Council directs staff to allow Old City Hall buyer to open a restaurant/taproom without immediate brewery operations; staff to set implementation conditions

Staff asked council for direction about whether the buyer of the former Old City Hall building could open a restaurant/taproom while deferring brewery and distribution operations. The redevelopment agreement and sale included language describing an intent to operate a brewpub and distribution, and staff noted some wording in the buyer’s obligations that can be read as requiring brewery operations. The buyer responded that plumbing and other installation for a brewery are not complete because of a dispute with its equipment supplier and that the owner can finish the restaurant/taproom fit-out and open for business if the brewery/distribution requirement is temporarily relaxed.

Staff said allowing the restaurant/taproom to open now would bring the property to a completed or certificate-of-occupancy stage, putting the property on the tax rolls at full value rather than remaining vacant and off the tax rolls while litigation or equipment disputes are resolved. Councilors expressed mixed views. Several councilors supported a practical approach of allowing restaurant operations now, subject to staff-negotiated conditions, and said they wanted the building active and contributing to the local economy. Other councilors sought assurances and proposed a timeline or other conditions requiring the owner to finish the brewery operations or face forfeiture.

After discussion the majority of council signaled support for staff to negotiate an amendment to allow a restaurant/taproom (brewpub-style service) now while deferring brewery/distribution installation, with the caveat that staff include safeguards such as (a) reasonable time limits tied to permit expiration and (b) explicit steps staff can take if the buyer fails to meet agreed milestones. Staff will draft and bring back a written amendment to the redevelopment/sale documents and said they would pursue terms that protect the city’s financial and community interests.

Ending: Council directed staff to proceed with negotiations to allow the restaurant/taproom to open while deferring the brewery/distribution obligation; staff will return with the drafted amendment and suggested conditions for council approval. The direction is not a final contract amendment but provides staff the authority to negotiate.