Fermentorium plans on track with new loan

By Denise Seyfer - News Graphic Staff

May 21, 2015

PORT WASHINGTON — Plans for a micro-brewery in the town of Cedarburg are moving forward after issues with a business loan were addressed, according to Ozaukee Economic Development Executive Director Kathleen Cady Schilling.

The Fermentorium will specialize in handcrafted beers and micro-brews and is owned by Grafton resident Kristopher Volkman. It will be located at 7481 Highway 60, across from Cedar Creek Motor Sports. Its business model shows the brewery will offer seasonal and limited release-only brews and will include beer styles from the traditional favorites such as Hefeweizen – a German wheat beer – to spirit barrel-aged beers.

In her update to the County Board Executive Committee earlier this month, Schilling said the $50,000 loan, granted through the town of Cedarburg loan program and supported by Port Washington State Bank, will now be awarded to Volkman, instead of the business.

Schilling said the bank had concerns about being third in line for repayment behind the county and Ridgestone Bank. The loan will now be covered by personal collateral. Since the loan will be used for building and well improvements, this fit the loan obligations and increased the collateral position for PWSB, Schilling said.

Volkman and the property owner were able to work the payments into the lease agreement, according to Schilling’s information to the committee.

The company also attained a private equity investment and Small Business Administration loan from Ridgestone Bank and an $80,000 revolving loan fund through the state’s Community Development Block Grant Program.

To date, town of Cedarburg officials have approved zoning changes and a building permit, but must still must issue a liquor license, Town Administrator Jim Culotta said.

According to the business plan, the company will begin selling wholesale kegs to area bars, 22-ounce bottles for retail sale and 750-milliliter limited release beers at the brewery only. The company will start by self-distributing its product.

According to the initial business proposal, the facility will encompass an existing 12,500-square-foot corrugated steel storefront and industrial space, where Critter Supply Central was once located. An additional 77,000 square feet will allow for a spacious beer garden, outdoor deck seating or event space.

Denise Seyfer can be reached at .