By JIMMY LAWTON

WINTHROP – High Peaks Winery will open a new tasting and production facility with help from three economic development agencies.

Matt Whalen, of North Lawrence, owns the business. He plans to replace his 700 square-foot wine facility on State High 72, Hopkinton, with a new 3,000 square-foot building on at 801 Pickle St., Winthrop.

Whalen has been making and selling wine for more than two years and only recently opened the tasting facility. The tasting room offers visitors a chance to sample a variety of dry and sweet wines as well as wine slushies. Whalen said he also sells racks and other products out of the store.

Although it has been successful, he said it is often too small for visitors who like to travel in groups.

Whalen said the expansion will also allow him to produce more wine.

“The new facility will double the size of tasting room and increase the size of our production room pretty drastically,” he said. “We hope to be able to accommodate larger groups.”

Whalen estimated his production would more than double, growing from 900 to 2,000 cases per year, by 2015.

Aside from the building, the new property includes five acres of land that will be used to grow grapes. Whalen said he currently relies on California and New York-grown products, but wants to start using his own. Although he planted vines last year, he said it will take at least two more before he can begin harvesting them.

Whalen has planned to expand the business for sometime, but lacked capital. In order to finance the project he approached the St. Lawrence Industrial Development Agency for help.

Patrick J. Kelly, SLCIDA CEO, said Whalen’s project is perfect for the North Country. He said the wine and craft beer industry is becoming popular. The Thousand Islands region has been successful in establishing itself as wine touring location and Kelly said St. Lawrence County could likely do the same.

Kelly said IDA and other economic developers were eager to help with Whalen’s project.

Whalen will receive $73,000 in loans from St. Lawrence River Valley Redevelopment Agency and the Massena Economic Development Fund.

Each agency will lend $36,500 at an interest rate of half of prime plus one, or about 2.63 percent over a 15-year period.

As for the IDA, Kelly said it will provide tax breaks and exemptions to the company.

He said materials for the new building will be tax exempt and the IDA will provide its standard Payment In Lieu of Taxes to Whalen, which equates to a five years exemption from property taxes and a 50 percent tax break for the following five years.

After ten years the building would be back on the tax roll.

Kelly said the IDA will also exempt Whalen from a .75 percent mortgage fee.

Kelly estimated value of exemption for real estate taxes to $28,000, with an additional $10,000 savings from the materials sales tax exemption.

For his end, Whalen plans to expand the business by adding three part-time and one full-time position.

Kelly said the project is a solid example of how economic development agencies can work together to help small businesses grow.

“With every potential project we work on, we try to find the right match of resources that we have at our disposal,” he said. “This is a new and growing business and we are working with them to try and provide a comprehensive package that allows them to grow, create jobs and strengthen the local economy.”

Whalen said he expects the facility to open this winter. For more on High Peaks Winery and its products visit http://www.highpeakswinery.com/.