Sawyer Brewing receives $50K SERF loan
SPEARFISH — Another craft brewery is coming to Spearfish.
Sawyer Brewing Company, owned by Lee and Ali Eddy, of Spearfish, received a $50,000 Spearfish Economic Revolving Fund loan. They plan to open a brewpub and wood-fired pizza establishment in the Village at Creekside, a multi-use commercial development off of North Avenue, north of Creekside Elementary School and Creekside Estates. Pioneer file photo by Kaija Swisher
The Spearfish City Council Monday unanimously approved a $50,000 Spearfish Economic Revolving Fund (SERF) loan for Sawyer Brewing Company, owned by Lee and Ali Eddy, of Spearfish, who plan to open a brewpub and wood-fired pizza establishment in the Village at Creekside, a multi-use commercial development off of North Avenue, north of Creekside Elementary School and Creekside Estates. The loan would provide term financing for equipment purchases related to the brewery.
“This proposed establishment will complement Spearfish’s growing craft brew environment,” Kory Menken, Spearfish Economic Development Corporation (SEDC) executive director, said.
The SERF program, a municipal financial resource created in 1992 and amended in 1993, 1997, 1998, 2001, and 2015, provides short-term, low-interest loans to manufacturers/service exporters expanding or relocating to Spearfish. There are no minimum or maximum loan amounts.
Menken explained that SEDC received a SERF application from the new entity on Jan. 10, and after reviewing it, SEDC recommended “that the loan application be approved in that the project satisfies the primary goal of SERF to complement funding sources from the private and public sectors, resulting in an enhanced and more fully developed economy in the Spearfish community,” the term sheet states.
The loan would be extended at a fixed interest rate of 5 percent per year, requiring monthly payments based upon a seven-year amortization schedule, and the loan will be secured by a shared second position on business assets (equipment, inventory and fixtures), and the personal guaranty of the borrowers, Menken explained.
He added that Sawyer Brewing Company was also approved for a $50,000 MicroLOAN from the South Dakota Development Corporation/Governor’s Office of Economic Development (GOED).
“My wife and I are excited to be joining the craft beer community here in Spearfish,” Lee Eddy said Tuesday. “Being from Spearfish, I am excited to start a business in such a neat location.”
He added that this is a new venture for the couple. He thanked the city of Spearfish and SEDC for their help with the opportunity, and he added that the hope is that the project would be underway and open for business mid-summer.
“SEDC is excited to welcome Sawyer Brewing to Spearfish as they will be an excellent addition to our growing craft brewing community,” Menken said Tuesday. “Craft breweries are becoming a vibrant and flourishing economic force at the local, state, and national level. Small and independent American craft brewers contributed $67.8 billion to the U.S. economy in 2016 and helped to create more than 456,000 jobs. Spearfish’s developing cluster of craft breweries has the potential to serve as a strong economic engine for our community.”
The brewery would be the first business to utilize amendments made the covenants on the property.
In March 2017, Lee Eddy requested the amendments to allow for the on- and off-sale of beer and/or wine, which would allow for the brewpub and pizzeria. The Spearfish School Board and Spearfish City Council approved the amendment in April 2017.
The covenants, which prohibit the sale of on- and off-sale alcohol; adult video/book stores or similar facilities; nightclubs/strip clubs; sale of firearms/dangerous weapons; shooting ranges; sale of tobacco/tobacco products; heavy industry; and facilities for housing or processing animals, were part of the original sale of the property in 2009. Johanna Meier Della Vecchia sold property to the Spearfish School District and the city for the school and open space, and covenants were placed on the entire property, including the Meier ranch area that was later sold to Spring Creek Ranches, LLC, and is currently being developed as the Village at Creekside.
In 2014, the city and school district also amended the covenants to allow the sale of alcohol in a properly-licenses restaurant facility, creating an on-sale full service restaurant liquor license. That license price was set at $130,000.
Lee previously told school board members that that license wouldn’t fit the vision for the brewpub/pizzeria.