Woodstock, IL — The city of Woodstock will not receive a cash payout from the now-closed MobCraft Beer Taproom and Brewery but will assume ownership of the brewery’s equipment and property left behind in the Old Courthouse building. The Milwaukee-based brewery, which had been delinquent on its city lease since October, officially closed its doors on November 30.
At a Woodstock City Council meeting on Tuesday, council members unanimously approved a settlement agreement with MobCraft, allowing the city to regain control of the leased space. The move is aimed at attracting a new tenant for the space as soon as possible.
Brewery Equipment to Stay in City Hands
Under the terms of the agreement, the city will take ownership of various brewing equipment, including vats, coolers, and tanks, as well as tables, chairs, and other property left behind by MobCraft. City officials believe that this equipment could be a valuable asset in luring a future tenant.
Woodstock Mayor Michael Turner noted that the brewery’s closure was a result of corporate decisions unrelated to its operations in Woodstock. “Why we’re here has nothing to do with their operation in the city of Woodstock,” Turner explained. “It’s unfortunate, and we can mess around with trying to grab more money, but it delays our ability to move on.”
Turner expressed optimism about the future of the space, citing high levels of interest from potential tenants. “Interest in this space is high, and I’m optimistic we end up with something,” he added.
City’s Investment in the Old Courthouse
The city has owned the Old Courthouse building, a key landmark in Woodstock, since 2011. Since then, city leaders have invested in preserving and modernizing the building as a mixed-use space that houses restaurants, shops, and a business incubator program. MobCraft’s lease for the space was approved in October 2022, after the brewery received a revolving loan of $68,500 from the city to support its operations.
Despite falling behind on its lease payments, MobCraft kept up with the loan, according to Danielle Gulli, the city’s executive director for business development. However, MobCraft owner Henry Schwartz informed city leaders that the company’s mounting debt and impending bankruptcy meant it could no longer continue payments. About $59,000 to $60,000 remains unpaid on the loan, with the brewery equipment now serving as collateral.
Gulli explained in a memo that the city hopes to recover the value of the equipment through a future tenant, particularly one that could generate higher rent for the space. Although the city retains ownership of the equipment, there is a slight risk that bankruptcy creditors may stake claims on the assets, though Gulli indicated such claims were unlikely to be pursued.
“Our top priority is getting the space back on the market,” she said.
New Tenants and Future Plans
City staff are working with a commercial real estate agent to market the space and are open to proposals from a variety of potential tenants, including breweries or other concepts. Gulli also noted that there has been considerable interest in the Old Courthouse space, including from a former MobCraft employee.
In the meantime, the nonprofit Naturally McHenry County, which promotes tourism in the county, is set to move into a different space within the Old Courthouse. The Woodstock City Council approved a five-year lease for the organization on Tuesday, with rent set at $1,050 per month, subject to annual increases.
Challenges with Previous Tenants
Woodstock has faced several challenges with previous tenants in the Old Courthouse building. Earlier this year, the Public House restaurant closed and was replaced by Squire on the Square. The city is currently pursuing more than $250,000 from the owner of Public House in connection with an outstanding loan.
Other businesses, such as Makity Make, a DIY crafts store, and Seleta Scents, an incubator business, have also vacated their Old Courthouse spaces. Makity Make closed its location in May, and Seleta Scents plans to move out by the end of the month.
Despite these setbacks, city officials remain hopeful about the long-term viability of the site. Plans to add signage and other improvements to attract more foot traffic are set to be presented to the city council in January.
Revolving Loan Program Under Review
During Tuesday’s meeting, Council Member Bob Seegers Jr. raised concerns about the city’s revolving loan program, questioning its future effectiveness in supporting local businesses. City leaders agreed to continue evaluating the program and explore ways to mitigate future risks.
The city remains committed to using the revolving loan fund as an incentive tool for businesses while ensuring its sustainability and effectiveness in supporting Woodstock’s economic growth.
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