By Shereen Siewert | Wausau Pilot & Review

The news that Bull Falls Brewery is for sale and listed on an auction site apparently took some city leaders by surprise, while questions remain over how taxpayers will be made whole on an outstanding six-figure loan to the business.

When asked whether the city was made aware of the sale, City Attorney Anne Jacobson, in an email to Wausau Pilot & Review, said “not that it can be determined.”

The popular brewery, at 901 E. Thomas St., was founded in 2007 and is well-known for its award winning brews as well as its community events and festivals. But the brewery has struggled for years to keep up with its obligation to the city, part of a development agreement crafted more than a decade ago.

In 2012, Wausau entered into a developer agreement with Bull Falls Brewery, LLC, offering financial assistance of $600,000, of which $400,000 was a loan to be repaid over 10 years with a two-year deferral and interest at 2.36%. Bull Falls purchased and razed additional abutting properties as part of their construction plan, while Wausau vacated a street, relocated a sanitary manhole and upgraded 30 feet of water main at taxpayer expense, with the brewery the sole focus of a single Tax Increment District.

When Bull Falls fell behind, the City Council in 2017 modified loan terms for a new, 15-year amortization that slashed monthly payments from about $4,700 to about $2,200. But the brewery’s difficulties continued, according to city documents, and the challenges of the COVID pandemic further exacerbated the company’s financial woes. That prompted city officials to authorize loan deferrals through June 2021, after which payments resumed.

As of May 1, Bull Falls is delinquent in payments in the amount of $15,170.68, Jacobson said. Payoff of the outstanding balance as of May 1 is $281,461.71.

But city officials say the development has been positive for Wausau in a number of ways, creating $198,005 in tax increment. The project eliminated blight, provided jobs, increased tax base and provided an amenity to residents and visitors, Jacobson said.

What happens next, though, is unclear. Jacobson said Wausau will make an assessment as to the city’s collateral position in the event of a sale for less than is required to pay off all secured debts.

“It is too early to tell and speculative, without any sale or lease of any real or personal property having occurred,” she said.

Co-owner Michael Zamzow did not respond to requests for comment for this story. Wausau Pilot & Review also reached out to Mayor Katie Rosenberg, Development Director Liz Brodek, City Council President Becky McElhaney and Alder Lisa Rasmussen but no comments were issued.

Dozens of readers posted on social media expressing disappointment that a well-loved Wausau establishment could not find success.

Zamzow, in a prepared statement issued last week, said “Our situation is not permitting us to continue operations and distribution in our current structure.”