Metro-east brewery seeks $81K sales tax exemption for expansion

Belleville brewery introduces outdoor space

The 4204 Main St. brewing Co. in Belleville will host the Ale Fest Saturday and will introduce its new outdoor space at the event.
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The 4204 Main St. brewing Co. in Belleville will host the Ale Fest Saturday and will introduce its new outdoor space at the event.

The owner of 4204 Main Street Brewing Co. in Belleville is seeking a state sales tax exemption of $81,000 on construction materials used in his plan to spend over $2 million to turn the old Mad Pricer grocery store into a brewery.

The city’s Economic Development & Annexation Committee will consider Todd Kennedy’s request at 5 p.m. Wednesday. Since City Hall is undergoing renovation, the meeting will be in the fire department’s administration building at 1125 S. Illinois St.

The proposed development agreement calls for Kennedy to invest at least $1.6 million but he has said the project could cost over $2 million.

Kennedy also would be required to create 10 jobs in the first year of operation and commit to annual sales subject to sales tax of at least $50,000.

If the committee approves the plan, the full City Council would be asked to give it final approval.

Here’s how the incentive would work if the plan is approved: The city would certify the old Mad Pricer site in the 6400 block of West Main Street as being in the city’s enterprise zone. In this type of designation, developers can qualify to receive an exemption on state sales taxes of building materials used exclusively for the remodeling of the existing building.

Kennedy opened a craft brewery and restaurant in 2014 at the company’s namesake address at 4204 W. Main St. in Belleville.

But demand for his beers is outstripping production capacity at the original site.

Kennedy currently can produce 4,000 barrels of beer a year and the expansion would allow him to brew 60,000 barrels of beer annually. Smaller batches of new types of beer will still be brewed at the original brewery.

In July, Belleville granted tax incentives to Adam Hill, the developer who plans to renovate the Market Place Shopping Center that dates to the 1970s. Kennedy said he has purchased the vacant grocery store from Hill.

Here’s a breakdown on Hill’s incentives:

▪  An extra 1 percent sales tax will be collected on items purchased within the shopping center. This money will be used to help pay for renovations in the center at 6401 W. Main St. Shoppers now pay 8.1 percent in sales tax. Aldermen created a special business district that allows for this tax to be collected.

▪  A $275,000 TIF grant will be awarded to Hill for the renovation. Hill has said the cost to buy the site and renovate it is about $4 million.

The value of these incentives is capped at $2.49 million.