By Shereen Siewert | Wausau Pilot & Review

Bull Falls Brewery in Wausau is for sale with many pieces of equipment now listed on an auction site.

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 lively festivals that often draw hundreds, if not thousands, of participants. News of the sale drew dozens of comments on Facebook lamenting the loss of a beloved Wausau staple.

But there have been signs that the brewery has struggled financially for years, and the impact on taxpayers is yet to be seen. Bull Falls represents a standalone tax increment district and owes hundreds of thousands of dollars to the city, struggling with loan payments even after the brewery’s monthly obligation was sharply adjusted.

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. The cost of those improvements is unclear.

When Bull Falls encountered financial difficulties and fell behind on its obligation to Wausau, the City Council in 2017 authorized modified loan terms for a new, 15-year amortization that slashed monthly payments from about $4,700 to about $2,200. But the brewery continued to struggle with loan payments, 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.

According to the 2023 budget, Bull Falls’ outstanding balance on the loan was about $256,000 at the end of the year. How taxpayers will be repaid will likely depend on the terms of the sale, if a buyer is found.

The city found itself in a similar bind in 2021, when another business that received $125,000 in taxpayer funding sold the business under a land contract without the city’s knowledge. Complicating matters further, the Wausau World Market property then went into foreclosure.

In a press release posted on social media, Bull Falls did not specify the reason for the decision, though co-owner Michael Zamzow hinted at complications with distribution plans. The brewery was built with enough capacity to distribute beyond the immediate area to other areas. That did not happen, he said.

“Our situation is not permitting us to continue operations and distribution in our current structure,” Zamzow’s release states.

What, if any, negotiations have taken place between the city and Bull Falls have not been made public at the time the brewery announced the sale. Bull Falls Brewery plans to remain open until a sale takes place, and current events scheduled at the brewery have not been cancelled.