Industry News       English French Dutch Spanish German Russian Italian Portuguese Portuguese Danish Greek Romanian Ukrainean Chinese Polish Korean
Logo Slogan_Chinese


CASTLE MALTING NEWS in partnership with www.e-malt.com Chinese
31 May, 2006



Brewing news USA: Brewery owner seeks extension on tax break

Shipyard Brewing Co. owner Fred Forsley is planning a major plant expansion and wants Portland officials to extend the property tax break that saved him $700,000 over the last 11 years. So far, city officials are lukewarm on the idea, The Portland Press Herald posted May 30.

Forsley is seeking a 75 percent tax rebate each year for the next decade, which would add up to about $1.1 million, according to city projections.

The existing tax agreement, which gave Forsley an average annual rebate of 68 percent from 1996 to 2006, runs out June 30. The assessed value of the brewery, including equipment, is $7.4 million, said Jack Lufkin, Portland's economic development director.

The council granted the original tax break to help Forsley establish the Newbury Street brewery in a long-vacant foundry on the blighted eastern waterfront, which is now on the rise. Forsley takes some credit for the ongoing redevelopment and says he needs additional tax relief to continue growing his company.

"I need all the help I can get," Forsley said. "If I don't get this from the city, I'm going to have a tougher time."

Councilor William Gorham, who represents the eastern waterfront, is expected to sponsor Forsley's request for a public hearing before the full council as early as June 19, Lufkin said.

The council's community development committee reviewed Forsley's proposal in a closed-door session earlier this month. The committee requested additional information but has no plans to recommend Forsley's request to the full council anytime soon, said Councilor James Cloutier, committee chairman.

Cloutier said he questions whether a tax break is the right way to help Forsley. He noted that the blighted conditions that prompted the earlier tax break no longer exist.

"It's rare for the city to invest in a private business for economic development," Cloutier said. "We need a better understanding of what's being financed here."

Cloutier said he believes Forsley's expansion may be better suited for low-interest loans or economic development bonds available through the city and state.

Forsley said he plans to invest $5 million in building improvements and brewing equipment that would triple beer production and create 18 full-time jobs. The brewery has 34 full-time workers.

He said he needs the tax break to help pay off his remaining start-up debt and expand his business in a market that's increasingly tough on manufacturing.

Forsley said Shipyard is the 31st-largest brewer in the country, with beer sold in 35 states. He said he must expand his business outside Maine to become profitable beyond the summer season. His goal is to increase annual production from 55,000 barrels, or 1.7 million gallons, to 140,000 barrels, or 4.3 million gallons.

Forsley said he still owes $2.5 million on the $5.2 million that he has invested in the brewery so far. He sees that investment paying off for the city with the redevelopment of the eastern waterfront, including projects in which he is or has been involved.

"What we have done here has helped lead to future development in the neighbourhood," he said.

Forsley is a principal in the company recently chosen by the City Council to build a parking garage on the eastern waterfront. The company was selected through competitive bidding.

The $90 million residential- and-commercial project is planned to cover two blocks at India and Fore streets. It includes former city and brewery land and features a 719-space parking garage and a 116-unit luxury condominium complex called The Longfellow at Ocean Gateway.

Last June, the council granted that project a $5 million tax break over 13 years because the parking garage is considered a public improvement.

Forsley said his real estate firm, Harborview Properties, had been but is no longer the exclusive seller of the $110 million Westin Hotel and condominium project at the former Jordan's Meats plant on India Street. He said he has no direct financial stake in that project.

Elsewhere on the eastern waterfront, the state is building the Ocean Gateway cruise-ship terminal and a Massachusetts company has proposed a 156-unit condominium project on The Village Cafe site on Newbury Street.





后退



E-malt.com, the global information source for the brewing and malting industry professionals. The bi-weekly E-malt.com Newsletters feature latest industry news, statistics in graphs and tables, world barley and malt prices, and other relevant information. Click here to get full access to E-malt.com. If you are a Castle Malting client, you can get free access to E-malt.com website and publications. Contact us for more information at marketing@castlemalting.com .














We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.     Ok     否      Privacy Policy   





(libra 0.6934 sec.)