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Commission backs nonbinding term sheet to sell 777 Main Street to Savage Craft
Summary
The commission approved a nonbinding term sheet on Nov. 20 for sale of the former Corbin building at 777 Main Street to Savage Craft Ale Works; the agreement ties the purchase price to milestone-based CO and operating benchmarks and requires a minimum $3 million renovation investment.
The Daytona Beach City Commission voted Nov. 20 to approve a nonbinding term sheet that would sell the city's property at 777 Main Street to Savage Craft Ale Works under milestone-based purchase terms.
City staff said the city bought the property in 2023 for about $3.1 million and the term sheet frames a purchase price of $2 million if the buyer achieves specified milestones: obtaining a certificate of occupancy within 24 months, completing minimum capital investment and operating requirements and increasing assessed value. Assistant City Attorney Kira Hans described the milestone structure: if the buyer fails to reach the CO by 24 months, the purchase price escalates (for example to $2.5 million at 36 months and $3 million at 48 months), and the buyer is required to invest at least $3 million in renovations.
The term sheet also outlines promissory note deferment for 10 years and subsequent milestone-triggered payment adjustments at 10-, 15- and 20-year anniversaries tied to continued operation and property-value increases. The city will not transfer the property until Savage Craft demonstrates the necessary approvals and financing commitments to begin construction, staff said.
Rob Merrill of Cobb Cole, representing the developer, and public speakers who supported Main Street redevelopment described the project as catalytic for downtown. Consensus among commissioners favored moving forward with a term sheet and returning a formal contract after financing and milestone verification. The motion to approve the nonbinding term sheet passed on the record (motion recorded as carried 6‑0).
