By Joseph Ditzler

The Bulletin

The Roanoke, Virginia, City Council on Monday formally approved a deal announced in March that gives Deschutes Brewery a second home in that city.

The council unanimously approved a $2.75 million sale to the brewery of 49 acres in the Roanoke Centre for Industry and Technology, a business park about 5 miles from downtown Roanoke. However, the sale price is forgiven after five years provided the Bend-based brewer meets investment and job-creation goals.

“I would say it was a very enthusiastic 6-0 vote,” said Roanoke City Manager Chris Morrill.

The city contract calls for a minimum $55 million invested and 70 full-time employees at the new brewery. Deschutes must start building no later than June 1, 2019, and begin brewing and selling beer by June 1, 2021. The brewery has until May 1 to close on the property.

Deschutes Brewery proposes an $85 million project, $40 million for brewery and warehouse buildings and $45 million for the brewing and other equipment, along with employing 108 by June 2021, according to a Roanoke City Council report. Miscellaneous costs such as training, project management and installing equipment may add another $10 million to the project.

Deschutes expects its Roanoke facility to produce 190,000 barrels its first year, 330,000 barrels by 2025 and “up to 1 million barrels annually upon ultimate build-out,” according to the brewery proposal.

The council also accepted a $3 million grant for the brewery from the Virginia Economic Development Partnership Authority. The city must match the grant through local grants and other incentives. In return, Deschutes must meet the $85 million investment target and create 108 jobs by June 2021.

The city, in addition to the land grant, also pledged $3.6 million worth of utility extensions and street and other improvements.

The Roanoke Economic Development Authority was scheduled to vote this week on the same package, which Morrill said he expected to pass.

— Reporter: 541-617-7815,

jditzler@bendbulletin.com

13381006