USA, NH: Kelsen Brewing Co. eyeing relocation to Manchester

Kelsen Brewing Co. in Derry wants to relocate to Manchester after being forced to move because of an acquisition by the state associated with a new exit to be built off Interstate 93, the Yahoo News reported on January 10.

In all, 35 properties in Derry and Londonderry need to be fully acquired as part of the Exit 4A project, according to the state Department of Transportation. Dozens of other properties are subject to partial takings.

Kelsen is among several businesses in the 80 N. High St. building.

The two major government acquisitions in Derry include the North High Street building and 9 Madden Road, a mixed-use commercial building, according to Derry Town Administrator David Caron. No stand-alone businesses have been impacted, he said.

"We do know a large number of businesses being displaced in Derry that were able to relocate in the town of Derry," he said. Many were contractors or other trade shops that didn't require prime real estate.

So far, the state has not had to pursue a formal eminent domain process, although the term is often used.

One of the most prominent properties is operated by the Salvation Army, which agreed to sell.

"They are actively seeking new locations," Caron said.

Construction on parts of the project are set to begin this year and be completed by 2026, according to the project timeline.

The 3.2-mile long project is expected to reduce congestion and improve safety along Route 102 from I-93 easterly through downtown Derry and "promote economic vitality in the Derry/Londonderry area," according to the project website.

The project is expected to open up hundreds of acres for development. Derry expects heightened interest in vacant lots and underutilized properties off Manchester Road, along with a renewed interest in downtown.

Derry's economic development director worked with the brewery to find a new space in town, Caron said. He's sad to hear they're leaving.

"We knew there would be some short-term pain," he said.

Kelson is seeking permission to open in the former American Legion Post 79 building at 35 W. Brook St. in Manchester. The property is permitted as a restaurant/club, but needs a variance to brew beer on site.

The building has been vacant since it was sold in June 2019 and includes the proper infrastructure for a small brewery, according to the application.

The manufacturing will be an accessory use and separate from the taproom, which is expected to have 148 seats. Much of the surrounding businesses all operate under different schedules.

The company will "clean up" the exterior of the building with fresh paint, new railings and replacing the front steps.

"Overall, it is our intention to give the building a 'mill feel' in keeping with the historic roots of the city of Manchester," the application reads.

Kelson operates a seven-barrel brew plant in Derry and sold about 750 barrels of beer in 2020, according to the application. Each barrel is 31 gallons.

The brewery opened in early 2014 with a small tasting room and two beers on tap, according to its website. Now the 60-person restaurant includes 12 beers, including Spacetown Light Lager, Battle Axe IPA and Day Raider Belgian White.

The product is offered in bottles, cans and draft, which are wholesale distributed across the state by Bellavance Beverage and New Hampshire Distributors.

Most of the production is intended to serve customers at the restaurant.

"The operation proposed is minimal — this is not the Budweiser Plant in Merrimack — but rather a humble operation (2 to 3 delivery/pickups per month) that is contained to the property itself," the application reads.

If the variance is denied the brewery will likely have to look for a spot elsewhere.

The Manchester Zoning Board of Adjustment is expected to hear the plans on Jan. 13.

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