City of Montague DDA — Special Meeting Recap

Date/Time: Thursday, October 23, 8:00 a.m.
Purpose: Special meeting to discuss the Bardic Wells Meadery Revolving Loan Fund (RLF) status.

Agenda

1. Call to Order
2. Approval of Agenda
3. Public Comment
4. Steve Haystead — Bardic Wells Meadery
5. DDA Discussion
6. Adjourn

Public Comment

Multiple residents and business owners spoke in support of Bardic Wells Meadery. Key themes included:

• Community hub: Speakers described the meadery as a safe, welcoming gathering place (noted especially for Thursday game nights), a space for conversation, and supportive of veterans and young adults.
• Economic and tourism value: Commenters said the meadery draws visitors from outside the area, funnels customers to nearby restaurants (Papa’s, Wayside, etc.), and fits into the region’s beverage tourism alongside breweries/wineries.
• Original RLF intent: Several noted the DDA’s RLF was designed to help start or improve downtown businesses considered “high risk,” arguing the meadery fulfilled that development purpose even if repayment has lagged.
• Hardships & constraints: Commenters referenced COVID-19, personal tragedy, changing drinking habits (home vs. on-premise), and prior landlord/building difficulties as factors hindering repayment.
• Caution on precedent: Some attendees acknowledged the need to balance compassion with program integrity so future loans remain viable and fairly administered.

Presentation — Steve Haystead (Owner, Bardic Wells Meadery)

• History with the RLF: Initial DDA loan supported buildout at the now North Grove site (bathrooms, lighting, emergency exits). Later moved to the former Gary’s Restaurant space; additional investments were made to reopen and operate.
• Setbacks: Reported four significant disruptions—landlord conflicts at the first site, the death of his spouse, COVID shutdown impacts (and related regulatory confusion), and a failed transition plan to a prospective buyer who would have assumed the loan.
• Operations & finances: Said the meadery has largely broken even recently, with winters especially lean; he has continued paying rent and utilities but has not made loan payments since roughly February/March 2020. Inventory and production have been throttled due to uncertainty.
• Request: Asked for loan forgiveness or, at minimum, time and collaboration to find a path forward; emphasized community value and stated he is “willing to work on any solution” but cannot shoulder large immediate payments.

Administrative/Background Clarifications

• Funding origin: The city received federal disbursements decades ago, later granted to the DDA (~$174k) to create a downtown-focused revolving loan fund. Repayments re-enter the fund to support future borrowers.
• Program status: Since inception, the DDA has loaned out just over $300k; five loans have been fully repaid (~$168k).
• Bardic Wells note: A revised promissory note was executed in November 2024 to reset the principal (prior interest that had been paid was applied to principal). Approximately $18k of historical interest was discussed. Default provisions could “snap back” amounts if payments lapse.
• Licensing & Farmer’s Market: City policy requires vendors to be in good standing (no unpaid city debts) before a market license can be issued.

DDA Board Discussion

• Integrity of the fund vs. compassion: Members stressed the need to keep the RLF viable for other businesses while exploring pathways that avoid immediate closure.
• Precedent concerns: Forgiveness could create fairness issues with other borrowers; any relief should be carefully structured.
• Potential pathways:
  • Short-term standstill to allow planning and production.
  • Restructuring (reduced payments, interest-only period, or modified schedule).
  • Third-party collaboration: Concept raised for a local brewery to carry rebranded mead via bond-to-bond transfer (subject to MLCC/TTB rules) to help generate cash flow.
  • Community-driven contributions (e.g., small per-pour or entry surcharges earmarked for repayment—ideas only, not adopted).

Motion & Decision

Approved (roll-call majority):

• Two-month planning window for Bardic Wells to develop and present a concrete repayment/operational plan and/or third-party arrangement to the DDA.
• Hold on enforcement: No foreclosure or repossession actions to be pursued during this two-month period.
• Additional runway: If enforcement later becomes necessary, the DDA commits to providing at least a four-month notice window to allow the owner to clear inventory/production (recognizing wine/mead lead times and compliance requirements).
• Expectation: Owner to return to the DDA (next regular meeting is in ~three weeks, with a formal check-in at two months) with options and specifics.

(Vote noted with one “no”; motion carried.)

Next Steps

• Owner: Work with potential partners and supporters to craft a feasible plan (e.g., revised payment amounts/timing, lawful product transfer and sales channels, revenue earmarks), then present specifics to the DDA within two months.
• DDA/City: Pause active enforcement during the standstill; remain open to restructuring proposals that protect the RLF’s long-term capacity while avoiding abrupt business disruption.
• Potential legal/administrative work: If a restructuring is pursued, staff and counsel may prepare a revised note or settlement framework that sets clear performance milestones and enforcement mechanisms.

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