City of Beatrice OK's economic development loan to Beatrice Bakery

BEATRICE – The Beatrice City Council has approved an economic development loan sought by Beatrice Bakery Company...the maker of the famous Grandma's Fruitcake. The loan totals about $240,000.

"Beatrice Bakery is looking to buy some new equipment down at their facility....as they have some hopefully, expansion plans in their near future."

City Administrator Tobias Tempelmeyer says the loan comes from sales tax revenue under the city’s LB 840 program. It would not immediately add jobs to the company, which city officials say employs about 45. Although the vote was unanimous to approve the loan, Councilman Gary Barnard expressed concern about other options.

"The stockholders in this company, I felt could really afford to do this without our help...when we talked about the stockholders. I won't vote against it, but sometimes I think we ought to look at that, a little bit."  The loan is for ten years at five-percent interest.

Elected officials also approved issuing of bonds backed by economic development funds for the purchase of 80 acres of property for business and industrial use, west and north of Precise Fabrication. Up to $1.25 million in bonds will be issued.

"These particular bonds, since they are paid for by the LB 840 proceeds, can only go out to the length of that program. That program is approved for six years. Each year, your bond payment will be roughly $240,000."

The bond issue will be handled through a Lincoln investment firm. One councilman inquired if whether similar future issues could be handled by a local firm. Recently, the city of Beatrice exercised an option to purchase the land from the local couple who owns it.