MICHIGAN CITY | A 19th-century Bavarian immigrant, the son of a brewer, managed a Chicago brewery for 20 years and then struck out his own in Michigan City, where he founded a bank, got elected to the city council and established Zorn Brewing Co.
Philip Zorn Jr.'s brewery used a spring-fed well to make up to 15,000 barrels a year of beers that included such brands as Pilsenzorn, Grain State and Golden Grain. Zorn survived Prohibition by making pop instead, renamed the business Dunes Brewery and folded in 1938 after a 67-year-run, according to the Indiana Beer website.
Zorn Brewing has now been gone for longer than it was around, but it will be revived as a craft brewery 77 years after shuttering its doors.
"I am excited that this project is moving forward," Zorn Holdings LLC owner John Van Prooyen said.
"The Michigan City revolving loan was significant in our decision to invest in Michigan City. I am thankful to the city of Michigan City for its continued support and commitment to both the project and the Elston Grove neighborhood."
The Michigan City Revolving Loan Committee approved a $260,000 loan that will be used to buy brewery equipment and restore the historic Zorn Brewing building on 9th and York streets. Van Prooyen plans to turn it into a modern craft brewery called Zorn Brewery and later build a 44-room boutique hotel nearby.
Zorn will be Michigan City's third craft brewery, joining Griffith and Valparaiso as Northwest Indiana cities with three such establishments.
In 2012, Shoreline Brewing moved into the old Rag Tops Auto Museum Property on U.S. 12 near the lakefront, where it brews beers like the World Beer Cup Award-winning Beltaine Scottish Ale and runs a popular family restaurant.
Earlier this year, Burn 'Em Brewery opened a to-go shop where it serves up innovative craft beers like its Kreamed Corn Cream Ale, which is brewed with real cream corn. Burn 'Em, which started up in 2013 and originally sold much of its beer at festivals, already has expanded distribution throughout liquor stores, bars and restaurants throughout Northwest Indiana and in South Bend, Indianapolis, Lafayette and Muncie.
Michigan City's newest brewery will employ an estimated 25 workers.
"Michigan City, Ind., is setting the bar in its work of promoting business investment in our community," said Joie Winski, Michigan City Economic Development Corp. chairwoman and LaPorte County auditor. "The EDCMC is thrilled to see the revolving loan fund’s success and is excited for what is on the horizon in the business community."
As craft brewing has taken off, some have turned an eye to reviving long-defunct brands.
In South Bend, a Chicago-based entrepreneur is reviving the Drewrys Brewing Co. that was once a popular working class beer in the Great Lakes area, but that has been out of business since 1972. Bloomington-based Upland Brewing Co. also brought back Terre Haute Brewing Co.'s once-iconic Champagne Velvet lager -- "the beer with the million-dollar flavor."