Richmond sells bonds to back Stone’s new brewery

Virginia’s capital does not seem to have any vocal teetotalers because the city was allowed to raise “beer money” via the sale of bonds. Officials pledged USD 23 million towards the first phase of the brewery project, which would be repaid over the course of a 25-year lease between the Californian brewer Stone and the authority, which was signed in March this year.

The ninth-largest U.S. craft brewer will pay the 218,000-person city to lease the facility and won’t be on the hook to repay investors. Taxpayers will. Total costs for the brewery will be around USD 42 million.

U.S. media reported in early November 2015 that this may be the first time an American city has put its credit on the line for a brewer. This shows how craft beer has been drafted into the long-running bidding wars among states and cities for businesses.

Stone picked Richmond over more than 300 other sites. The Richmond brewery will have a restaurant and beer garden. It’s projected to create 280 jobs and will open early next year.

Pat Tiernan, Stone’s Chief Operating Officer, told media that economic incentives had been available at all of its other top sites but what had set Richmond apart was the opportunity to revamp an area near the James River that was not rebuilt after flooding in the 1970s.

Stone’s beer output this year will exceed 300,000 barrels (350,000 hl), Mr Tiernan estimates. He said the Richmond facility will eventually be able to make 700,000 barrels (820,000 hl) beer.