CEDAR RAPIDS — A startup business will seek state financial assistance to operate a $2.75 million production craft brewery in downtown Cedar Rapids.

Iowa Brewing Co., which would occupy a vacant building at 708 Third St. SE, will include brewing, fermenting, aging, packaging and marketing various styles of craft beer and other beverages. The business would employ 16 people.

The Cedar Rapids City Council will consider sponsoring a state financial assistance application for investment tax credits to allow the company to reduce the risk of a startup enterprise.

Pending Iowa Economic Development Authority Board approval and a decision by Iowa Brewing to proceed with the venture, construction would begin early next year with estimated completion in June.

Matthew Wolf, the primary organizer of the company and a managing member, has followed the craft brewing industry for 20 years, including involvement with the Great Divide Brewing Co. of Denver, Colo.

A production brewery differs from a brew pub in that, while it will sell beer at retail in its tap room, a production brewery has no food service on site. It is generally more focused on wholesaling its products in a much broader geographic area than brew pubs.

Wolf and his partners believe the Third Street building can support as much as 50,000 barrels of annual production. Iowa Brewing will brew a variety of styles and sell as many as 16 different beers in its tap room, where it will collect customer feedback.

Wolf said sales will initially begin in the tap room and expand from Cedar Rapids and Iowa City to Des Moines, other larger in-state markets, and ultimately the entire state.

Dee Baird, president and CEO of the Cedar Rapids Metro Economic Alliance, said Iowa Brewing is the type of entrepreneurial development that will help spur other start-ups to consider locating in the Corridor.