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Could beer help the Twin Cities?

Minneapolis Mayor R.T. Rybak, center, tending bar
Photo by Andy Holmaas
Minneapolis Mayor R.T. Rybak, center, tending bar at the opening of Indeed Brewing in Northeast Minneapolis.

It only takes a menu in a local restaurant listing exotically named concoctions like Fulton Lonely Blond, Left Hand Chainsaw Ale and Rush River Double Bubble to let you know that craft beers are booming.  

There are now 2,126 breweries in the United States – about 350 more than last year – according to the Brewers Association, a national trade organization. Most of them fall into the "craft" category, which means that they produce fewer than 6 million barrels a year, have ownership that is predominantly independent, and emphasize malt brews. The industry employs 104,000 people nationwide, full- and part-time. And that's not even counting their microbrew and brewpub cousins, which are restricted to under 15,000 to 35,000 barrels a year.

Minnesota has been a stalwart in the beer boom. Clint Roberts, spokesman for the Minnesota Craft Brewer's Guild, says his group now has 50 members, including 35 breweries and brewpubs. Membership grew by 30 percent just in the last 18 months. In 2010, the industry provided 17,554 jobs statewide and paid $156 million in sales tax.

Regulations have eased

In an effort to nurture the still young industry — 91 percent of Minnesota drinkers are still choosing mass-produced beer, according to Roberts — local governments have eased up on regulations.

Surly Brewing asked for and won a major concession from the Minnesota Legislature: the right to operate taprooms out of its manufacturing plant. Planning is already under way for a $20 million restuarant and beer garden — though Surly hasn't decided where it will be. (Both Minneapolis and St. Paul mayors have said they want it.)

To help fledgling breweries that can't get shelf space at liquor stores, Minneapolis' City Council now permits sale of half-gallon jugs or "growlers" directly to the public. Jon Messier, co-owner with Eric Biermann of Lucid Brewing, which opened recently in Minnetonka, says that city planners worked together with him and his business colleagues for a fast startup, even though "it was the first brewery in Minnetonka and there was no formal licensing procedure."  

Still, maybe it's time to do more.

How breweries could help the local economy

I'm not advocating that the Twin Cities encourage these enterprises merely to delight beer dilettantes — or to create a populace of the permanently sozzled. I'm looking at breweries as tools that could help boost the economy and tourism and create fun places to hang out, which could enliven areas of the metro that now look to be dull, if not dead.  

Here's why:

Craft breweries are original. They provide a unique sense of pride and place where people want to come to spend money, especially if the plants open their doors to tourists, sponsor tasting rooms and operate tap rooms or beer gardens. So much of the American landscape is covered by chain stores of one sort or another that people hunger for places and products with character, not just templates that are replicated everywhere.

A proliferation of such businesses would help to keep the Twin Cities from what I consider the horrible fate of Orlando, Fla. Very nearly every store, restaurant and bar (that isn't part of the Disney empire) belongs to a national chain. Sure, chains can be good, providing customers with a predictable quality of goods or service, but after a steady diet of them, you can't help but hanker for something with a little local flavor. 

Breweries get our cities' names circulating. It would be preferable if the brewers helped to publicize us by connecting the place to the brand with names like St. Paul Frozen Tundra IPA or Minneapple Chain of Lakes Ale — but that may be asking too much. The label specifies the beer's place of origin, and that on its own could add to our cities' reputations as generators of unique items.

Craft breweries have the potential to juice up the economy. While beer consumption dropped by about 1 percent last year, sales of craft beer grew by 15 percent in 2011 and another 14 percent in the first half of this year. Considering that craft beer represents a bit less than 6 percent of total production, it has plenty of room to grow. And when breweries grow, they "export" their products to other parts of the state and region. Doing that brings new dollars into the area.

What's more, breweries are good light industries. They do send pollutants into the air, but nothing on the order of pesticides from agriculture or lead spewing from industrial parks. Relatively speaking, brewing is a clean manufacturing enterprise that can exist in a city. Yes, breweries would increase traffic, but remember, places without traffic are usually places without economies and jobs.   

Beer tourism is becoming ever more popular. According to the New York Times, both Bend, Ore., and Asheville, N.C., which proclaims itself Beer City USA, have promoted their craft beer businesses as attractions. And, while the Twin Cities have plenty of interesting museums and theaters for tourists and business travelers to visit, craft breweries could be another draw.

Other cities are way ahead of us in trying to draw breweries. Asheville, for example, persuaded Sierra Nevada, a Chico, Calif., brewer, to build its East Coast plant there. New Belgium Brewery of Fort Collins, Colo., which makes Fat Tire Amber Ale, also moved there. To lure them, the city gave out aid packages that included loans and infrastructure improvements: $4 million to New Belgium and $6.1 million to Sierra Nevada.

Create incentives, ditch old rules

What could we do that we haven't to help this industry along, aside from handing brewers gobs of money? Well, one way might be to create a TIF or tax incentive financing district for craft brewers along Hiawatha Avenue, as one example, where they could start businesses. The cost of improvements to any buildings used there would be assessed to increases in property taxes due to the improvements. Although city plans now call for housing and retail along this light-rail corridor, not a lot seems to be  happening there. So maybe the area should allow businesses like breweries.   

Finally, it may be time to ditch all those antiquated rules about how far apart liquor establishments and bars have to be from each other. They are inhibiting growth for no good reason. One group of investors trying to open a small craft brewery near Uptown in Minneapolis couldn't, says Andrew Schmitt, the director of Minnesota Beer Activists, "because they intend to sell growlers (64 oz. jugs) [and] would be held to same off-sale restrictions and zoning requirements as any off-sale liquor store. These are two totally different entities that are held to the same standard by antiquated rules."

When the brewer contacted Meg Tuthill, the local councilwoman, about his efforts to get his business off the ground, she left a snooty response on his voicemail. "I don't work on changing ordinances for one business," she concluded. Well, sure, but council members  could work on changing the ordinance for all of them. 

Look for a better model

Just why governments should concern themselves about this mystifies me. My experiences living in New York City tell me that such regulations lead to corruption — to maintain hegemony in a neighborhood, a liquor store or bar bribes (or donates to) members of the state liquor board, his city rep or whoever else has any say. That's not a model that we here should copy.

Further, cities don't specify the number of dry cleaners that can operate in an area, or dress shops, restaurants, groceries — or balloon stores, for that matter. Burger King cannot stop McDonald's from opening up across the street. Our free-market credo lets every business compete. Whoever does the job best, cheapest and fastest wins. It seems to me the liquor business should be subject to the same rule.

* * *

A couple of weeks ago I wrote about the effort to re-open Nicollet Avenue at Lake Street  where a Kmart and Sullivan's Supervalu straddle what once was a cross-street and a lively intersection. At the time, I tried to reach John Sullivan, the supermarket owner. He was on vacation but called back yesterday.

His take on the matter: "I think it [reopening the street] would be good for the neighborhood." People who live in the area, he points out, have to go around the Kmart-SuperValu complex to get to Lake Street, at great inconvenience. His store, he adds, is in a 35-year-old structure. "I'm not servicing the community as I wish," he says. His hope: to be able to build a new store on the redesigned intersection.

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Comments (10)

How about a couple billion $$ for local breweries ??

Minnesota breweries are far more of a “cultural asset” than a professional football team – a longer history, more fans, and those fans are more enthusiastic, too !!

(This “cultural asset” line was used by Vikings lobbyists at the state legislature to bamboozle legislators who thought it was a lousy deal, or who wondered why they should vote for such a massive handout of public monies to a single private business. You know, like it’s not about the money, it’s about a “cultural asset”. How they kept a straight face, or how any legislator swallowed this, is beyond me.)

These local breweries would also differ in that they produce REAL jobs and REAL economic activity - exceeding the phoney-baloney claims of economic benefit from a pro sports palace.

All those state legislators who voted for the stadium should line right up for this one, eh ?? As far as the Minneapolis City Council, well, it depends on where the money is, so some of that couple billion should be set aside to grease the Council. That will clarify their thinking.

Your personal animus

Ms. Harris, I've read several of your MinnPost pieces, and while I've appreciated the information you've presented, I'm NOT impressed by your display of hostility toward Minneapolis city council member Meg Tuthill.

Today's petty dig was "she left a snooty response." I blinked at that, but it wasn't as much a jaw-dropper as these lines, in your piece on Trader Joe's quest to move onto Lyndale:

"But Meg Tuthill, the local 10th Ward council member, announced definitively that she was agin’ it.

"We would be changing the zoning for one business," she declared, sounding a bit like a schoolteacher who had caught one of her pupils smoking in the cloakroom.

What's more, she had received complaints from residents, which was significant in her mind: "Usually, they roll over for developers," she said with the tiniest of sneers."

I don't know Meg Tuthill, but I don't care for YOUR sneers at HER. Those subjective remarks leap out of both pieces, which otherwise seem perfectly reasonable. A snide tone makes your articles seem less reliable as reportage. Please leave it to the gossip columnists. And by the way: I'm a fan of schoolteachers, and opposed to students smoking in cloakrooms!

Marlys is actually TOO KIND to Meg Tuthill,...

...FAR TOO KIND.

With regard to Ms. Tuthill

I suggest that you listen to the voice mail Ms.Tuthill left for this petitioner. I embedded it in my copy so that readers could assess her stance for themselves. It's in the fifth paragraph from the end of my piece.

As to the Trader Joe's controversy, yes, she received some complaints, but there were also many people in the neighborhood who wanted that development. She saw them as people "rolling over for developers" rather than people who had legitimate reasons for wanting a store there. To me her comments and her tone reflected disregard for her own constituents.

Voicemail

Ms. Tuthill's voicemail is the definition of snoody. Very rude, combative and demeaning as well.

Referring to someone as hunny given these circumstances was pathetic. Here we have a citizen (tax payer) trying to open a local buisness, and you are going to refer to him as hunny? He is not your grandson or husband, and you do not personally know him.......clean that crap up and try and be more professional when conducting your duties as a council woman.

Not there yet

While developments are encouraging, let's not congratulate Minnesota overmuch for a craft brew renaissance. Although this list isn't totally up-to-date, Minnesota pale ales in comparison to Michigan, Florida, Colorado and even Utah!

beer.wikia.com/wiki/United_States_breweries_by_state

One example of where the small brew law could be improved relates to sales of growlers. In Minnesota (vs., say, Colorado, Washington and Oregon), you can only buy off-sale beer in containers labeled by the brewery. That means the consumer must own (or purchase) a jug for every brew pub they frequent. It discourages trying other businesses and spreading the trade around.

The beer wikia list cited is

The beer wikia list cited is way too out of Date. Consult MNBeer.com (local) or Beeradvocate.com for a more current list of Minnesota breweries and brewpubs. While we have a way to go to catch up with the big boys, ~42 breweries and brewpubs isn't bad. Consider that that number was quite a bit less 5 years ago and I think it's fair to say we're having a renaissance.

One question for the Craft Beer Guild - 17,000+ jobs? I have no doubt our local industry employees a lot of people, but 17,000? Summit, Schell's and all of the distributors in the state aren't that big...

Never heard of Asheville

If this is how beer puts a city on the map I'm not impressed by the example's provided. I'm not saying tap rooms and stuff are a bad idea but it would be interesting to know why all these restricting laws exist in the first place. I'd also like to know why they can't get the beer on local shelves. And remember, just because it's local, doesn't mean it's good.

Beer City USA

Just so we're clear on something here, Asheville, NC does not "proclaim itself Beer City USA". We in Asheville won that title in Charlie Papazian's online poll for the last four years running.

@Paul, you never heard of Asheville? We've been named one of the best places to live in so many magazines and articles it's impossible to list them all. Fact is, you just heard of it. And we all hope you come for a visit.

Our craft beer scene has made an unprecedented impact on our economy. It all started organically, however. It wasn't anyone's direct intention to stimulate the economy, it just happened that way.

Wanna know more? http://beercityguide.com

Marlys Harris

I've been casually perusing Minn Post for sometime, and I would like to say Ms. Harris has become a "must read" reporter for me.

Her pieces are consistently thoughtful, insightful, and interesting.

Kudos..................