WATERLOO, Iowa (AP) — Waterloo officials have chosen a kombucha tea company over a brewery and bicycle business as the new occupant for a downtown development. The Waterloo-Cedar Falls Courier reports that City Council members unanimously voted Tuesday to approve a seven-year lease with Verve Kombucha. The company will operate a bistro and brewery for the fermented tea product in the RiverLoop Public Market Building.

The lease agreement says Verve will receive free rent for one year while it renovates the building. Rent will be $1,000 a month during the second year and increase to $4,000 in the seventh year. Lark Brewing Co. and Waterloo Bicycle Works had also submitted proposals to lease the facility. The city used a state grant to turn a lawn care building into the Public Market.