Staff photo / R. Michael Semple Aspasia Lyras Bernacki, co-owner of Penguin City Beer, stands inside a large warehouse on East Federal Street, Youngstown, the company owns and is renovating to relocate its production line and open a taproom / restaurant, event center and rental space.

YOUNGSTOWN — Penguin City Brewing has closed on a $2.2 million loan the company will use to renovate the former Republic warehouse downtown to relocate its production line and open a taproom / restaurant.

“This is a huge for us at Penguin City, to be able to invest in our city, be a part of creating a new corridor, and make a change in the landscape of our downtown is overwhelming and emotional and it’s what we wanted to do from day one. We hope this sets an example, and other businesses start to follow suit and bring their ventures here to our great city,” Aspasia Lyras Bernacki, Penguin City Beer co-owner, said.

Phase one of the project will be a 10,000-square-foot taproom and a 10,000-square-foot brewhouse with equipment from North Carolina-based Deustche Beverage Systems. The equipment costs $550,000 and will help the company double its production and expand into new markets.

Penguin City also is remodeling a 5,000-square-foot office and 1,000 square feet into a production space and taproom for Hannah Ferguson for her D.O.P.E. Cider House & Winery.

The company bought the 32,704-square-foot warehouse, 460 E. Federal St., in December for $575,000.

The company closed on the loan with Premier Bank and Valley Economic Development Partners, private, non-profit organization in Liberty that helps with business creation, expansion and retention in collaboration with other regional organizations.

Earlier this month, Penguin City began distributing in five counties in western Pennsylvania.