Borough approves train station building lease for restaurant

The owners of the Harleysville-based Butcher and Barkeep restaurant and Lansdale-based craft distiller Boardroom Spirits are planning to open a new restaurant in the Souderton train station building.

“I don’t have a timeline as we speak today as far as when we can expect a grand opening, but we are shooting for some point this fall,” Borough Manager Mike Coll said during the June 5 Souderton Borough Council meeting at which council approved a lease agreement for the new restaurant.

The borough leases the train station, its two accompanying buildings and parking area from SEPTA and made $1.5 million of renovations, financed by state and federal grants, to sublease

to businesses for economic development. SEPTA will also have to approve the sublease, Coll said.

FASE Restaurants, the owners of Butcher and Barkeep, will operate the restaurant, with Boardwalk Spirits providing liquor, Coll said. Although Boardwalk makes craft spirits, it can also sell craft beers and wines, he said.

In November, FASE and the borough approved a letter of intent for the lease, contingent on a liquor license being received. At that time, the borough also endorsed an economic development liquor license application. In May, Coll said the state Liquor Control Board turned down the request for the economic development liquor license, but, he said, the restaurant was still interested in opening and was planning to do so with a craft liquor license.

Economic development liquor licenses are special liquor licenses offered by the state for economic development initiatives, Coll said at the June 5 meeting.

“Certainly, the project in itself does that,” Coll said.

It’s not easy to get an economic development liquor license, though, he said.

“There are only 10 active economic development licenses in the entire state,” Coll said.

“In Montgomery County, there are only two active economic development licenses that I’m aware of,” he said, “and one, believe it or not, is in the food court at King of Prussia Mall, and how that was approved, I have no idea.”

The price of liquor licenses varies throughout the state, but he’s heard that it can cost as much as $425,000 to $525,000 in Montgomery County, Coll said. The price of economic development or craft licenses is much less than that, he said.

Boardroom Spirits has begun the process of applying for a liquor license for the train station, but the lease agreement is needed before that can be finalized, Coll said.

While there was initial disappointment that the economic development license was not approved, it’s led to a new partnership, he said.

“It’s taken us quite a while to get where we’re going,” Coll said, “but I think, in the end, this is potentially a very good option for us and I look forward to it.”

The restaurant’s rent will be about $4,000 per month initially and increase after the first couple years, Coll said following the meeting. The proposed lease is for three five-year terms, totaling 15 years, he said.

The restaurant is currently working on finalizing architectural drawings for work to the interior of the building, he said.