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Michters Distillery to locate in historic Fort Nelson Building, Louisville, KY

Small production distilleries can qualify for up to $200,000 in tax incentives

By Kerri Richardson and Terry Sebastian

LOUISVILLE, KY - Governor Steve Beshear today joined community leaders and officials from Michter's Distillery LLC, to announce the company will open a small production distillery in downtown Louisville. The company plans to invest nearly $7.8 million, which will entail the renovation of the historically and architecturally significant Fort Nelson Building located across the street from the Louisville Slugger Museum and Factory. The project will result in 10 new jobs in the community.

"We are thrilled to welcome Michter's to downtown Louisville," said Gov. Beshear. "Not only will this project create new jobs and preserve one of the most historically significant structures in Louisville, it will also add a new chapter to Kentucky's proud Bourbon making heritage."

Michter's production includes very small batch bourbons, single barrel bourbon, single barrel ryes and small batch blended American whiskey. The history surrounding Michter's harkens back to America's first distilling company, established in the 1700s by John Shenk. In 1753, Shenk built a small distillery to convert excess grain to whiskey. In time, this small distillery would come to produce what would eventually be known as Michter's whiskey. The Louisville Michter's Distillery will be open to the public and will offer educational tours and tastings.

"Kentucky is a great state and Louisville is a terrific city," said Michter's Distillery President Joseph J. Magliocco. "We have considered other locations for this distillery, but we've been extremely impressed by Gov. Beshear, Mayor Greg Fischer and both of their administrations, as well as the entire team at Greater Louisville Inc. They are all dedicated to the preservation and the restoration of their historic building stock while at the same time being focused on bringing more economic activity and jobs to Louisville and Kentucky. This could be a great opportunity for both Michter's and Louisville."

The Kentucky Economic Development Finance Authority or KEDFA preliminarily approved Michter's Distillery for tax incentives up to $200,000 through the Kentucky Business Investment program. The performance-based incentive allows the company to keep a portion of its investment over the term of the agreement through corporate income tax credits and wage assessments by meeting job and investment targets.

KEDFA also approved Michter's for tax benefits up to $180,000 through the Kentucky Enterprise Investment Act, which allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing equipment.

"Mitcher's new distillery not only creates jobs for Louisville, it brings a significant bourbon presence to downtown while also saving a historic treasure in the Fort Nelson building," said Louisville Mayor Greg Fischer.

"Today's announcement combines the regional strengths of bourbon, historic buildings and a thriving downtown corridor," said Joe Reagan, president and CEO of Greater Louisville Inc. "This is an exciting development both for the jobs it will create and the interest it will generate."

For more information on Michter's Distillery, click to

This story was posted on 2011-07-07 08:27:28
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