LEWISTON — A lengthy effort to redevelop the former St. Joseph’s Catholic Church on Main Street into a brewery and restaurant is nearing reality this week after city officials approved a loan that will push the project beyond its financing goal.

Democracy Brewing, a worker-owned brewery, restaurant and event space in Boston, has eyed the former church in Lewiston as a second location since 2022, but has been working since then to secure financing for the $3.7 million project.

The City Council on Tuesday approved a $150,000 loan that city staff said would push the project across the finish line, allowing the organization to begin work on turning the church into a public beer hall and restaurant with private and public event spaces and brewing facility. The venue would have a 300-person capacity.

The Gothic Revival-style church, built in 1867, is listed on the National Register of Historic Places, and has been vacant for a dozen years.

James Razsa, the brewery’s co-founder and CEO, said renovations to the building represent roughly $2 million of the project cost, and that the brewery would employ between 26 and 32 people.

Nate Libby, director of economic and community development, said city loans like this one represent “the last money in to make projects happen” at a time when construction costs are still hampering redevelopment.

He said the city sees a return through new employment and the preservation and reuse of a historic location.

“This project could bring it back to life in a vibrant way,” he said.

Libby also believes the church redevelopment could spur additional investment in the area, and comes at a time when other significant development is slated on Lowell Street across Main Street.

“A dynamic new brewery, with an event facility catering to a market that has few competitors, in this part of Main Street could serve as a catalyst for further investment,” he said in a memo to the council.

Libby said the city loan represents “the last piece of financing they need” as they await architectural drawings and final approval from the Planning Board. Razsa said if approved, they expect to start demolition work in July.

Mayor Carl Sheline said Wednesday that the economic and community development department has been working hard to chase down projects and help get them across the finish line.

“Director Libby and his staff are continually coming up with creative ways to make things happen for Lewiston,” he said. “We’re definitely open for business and soon Democracy Brewing will be open too.”

The council voted unanimously Tuesday to support the loan.

During the meeting, Councilor Josh Nagine told Razsa that he’s “excited you decided to stick with this community to get this project up and running, and I’ll be one of your first customers.”

According to a memo, the city’s contracted loan underwriters, Community Concepts Finance Corp., recommended denying the loan request based on “insufficient collateral and cashflow projections that are too optimistic,” in their view.

However, the city’s Loan Qualification Committee was unanimous in support due to Democracy Brewing’s professionalism and success at their Boston location, and the current state of the church, which staff argued will continue to deteriorate without intervention.

The loan carries a 3% interest rate over a 13-year term, with zero payments during the first three years.

The city also provided Democracy Brewing with $100,000 in Community Development Block Grant funding in 2022 toward acquisition costs. The church was purchased from Central Maine Healthcare, which bought it from the Roman Catholic Church in 2013.

Democracy Brewing was founded in 2018 in downtown Boston, where the flagship brewery and restaurant has operated since. It was named “Best Neighborhood Restaurant” by Boston Magazine in 2023.

After one year of working at Democracy Brewing, employees are eligible to become “owners” but must be voted in by the other owners. That entitles employees to buy a Class A share of the company, which in turn gives them more voting rights and share in the profitability. Workers together resolve issues within the company, like wages and policy.

Razsa, a native of Gray, previously told the Sun Journal the old church and its location in Lewiston fit the blue-collar brand of the brewery, and he wanted the brewery’s second location to be somewhere that people are passionate about their community.