6. EDSR 09-12-2011 INFOFormat Dynamics :: C1eanPrint :: http://www.startribune.com/local/129425153.htm1?page... Page 1 of 3
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Surly considers its
options as area suitors
smooth out obstacles
Article by: ,Star Tribune
Updated: September 8, 2U1 ~ - 8:53 AM
Surly Brewing Co. fought hard this year for a
state law allowing it to serve pints of beer at
a massive new brewery. Now the hunt begins
for the perfect location --and metro-area
cities are jumping on the beer wagon.
Officials around the region are vying for
Surly's attention as the company and a
consultant look for the best real estate for
its $20 million "destination" brewery,
complete with restaurant, beer garden and
event center. The six-year-old Brooklyn
Center-based company, whose cult
following extends far beyond Minnesota, is
expected to make the venture a major draw
for enthusiasts of its Furious, Bender,
CynicAle and other craft brews.
"This is something people are going to travel
to," said owner Omar Ansari, who plans to
build in the metro area. "It's not like it's just a
neighborhood tavern."
Surly has grabbed the attention of local
economic officials, who also see it as a r
egional attraction, not just an employer.
"People would come here just for that," said
Annie Deckert, the director of economic
development in Elk River, one of several
cities that reached out to Surly.
Minneapolis and St. Paul both changed
ordinances this summer to allow Surly to set
up shop. Brooklyn Park and Brooklyn Center
are preparing to do likewise, and Elk River
and Chaska also have called. That's on top of
countless contractors, builders and
architects who contacted the brewery after
the law passed to allow on-site sales for
beer-makers.
Few officials have been as visible as
Minneapolis Mayor R.T. Rybak. When Rybak
signed the ordinance allowing a liquor
manufacturer to sell pints of their product at
the brewery -- with Ansari standing behind
him -- he tweeted, "Drink beer it's now
Minneapolis law!" His spokesman, John Stiles,
said Rybak talks "to Surly folks on a regular
basis and is helping to lead the team that is
working aggressively to get them here."
The search for a location might have larger
implications for the public if Surly decides to
ask for help in financing part of the project,
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Format Dynamics :: C1eanPrint :: http://www.startribune.com/local/129425153.htm1?page... Page 2 of 3
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which is expected to generate about 150
permanent jobs. Such assistance, which
often uses projected property tax increases
to defer project costs, is a common public
incentive for large developments.
Ansari said they have not discussed whether
to seek public help. One of Surly's
consultants, Tom Hauschild of the TEGRA
Group, said that if cities offer incentives --
and the company decides to pursue them --
"that could be some great icing on the cake."
Outside help
As the project grows more complex, Surly
announced last week that it had hired
TEGRA, a local real estate consulting firm
The company is already sending out
requests for information to cities,
development firms and property owners.
There is even an a-mail address --
buildit@surlybrewing.com -- where the
public can send ideas.
"In our world, often the least expected
solution turns out to be the best one,"
Hauschild said. "So ... we're casting the net
fairly wide here."
They expect to winnow the list to three to
five possibilities in the next 45 days, aiming
for an agreement in the first quarter of
2012.
It's a complicated quest, since they expect to
need more than five acres in an industrial
zone that still has enough "sizzle," as
Hauschild puts it, to sustain the brewpub.
That means visibility and accessibility are
key factors.
Ansari said he once dreamed of being on the
Minneapolis riverfront, former home of the
Grain Belt Brewery, but space constraints
might make that difficult.
Said Ann Calvert, the city development
coordinator assigned to Surly: "There aren't
a lot of great big easily available sites on the
riverfront." However, one such site is the 48
acres on the west bank of the Mississippi
River now occupied by the city's Upper
Harbor Terminal. The city's upper river plan
calls for reserving the site for housing and
parks once the terminal is phased out,
although city planners have been reviewing
whether to recommend any changes in the
plan. Another possible drawback is the
presence of Xcel Energy's generating plant
across the river.
She said she has reviewed at least 20 sites
with Ansari. "He's serious enough that we h
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ave had multiple discussions," Calvert said.
"He seems to be serious about finding a site
in Minneapolis."
Hometown
As other cities try to lure Surly, its
hometown hopes the brewer stays put.
Curt Boganey, Brooklyn Center's city
manager, said that several locations have
been identified that could accommodate the
new brewery. He said Surly is "a great brand
for the city of Brooklyn Center," and the city
is doing its best to keep them in town. The
necessary tap-room ordinance is expected
to be on the City Council's agenda next
Monday.
"We've had several conversations with Omar .
.. and expressed very clearly our desire and
interest in having his business expand here
in the city of Brooklyn Center," Boganey said.
"I think he knows without a doubt that we'll
do whatever we can within reason to help
him dothat."
Staff writer Steve Brandt contributed to this
report. Eric Roper • 651-222-1210 Twitter:
@StribRoper
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