Plans to sell and possibly produce wine downtown got a $100,000 boost Saturday from a state matching grant through Main Street West Branch.


John McNutt and Ilene Lande last week took possession of the former Virgil’s Sinclair building at 116 W. Main Street and, two days later, traveled to Des Moines with MSWB leaders to meet Gov. Chet Culver and accept the Main Street Iowa Challenge Grant.

McNutt and Lande must invest a minimum of $100,000 of their own to qualify for the funding, which means the 1907 U.S. Post Office will get at least $200,000 in remodeling. McNutt said the final figure will be more like $250,000.

“This is wonderful,” he said of getting the grant. “It is very much appreciated by Ilene and me.”

McNutt and Lande also plan to build an addition similar to the two-story-house-like building that once existed to the west — where Virgil’s gas pumps used to be — and turn it into an event space that can hold 150 people or more.

The grant is limited to remodeling the current building, so McNutt and Lande must spend their own funds on the addition, which McNutt said could run into “hundreds of thousands of dollars.”

“Main Street West Branch congratulates the city government, the mayor and the council for their support,” MSWB Program Director Rod Ness said. “Without their help, this would not be happening.”

Ness said the grant, coupled with McNutt and Lande’s investment, will make the project the largest investment in West Branch’s downtown since U.S. Bank’s building was constructed.

Main Street Iowa awarded $822,000 in 14 grants Saturday morning, the three largest were for $100,000. Applications competing for the funding totaled $1.4 million.

MSWB volunteer Audrey Kofoed made the announcement to the West Branch City Council Saturday morning during a budget workshop session.

“It’s a pretty sizable grant,” she said.

Community State Bank’s Ed Larew, also a MSWB volunteer, agreed.

“This is a substantial investment,” he said.

Council member Mark Worrell congratulated MSWB, McNutt and Lande for landing the grant and noted that the city invested $15,000 per year into the organization since its inception about four years ago.

“The return is starting to come around,” he said.

McNutt said the U.S. Post Office building originally had a recessed entrance that faced Main Street. Today the entrance is on the side and the building has a flat front. Plans are to bring back the recessed front.

“I think it will be very attractive,” McNutt said. “It has always been a very attractive building in town.”

McNutt has discussed his plans with the city and the National Park Service, which he said gave him positive feedback. There are certain conditions he and Lande must meet to restore the building within historical standards.

“We will do the best we can,” he said.

Ness said MSWB appreciates McNutt and Lande’s efforts.

“The level of investment to our community that this represents is monumental,” he said. “Add to that the fact that we are experiencing one of the worst recessions in 30 years. ... While other communities are losing businesses, we have a net business gain.”

As far as producing wine at the site, McNutt said he needs permission from the state and equipment. He and Lande are partners in Wallace Winery. They have not come up with a name for the new business yet.

McNutt said they hope to break ground this spring on the addition and hope to open by late summer or early fall.

Ness said Main Street will help with architecture and design expertise “to help deter some of the cost and make sure we have a building that’s appropriate for space and needs.”

McNutt tried to bring the business to the downtown about five years ago, but did not find local help that could make it work. This time, he said, he found that help in Main Street West Branch, which worked with him and Lande for about three months to apply for the funds.

“We’re really pleased that Main Street was there to help us get the grant,” he said.

Virgil’s Sinclair service station is already seeing change. The sign was removed from the pole Saturday and the pumps were removed Tuesday. McNutt said the underground tanks should be removed by Bruce Barnhart on Thursday.

He said they will “give local people a shot” for construction and interior contracts.

Culver and Iowa Department of Economic Development Director Bret Mills presented the Challenge Grant checks at the Des Moines Botanical Center. The grants are going to projects that will total nearly $10.4 million.

“These challenge grants have now been awarded to 69 projects in 33 different Main Street Iowa communities,” Culver said. “Every project improves the economic health of these cities through new business growth and additional residents for the wonderful historic buildings in our Main Street districts.”

U.S. Sen. Tom Harkin said in a statement that the grant recipients “will help restore community touchstones and improve our local economies.”

“Iowa’s Main Streets are the vital lifelines of our communities, and investing in them helps preserve our state’s character while giving small business a boost,” he said.

The Challenge Grants are funded through an appropriation from the U.S. Department of Housing and Urban Development.