Brewing peace? Axemann Brewery, landlord make progress after lease dispute threatened closure
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- Axemann Brewery and landlord advanced settlement talks over lease dispute.
- Agreement may preserve Axemann’s use of outdoor space critical since 2021.
- Lawsuit claims lease termination would cause severe operational disruption.
The legal ferment between Axemann Brewery and its landlord appears to be settling.
Attorneys for the popular taproom, 2042 Axemann Road, and the property owner told Centre County Judge Brian Marshall during a Thursday conference that settlement discussions have “gained traction” in the month since Axemann filed suit.
Axemann’s attorney Chad A. Wissinger said the two sides are “trying hard to work it out” and have a gentleman’s agreement for the property owner to not interfere with the business.
Navitus LLC’s attorney Timothy A. Schoonover, meanwhile, told Marshall that recent meetings went well and he is “very optimistic” a deal will get done.
A resolution could be reached by September, though that isn’t guaranteed. Axemann has prepared a revised lease that Schoonover is reviewing.
The business warned in its lawsuit it would be forced to close immediately if Navitus was allowed to follow through on threats to convert outdoor seating it used for years into parking spaces and remove an essential piece of equipment.
The suit was filed one day before a lease amendment deadline. Axemann has since remained open and is in the midst of celebrating its fifth anniversary. Navitus has not filed a response in court.
Axemann said it paid for and began using the about 1,600-square-foot outdoor patio space as a beer garden in spring 2021, in part to comply with coronavirus restrictions that prevented the business from operating at full capacity indoors.
Wissinger said in the filing that there is no written agreement for the space and Navitus never indicated it would increase the business’ rent, at least until what he described as a “recent shift in the dynamic and the parties’ business relationship.”
The business said it offered to discuss what it deemed “reasonable rental rates” for the outdoor space, but said Navitus had refused to accept an offer other than what it put forward.
“A termination of the Lease would be an enormous operational setback and cause significant and unwarranted financial harm,” Wissinger wrote. “Even more pressing, the sudden closing of the patio during summer and the removal of the CO2 will force Plaintiff to immediately close its business.”
Axemann further accused Navitus of failing to coordinate parking, storage and the building’s entry points while new tenants were added. The business said the additional vendors have caused “significant strain.”
The taproom also said it was asked to either remove its pinball machines or request formal approval for their use. Multiple offers to meet and resolve the issues had been “summarily rejected,” Wissinger wrote.
Axemann is in the seventh year of a 20-year lease agreement. It pays about $144,500 in rent annually.