stone brewing - richmond

Stone Brewing - Richmond4300 Williamsburg Avenue

Richmond Real Estate Group / 2015-2016 Impact Award

Submittal Contact: Hourigan Construction - Michael HenleyAddress: 411 East Franklin St., Suite 400 / Richmond, VA 23219Phone: 804.282.5300


A Stone Brewing Engineering Supervisor overlooks as the fermentation tanks are unloaded at the site from a barge on the James River.

From left to right: Greg Koch-Stone Co-Founder, Richmond Mayor Dwight Jones, and Steve Wagner-Stone Co-Founder at the Raise the Roof event celebrating the arrival of the brew house and installation of the brewing system.

Stone Brewing RVA

Stone Brewing Company

Company Overview

Founded by Greg Koch and Steve Wagner in 1996, San Diego-based Stone Brewing Co. is the 9th largest craft brewer in the United States. Stone has been listed on the Inc. 500 | 5000 Fastest Growing Private Companies list 10 times, and has been called the “All-time Top Brewery on Planet Earth” by BeerAdvocate magazine twice. The multi-faceted company will be the first American craft brewer to own and operate its own brewery in Europe. Known for its bold, flavorful and largely hop-centric beers, Stone has earned a reputation for brewing outstanding, unique beers while maintaining an unwavering commitment to sustainability, business ethics, philanthropy, and the art of brewing.

Community Involvement

Being an active member of the communities in which they operate, Stone’s passion for community is much more extensive than donating money and beer to good causes. They invest in the missions of the charitable organizations and see the citizens of Richmond not as potential customers but as neighbors and future friends.

Thanks to loyal fans, passionate volunteers, craft brewing compatriots and employees, Stone contributed more than $345,000 in cash and more than $150,000 worth of beer to a wide variety of charities in 2015. This included fundraising events and other endeavors that benefited many in need. It’s a part of who Stone is and what they will strive to be in their new home.

“Since establishing Stone in 1996, we have donated more than $3 million to charitable and nonprofit organizations throughout the world. We are dedicated to supporting our community and promoting a culture of social responsibility. Stone believes in investing in organizations that make a positive difference in the cities where we live. Cheers to our fans and the people who make these contributions possible!”—Stone CEO & Co-founder Greg Koch

Why Richmond

In 2014, Stone launched a comprehensive search for an east coast location for its growing operations. This exhaustive eight month selection process generated hundreds of proposals from communities up and down the east coast. Understanding the social and economic benefits of drawing a large craft brewer with values like Stone made the competition for their eastern U.S. facility extremely fierce. Stone reported that its site selection process entailed visiting more than 40 localities including Myrtle Beach, S.C.; Charlotte, N.C.; and Wilimington, N.C. These are several key attributes of Richmond that caught the attention of Stone.

1. Lifestyle. The abounding activities and existing craft beer scene was certainly an early draw for Stone. Craft Beer has been a staple of the Richmond scene since Virginia’s oldest operating microbrewery, Legend Brewing Company, opened their doors over two decades ago. Since that time, over 130 craft breweries have popped up in the Virginia Region making the state and specifically Richmond a beer lovers paradise. In addition to the beer and nationally recognized food scene, Richmond is home to a large collection of outdoor enthusiasts. Easy access to the James River along with the numerous running, hiking, and biking trails throughout the city prompted Richmond to be voted the Best River Town in the U.S. by Outside Magazine in 2012.

2. Distribution Hub. The central location and business friendly atmosphere of Richmond, VA provides Stone an ideal location for the wide spread distribution of their internationally known beers. The ideal location along 95 provides excellent access to 40% of the nation’s population within a days drive. According to Stone, the Richmond facility will distribute up and down the East Coast and support distribution East of the Mississippi River.

3. Incentives. The major investment in the site and facility by the City made the deal a viable option for Stone. The Economic Development Authority took the chance to revitalize a forgotten part of town in this public-private partnership in order to bring this high profile business to the area. The deal allows the city and region to benefit as Stone will bring new jobs and an increased tax base to the area while repaying the city during a 25 year lease.


This aerial from early 2015, shows the beginning stages of the site work for the site at the intersection of Williamsburg Avenue and Nicholson Street.

Stone Brewing RVA

Site Selection

City Involvement

As more was learned about the company and its values, it became apparent that Stone’s qualitative criteria included locating to an area where they could make a meaningful difference in the community. The City of Richmond team worked diligently with the Company to identify a suitable location that would meet the logistical and operational needs of the Brewery and Bistro, but also meet the City’s goals of stimulating revitalization, private investment, jobs, and tourism. Through this process, the City partnered with the Economic Development Authority to develop the Facility and to assist in achieving key economic development objectives. The approach to attract Stone Brewing Co. to Richmond took creative solutions that accomplished multiple objectives, and leveraged key assets along the eastern riverfront.

The Property

A long overlooked site in the Greater Fulton Community, owned by the Richmond Redevelopment and Housing Authority (RRHA) offered an ideal location. The site had been vacant for forty five years since residents were displaced from their homes to make way for an Urban Renewal Plan that never truly materialized. The property was located near the James River and offered a prime setting for all the components of the project. The City and the EDA worked extensively with the RRHA board and HUD’s Regional office to obtain approval to redevelop the land for Stone’s brewery. In order to achieve the total acreage necessary for Stone, additional parcels had to be acquired from CSX and private property owners. All were very supportive of making their properties available and helping the City win this unique project.

The selected site was defined a brownfield site die it’s previous use as a concrete mixing plant and staging area, as well as a former residential development. The site was also partially below the flood plain, and structural fill/crushed concrete was brought in to raise the building pad 5-6 feet. I addition the use of geopiers and rigid inclusions were required to improve the soil load bearing capacity for the brewing tanks and equipment.

Layout

In total 14.5 acres were developed to include: the main brewery facility, 2 parking lots for 276 cars, and material receiving and distribution docks. The property is bisected by Gillies Creek and the CSX train tracks requiring 220 feet of reclaimed bridge to connect the parking to the front entry across Gillies Creek. This layout on the site is not typical as the front entry way and beer garden is situated to face away from the street. The views of the city, train track, and Gillies Creek prompted the decision for this unusual arrangement. After crossing the reused bridge sections into the Beer Garden area, one understands why the front of the building was placed towards the back.

View of the walk bridge and train tracks from the second floor tour path looking back towards downtown Richmond. The site layout and programming adjacencies are meant to preserve and highlight these sight lines.


Shot of the abandoned Fulton Gas Works facility located adjacent to the site. The hope is that this brownfield site will also be developed as a result of the increased draw to the area and increased surrounding land value created from Stone Brewery.

Stone Brewing RVA

Transactions & Financing

Real Estate

The complexity of the land assemblage and entitlements took numerous transactions and agreements among many parties. This pioneering project was set in motion when the Richmond City Council voted in favor of a Performance Agreement with the Richmond Economic Development Authority that set forth the framework for global Performance and Cooperation Agreements between the City, Stone, and the EDA. Many more transactions were then necessary to carry out the various components of the entire project, including multiple real estate acquisitions (4 property owners & 26 parcels), street closures, zoning variances, lease agreements, performance agreements, governor’s opportunity fund agreement, financing agreements, and cooperation agreements. It took hundreds of professionals engaged in making it a reality.

Financing

The financing for the project was another important element of the competitive approach and consisted of General Obligation Bonds provided by the City of Richmond to the EDA. While this type of financing is considered somewhat unconventional, the City, its financial advisors, and City Council approved the transaction based on a stringent review of the company’s credit. The debt will be repaid by the EDA from the lease revenues, over the lease term. Stone has stated that the savings realized by not having to ships its refrigerated product across the country will more than pay for the rent on this new facility.

Stone Investment

The investment by Stone is expected to exceed $70 million for the Brewery exclusive of the Bistro. This significant sum is mostly dedicated to the brewing equipment. The top of the line stainless steel brewing equipment, that was mostly shipped from Germany, is sure to outlast the 25 year lease of the building. Stone’s financial commitment is a clear indication that the company intends to remain a member of the Greater Fulton community for a sustained period of time.

Scan QR code for a video of Jane Ferrara, EDA, discussing bringing Stone to Richmond.

Virginia Governor, Terry McAuliffe, raises a glass of Stone beer at the December Raise the Roof event.


The tasting room serves as a base for the brewery tours and also a company store where customers can purchase Stone gear and fill growlers along with sampling the beer on site.

View from the tour path of the bottling area with racks for process piping.

Stone Brewing RVA

Project Description

Facility By the Numbers

• 216,000 Square Feet

• 600,000 Barrels of beer annually at full capacity

• 400,000 lbs. - Full weight of each fermentation tank

• 40,000 gallons - Capacity of fermentation tanks

• 25’ 6” - Diameter of the Lauter Tun

• 4,100 Mi - Distance tanks traveled from Germany to the Richmond Deep Water Terminal

• 1/2 Mi - Distance tanks traveled from the James River to their final installed location

Operations

The building will provide for all aspects of the brewing process including production, packaging, storage, and distribution. The facility also supports offices and a beer garden area with a Stone Company Store. For its visitors, Stone incorporated an elevated tour path that overlooks the entire brewing process from raw material to distribution. The tour path is connected to the retail/beer garden area allowing people to enjoy Stone’s quality beer while they watch the same beer being brewed just feet away.

The elevated tank farm structure will eventually support forty fermentation tanks to allow for the production of over 600,000 barrels of beer per year. This significant quantity would surpass Stone’s production at their current facility in California which brews approximately 200,000 barrels per year. The increased production capacity will eventually allow Stone to distribute up and down the East Coast and as far west as Denver, CO from Richmond.

Architectural Significance

The building may resemble a typical industrial warehouse from the exterior; however, on the inside extensive planning and coordination was necessary to make the complex brewing process function. The interior is a finely tuned machine for the production of top quality craft beers. Each and every major piping system and structural platform was modeled digitally to allow for the team to increase efficiency for construction and for the production of Stone’s beer.

The centerpiece of Stone Brewing Co.’s new production and distribution facility in Richmond is what is referred to as the “Tank Farm,” an elevated concrete platform that will eventually hold 40 fermentation tanks at full capacity. The shining stainless steel tanks rise majestically out of the building, their weight supported by tons of concrete and rebar. Inside the Tank Farm, brewers are able to walk underneath the equipment to access piping and brewing systems in an efficient manner while being protected from the weather.

The Tank Farm structure was a complex one to create, and required the Hourigan Design-Build team, comprised of Draper Aden Associates structural engineers, Hourigan’s pre-construction planning group, and engineers at Stone to spend time researching existing facilities of a similar structural nature. Through detailed reviews with Stone Brewing’s engineering team, the group analyzed the systems, production needs, and expansion requirements to define the most efficient design concept for the facility. Because very few comparable structures exist to meet the owner’s demands, the Hourigan Design-Build Team, along with project managers at Stone, took a close look at a few unique facilities around the country.

The Stone Brewing Co. team enjoyed the idea of building upon a brownfield site. However, the soils on the site were not able to bear the immense weight of the operation’s extensive brewing equipment needs without improvement. Engineers determined that the soil required 6,000 pounds per square foot of bearing capacity, so Hourigan had to inject grout-and-gravel filled rigid inclusions below the tank farm to tighten the earth. Five-hundred rigid inclusions were drilled below the tank farm to meet the bearing capacity requirements.

Between the foundation and the Tank Farm engineering, the end result for the client is ultimately a lower cost and more efficient design. Through careful planning and research, detailed engineering, and coordination of process needs and specialty structures among many parties, the project team was able to deliver a world-class facility on time and within budget.


Project Photos

Raw material / ingredient storage and delivery area to the west side of the building.

View of the tasting area from the second floor

Stone Brewing RVA

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Above: The 40,000 gal. fermentation tanks from Germany were delivered to the site on November xx, 2015. Scan QR Code for a video of the fermentation tank delivery.

The construction team utilized 3D coordination extensively to minimize conflicts. Pictured here, the as-built installations of the facility are checked against the 3D model.

At the Raise the Roof event, Governor McAuliffe and Richmond Mayor, Dwight Jones as well as other city and state officials toasted to the arrival of the brew house and installation of the brewing system.

Construction Process

Stone Brewing RVA


Oct. ’14 June ’15 - Base Building Design

Timeline

Fast-tracking Virginia’s largest craft brewery in 14 months required not only a considerable amount of planning, but the latest in construction technology. At the heart of Hourigan Construction’s Design-Build team for Stone Brewing’s East Coast distribution facility is Building Information Modeling (BIM). Utilizing BIM helps to identify potential issues throughout construction, minimizes change orders, and ultimately saves the client valuable time and money. Here’s how BIM played a role throughout design and construction.

Strategic SchedulingTo meet the brewery opening requirements of Spring 2016, early design packages were released in late 2014 to support the project schedule and allow the main structure of the building to begin fabrication. While much of the primary structure was released, the brewing process design was still under development. Using the 3D model, structural additions and modifications were made to the design with consideration for the framing that had already been released for fabrication. The use of technology allowed the teams to plan and evaluate changes needed for the beer-brewing process without affecting elements that were already fabricated or installed in the field.

Design CoordinationOne of the primary process drivers for this type of facility is the placement of equipment and the coordination of the brewing tanks, underground piping, and pipe bridge structures for extensive mechanical and process piping. Due to the required speed of construction, and the simultaneous design schedule for these important process coordination items, it was decided that the building structure would use precast concrete panels in lieu of tilt-up concrete panels for the exterior walls. This decision bought valuable time for the process design coordination, and allowed for fast-track delivery of the building shell and envelope.

With BIM, the Hourigan Design-Build team was able to plan with accuracy, find the most efficient routing for MEP systems, prefabricate the material, and install much of the needed infrastructure before the interior concrete floor slabs were ever placed. These decisions allowed for maximum flexibility and speed in a construction process that had an aggressive schedule.

Efficient CommunicationThe utilization of BIM and Bluebeam also streamlined communication, allowing parties involved to communicate more efficiently, particularly across time zones. When it was 10 a.m. in Richmond, Va. it was 7 a.m. at Stone’s San Diego headquarters and 4 p.m. in Berlin, where much of the facility’s equipment originated. Project information was accessible across continents and time zones 24/7, and it’s safe to say that the model was being viewed and used to bridge land, sea, and language barriers.

The model became a rallying point for the team, and a place where all parties pulled together to review the installed conditions and evolving design information. Our team worked closely with Stone Brewing Co. to ensure that their goals were met and we maintained all production deadlines.

Facility Management Model It’s important also to note that the power of this technology doesn’t end when the project is finished. The 3D models and project documentation is maintained and compiled for use in the management and decision making of the facility. This provides an accurate inventory of the physical assets of the built environment – which will be critical to the operation of the brewery and its thousands of feet of piping, brewing, and plumbing systems.

April ’16 - Test Brewing Begins

Nov. ’14 Aug. ’15 - Process Design

May ’15 Feb. ’16 - Construction

Nov. ’15 April ’16 - Facilitization


The structure to support the elevated tank farm involved the use of over 100 tons of rebar and concrete that is five feet think.

The roof structure was designed as a panelized system to allow for the removal of individual roof assemblies in order to place the water tanks, smaller fermentation vessels, and future equipment needs of the interior.


Stone Brewing RVA

This aerial photograph shows the Fermentation Tanks being unloading from a barge on the James River and the short distance they had to travel to reach their final destination. At the bottom you can see the future site of the Stone World Bistro and Garden with a large Stone logo on the roof for aerial coverage during the Richmond UCI Bike Races.

Hourigan Superintendent, Keith Callis, hard at work during the early stages of construction at the Stone site.


More than 600 people applied for employment at the new Stone Facility during a January 2016 Job Fair at the Powhatan Community Center. Photo by Michael Thompson - BizSense

Michael Henley, Client Solutions Manager at Hourigan Construction, takes Virginia Commonwealth University business students on a tour of the Stone facility to highlight the unique Stone business model focused on true craft beer and community involvement.

Stone Brewing RVA

Community Impact

Early Engagement

When it became known that the City was on the short list for this very competitive and highly sought after project, the residents of Fulton took it upon themselves to produce a public art project and video showcasing resident artists and musicians to let the company know that they were wanted and welcomed by the Greater Fulton Community. Stone posted the video to their website and within 24 hours, it had 90,000 hits.

Catalytic Change

The Stone Brewery project became an important catalyst for some other longstanding and unfunded infrastructure improvements. Stone’s decision to select the site included a commitment by the City to make certain investments in the area. Funding has now been approved to complete enhancements of the eastern riverfront area and will enable the City to implement the recommendations made in the Riverfront Master Plan.

Tax Revenue

The city is expected to significantly expand its tax base with the arrival of Stone. Stone sales at the Tasting Room and Bistro are projected to total $10 million per year.

Employment Opportunities

The combination of the distribution facility, tasting room, and World Bistro restaurant are expected to bring 300 jobs to the Greater Fulton area. The brewery and distribution facility will employ 90 full time employees with an average salary of $57,024. This is a drastic improvement for the neighborhood where the average annual income is $17,000.

According to the National Brewers Association, for every job created by a craft brewery, up to five additional jobs are created in the local economy.

Revitalization of Greater Fulton

The presence of Stone is San Diego county has translated to numerous other success stories for people and businesses in the region. Stone is looking forward to serving as an anchor business for what is envisioned as a thriving center of commerce for the Greater Fulton community.

Because of the joint nature of this project, Stone’s goal is to partner with the community to develop Stone Brewing Co – Richmond and Stone Brewing World Bistro & Gardens – Richmond into a location that celebrates American craft beer culture through the lens of Richmond, VA. In order to ensure that this development creates a positive impact and properly embodies the spirit of Richmond, Stone has engaged with the community in a variety ways including: creating a community advisory board, offering to provide community meeting space in the Bistro, attending community meeting, participating in fundraisers benefiting the Community Resource Center, and hold ding job and vendor fairs in the neighborhood.

Not only will this project activate an underutilized property that was not on the tax roles, but it will impact the value of surrounding properties. A majority of the surrounding are undergoing a study period to see the viability of developing those areas. Triple Crossing, a local Richmond brewery, has already announced an expansion to a property near the Stone site.

The Stone World Bistro, to be located over top of Wharf Street adjacent to the Virginia Capital Trail, will redevelop the abandoned City of Richmond Intermediate Terminal Warehouse overlooking the James River. The revitalization of this building and the surrounding landscape will improve both the aesthetics and safety of the area increasing the appeal for all types of individuals.

Fulton residents gather around their #Stone2RVA art display

Scan QR code for a video from the Fulton community welcoming Stone Brewing to their new home at 4401 Williamsburg Avenue. Video by Juliellen Sarver.


Secondary Benefits

Recycled Materials

The production brewery and distribution facility site incorporates many found and re-claimed materials that honor the site’s history and industrial character. Concrete blocks and granite slabs found a new life on the site as seat walls, retaining walls, and steps. The pedestrian bridge is repurposed from a site in Baltimore providing access across the creek from the main parking lot to the brewery front doors. Landscape architects developed a plan that encompasses the reclaimed materials with new materials, which are complementary to the proposed building. Proposed native landscaping and reforestation plantings increase the bio-diversity on-site and improve the Gillies Creek and James River watershed habitat.

Additionally, Stone also saved the trees cleared on the site and has donated them to local woodworkers to make furniture that the company intends to repurpose and possibly use in the brewery tasting room.

Wastewater

The soluble waste produced by the brewing process will be beneficial to the City’s wastewater treatment and utilizing this byproduct will serve as a more cost effective and sustainable method for treating the City’s wastewater. As a result of this project, the City adopted an ordinance lowering the wastewater fees for breweries and similar types of operations that produce such soluble waste. Stone provided the volume for this ordinance to become feasible. All breweries in the City can now benefit from this ordinance. The BOD surcharge change is a global change to city code applicable to all industries served by the city of Richmond who manufacture beer and cider and discharge wastewater to the treatment plant.

LEED Silver Brewery

Reflecting the constant focus on the impact that this facility will have on the community, Stone BRewing wanted to ensure that the facility was rrepresetnative of their commitment to sustainable design and cosntruction practices. This facility has pursued LEED Silver certification through the use of eco-friendly materials and design practices that include:

• 100,000 SF of Photo-Voltaics

• Insulated pre-cast wall panels

• LED light fixtures with motion sensors

• Creative storm water management practices

• Efficient mechanical systems

• Reclaimed wood, steel, and bridge structure

Segment of the recycled pedestrian bridge used to connect the visitor parking lot to the tasting room.

Stone visitors sitting on the reused concrete blocks in the patio area.

Stone Brewing RVA

View of the facility from the visitor parking lot.

Why Stone

This high profile project has and will continue to impact the Greater Fulton and Richmond community more than any other project in this past year through:

• Greater Fulton Revitalization

• Employment Opportunities

• New Tax Revenue

• Community Involvement

• Innovative Construction

• National media attention

• Ethical Company Values

Finally, the City of Richmond has grown to be a brewery haven – offering many local craft beers unique in flavor with locations throughout the urban community. The stature and popularity of Stone Brewing Co solidifies Richmond as a destination for the industry and its growing fan base. Stone will become a Richmond main stay eventually bringing hundreds of jobs and employers to the region.


Project Team

Contact: Mark HouriganAddress: 411 E. Franklin St., Suite 400 Richmond, VA 23219 Phone: 804.282.5300Email: [email protected]

Contact: Tim DaveyAddress: 1001 Boulders Parkway, Suite 300 Richmond, VA 23225 Phone: 804.200.6500Email: [email protected]

Contact: Dave SpriggsAddress: 8090 Villa Park Drive Richmond, VA 23228 Phone: 804.264.2228Email: [email protected]

Contact: Rich JohnsonAddress: 501 East Franklin Street Richmond, VA 23219 Phone: 804.521.4002Email: [email protected]

Design-Builder

Civil Engineer

Structural Engineer

Developer

Architect

Contact: Michael Young & Bruce PerretzAddress: 10962 Richardson Road Richmond, VA 23005Phone: 804.550.3098Email: [email protected]

Contact: Jane FerraraAddress: 1500 East Main Street, Suite 400 Richmond, VA 23219Phone: 804.646.5633Email: [email protected]

City of Richmond

Contact: Juliellen SarverAddress: 4300 Williamsburg Avenue Richmond, VA 23231Phone: 804.922.2494Email: [email protected]

Owner

Stone Brewing RVA

stone brewing - richmond

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