Essex is poised to get its first brewery after MassDevelopment issued a $5 million bond to finance its construction.

The state development finance agency issued the tax-exempt bond on behalf of Blue Ivy LLC, a real estate entity for Essex-based Great Marsh Brewing Co. Blue Ivy and Great Marsh are using bond proceeds to build and equip a brewery at 99 and 103 Main St. The new building will feature manufacturing, canning and warehouse space, a taproom, beer garden and approximately 5,000 square feet of leasable restaurant space. East Boston Savings Bank purchased the bond.

The Cape Ann area has seen a surge in new breweries in recent years.

“MassDevelopment is pleased to help entrepreneur John Collins realize the dream of expanding his home brewing operation into a state-of-the-art facility, with ample space to brew, package and sell his product,” MassDevelopment President and CEO Lauren Liss said in a statement. “Great Marsh Brewing Co. is one of many craft breweries and cider houses using our low-cost financing to increase production and create jobs in the commonwealth.”

Great Marsh Brewing Co. was founded by Collins, a South Hampton resident, who has brewed beer at home for several years. The new brewery will be built at the site of former restaurant Fortune Palace II. When Collins bought the property in fall 2017, he invited the Essex Fire Department to use the empty restaurant building for training exercises before demolishing it. Construction of the brewery has begun and is expected to be complete by fall 2019.

“We’re very excited to be partnering with MassDevelopment in this endeavor,” Collins said in a statement. “As a manufacturing facility, Great Marsh Brewing Co. is fortunate to be able to leverage MassDevelopment’s tax-exempt bond financing in the construction and fit-up of our state-of-the-art brewing facility in Essex. We look forward to giving back to the commonwealth as we create new jobs, source local ingredients, spearhead local philanthropic engagements and more.”