5/13/2016 1:39:18 PM
As /deed/assets/Economic%20Development%20Week_tcm1045-230060.pdfEconomic Development Week in Minnesota and Craft Beer Week comes to a close, sip on this: Economic development and breweries in Minnesota are inseparable.
There are 127 licensed breweries and brew pubs operating in Minnesota and that’s up from 93 just two years prior, according to the Minnesota Department of Public Safety’s Alcohol and Gambling Enforcement Division.
The amount of craft beer produced in the state rose to 631,955 barrels in 2015, according to the Brewers Association, putting Minnesota 12th in barrel production in the U.S. For perspective, this equates to five gallons of craft beer for every Minnesotan aged 21 years and over.
The economic impact of the industry was $1.3 billion in 2014, according to the National Beer Wholesalers Association.
Employment in the brewing sector has exploded, rising from less than 300 jobs in 2005 to 1,140 jobs through the first three quarters of 2015, according to DEED’s Quarterly Census of Employment and Wages (QCEW) data. Other than two years of decline due to the recession in 2008 and 2009, the industry has posted positive employment growth every year since 2004, the first year industry statistics were available. The growth in the past two years has been ground-breaking – the industry has essentially doubled its employment, jumping from 571 jobs in 2013 to 1,140 jobs in 2015.
Breweries are on pace to provide over $39 million in total payroll in 2015, nearly double the wages paid just four years ago, in 2011. Roll out the barrels for recent history of the industry’s impact in the beer state of Minnesota.
Humorist Dave Barry said, “Not all chemicals are bad. Without chemicals such as hydrogen and oxygen, for example, there would be no way to make water, a vital ingredient in beer.”
You just don’t want chemicals or spills on the brewery property. To help remediate problem property, enter two DEED Business and Community Development programs, Contamination Cleanup and Investigation Grant Program and Redevelopment Grant Program, that have contributed funding at sites where breweries operate today.
The $20 million destination brewery in Minneapolis – located at the former Northern Star Co. potato processing plant in the Prospect Park neighborhood – was made possible in part with $1 million in environmental cleanup funds from DEED.
St. Paul was awarded over $367,000 in 2012 for infrastructure costs at the former Hamm's site, now home to Flat Earth Brewing and Urban Organics.
Once home to the Hendricks Creamery is now the Bank Brewing Co. Hendricks, located in southwest Minnesota, was awarded $55,753 in redevelopment funding for asbestos abatement, demolition and infrastructure costs associated with redeveloping the site.
Duluth was awarded nearly $417,000 in cleanup funds for this half-acre, lead-contaminated site formerly used to manufacture springs. Now Canal Park Brewing, a 14,500 sq. ft. building housing a restaurant, brewery and retail space, is in its place. One early brew was called Clean Dirt to pay homage to the history of the site.
Some brewery-related activity has sprung up nearby remediated sites, too. Hillcrest Development developed three projects which spurred the following:
Bauhaus Brew Labs is located adjacent to a former foundry and other industrial uses. Minneapolis was awarded $844,460 to clean and redevelop the former Crown Iron site into commercial/industrial space.
A rehabbed industrial building in northeast Minneapolis, 1515 Central is adjacent to Sociable Cider Werks. Minneapolis was awarded $334,418 in cleanup funds for that work.
Able Seedhouse + Brewery is located adjacent to a former light bulb manufacturing company that also was the home to Minneapolis Public Schools’ administration. Minneapolis was awarded just under $200,000 for demolition and infrastructure costs. The main building has been rehabbed into 170,000 sq. ft. of creative class office.
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