Penguin City Brewing Co. co-owners, Aspasia Lyras Bernacki and Richard Bernacki, brewer, inside the former Republic warehouse downtown the company is renovating to be its new production facility and taproom. On Wednesday, they and other toasted the start of work that is expected to begin this week.

YOUNGSTOWN — The remodel of the former Republic warehouse into Penguin City Brewing Co.’s production facility and taproom should begin this week with interior demolition work and clean-out of the industrial building.

Next week, exterior work should begin with paint.

The labor marks the physical start of a planned $3.7 million investment on the east side of downtown that started in earnest about a year ago with the well-known local brewing company acquiring the 32,000-square-foot space.

On Wednesday, the owners and their guests celebrated the start of renovation with a toast at the building.

“I’m just kind of relieved that we finally have it all together,” said Penguin City co-owner Aspasia Lyras Bernacki. “We started this project last year around this time, so it was a lot of planning, designing and trying to get the funding secure.”

The transformation will happen in phases. First is a 10,000-square-foot taproom and a 10,000-square-foot brewhouse planned to open by the end of December. A banquet facility is another phase. It’s projected to be completed by September 2022. A restaurant also is planned, but before that point, Penguin City plans to bring in food trucks.

“The end goal is we’ll have a nice taproom, bar / restaurant to occupy this lower level inside the building … the upper level will be the brewery, where we’ll do all of our brewing, production, canning. Part of that will be an event center as well,” said Penguin City co-owner and brewer Richard Bernacki.

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

A. Neider Architecture in Youngstown is the architect. Murphy Contracting, also in Youngstown, is the general contractor.

The work will marry a metal / industrial aesthetic with modern safety and other features to take the space from a dingy warehouse to chic with shades of Youngstown’s industrial feel.

“The potential is amazing because the look and the feel since day one has been, we want to look like Youngstown. And what does Youngstown look like? It still looks like mills. They want that blue-collar effect, that look, that aesthetic,” said Annissa K. Neider, owner, A. Neider Architecture. “Being able to retrofit this, I don’t have to worry about cleaning and making it look brand new. I’m almost trying to age things to make them look older.”

Penguin City bought the warehouse, 460 E. Federal St., for $575,000 in December. The company announced in May it closed on a $2.2 million loan for the taproom and brewhouse.

Also around April, the company began distribution in five counties in western Pennsylvania. It just recently made a deal to begin distribution in West Virginia that would begin in October.

“So we’re moving to another state and then once we are operating out of this facility, we are able to go into the whole state of Ohio. We’re working on that deal right now,” Aspasia Lyras Bernacki said.

The property was first developed in 1884 as a stable, saloon, wagon shop and lumber yard. It’s been a hotel, restaurant, billiards parlor, blacksmith shop, candy shop, steel and iron fabricators and steel warehouse throughout its years, according to Penguin City.

“This area, I’ve driven by it a million times before and seen this building and never really fathomed this would be my building and I would have my brewery here,” said Richard Bernacki. “It’s a great honor, exciting, challenging, but we’re ready for it.”

rselak@tribtoday.com