PORT TOWNSEND — The owners of the Water Street Brewing and Ale House will close the popular pub on March 11 if they can’t pay the back sales tax they owe ¬– but they say they won’t go down without a fight.
“I think we will make it,” said co-owner Mark Burr.
“These are really difficult times, but things seem to be promising.”
High costs and declining business have strained the business’ ability to keep up with tax payments and stay afloat, said Burr, after the three owners announced their plans on Monday.
Owners of the pub, which opened in May 2004, declined to say how much they owe.
The factors that threaten many local businesses — ferry issues, fuel costs and the general state of the economy — have all played a part, Burr said.
Also, the cost increases of raw ingredients of beer, malted barley and hops have caused financial stress for the brewery.
“It’s not so much scary as it is daunting,” Burr said.
Seeking support
Burr said he and fellow owners Nina Law and Skip Madsen,feel they can stir up enough support for the brewery and restaurant in the coming weeks to keep them going into the summer.
They are planning a silent auction the first week of March. Items up for bid will be displayed all week and winners will be announced at about 9 p.m. March 8.
“The first order of business is to get our sales taxes caught up,” said Amy McKenzie, manager of the pub. “Our supporters can donate goods to be sold for the pub’s benefit.
“We are also seeking pledges from suppliers, wholesale beer customers, and patrons who wish to help with short-term cash micro-loans,” she added.
“Pledges will not be collected unless we become able to achieve payoff for the state sales taxes now overdue.”
The pub also will “sell ahead” by taking present payment for future festive events, such as office parties, weddings and reunions.
Burr said the owners will redesign their business plan and work on ideas for other ways to stay afloat.
Volume down
Despite the optimism, there is the reality of dollars and cents.
“Since the winter of 2006, our business volume has been contracting,” Burr said.
“The midweek, 9-to-midnight crowd has disappeared. Weeknight business declines into ‘the midweek slump,’ with last call coming as early as 10 pm.
“In good times, this was unthinkable. The bar remained open until as late as 1:50 a.m.
“Now even weekends and holidays do not average as well as they used to.”
Law said the first step is to get people coming back to the bar.
“We need people to come down and drink beer,” she said.
Burr said that the owners “have always appreciated the support of our community.
“Now we are hoping that people who see Water Street as a kind of home can get the chance to help us through this tough time if they want.”
Since opening, the owners have hosted an annual winter brew festival and summer concerts on the nearby city dock.
The brewery has garnered acclaim through Madsen, its master brewer, who has achieved recognition a dozen times in North American Beer Awards competitions and the World Beer Cup for his beers and ales.
“We know that right now we need our new ideas and plans to come to fruition, and just try to hang on until May,” Burr said.
Although May 1 also will mark the start of a six-week closure of the Hood Canal Bridge while its eastern half is replaced, that’s the time of year when, historically, the pub’s business has picked up for the year.
“We are compelled to assure our faithful vendors that whatever the outcome of our situation, everyone we owe will be paid,” Burr said, “even if we have to sell our houses in the end to make that happen.”
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Jefferson County reporter Erik Hidle can be reached at 360-385-2335 or at erik.hidle@peninsuladailynews.com.
