After a brief public hearing Tuesday, the Sherburne County Board approved a tax abatement and business subsidy agreement for The Garage Guys LLC/Lupulin Brewing in Big Lake.

 

Sherburne County Assistant Administrator Dan Weber said the brewery occupies about 9,000 of a 22,500 sq. ft. space on Hwy. 10.

 

Lupulin was requesting a property tax abatement of $120,975 over 15 years to help pay for an expansion that would double their production space.  Phase 1 of the expansion project will install a canning line, two fermenters, brite tanks, as well as power, plumbing and mechanical infrastructure improvements. Phase 2 of the project would add the 4,500 sq ft beer hall and an additional 8,500 square feet of manufacturing space.

 

The business currently has nine full time employees and 20 part-time employees. Fulltime employees average $18.99/hr and $24.26/hr (with benefits). The project will create a minimum of 18 more full time jobs.

 

It would add about $800,000 in value to the property, which would equate to about $8,065 in taxes per year.

 

Weber said the project scored above average on the tax abatement policy criteria, which makes it eligible for 75% of their request of $120,975.

 

The board approved an abatement of $90,731 over 12 years.

 

Jeff Zierdt, co-founder and president of Lupulin Brewery and chief manager for The Garage Guys, said the business has grown much quicker than expected.

 

“In 2015, we produced 330 barrels of beer had one fulltime employee. In 2017, we just finished at 1,600 barrels and had seven fulltime employees,” he said.

 

“Projections for 2018 are running at a rate of 3,500 barrels and we have additional staff coming on board to support our distribution.”

 

He said the numbers exceed their five-year business plan by four to five times. The expansion is another step in the growth process.

 

“This (abatement) will help make Lupulin a long-term business in Sherburne County and Big Lake,” he said. “It will help our cash flow as we continue to grow our business.”

 

The City of Big Lake also approved a 15-year, $284,000 abatement for Lupulin in January.