Derwent Valley Council breaks lease with New Norfolk Distillery for Willow Court buildings

The New Norfolk Distillery was set to expand into Willow Court. But after a recent decision by the council, it’s looking elsewhere. Their response to the decision.

New Norfolk Distillery owner Tarrant Derksen. Photograph Eddie Safarik

The owner of the New Norfolk Distillery says the business is now looking elsewhere to expand after a stern order from the Derwent Valley Council.

The distillery has been leasing the Allonah and Occupational Buildings at Willow Court for three years, which it intended to use for its expansion.

During that time the buildings have sat empty because work was required to make it usable as a distillery, function area and bar.

(May 2022) Artist Jose Garcia and New Norfolk Distillery Director Tarrant Derksen document the abandoned Allonah building at Willow Court for the new virtual reality tours (VR) at New Norfolk as part of the distillery development.

During a closed council meeting in September, the council resolved to stop leasing the building to New Norfolk Distillery.

This week it officially terminated the lease, effective immediately.

“Council will now arrange inspections of the Alonnah, Occupational Therapy and Carlton buildings, including the exercise yards, to determine the state of the buildings and identify what maintenance works are required in order to make them safe and to prevent any further deterioration,” a council spokeserson said on Tuesday.

“The outcome of these inspections will help council consider the options for the future use of these buildings.”

The decision, which distillery owner Tarrant Derksen says he was notified of after the council distributed a media release, comes after a lengthy dispute about rent.

The council claimed it was owed $78,483, for the buildings, but Mr Derksen said there was a clause in the contract making the business exempt from paying.

The business also sought to buy the buildings, but the council rejected its offer.

It means the distillery will continue its operations at Humphrey Street, and go back to the drawing board on its next move.

“We are still here, we own our building, we’re open for business,” Mr Derksen said.

“We are still speaking to our legal team with how best to follow this up.

“It’s not an end to any of our future projects.”

Mr Derksen said the distillery would likely look further afield for its expansion.

“We had 80 jobs lined up with this overall project but it looks like that might be in a different area,” Mr Derksen said.

“We’ve been approached by other council areas who do have good business confidence.

“That’s been appreciated, we’re gathering ourselves and we’re just planning a way forward. Nothing’s off the table but we’re considering all options.”