownfields program manager is calling in from Idaho and he's going to talk about some of the state programs that he's worked with so I mean I'm chopping it off to you and take it away right here Peterson in Virginia and I appreciate everybody joining us today next slide you know so you're looking down the black hole of through fields and you're trying to figure out where to go and what to do but first I'd like to give you just a little bit of background on brownfields and and I always like to start with the definition of brownfields which is the real property expansion redevelopment or reuse of a property that may be hindered or impeded by contamination that could be present and that's the Virginia definition but the definition is pretty much the same across the US and just keep in mind not all brown hills are created equal there are some that are I like to call light brown and there's some real dark brown ones and there's some tan fields that are pretty easy to manage so we're going to get into all this in a little bit one thing I do like to point out is that Virginia does have is a brownfields policy and the Department of Environmental Quality as well as our Economic Development Partnership are supposed to be working together to find solutions for these sites out there somewhat unique in Virginia to have that policy but we we like to hold it up and say we're here to help we're the government anyway our question has been is his beer the cat revitalization catalyst you know if we'd only know that next slide then beer was the elixir of development and and one thing that we've noticed in Virginia is that some of these small little breweries that we're going to talk about are really changing the scene in some of these challenged communities and I don't want to take anything away from the new Belgians and the stones that we have but there's only so many top-ten Brewers out there and they're great partners you can hear a lot of really good stuff about new Belgian in just a few minutes but there's some some wonderful small Brewers that are revitalizing pounds and there's a lot of property a lot of inventory of old buildings out there that can be used you have to keep in mind the the larger the brewery the longer the lead time on redevelopment and you know these folks are urban pioneers and they're moving into these small towns and are making quite a bit of difference and almost all these sites are brownfields just a quick slide to show you the distribution across Virginia where you see a number that means there's more than one brewery needless to say but there's a lot of single group type clubs out in very rural areas next slide you know I think that what we're seeing is a new age of stewardship of these properties and you're going to see a lot of it revitalizing brownfields adaptive reuse reclaimed materials energy efficiency alternative energy we're seeing solar they're powering some of these things reducing the way better stormwater management on these sites and conservation landscaping practices and data free plantings so that's all coming and there's a lot of results that happen beyond the footprint big support of local organizations more breweries joining in in the area jobs restaurants food trucks in particular have been really important in Virginia it's a whole new niche business Oh community involvement greenways connecting with with some of these different breweries and the results have been you know that these breweries have been cornerstone neighborhood revitalization craft beer trails events a lot of interest of other businesses joining in and moving into these areas we've seen this enrichment where we're actually having fortune 500 companies move into these areas that were somewhat abandoned there's a number of different programs out there in in the state and on the federal level and there's tools available for buying these properties you should make sure that you use them and the programs such as the brownfields program are there to facilitate property reuse there are quite a bit different than many of the models that we've used in the past and regulatory programs a quick nichkhun policies isn't just we have got a voluntary cleanup program in brownfields laws like many of the states but one thing to keep in mind Virginia has a memorandum of agreement with EPA for when you complete a voluntary cleanup that's an important point out there and and other states have mos2 not every state does I'm one let's see next slide on the federal side of things and I'm not going to get into to all the different ASTM standards but one thing I do want to point out is that if you're looking at EPA money you need to do an ASTM evaluation of the site for the phase one and Phase two if necessary otherwise you could possibly bar yourself from getting an EPA grant down the road so please do this phase one and phase two to work and look closely at them and one of the problems that we've had is that sometimes the results are a little bit too good to believe and it gets people in trouble down the road I would have mentioned the new build act that was just passed by Congress in March 23rd and that once again I'm not going to get into all this but is expanded the eligibility of nonprofit organizations to get grant it's helped with publicly owned properties that towns municipalities counties have had to acquire in different ways increased funding of remediation grants and multi-purpose grants and these are all important changes that is probably do a whole webinar in itself in Virginia we offer a couple of different types of comfort letters to help people out buying and selling their property and we also have the voluntary remediation program that is there when you have the darker brown brownfields or when you need to eliminate liabilities out there it's a good program and we've taken quite a few sites through it once again back to the brownfields programs are designed for to facilitate property reuse many sites just have lead and asbestos contamination however a lot of them do have more a need for more active cleanup with a greater regulatory involvement bunch of this gets back to the risk tolerance of the developers matter of economics it's going to cost more to do more cleanup but sometimes it's necessary to maintain to protect protections that are in the statues themselves and also to make the site's protective for reuse you need to look closely at your development time frames and and how you're going to do cleanup out there sometimes its location and location and location which is too good to pass up so you want to clean it up and often the wild-card is the amount of time it's going to take you to get through the environmental cleanup on funding sources there there are some state grants out there it starts closely for these grants tax credit different things you're going to hear some of this I know from Dave on historical tax credits different grants alternative funding and that type of thing one thing I'll mention is EPA does have targeted brownfields assessments for evaluating properties upfront there's other grants out there of other agencies and feel free to contact your tab contractor such as see clear and one thing to keep in mind as you move forward with these sites the project champions you really need to do with the local government you need a champion me any hurdles the more you have in your corner of the batter so just keep an eye on that and look for people that are going to help you out and always begin with the end in mind get the brewery in place thank you thanks Mead and Sarah with New Belgium why don't you take it away all right thank you yeah my name is Sarah Frazier I work in sustainability here at New Belgium and I'm grateful for the opportunity to share the story of our site first a quick background on who we are and where we're coming from New Belgium was founded in 1991 in Fort Collins Colorado in our co-founders basement we're now selling beer in all 50 states and currently number about 720 co-workers there's a singing around here that we were born on a bike seat like that image suggests our coworker our co-founder I should say Jeff was an electrical engineer by trade he happened to also be a home brewer who was passionate about Belgian style ales in particular and while he was traveling to Europe on business he decided to bring his bike with him and pedal around Belgium visiting Abbey's and breweries and pubs and just basically soaking up Belgian beer culture when he came back home he puts what he learned into practice and that Kim our other co-founder and a few years later they quit their day jobs and made this a full-time gig the two are very intentional about what they wanted to create and founded the company on four core values and beliefs one of those was environmental stewardship and this commitment and ethic as we say honoring mother nature at every turn of the business I think really led us to make the investment in this project and really develop a sensitive and sustainable design for our Asheville site next slide please so in 2009 we realized the need for a second brewery and began the search for a new location with over 33 different criteria we are a hundred percent employee-owned company and while our leadership team developed the list of criteria our coworkers had the opportunity to vote on the importance of each of those items and one of those criteria was to find a brownfield remediation or redevelopment opportunity next slide please you can see the concept for a brewery superimpose in the foreground of this aerial image and in addition to being a brownfield the site we settled on in Asheville was appealing to new belgium because its urban setting adjacent to the city's River Arts District and then close proximity to downtown and west Asheville allows our co-workers like me to walk ride a bike or take the bus to work it also means we're just part of the community and it's easy for our neighbors to stop by on their way home from work and meet friends for a beer or a guest who are visiting Asheville to just get here rather easily we're our properties about 18 acres and we're located on the west bank of the French Broad River you can see in the picture next slide so this site like many brownfields and many many redevelopment opportunities has a long history of these there are various businesses that thrived here over the years in an earlier slide you saw a picture of Maine Auto Parts which was an auto salvage yard and repair shop that operated in the 1950s and 60s other businesses that occupied this site included include the Western North Carolina livestock market an auction house that was operated by the Penland family which is shown in some of these pictures there's also a storage unit and a diner and all this stuff is here when we purchased it next slide so we purchased the site in 2012 and after performing phase 1 and phase 2 environmental site assessments we did a lead-based paint and asbestos surveys we entered into the brown fields agreement with the state brownfields program and those the surveys revealed that we had low levels of Korean products left over from the auto repair and salvage operation we also had small amounts of lead-based paint and lots and lots of debris discarded in an old construction demolition landfill that was situated where our tasting room now stands so we had an environmental site management plan developed and we got to work and as we evaluated what to do with the contaminated soil we made the decision to keep it on the property rather than trucking it off-site the closest place that accept the soil was down in South Carolina and would not only have been a big expense but also a large carbon footprint to truck that material all the way down there and it just really didn't feel good for us to transfer the problem to someone else to deal with next slide please so much of the soil was moved to an area along Craven Street which is the neighborhood Road flanking our property and it was graded into a berm and capped with two feet of clean soil next slide please and we planted that berm with over 10,000 plugs of native plant species and dozens of native trees that are known for their phytoremediation capabilities the area now provides habitat for birds and pollinators and other wildlife and we we don't remote it once a year and so it gets this kind of wild and woolly look but we get a lot of compliments from the neighbors and it kind of provides a visual bar of our truck court for the neighborhood and those traveling along Craven Street next slide please so all these old buildings on the site there are a ton of them we really wanted to reduce the quantity of waste that we sent to the landfill so we carefully deconstructed those old buildings and warehouse them and then we used as much of that material as possible during construction next slide these we have over 14 linear miles of fluid from the old livestock market that we've used as exterior siding on the brewery in the tasting room and have incorporated into the building's interiors as baseboards and even bathroom stalls that picture in the lower right shows a small bar inside the brew house where you it's also made with some of that old livestock market wood and you can even see some of the cattle stall numbers on those beams that are framing the bar corrugated metal some of it I covered in graffiti was used in the interior of the brewery and other metal and wood was crafted by local artists into tables and chairs we even took the old side the old sign off the livestock market and repaired those letters and covered them with historic photographs that we found showing our site over the last I don't know about a hundred years or so and what we didn't reuse we tried to recycle or give away and we estimate a 97 percent diversion rate from the landfill next slide please so in addition to addressing the contaminated soil we also undertook a stream restoration project on the ground in partnership with the city of Asheville and a local nonprofit called River link this stream bisects our property on its way to the French Broad River and was essentially a deep ditch just filled with debris and chunks of concrete tires washing machines you name it and also the stream banks were collapsing on both sides and contributing sediment to the river we had grant funding with us from the state clean water management trust fund and we're able to stab
lize the stream banks and restore ecological function to this waterway and then added a whole suite of native plants to this riparian corridor and it's now become a focal point for our campus as well as providing important habitat for why my life and birds and pollinators in this urban area it certainly is you can imagine had an impact on the whole construction of the site fine having to deal with this thing that bisects the property certainly some impacts of construction sequencing as well as just the complication of getting equipment down in there to work on the stream next side piece we name this Creek Penland Creek in honor of the Penland family that came to forests on this property to operate that auction house and here's some more recent pictures of this Creek it's just really become a beautiful focal point on the property and it's although it's a really short stretch through our property it's just it's just nice to see and something that we can stop on the bridge and talked about during brewery tours you can see on that right hand photo a culvert way at the top it's a bottomless arch culvert or it passes under the parking area and that was a key choice that natural bottom mimics a stream more naturally than a closed pipe would be and prefers a much better aquatic habitat for insects and amphibians and and fish next slide please our site design partner Equinox environmental created a stormwater management design that mimics a natural ecosystem and treating stormwater as it passes through our property on its way to the French Broad River the bioswales pictured in the upper photographs here are in our parking areas and these elements dissipate the energy of water to reduce scouring in erosion as water flows into it eventually into a bio retention basin and then a constructive wetland located on the north end of our campus is heavily planted with some native plants and it has a variety of deep and shallow pools that also promote habitats for amphibians and insects and even a family of ducks as you can see there all while filtering stormwater next slide please our partnership with the city also included some transportation improvements to Craven Street as the city realigned and widen this road they added bike lanes on both sides and sidewalks and on street parking making it Astral's first complete Street which is the designation by the state d-o-t that accommodates multiple users not just vehicles and as the city's first Green Street another designation it manages and treats stormwater with porous pavers in those parking areas and these pocket-sized bioretention cells that you can see here in the upper photograph you can see one during construction and the cells are filled with an engineered soil mint soil media to a depth of about three and a half feet which directly correlates to how much water can be stored and treated and due to the brownfield nature of our property we weren't able to infiltrate the water in these concentrated areas back into the ground but instead the cells were lined with impervious liners and planted with native trees and other vegetation next slide please with a land donation and then from New Belgium the city also invested in building a green way along the length of our property parallel to the river the total length of this section is about a half-mile from the newly constructed trailhead that has bicycle and vehicle parking on the north end of our property to a newly constructed bus shelter that was also built with some reclaimed materials from our property on the south side and in the next year or so this section will connect with other existing greenways just south of us to create the county's longest stretch of Greenway at five miles next slide and I'm just gonna wrap it up here and say come visit us in Asheville and come see it in person and drink a beer and I'll pass it along Thanks thanks Sarah and actually if anybody is interested in learning more about that project Sarah and I wrote a blog together about about that project so please reach out to either one of us if you'd like to read it or hear more about it and so thank you Sarah and Dave you're up all right my name is Dave McCormick I'm the president of Waukesha development we're based in Petersburg Virginia but we work all over the state and typically my company invests in really challenged communities small communities around the state of Virginia typically places that but don't really get attention from typical you know market rate developers so we're in if you're familiar Virginia at all were in little places like Bedford Clarksville Cape Charles you know some coastal communities places like that and we typically one of our the cores of our business is really using state and federal historic tax credits but we also get into all sorts of other grants and programs and brownfields grants is one of them we've done about this slides slightly I they we're up we're approaching about 100 million dollars in investment throughout state right now and let's see next slide we you know typical issues we have building and site conditions are less than ideal you know it's great to build something new on a site but we're typically refurbishing old buildings everything we do more or less as adaptive reuse to some way and the challenges are always asbestos lead very tanks some site contamination and then of course always dealing with complicated zoning issues parking you know what we tax credits are sometimes automatically available something's on the state register but sometimes we have to put things on the register and there's many challenges around financing something in a place that isn't perceived to have a market or by the banks or they you know banks or appraisers just don't understand it and have a real hard time valuing something that is where we specialize so next slide so a good example of that is the town of Petersburg Virginia it's about twenty minutes south of Richmond and Petersburg historically has just been beat up and knocked around for 200 years and it's no different today this is an old ice and coal plant that really was abused over the years and I think pretty much was either gonna collapse or get bulldozed one or the other I actually bought this from a private individual who had the intent of saving it kind of loved it to death at the end there nextslide sold ice and coal plant it looked like this one we found it and if this actually looks in better shape than it really was as we go through the next slides you can see what I mean by that at back in the in this days I didn't you this was just as recent as you know oh four oh five when I purchased the property didn't really even realize what a brownfield site was or what brownfields meant but realize this was a great candidate for something like that and and this is you know fairly typical of the condition that we find these buildings in this had an ammonia system of making ice I don't know the science behind all that really but there's always worry over all the tanks and pipes and any kind of residual thing that's still in the building aside from any asbestos the issues this one actually had cork and mastic that had all collapsed off the walls and got intermingled on the site so it was just a giant mess next slide here's just a sense of the deterioration keep clicking through these slides you can see how bad this building really was we it was so bad and so collapsed we actually got into it using a bulldozer going right through the wall as it was uh you couldn't get inside of it was that dangerous so we had to ended up having to float this entire building you get a sense of the scale of this thing it was just monumental but floated the entire building and did those repairs kind of from the outside in this one happened to have zero lot lines on that side and then through spring and summer finally got this thing stable and started to build it out so this was a six million dollar project you can see it's starting to wrap up we got our silo in and you know we actually were able to get this funded because typically when we do marker eight projects that's a pretty easy thing to finance but the bankers got very excited about the success of brewery and we're able to tell that story even in a really challenged market we you know as investors you know you hope for the best we created a Performa around all this but didn't really know what to expect if you go to the next slide you can see how this thing started to finish out this is a thirty barrel production facility it was our goal not just to have sell beer over the bar but actually put beer in the distribution which is really a whole nother business model but we wanted to you know put this thing on the map and create a beer brand in Virginia that was really strong for a real estate developers but also entrepreneurs that same area where you saw it all collapse this is that angle looking in at the brew house and then we'll come to the slide where you see the finished project from the outside that's it today this is a massive transformation of this building but also of the neighborhood and it's very interesting you know as a result we're two years old now I had seen really almost no institutional our outside investment in Petersburg before this was done it was all kind of like local you know real I would call speculative investment and for the first time we just saw Kuwait sailing up on my building or up the road a sale to a a bigger institutional firm that's come down and started buying some of this property up because of the transformation so since we've opened 42,000 pizzas served that even surprised me when I looked on square and figured that out 113 thousand beers poured 22,000 customers this thing is way more successful than we could even imagine and we're now a top 15 brand in the Richmond market and that's of all brands in the country so we're very very proud of this one but it just really does kind of show how transformative a brewery can be in a town that people really almost had kind of given up hope on so next slide let's eat so just to review that six million dollar project by the time we got the grant and the tax credits into this thing we settled out around two and a quarter million or so I had there's a there's a multi-family part of this project so it yet that and there's a I would say so the combined total might be around three seven by the time we're done in terms of full you know multistage permanent financing thirty thousand barrel capacity we did create twenty five jobs here some of whom live in the in the building now the multifamily side and open in June of 2016 so we're we are coming up on our two-year anniversary next slide just to give you a sense this that all these incentives weren't necessarily applied to this project but we do you say to federal historic tax credits and try to go for as many grants as we can and the the brownfield grant is a real key one in terms of the exploratory work we have to do taking tanks out of the ground and just getting the bank to a point where though they can actually close on the property that's a it's a kind of a sketchy thing for us you know in a small town to go out on a limb with into some of the unknowns but it's to have the DBQ brownfield grant behind us it really helps us get to the closing table next slide this is a little bit more about the challenges I've mentioned the unknowns government red tape and I mean that kind of you know locally there's a lot of towns and municipalities that could be unfamiliar with these challenges as they the when developers come in for the first time and then there's also this the perception issue about unproven markets small towns how you overcome those things is just a very challenging thing that you kind of chip at little by little and then at the end of this slide I show this thing you know just talking about the exit a lot of people think I mean what I mean there is the sale but really I mean the conversion to permanent financing and trying to massage this thing on a balance sheet so we could keep developing property and not have it lard off the balance sheet so it's difficult to find sometimes non or partial recourse apartment financing that helps us do that next slide so just to give you a sense of some other projects here this is another brew we did out in Bedford a lot of the same things we brought in us some state grants on this but this here again this was an old power plant used by a rubber manufacturer in the small town of Bedford Virginia population of this town is about 66 hundred people next slide yeah just some existing conditions on the inside lots of asbestos on old pipes and things and a lot of ivy growing up in the building here it is today this was a 3.2 million dollar project we bought that permanent fines name down about a million and a half 40 jobs created a real big tax revenue for the town and the county itself and brought a lot of tourism in into this small town that's really our goal for some of these it's just not just curious some of the community but to create a tourism opportunity for the community and draw people in and then they'll then use other businesses services consume hotel rooms and things like that next slide we opened June 17 so this is a year after we opened trapezium almost to the to the weekend and this one is having just really great success we had 2,000 people come through here on the first day there's only six thousand people in town so you can see how much we had drawn from other areas into this place and one of my greatest successes about this project was there was a couple old timers that owned the building next door and I remember the day one of them spit on the ground I said this ain't ever gonna work and when you know 2,000 people come through the door on day one there's no greater payoff than proving people like that wrong next slide so just some more slides of the opening next slide and now work this is the Thurber this isn't a town of Amherst Virginia in an old flour mill this is again a tiny little town about 15 miles north of Lynchburg Virginia our goal here was to create an economic development opportunity for the county and a good business for us so we really had to get creative about how we treated this building next slide this is an old it was powered by a waterwheel our goal here is where a lot of Alzheimer's again I think this business this building is obsolete the business is obsolete we're looking at this property from the point of view of brewing and saying could we turn that water wheel into a hydro power generation situation there and use the water to power the building could we use the land to grow ingredients for the beer again lots of massive structural problems here some were frightening there were we we really started pulling things apart just the condition this building was awful buried tanks again you know asbestos odbald Wells dug all over the place and you know really massive structural problems and we're so we're we had to immediately race in and start fixing this to keep this building for falling over next slide and so that's it for me you know that are again we'll be opening this brewery here June of July of 18 so we're on track to do 3 for 3 in terms of the years going by here and we're really excited about that great thank you Dave Keith ok hi hey this is Steve Gill with the Idaho Department environment quality and the brownfields and vcp specialist in the northern portion of the state and today I'm going to talk about brew fields in Idaho next so this is a great craft brewery map of the United States you can probably see a number of breweries embedded in different states Idaho has a big golden lab and you can see its tongue coming out for a laughing dog Brewing Company and there's a state of Idaho so I'm quite a bit west of everyone else on today's call next Salida host brownfields program began in about 2004 and since then we've helped lots of communities and owners of different properties from site assessments to risk evaluations to cleanup planning and cleanups this particular site in this photo is in the town of Moscow Idaho and actually our brownfields program was never involved with this because the city of Moscow had their own brownfields coalition grant that they put together
and they went ahead and completed phase ones and phase twos and risk evaluations and next slide the property was sold and a developer today is putting a twenty four million dollar project Moscow is also the home with the University of Idaho so you have lots of needs for student housing and this will have 392 beds in it and they rolled into our voluntary cleaner program to go ahead and complete the brownfield so this was a great collaborative effort between a city that had their own brownfields Coalition Grant and the state next slide so Idaho is a small small state population wise about a million and a half people but a great state for beauty mountains trees and water but because of that next slide about 125 years ago we saw a lot of influx of natural resource extraction industries whether it was mines Mills or even agriculture that changed the scenery of the state itself and those are brownfields projects and we're working on a lot of those but today we're talking about brew fields so let's go to the next slide next okay thanks so this is small-town Idaho this is actually Sandpoint Idaho in about 1965 I was a little boy growing up at the time the neat thing about those natural resource industries that came into Idaho back in the day is that they also produce small towns most the towns were four thousand to about fourteen thousand people in population but they had about everything ever needed and one of the things that's funny as a kid growing up my dad used to always say that there's a church gas station or a bar on every other corner and that's really key for brew fields in Idaho next slide now we have lots of churches still in Idaho I don't have any yet that are brew fields however in December when we went to the national conference back in Pittsburgh I did go to church brew works and I was very impressed and they have great pierogies and really good IPA so I would encourage you if you get back to Pittsburgh but in Idaho next we do have lots of gas stations and gas stations make great locations for rou fields the neat thing about a gas station is it's always on the corner and it's usually in a high visible corner we still have lots of bars and one of the days some of the folks will learn how to spell tavern but that's action existing bar that's still in the town of Sand Point next so one of the things I wanted to kind of cover too is that you know the what the u.s. beer sales are and what the craft brew impact is so while overall beer sales for the year 2017 we're down 1.2% craft brew sales were up by five percent and craft brew exports were up by 3.6 percent now this is a huge market and when we consider brownfields and you're looking for folks to come in and look at properties so this is one of a great market I mean it's a hundred and eleven billion dollar market in the United States craft brews alone or 26 billion so as their share grows this is an important statistics to remember and all of this is available off the Brewers Association website next now you might wonder about Idaho so million-and-a-half people these statistics are from 2016 we had about 53 craft breweries I think we're up to about 70 now we're a fairly rural state pretty conservative but we have state statute that discusses beer is 31 pages long I was really surprised I I think it has more than some of our environmental programs but our licensees are really reasonable if you're brewing less than 10,000 gallons a year you start at 50 bucks to license and if you're making more than nine hundred and thirty thousand gallons a year it's five hundred dollars so those are fairly reasonable rates that that craft brewers can get into without a lot of excessive license fees and to me and another simple thing about a state like Idaho is we don't have a lot of complexity in our excise tax if you over beer this less than four percent alcohol it's 15 cents a gallon if it's greater than four percent it's forty five cents a gallon and that's kind of a good good number to remember because you're really good craft brew that might run six to eleven percent alcohol it's paying the same excise tax as somebody who's ordering a Bud Light or Coors Light so those are that's it levels the playing field there even at the bar from the retail standpoint next so because of this we're seeing lots of Roof fields in Idaho with lots of unique and fun names and great logos because I think the people who invest in in in breweries themselves they're they're very entrepreneurial energetic and dynamic individuals and so this slide just kind of gives you an idea of the nature of that in the state of Idaho and so now I'm going to talk about three separate rufio projects next so Boise is our state capital in the southern portion of the state and it's probably where the most amount of breweries are this particular project your site here in 1903 it was first developed again we were young States in 1903 wasn't that long ago the property eventually became a gas station a Shell gas station in the 40s and into the 70s and next slide the great thing about gas stations as I said earlier it's they're always on valuable downtown corners there's they're sitting right there and in the best location because the major companies generally were the ones who initially brought in these gas stations in the 30s 40s 50s and they wanted something highly visible that their competitor down the street maybe didn't have as good of an advantage so this particular area of Boise was growing we're seeing a lot of professional firms move into this district that had some warehouses and stuff you saw a whole dynamic could change and by the year 2010 there were a lot of uncertainties to do with this business and just kind of set there languished blighted which blighted is always a word that you see a lot when you talk about brownfields and you do any research on next next slide thank you so all of a sudden this site in 2010 started to get a lot of activity and so the city of Boise and their urban renewal district they came up with a master plan for the whole area and it included this property and then from a combination of funding both CCDC and Idaho DEQ committed brownfields funding and a couple phase one phase twos risk evaluation was done and we cleared this property to go ahead and be redeveloped without extensive cleanup and so didn't cost much to get it to that point to where the lenders would look at it next so we hit a group of individuals partners that we're looking for a beer bar in growler fill station and using just craft brews now while they're not brewing beer here like in the nature of a true brewery especially some of the stuff that Dave was just talking about and and just going back to Dave slides for a minute the great thing about any brewery slides you ever notice that when they show the groups of people everybody's smiling so that's that's good that's it's a happy kind of portion of the brownfield site but this brewery is now expanding into neighboring towns outside of Boise and it's doing really well so it was again a great property to go ahead and look for a brew field next slide so now we're going to go 500 miles north of Boise to the tip of the state up by the Canadian border and there's a little town called Sam point Sam point is sits right on the edge of Lake Pend Oreille the largest lake in the state of Idaho and it's right at the base of Schweitzer ski resort and one of the bigger ski resorts from the state of Idaho and recently just January of 2018 where to retire magazine went ahead and they named their top retirement destinations and they had a lot of discussion in there in the small print but the real thing is a big print craft breweries attract people downtown Sam Point has a number of craft breweries and that's why it was named one of the top retirement destinations next slide so one of these brew fields in Sand Point was three different properties they were owned by the avid elf family and initially the first property was developed in 1908 and it was the first blacksmith shop in the city of San Point and then there were a couple other properties associated with this dodge automobile dealership in 1921 lagrua and Sons and then in 1946 a small tavern City Club tavern so these three properties that there for many years in that sort of existence the picture there is February 1948 of the directory of the city of San point and both City machine shop which was a blacksmith shop LaRue and Sons were still in business next slide so let's fast forward to 2006 so the old city blacksmith shop the white building on the top the top photo it had been operating as a minute lube lightening lube it was called and for about 20 years so by 1986 they started lightening lube business and the Oleg Rude auto dealership became alpine ski shop because the Switzer ski resort was there so the old City Tavern had been torn down and was just an empty lot that at that time the alpine shop they also sold boats and they needed a place to store boats so they were using that loss in 2006 as the real estate market was really peaking mr. a Vidal had a prospective purchaser who is really interested in buying his properties all three of them and they had plans for redevelopment so they went ahead and they had a phase one not through our brownfields program but just independently they did a phase one and a limited phase two and they came back with suspected recognizable environmental conditions that were associated with the lightening lube business and so mr. havitol was looking for way to potentially either clean up this property or to to move this forward and he approached Idaho DEQ and at that time our voluntary cleanup program also had a funded Community Reinvestment pilot initiative program we called it the pilot and it allocated up to a hundred and fifty thousand dollars per property or cleanup you know after after the assessment work was done so in late 2007 mr. havitol was ready to roll into the voluntary cleaner program and go forward with this and as it happened to many folks with properties in that here for the next year 2008 as a market crashed the prospective purchaser pulled out of the agreement and mr. Ovid L was set holding his businesses now there were nothing there was nothing in the phase one that the private consultant did that was urgency as far as you know protecting human health and environment so this property just kind of plugged along next slide so in 2016 all of a sudden we were alerted by the city of San point that new buyers were again looking at the Avondale properties the picture there that's Brent and Nicole secret and they were interested in purchasing the property in fact this the alpine ski shop when they pulled the false front off the building they found that it had also been a marina and a Yamaha motorcycle dealership and a home light chainsaw dealership at one time this happens to old buildings and towns were all familiar with it so city of Sand Point requested that we complete a phase one to see how these properties look today Idaho DEQ went ahead and had our contractor complete phase one on the three properties the lightning loop had cleaned up their act a lot most of the wrecks that were before we're all concerned with housekeeping and the lightning loop business drains things like this uncertainties so this time the phase one came back and there were no recognizable environmental conditions that would have stopped the redevelopment of these businesses and so with a simple phase one through our brownfields program the transaction occurred and Brent and Nicole purchases property next slide so the following year in 2017 Brent Nicole we're in Sandpoint and they met David Kashima and Christine Stecher and they worked a deal to to take the old lightening lube the 1908 blacksmith shop and converted into Terra Brewing Company and so we're seeing that happen now I was just up at the site last week and they're finishing their their back patio and in the back area and they're remodeling the inside of the bill blacksmith shop and it surprisingly has great bones it's going to be a neat operation and kind of the coolest thing is it's Butera it's a british style brew pub and they're going to have course great craft brews and paired with fast casual Anglo Indian cuisine and I thought that was something that I'd probably never say about brownfields project but I I I liked it so there you go so one more let's go to the next slide so the last project England talked about is what I originally talked about when Mead and I did a presentation in Chicago in 2015 and it was laughing dog Brewing Company so this picture here is Nate was taken in 1908 Northern Pacific Railroad of course we would have never seen natural resource extraction industries come through without the railroads and Sand Point was a was a bottleneck of railroads it had three main railroads coming through in fact to this day there's 77 trains have passed through that town every day 1908 in the city of Kootenay and Kootenai has just located two miles away from the city of stand point Northern Pacific built a roundhouse and and a big railcar shop and the railcar shop worked on about 1200 rail cars a month so some uncertainty big structure lots of work lots of things happen there next slide so about a hundred years later in 2008 the project began the Pend Oreille Bay Trail project and we ended up with a six hundred and fifty thousand dollar brownfields coalition grant and it helped us look at these properties to clear them that's located between the city of San point in the city of Kootenay about two and a half miles of shoreline along this industrial railroad core or in 2015 one of the properties in Kootenai where the rail car shop was sold and it was sold to the company that was going to call Patrick properties and Patrick property was going ahead and they're gonna build laughing dogs new 30,000 barrel a year brewery on this site so we started down the path with an updated phase one and a phase 2 and when we completed everything we found that and they're really out of the eight acre site there was only about a quarter of an acre that had any real impacts that would prevent all uses including residential so it was a pretty darn clean site next to the that particular site Bonner County Historical Society owns the next chunk and they're looking to expand the existing museum out to there but as things often happen pressure on the market laughing dog had to expand quicker than they had anticipated and so next slide they went ahead and and about a mile away in the city of pend oreille Idaho so these communities are located really close to each other they went ahead and built their newest brewery in their canning facility and that's operating they still own the other Patrick property still owns the other property and it's going to be used for either future expansion laughing dog or mixed-use residential so it still is a great roof field and timing is everything on all these projects so as we all know and as markets are increasing again almost like they were prior to the 2008 issue we're seeing a lot of pressure to move things sometimes faster than we can even accomplished through our programs but the great thing is next slide is that you can always enjoy one of the beverage that these folks make and any of these folks that we've talked about today so whether it's new Belgian or some of the sites that Mead talked about or some of the sites of Dave talked about it's it's kind of exciting to be part of brew fields I've got a couple others here in the state that we are looking at going for and so I thank you very much all right thank you and we will take questions now so I see a few have trickled in so feel free to start typing any questions for our speakers and yeah thank you mede Sara Dave and Steve this has been very illustrative of really how catalyzing breweries can be in larger cities smaller towns and all across the u.s. everybody or most people like beer so it's been interesting to learn about these so Dave I have a question for you that's come in and the question is regarding trapezium brewing and would this did you have a tenant in mind before you started building or did you how did you solicit a potential tenant well you know when it's interesting because when we're in in sma
l communities but also distressed communities it's really hard to find but maybe even sometimes if possible to find a tenant that's really well capitalized with strong brand sensibilities to come in and do make an investment like this so we did I did a lot of networking with people in the business but at the end of the day you know I I you know I do real estate projects but I also am someone myself who's got I think pretty high standards around branding and things like that so I just felt like if we're really gonna do it right in this particular set just needing to do it ourselves I had been through that experience once before with a coffee shop where I just I didn't feel comfortable with the tenant pool that was out there so we did our own project and and you know that may sound controlling or egotistical whatever but we just knew we needed to work it needed to to not fail you know it needed to be really kind of high quality so I just felt like we could control that process the most so at the end of the day I went out into the Virginia you know community of Brewers and just tried to find some top talent and then I created the business ah okay but we leased from ourselves basically you know a lot of entity structure varied institution so we are getting a couple different questions that are essentially asking similar things so for any of the speakers what is the strategy for recruiting Brewers to your area I could probably answer that um from my perspective from the developers perspective it's just really important to kind of get embedded in that community it amazing when you're on the outside looking in it's hard to know what's even going on or who's out there who's doing what but there's an amazing community once you penetrate that and see who's out there doing things and I think it's really a word-of-mouth there's a lot of chatter out there on different what-do-you-call-it sites blog sites and industry sites where people are always talking but the most important thing is to go to some of the UM the convention so like the CBC which is the craft brewers convention that is just a key thing to attend and start meeting people and networking there's also conventions on the state level and then there's going to use themselves and just talking to people and meeting people and going to all the events that are out there but it all be it all snaps into focus once you do that do you do any projects outside of Virginia um I do I actually doing a huge project down in North Carolina which is called the whirligig Station project it's all based around a folk artist named Wallace Simpson we're doing both family a restaurant and the visitor center I'm looking at projects in West Virginia right now and and then or also we are looking outside of that footprint to I you know for the most part of in chasing historic tax credits and ones that are actually don't have a limiting cap or you know too small of a threshold so for instance you know Virginia I mean West Virginia tax credits are only 10% some states like Florida yet have state taxes so there's no eligibility there so we're just we're trying to create get get a situation together where the incentives actually create enough equity that we can leverage into doing the project so you know if there's no state tax credits there might be other incentives I will frankly look anywhere and we always try to find and you know put put a creative spin or try to find the upside to properties no matter where they are so I will look at anything we actually been talking about a project in Florida and looking at Ohio a little bit so we're our eyes and ears are open great and question for even need how do you guys see these brewery projects improving the rural and urban connection in in your areas in Idaho and Virginia well take this first meet in in in Idaho and in most of the communities who are looking at where we're seeing brew fields there's already a push to see some redevelopment and yet we have these these properties that are sitting there that a lot of times have so many uncertainties so estate programs can come in and and kind of clear them up for the lenders and it really works I think that we have properties and in almost every community in the state of Idaho that are are really one of the the three tenants I said it's the idea that search bar or gas station on there corner so we have those issues that that are out there and and I think we can help addresses made I can echo what Stephen said and you know so many of these small towns in a way had died and you know that the railroad stopped stopping out of the country stores went out of business the post office is still there but you know they really needed to be some type of focal point to the community and they weren't good restaurants and there weren't breweries of course and being able to help out and whether you're you've got some Broncos money that's an EPA grant whether there's some state funds and and sometimes it really has to be some out-of-the-box thinking in hopes and and to do some phase ones and as much as I hate to do phase ones and phase twos that might get put on the show if you can do that and help people get the start eliminate some of the unknowns give some support some brownfields individualized outreach if you can get a brewery or a restaurant and go and it can really make the difference and and I know with Dave that demolition coffee was a big toe hole to make and change in Petersburg itself and we've seen it in some really small rural towns that we had less to do with such as st. Paul Virginia which now has a little brewery and a restaurant in a hotel there are some other communities that we're working more closely with to get these types of things going great and I think we can end it here if anyone has some last-minute questions feel free to type those in but thanks again to our speakers for calling in from all corners of the of the states and see if I think I have you beat on the on the western front out in Oakland but yeah thanks again to everyone who dialed in and listen to the presentation um anyone who who has questions I'll send it to the speakers afterwards and feel free to get in touch so thanks again everybody and have a good rest of the day thank you hey thank you bye
