As part of the deal to bring a new, East Coast brewery here, the city of Asheville will give New Belgium $3.5 million in tax reimbursements over seven years, provided it goes through with its plans to invest $175 million in building the new facility. The city will also make infrastructure improvements to the area costing more than $500,000.
The information comes from a document released by the city explaining the new incentives. After the seven years, New Belgium will begin paying about $551,000 a year in city property taxes, if the development goes as planned. The details of the city’s incentives were not part of the official announcement this past Thursday that New Belgium would build its new brewery in the River Arts District.
The infrastructure improvements include stormwater mitigation, completion of an adjacent greenway, and intersection improvements to better accommodate the brewery’s trucks, among other changes. While the total infrastructure cost is around $2.3 million, grants and state funds will leave the city having to pay $536,970 of the cost.
The city’s announcement of its incentives deal with New Beligum is below:
City of Asheville Economic Development Incentive Overview
The City of Asheville will participate with Buncombe County, the State of North Carolina, the Golden Leaf Foundation, and other key partners on a Performance-Based Incentive to assist New Belgium Brewing in the company’s new, $175,000,000 investment in the City of Asheville’s River Arts District.
The City’s incentive is made pursuant to the authority of North Carolina General Statutes 158-7.1 et seq and is a grant entirely generated from new incremental increases in ad valorem real estate and machinery/equipment taxes. No incentive is paid until the investment is made by the company and verified through a Performance Contract with the City.
The City’s Incentive is a seven-year grant and is based upon New Belgium’s investment of $175 Million. Based on that investment the city will realize approximately $879,000 in tax revenues and New Belgium will receive approximately $3,500,000 in a self-funded tax grant from the City. After the seven years, the City will receive the entire amount of all real estate and machinery/equipment taxes, which is expected to be approximately $551,000 per year.
If the company’s investment does not exceed $175 million, the grant is prorated downward and if the investment exceeds $175 million the grat is pro rated upward to reward the additional investment, but it will never exceed 80% of taxes paid.
City of Asheville Public Infrastructure Improvements to the Project area
• Regional Storm Water Mitigation. This task includes mitigating the section of the stream to the west of Craven Street, replacing the culvert under Craven Street and providing stream mitigation and storm water improvements to the stream from Craven Street to the French Broad River. The storm water improvements will improve water quality and the aesthetics of the stream. The storm water improvements will be constructed on an easement provided to the City by New Belgium.
• Craven Street Multimodal Roadway Improvements. This task includes making multimodal roadway improvements to Craven Street to include bike lanes, storm-water infrastructure and an ADA compliant sidewalk on Craven Street from Haywood Road to the Craven Street Bridge. Water line improvements will be made to the roadway as part of the infrastructure improvements.
• Greenway. This component of the project includes construction of a greenway along the north-east side of the property. The greenway will be constructed on an easement provided to the City by New Belgium.
• Off-site Infrastructure Improvements. This task includes making intersection improvements for safer and more efficient travel of truck traffic to and from the site, specifically at the intersection of Haywood Road and I-240 and the intersection know as five-points where Roberts Street, Clingman Avenue, Depot Street and Lyman Street intersect. These improvements will be made to accommodate a WB 67 truck.
• Low Impact Parking Lot. This task includes the construction of a low impact development parking lot at the north side of the site to allow the public to park. This property is currently owned by Buncombe County. The City would need to coordinate the construction of the parking lot with Buncombe County officials.