Below you will find the Stone Brewery & Bistro Lease Summary. It was sent to me by Michael Byrne, Representative, Steering Committee Restaurants for Fairness in Business.
If you’re interested in learning more about the Stone project this should provide some additional transparency.
I’m 100% for Stone coming to Richmond, but I’m also 100% on the side that they should have to pay for their own Restaurant and Beer Garden.
Project: Brewery, Restaurant and Beer Garden on River
| Total Project Cost – Machine and Tools | 41,000,000 |
| FF&E | 1,700,000 |
| City Funding – Construction of Building | 31,000,000 |
| Total | $73,700,000 |
*excludes cost of land and existing building, closing of streets; estimated value between $5,000,000 and $20,000,000.
Phase I – Brewery ($23,000,000) *
- 175,000 to 200,000 sq. ft. – building
- 5,000 sq. ft. – office
- 1,500 – retail
- 250 parking spaces
- 90 jobs
- EDA/City to assemble land, close streets, 19 parcels, 16.855 acres. Assessed value $1,122,000
Phase II – Bistro & Beer Garden – $8,000,000 *
- Site improvements
- Outdoor beer garden
- Lighted landscaping
- Sidewalks, fencing, patios and park
- Pedestrian cross walk
- 30,000 sq. ft. existing building on river – build out and renovation
- Waterfront beer garden
- 350 parking spaces
- 198 part time employees
- EDA/City to assemble land, 8 parcels, 4.28 acres
- Assessed value $5,092,000
Rent
Phase I: $23,000,000 x 7.75/12 = $148,545/mo; $1,702,540/yr for 25 years
Phase II $8,000,000 x 7.85/12 = $52,333.33/mo; $627,999/yr for 25 years
The rent for both phases is priced below market and has no yearly escalator customary in a normal business transaction. The value of the offset to Stone is approximately $50,000,000 ±.
State Incentives
| GOF Grant | 5,000,000 |
| Virginia Jobs Investment Program (“VJIP”) (Estimated) | 132,000 |
| Enterprise Zone Job Creation Grant (“EZJCG”) (Estimated) | 317,600 |
| Enterprise Zone Real Property Improvement Grant (“EZRPIG”) (Estimated) | 200,000 |
| Agriculture and Forestry Industries Development (“AFID”) | 250,000 |
| Totals | $5,899,600 |
City Incentives
| Local Economic Development Grant | 1,500,000 |
| Sustainability Grant | 500,000 |
| Infrastructure Improvements (Costs to close Water Street and demolish Lehigh Cement Silos) (Estimated) | 1,000,000 ** |
| Local Enterprise Zone Incentives | 15,000 |
| Waste Water Surcharge Reductions (Estimated) | 1,555,430 |
| Wharf Improvements (Estimated) | 500,000 *** |
| Waiver of Development Fee for Developing Facility (Costs not recouped in Lease Agreement) | 320,000 |
| Public/Private Interest Rate Differential (Unknown Value) | |
| Conditional Real Estate Cash Grant (Conditional/Unknown Value) | |
| Totals | $5,390,430 |
** more like $20 million
*** not approved by Council
Maintenance & Repairs
City has obligation to maintain structure and roof of existing building even though Stone has triple net lease and option to purchase for essentially no dollars ($25,000)
Severable Property
Stone has a right to subordinate the FF&E to the lease. Default by Stone would allow the financing entity to remove the FF&E from the brewery and the restaurant.
Purchase Option
Phase I and Phase II property and improvements after 25 years for $25,000.00
Brewery Total Project Costs (City)
| Brewery 1% development fee payable to EDA | 230,000 |
| Brewery construction costs | 21,194,000 |
| Brewery tenant allowance payable to Stone | 576,000 |
| Brewery loan administration payable to ??? | 1,000,000 |
| Totals | $23,000,000 |
*does not include costs of land and building and holding costs
Bistro Total Project Costs (City)
| Bistro 1 % development fee payable to EDA | 80,000 |
| Bistro construction cost | 7,718,600 |
| Bistro tenant allowance payable to Stone | 201,400 |
| Bistro loan administration | ? |
| Totals | $8,000,000 |
Capital Improvements made by City at no cost to tenant
- Completion of Capital Trail
- Demolition, removal and landscaping of Lehigh
- Closure of Water Street
- Improvements to Main Street
Guarantee
$600,000 Letter of Credit for 7 years; no guarantee by owners of Stone
Review of credit report?
Beer Garden
City to work with Stone to change City plan to build or extend beer garden to waterfront location on land presently not included in project.
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