E-Malt.com News article: Canada, BC: Mt. Begbie Brewing in Revelstoke asks for tax break to build new $2 million brewery

Although it’s not budget time yet, Revelstoke City Council faced a tough taxation question at their October 22 meeting, when Mt. Begbie Brewing Co. president Bart Larson’s tax appeal letter was on the agenda, reports Revelstoke Times Review.

Larson wanted a tax concession of some kind in order to build a new brewery, and noted that Salmon Arm was an option, where taxes are significantly lower.

It’s no big secret the successful, locally-owned brewery is hunting for a new home. They’re bursting at the seams, and rent significant storage off-site. The Times Review has spoken with the brewery ownership in the past months about rumoured locations, but nothing was final enough to report on. A lot near the Revelstoke Railway Museum is one proposed location.

In his letter to council, Larson said the existing taxation levels will make building a new, 15,000-square-foot facility cost-prohibitive, estimating monthly taxes on a $1.5–$2 million light-industrial facility to be about $7,500.

“I believe, in our case, these taxes will prevent us from going forward with this project,” Larson writes.

Larson said the brewery employs just over 10 full-time employees, saying that number could “easily” double if their current 20 per cent annual growth rate continues. “More permanent, full-time residents are desperately needed here. [We] provide benefit to our community in numerous ways besides paying taxes. Examples include the significant portion of our revenue that is directed toward local clubs and non-profit organizations, healthy yeast for our sewage plant and free grain for local cattle farmers.”

Larson, who served on the city’s most recent citizens’ budget focus group, requested a review of class 5 and class 6 property taxes, saying they are, “significantly higher than surrounding communities and could potentially deter any other potential interested parties in doing business in Revelstoke.” Larson also suggests possible tax concessions if Mt. Begbie is to build a new brewery.

“I have determined that we would pay 31 per cent less in taxes to do the same building project in Salmon Arm,” he writes.

At their October 22 council meeting, everyone agreed they wanted a new brewery built in Revelstoke, but the question was how to get there.

Bart Larson addressed questions from council at the meeting, saying he hoped to begin construction next summer, so moving forward quickly is important.

"We're pretty much at the ceiling of production in our existing facility. A new brewery is something I would really like to do," Larson said. "It's going to be something that's going to become an issue for us pretty soon – not being able to grow."

He hoped for a decision within a month, saying he just needed a "yes or a no." He added he didn't have real estate secured, and potential lots could be sold at any time.

Mayor David Raven said he wanted the new brewery to be built in Revelstoke. "I would really, really love to see this go ahead," the mayor said. He added later that any solution would need a proper "legal framework."

In the end, council agreed to refer the issue to its economic development committee and city staff for consideration of ways to move forward. They requested a speedy turnaround and report back.

In an interview outside the meeting, Larson said a move to Salmon Arm isn't his preference: "That would be a very tough decision. It is not something [we] would come to lightly. I moved to Revelstoke for a reason. I am a Revelstoke boy. That's where I want to be," Larson said. "It would have to be a last resort."

Larson, who is from Revelstoke, holds a PhD in physics and worked as a researcher in nuclear physics before deciding to make his brewing hobby a full-time job. He relocated back to his home town to open Mt. Begbie Brewing Co.

He didn't have suggestions onto the kind of concession he is seeking, saying it's up to the city to make proposals.

Larson said designing a new building that can properly accommodate tours and tourist amenities is part of their reason for the expansion.


25 October, 2013