City of Shakopee to Talk Further About Brewery

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After two groups presented proposals to the Shakopee City Council regarding the use of the former downtown fire station Wednesday, the council voted for further talk with the group wanting to buy or lease the building to start a micro-brewery.

"I like the idea of the arts center and I lke the idea of a half million in our pocket," Councilor Steve Clay said about potentially selling the building. "But I’m not sure if those are the two things we’re weighing."

Both groups interested in the building are from the Shakopee area.

Josh Vogel, Dave Luskey and Fred Marschall are the men behind the brewery proposal. Luskey has more than 20 years brewing experience while Marschall works at Rahr Malting. They said they're looking to take a hobby to the professional level.

Their timeline included having an agreement to buy or lease the building from the city in place by October with a grand opening set for June 2013. The brewery would also include a space for purchasing beer in growlers and/or tasting, with about 90 percent of it being sold to restaurants, bars and liquor stores, they said.

They also estimated brewing 2,000 barrels of beer annually, which they said would bring the potential for $360,000 in sales.

"Did you bring samples?" Councilor Jay Whiting joked.

"Did you bring a purchase agreement? Councilor Clay added.

Mike Haeg presented on behalf of the newly-formed River Valley Cooperative Arts, an organization that's been meeting for months with this facility in mind. They propose repurposing the fire station as a cultural community center.

"We would advise the city to maintain ownership and build on equity that is there." Haeg told councilors. "I realize this is a large investment, but we're hoping to move forward with you on this project."

envisions a place for arts-focused students, ethnic communities, seniors, teens, those at risk and others to have a place to gather, create visual arts and display them. Haeg said throughout this process he continues meeting people who want a place to go – that isn't solely for athletics.

To get the project off the ground, updates to the fire station's heating systems, fire sprinklers, and items that would bring it into compliance with the Americans with Disabilities Act are needed. They estimate it would take from $155,000 to $198,000, which could come from the city, donations and/or grants. Annual operating costs were estimated at $36,000 per year.

Haeg said the city would likely have to take charge of the project – at least in the beginning stages since the RVCA can't apply for grants until it's at least three years old.

Shakopee Mayor Brad Tabke acknowledged a lack of other avenues in Shakopee for creative arts and meeting space. He also said didn't want to sell the building to anyone for remarkably less than valued. An appraisal of the building completed in the fall of 2011 put the building's estimated value at $580,000.

"If it sells, that’s great it’s done, but if we can work out a way for the city to partner, I believe the city has a role to play in this with promoting the arts and other experiences in town," Tabke said. 

The council voted unanimously to have city staff meet with those presenting the brewery idea to learn more about their plan to purchase or lease the building.

They didn't rule out future talks with River Valley Community Arts.

The nearly 11,000 square-foot former fire station was built in 1955 and sits on the corner of Second and Scott Streets. It has also housed the public works department in addition to the fire department.