Opening a new taproom and brewery in Skokie amid a pandemic, along with a few unforeseen construction cost overruns, gave Sketchbook Brewery owner Shawn Decker a few headaches.
But Decker is not one to cry in his beer. Instead, he turned to the village for relief and was recently given a $150,000 grant to help his new business.
The Skokie Village Board on March 1 voted unanimously in favor of giving the brewery $150,000 in funds from a Tax Increment Financing (TIF) district to help offset cost overruns associated with opening the brewery and taproom at 4901 Main Street in Skokie
“I just want to say you took an abandoned or vacant blighted building and have transformed it into a high quality local brewery and taproom which is going to be one of the keys to our downtown success, I think,” said Trustee Randall Roberts at the March 1 meeting. “It’s going to be a wonderful addition this summer, I think. You’ve partnered with some local restaurants who desperately need help.”
In a memo to the board, Village Manager John Lockerby said staff reviewed and confirmed the costs overruns incurred by Sketchbook and that they recommended authorization of a TIF “Pay As You Go” grant in an amount not to exceed $150,000.
“The specific categories whereby cost overruns have occurred and reimbursement is being requested include the following: sewage line renovations and replacement, HVAC expansion, concrete flooring, plumbing/electric for boiler and cooler, metalwork, new fire hydrant, and silo and glycol chiller enclosures, among other items,” the memo said.
Sketchbook opened late last July after considerable costs overruns associated with converting an old warehouse space into something new, including having to pay $20,000 to have a fire hydrant installed in front of the building, Decker said.
“We have some major infrastructure issues that came up between fire prevention and sewage lines,” he said in an interview. “I think partly that TIF money is basically helping us with those expenses after the fact. They kind of wiped us out.”
The brewery, which also has a location in Evanston, is still struggling financially due to the COVID-19 pandemic, Decker said.
“I won’t pretend that COVID hasn’t kind of wiped us out and we’ve lost money for nine months,” Decker said. “That hasn’t helped either.”
Normally, TIF moneys are included as part of a development deal signed before construction on a project starts, but giving $150,000 to Sketchbook Brewing Co. made sense because of the deep cost overruns associated with transforming an out-of-date warehouse space into a modern brewery and taproom during a pandemic, said Len Becker, economic development manager with the village.
“In the case of Sketchbook, this was an extraordinary unanticipated event based on all of the overages,” said Becker. “They’re an important addition to the community and a tremendous asset to not only the village, but downtown. This was in good faith from the village. We were happy to award them this grant.”
He also said it is expected that Sketchbook will generate about $70,000 annually in food and beverages taxes for the village.
“We don’t predicate it on sales tax, but it certainly helps,” said Becker. “When we look and analyze this we know we’re going to be reimbursed not only with the sales tax aspect, but also the increase in value of that occupied portion of the building with all of the equipment.”
Becker emphasized the role the brewery can play in anchoring the north end of the town’s downtown district.
“It’s very walkable from the Tech Park from the CTA station. Having a brewery in your downtown … it’s one of those things you really want to draw from a destination standpoint,” he said. “People love breweries. They love to go on brewery tours.”
Decker said the TIF grant was a lifeline for the business. He also offered advice to other small businesses struggling to stay afloat during the pandemic.
“You have to watch all your spending like crazy,” he said. “You have to pivot and be really innovative. For us, it was going to takeout and delivery service.”
Brian L. Cox is a freelance reporter.
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