Two breweries that nearly found themselves pitted against each other in a trademark lawsuit may soon make amends in the spirit of brotherly beermaker love, but also out of mutual gain.

Beer had been flowing from the taps of Headwaters Brewing Company in Waynesville for just a few months when the bad news arrived — a cease-and-desist letter from another brewery claiming rights to Headwaters’ name.

Victory Brewing Company out of Pennsylvania makes a beer called Headwaters Pale Ale, and while Headwaters Brewery had its name first, Victory Brewing beat them to the trademark punch.

A downtown Waynesville project that would put a live entertainment venue, a microbrewery and a pizza restaurant together in the old Strand Theater on Main Street has been awarded a $300,000 grant. Gov. Beverly Perdue will visit Waynesville this Friday (May 28) to see the project firsthand and to talk with other Main Street businesses.

Waynesville businessman Richard Miller owns The Strand, and he credited Downtown Waynesville Association Executive Director Buffy Messer with encouraging him to apply for the grant.

“I give her all the credit for bringing this to our attention,” said Miller.

Miller will partner with other entities to pull off the project, including Headwaters Brewing Co., which is owned by Kevin and Melanie Sandefur. Headwaters Brewing Co. was just last week named the winner of the Haywood County Chamber of Commerce’s Business Start-up Competition, which comes with an $8,000 award.

Miller said the grant will be awarded to the Town of Waynesville, which is then obligated to give it to the developer who restores the building where the new businesses will be located. The money can’t be used for furnishings or business equipment, he said, only for permanent building upgrades.

In a best-case scenario, Miller said the project would be open for business by summer 2011.

The partners in The Strand project include the town, the Downtown Waynesville Association, The Strand Dynasty LLC, Headwaters Brewing Company, Delano’s Pizza Company and the Haywood County Arts Council.

In addition to Waynesville, seven additional communities will receive a total of $1.95 million through the state’s Main Street Solutions Fund. The grants are earmarked to “assist planning agencies and small businesses with efforts to revitalize downtowns by creating jobs, funding infrastructure improvements, rehabilitating buildings and finding other growth opportunities.”

“We know that some of the most creative and innovative economic development work is being done through small businesses and other economic partners in our downtown areas,” said Gov. Perdue. “Main streets can be at the heart of North Carolina’s economic recovery with the right support and investment. For every $1 invested by the state, an additional $4.72 will be invested by the local community."