Skipanon Marine and RV Supply had a long-term lease with the city.

WARRENTON — Just two weeks after Encore Academy, a performing arts school, was selected to take on the lease of a coveted building off E. Harbor Drive, the city has switched to a prospective brewpub.

The City Commission voted Tuesday to grant a five-year lease to Battery 245 Brewing Co. in the space alongside the Warrenton Marina.

In May, after taking input on five businesses interested in moving into the structure that housed Skipanon Marine and RV Supply for three decades, the City Commission voted to grant a three-year lease to Encore Academy. Encore, which sits in the neighboring building, had plans to expand to meet growing demands. The academy received accreditation last year as a prekindergarten-through-12th grade private school.

Denele Sweet, the owner of Encore Academy, said that after she was granted a lease, some concerns around zoning and permitting were raised. The academy would have had to go before the Planning Commission to appeal the interpretation of the zoning code, since the space was not zoned for schools.

“Those were some obstacles that I was unsure that we could overcome,” she said.

Sweet and Jeff Kilday, one of the founders of Battery 245, appeared before the City Commission on Tuesday in a special session, which followed an executive session. Sweet said she would relinquish her rights to the lease if the brewpub would allow the performing arts school to use the outdoor space between the buildings.

“What I’m wanting for our kids, what our parents mostly want is outdoor space, so that property between the two buildings would be something that would be wonderful for our kids,” Sweet said.

Commissioner Mark Baldwin expressed concerns about putting a playground on asphalt.

Sweet said Wednesday morning that she has secured a lease to the building on the other side of the academy and still intends on expanding the program.

During an open house in May for businesses to pitch ideas, Battery 245 indicated plans to add a production brewery, a restaurant, a tasting room with a full-service bar and an outdoor deck overlooking the marina.

Jon Elliott, one of the three owners of the brewpub, originally sought to open Battery 245 at the old Fenton Grocery on First Street and Main Avenue in 2020, but it never came together.

“I would say we’re cautiously optimistic,” Kilday said. “We’re excited to bring something to Warrenton that’s local. Warrenton, Seaside, Gearhart — we’re pretty local and have been here for a long time now.”

Kilday, who owns Wine and Beer Haus in Seaside, said they are hoping to open the business within three to six months.

The city has said it will pitch in urban renewal funds to improve the exterior of the building.

After the lease expires, the city may use the building to meet the needs of the Warrenton Fire Department or Warrenton Police Department. But if the city does not see use for the structure, the City Commission may extend the next lease or consider selling the property.