Cellars of Niagara-on-the-Lake

Frank Racioppo, a lawyer from Niagara-on-the-Lake, Ontario, asked for $50,000 for a 50% interest in a start-up company plus a $200,000 investment to be repaid via a 10% royalty on sales, for Cellars of Niagara-on-the-Lake. The plan involves constructing subterranean limestone wine storage cellars on the Niagara Escarpment, extracted by wire saw rather than blasting, with a design capacity of up to 100,000 square feet, at a projected construction cost of $100 per square foot and a projected sale price of about $200 per square foot. Frank owns 1% of the larger master-planned development that includes the cellar project, expects the development to complete in about three years, and had not yet secured any buyers or presales, though he cited interest from wineries for warehousing.

Manjit Minhas went out, unconvinced there was demand or that the founder could sell the units. Jim Treliving went out, citing concerns about construction restrictions and unproven cost claims. Michael Wekerle went out, viewing the project as too long term. Joe Mimran went out, finding the pitch unclear and the demand unproven. Michele Romanow went out, saying the founder had not been transparent about the risks involved, leaving Frank Racioppo without a deal.

We haven’t confirmed whether Cellars of Niagara-on-the-Lake is still operating.