BratHaus to take over former MobCraft space, and then some, in Woodstock’s Old Courthouse

The proprietors of BratHaus in Richmond are planning to expand to Woodstock‘s Old Courthouse.

The new BratHaus location will take over all three floors of the old sheriff’s house on the north side of the building, including the smaller footprint that Milwaukee-based MobCraft Beer had before it closed in November.

The owners, JAG Restaurant Group, also plan a “BrewHaus at the BratHaus” in Woodstock, which, according to city records, is “a rustic pub featuring the same drink menu as BratHaus and a modified bar menu for a more casual concept.” With the company taking over a former brewery, it’s possible down the line for BratHaus to get in the brewing business.

BratHaus also is proposing to paint the exterior trim black and add awnings, according to city records. The buildout is expected to run six to eight weeks and cost about $77,000, according to city records.

At a recent City Council meeting, member Natalie Ziemba asked whether modifying the exterior of the building would jeopardize historic tax credits the city got for the Old Courthouse, to which city staff said they didn’t think it would.

BratHaus opened in Richmond in 2017, according to Woodstock records. The Woodstock location will have similar menu options as Richmond.

The City Council enthusiastically approved the BratHaus lease for the city-owned space.

“I look forward to going,” newly seated council member Gregg Hanson said.

Mayor Mike Turner shared the excitement. He said he was a MobCraft fan and was “shocked and disappointed” that operators weren’t able to succeed. He noted that they told the city they were shutting down in November, and by May 6, the city had “a first-class, top-notch alternative” going in the space. He said it was “nothing short of extraordinary.”

The lease runs through September 2030 with options to renew.

BratHaus’ move comes as Ethereal Confections is downsizing its footprint and getting out of the sheriff’s house. The company had a kitchen and the top floor of the sheriff’s house.

According to Woodstock records, the city in 2018 gave Ethereal, a craft chocolate shop, a $150,000 loan to help the company relocate to the historic Elks Lodge at 140 Cass St. The city stopped collecting payments on loans, and the loans didn’t accrue interest during COVID-19 closures. The company resumed making payments and was current through the end of 2021.

“However, the subsequent round of food service closures in the fourth quarter of 2021, coupled with rising minimum-wage requirements and significant product inflation, created additional financial strain,” according to city records. “As a result, the owners missed several payments and received approval from the city’s Finance Department to temporarily make interest-only payments in 2022.”

City staff started having periodic financial updates in 2023 but felt further action was needed by early 2024, according to city records. Staff suggested that the company give up parts of its city-owned space and start full payments.

The company couldn’t meet full payments, but it increased payments, according to city records. The City Council approved a loan “recasting.” The restructuring would increase the interest rate from 2% to 3%, which is the standard for similar revolving loans taken out since 2023, according to city records. The original loan had a seven-year payoff period, which is now extended to 2035.

Council member Bob Seegers said he would support the restructuring but wanted the City Council to review whether the revolving loan program was doing what it was intended to do. Seegers said he believes tax dollars shouldn’t be supporting private enterprises. Turner said the City Council should look at the program sooner rather than later.

Seegers said there was a lot he didn’t like in the redoing of the loan, but the city’s back was against the wall, “and this looks like the only way out to me for the city without extraordinarily losing more.”

Hanson was the sole no vote, noting the seven years that have passed since Ethereal, which also hosts weddings and events at the Old Courthouse, entered into the loan agreement with the city.

“I can’t support extending for 10 more years so that somebody else loses out on their opportunity,” Hanson said. “Sometimes opportunities only come once.”

He later said that many other businesses couldn’t get the funds Ethereal got to scale up their businesses and noted a lot of businesses, including his, didn’t get anything during the pandemic. He later said he thought “citizens were tired,” noting the closures in the Old Courthouse not just of MobCraft but businesses such as Public House restaurant and Makity Make.

Turner said that the loan was issued in October 2018, which he called “a century ago” in the hospitality world. He said the business went from a small operation to a large global operation. Turner also mentioned price increases in cocoa.

“They got caught in an absolute meat grinder of a business situation,” Turner said, adding that the business is doing the best with the hand it was dealt, and he believes the business could succeed.

Council member Tom Nierman said giving the company a chance to pay back the loan could replenish the revolving loan fund or at least recoup taxpayer dollars.

“It’s not the best situation; it’s the only situation,” Nierman said.

Ethereal’s lease also was amended in a separate vote. Major changes include a different rent structure and repayment plan for past-due common area maintenance. Under the old lease agreement, the city got two free events per year. Now, the city can have unlimited events, as long as it gives 30 days notice and pays a $100 cleaning fee, according to city records.

Turner said redoing the lease gives the company “a little more runway” to get out of its current situation.

Council member Darrin Flynn said the city has an opportunity to come out ahead and “hopes that it works because I think they are a valuable business.”

“I think that they’re trying new things, and I think that’s a great thing, and they’ve been kind of punched in the gut with their industry,” Flynn said.