Two Brothers Brewery can get $5M of help from Aurora

With plans to operate the Roundhouse and a beer distribution warehouse in Aurora, Two Brothers Brewing Company of Warrenville is almost ready to make its presence known in the City of Lights.

Under development agreements approved this week, the brewery can receive up to roughly $5 million in city funding to assist with purchasing and renovating both properties.

Most of that money — $3.96 million — will be available for costs associated with a warehouse Two Brothers is buying at 1103 Butterfield Road, co-owner Jason Ebel said. The remaining $1.3 million will support fixing up the Roundhouse, according to the development agreement.

Ebel said Two Brothers plans to operate similar attractions as the Roundhouse had under its previous ownership: a restaurant, microbrewery, banquet hall and music venue. The restaurant will be unveiled first with a grand opening scheduled for 4 p.m. Friday, June 24.

Money approved in the development agreement will come from one of Aurora's tax increment financing districts and be paid over 12 years, beginning with a $200,000 payment before Sept. 1 and continuing with $100,000 every year until the full amount is reached.

Although the Roundhouse cost Ebel's company only $1.1 million in a bankruptcy court purchase, he said city TIF funding will help because the Roundhouse needs at least $3 million in renovations.

“The reality is so much has to go into it to get it ready and make it not just a viable but a thriving business, and make it some place that people want to come back to,” Ebel said.

The company's other Aurora project involves moving its Windy City Distribution arm to the Butterfield Road warehouse. Ebel said he expects the building to cost $7.5 million, and necessary renovations to bring the warehouse's total to $12 million. Most of the city funds for the warehouse — $3 million — will be paid when Two Brothers buys the property, with $960,000 to be paid a year later if the business meets certain conditions.

To receive TIF money for the Roundhouse and the warehouse, Two Brothers must meet standards of employment numbers, liquor license requirements, tax obligations and insurance protection, according to the development agreements. The warehouse agreement also comes with a lien for the entire $3.96 million that will expire after Two Brothers owns and operates the facility 10 years.

“There are definitely rules you have to follow for the city to give you these tax incentives,” Ebel said. “We understand why they're in place.”

Ebel said the city alerted his company to the Roundhouse's availability after previous owner Scott Ascher filed Chapter 11 bankruptcy in February. Once the purchase was final, the brewery and the city worked together on the development agreements, he said.

“They want to make sure we're a good partner with the city,” Ebel said.