Sep. 30—DERRY — New restaurants, breweries and event venues are slated to open in Derry in the near future, while other businesses in the state's fourth-largest community are busy expanding.

The boost in new business comes as construction begins on Interstate 93's Exit 4A, which will further open up economic development opportunities in both Derry and Londonderry.

Much of the activity in Derry right now is focused on downtown and Crystal Avenue. The new developments also include a new jeweler and a Bangor Savings Bank branch, said Beverly Donovan, the town's economic development director.

"I think it has been a long time coming," she said. "I think that Derry was always a secondary market that people looked in, but our demographics have changed. We have a very creative community that is making it vibrant and fun."

Downtown is mostly filled.

"All day long people want to come to Derry and I don't have space for them," Donovan said. "I wish I did, because we would be thriving even more."

Hare of The Dawg Bar & Grill opened in January.

New concepts are coming to some popular spots which have recently closed, including Halligan Tavern and Derry Restaurant & Pizza, both located on West Broadway.

Foundation Kitchen & Bar is set to open by the end of year in the former Halligan's, an Irish restaurant located in an old firehouse.

The planning board earlier this month approved a new sign for the business, but Foundation's opening has been delayed because of supply change shortages, according to owner Daniel Mancini.

Friendly Red's Tavern, located in Windham, will open at the former Derry Restaurant, whose owners, Nick and Ann Samaras, decided to retire after 38 years.

"We started this business for our family and gained so much more than we ever expected through the support of this beautiful community in Derry," the couple wrote on a Facebook post.

During a Greater Derry Londonderry Chamber of Commerce gathering Thursday morning, Donovan said the railroad helped develop Derry's "true downtown" and bring a mix of businesses. The town saw an apartment boom for decades starting in the 1980s.

"We are a pretty significant center for retail," she said. "Retailers look to not only see traffic counts but they count the rooftops and they are always looking at demographics."

One of the big challenges right now is the lack of commercial land to develop, she said.

"We are always looking at zoning and ways we can enhance what we do have to strengthen the opportunities that we do have now and for the future of the town," Donovan told the group gathered at Bellavance Beverage Co. in Londonderry.

The town's 2020 master plan calls for making Derry a destination.

Changes to Crystal Avenue

The shuttered Wendy's on Crystal Avenue is poised for redevelopment. Just down the street, a new Starbucks with a drive-thru will open.

The Wendy's building could be retrofitted for a new business or torn down completely, but no formal plans have been announced, Donovan said.

"They are looking at their options," she said.

Hood Commons, a plaza anchored by Shaw's Supermarket, is expected to open a new 2,700-square-foot Chipotle Mexican Grill, complete with its version of a drive-thru. The "Chipotlane" allows customers to drive up to the window to pick up orders placed online.

The restaurant will be built on vacant land once occupied by a gas station, according to the plans. The building will be located in a "commercial hub" as defined by the town's master plan, which was updated in 2020.

Donovan said the plans still need to go before the planning board.

"It's a new concept," she said. "There will be a little bit of seating, but it's scaled down."

Down the road

In the meantime, a 21,000-square-foot building between McDonald's and T-Bones on Crystal Avenue is to include a brewery and meat shop. The Grindhouse Meat Co. and Backyard Brewery and Tasting Room is a partnership between the owners of Raymond's Tuckaway Tavern and Manchester's Backyard Brewery. The plans were approved in October 2021, but like other projects has hit setbacks.

The planning board approved an extension for a year.

"The bids have come in ridiculously high, so they are going to wait to see what happens in the coming months," Donovan said. "It is still on the books."

Kelsen Brewing Co. on North High Street will need to find a new location because of the construction of Exit 4A. The company does not yet have an announcement about its relocation, said owner Paul Kelly.

Donovan hopes Kelsen will land in another spot in town.

"We've been working with them all along the way," she said. "We are doing everything we can to keep them because we value that business."

Meanwhile, Appolo Vineyards on Lawrence Road is set to add a year-round tasting room and kitchen.

Along with food and drink, a new wedding venue called Hyla Brook Estate is set to open at 140 Rockingham Road in the spring of 2023. The property, which is near the Robert Frost Farm, will be designed as a farmhouse-style event venue, according to its website.

The name is based on a poem by Frost.

Kim Livesey, owner and event director, said when she saw the property for sale two years ago there was a house falling apart. She saw the potential of bringing "something new and fresh" to the town.

"I designed it after the Robert Frost Farm, which I fell in love with," she told the planning board earlier this month.

"I created a lot of outdoor spaces which our clients can use for ceremonies or cocktail hours," she said.

The Westbrook Inn on South Main Street — a blank canvas wedding venue — will host its first event next month.

As for Exit 4A, many property owners are waiting for all the plans for the project to be finalized.

"We have the benefit of proximity," Donovan said. "Being right off 93 when Greater Boston just keeps expanding and expanding we're seeing that growth. It is coming at us."

jphelps@unionleader.com