City inks agreement to get grant for brewpub

Port Washington aldermen earlier this month approved a developer’s agreement with TBF Development Inc. for the creation of the new Inventors Brewpub on the city’s lakefront — but this one doesn’t outline requirements for the building itself.

The agreement is needed for the business to obtain a $250,000 Community Development Investment grant from the state Economic Development Corp.

The grant, which is funneled through the city, was approved by the Common Council two years ago, but the new developer’s agreement is needed for the city to get the money and distribute it to TBF Development Inc.

TBF Development Inc. is constructing the new building, which will contain the brewpub and restaurant, an event space and offices, and will lease it to Inventors Brewpub.

The building is nearing completion, and brewing equipment has been moved to the structure and is being installed. Inventors owner Adam Draeger said he hopes to begin brewing beer in March and open in April.

City Attorney Eric Eberhardt said the developer’s agreement specifies how payments to TBF Development will be made and, if needed, how they would be repaid.

TBF Development needs to provide detailed invoices of construction costs, written performance reports of the construction and provide indemnification to the city if the city were required to repay the grant, Eberhardt said.

There are four circumstances in which the city would have to repay the grant, Eberhardt said, adding that it’s unlikely any of these will occur.

“The odds of default happening are very low,” he told the General Government and Finance Committee, which recommended approval of the agreement. “It’s just never going to happen. You are more likely to get hit by lightning walking out of this building tonight than to experience default.”

But, he said, the agreement will protect the city if the state would require repayment.

The reasons to repay the grant, he said, would be if the city were to stop the project by June 29, 2027 and start “substantially the same economic activity outside Wisconsin,” if the city supplied false information to the WEDC, the city failed to comply with its obligations or the city were in default under any other agreement with the WEDC.

The city would then seek repayment from Draeger, Eberhardt said.

Draeger alone doesn’t have the resources to repay the funds, he said, but there are other ways to recoup the funds, such as selling the real estate, building and equipment.

The Common Council also approved an easement to AT&T to install underground conduit and cables for Inventors on city property adjacent to the building.

The easement is needed because the building was constructed up to the property lines with no setback, Public Works Director Rob Vanden Noven said.