PITTSBURGH -- The Pittsburgh Water and Sewer Authority is seeking to recover $600,000 from
Iron City Brewing Co., which is moving beer production to Westmoreland County after 148 years in the city.
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Water authority Director Michael Kenney said he believes that by moving brewing operations to Latrobe, Iron City is also violating a deal that was reached two years ago to settle the company's huge water bill.
The break that Iron City got in 2007 was to help the brewery modernize and stay in town -- "to maintain a facility in the city of Pittsburgh, to brew beer in the city of Pittsburgh, to employ the employees in the city of Pittsburgh," Kenney said Friday.
"We sent them a letter today, saying that we felt they were in violation of the contingency note and the intent of the agreement in the neighborhood of $600,000," Kenney said.
Previous Story: Goodbye, Iron City: Latrobe's Gain Is Pittsburgh's Loss (June 11)
Slideshow: Photos Of Iron City Through The YearsThe water authority has a lien on Iron City's longtime brewery in the Lawrenceville neighborhood, and it's giving notice.
"Cash payment definitely would be one of the options -- whether we need to foreclose, whether there's any other actions the authority will need to take to secure that 600,000 payment," Kenney said.
Mayor Luke Ravenstahl's office said the Urban Redevelopment Authority is also looking at grants that were provided to Iron City to see what can be done now.
Iron City President Timothy Hickman said Thursday that the company would honor its financial obligations to the city.
At a news conference Thursday, Hickman said Iron City will brew its final beer in Pittsburgh on or around June 22. Future production will take place at City Brewing -- the former home of Rolling Rock beer in Latrobe.
"We're still committed to our brands. We're still committed to Pittsburgh," Hickman said. "We're moving 40 miles down the road. The Steelers hold their training camp in Latrobe. We figured, hey, if it's good enough for the Steelers, it's got to be good enough for Iron City."
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