BEATRICE – Beatrice elected officials have approved an economic development loan to aid a downtown area restaurant.  The $22,886 loan to Warner Investments LLC, which operates Valentino’s, was approved by the city council on a vote of 7-1, Monday night. The loan is for working capital…with Councilman Duane Ruh raising a question about the use of the funds derived from local sales tax revenue.


"To me, if you're going to use it for that type of thing you should go to bank and get a personal loan....versus coming here. I can understand if you're going to improve the outside of the building, but I don't like the words, working capital."


There is precedent for the city loaning funds for working capital and is allowable under LB 840 law, according to City Attorney Taylor Rivera. This is the second such loan to the business which has paid off the initial loan.
"And, I believe the previous loan was also for working capital, as well. We've had a number of different LB 840 loans that we've given out for working capital, specifically."


The loan is secured by a personal guarantee and deed of trust. Councilman Terry Doyle, who formerly was with the Citizens Advisory Review Committee that examines such financing….said he would like to see the city minimize working capital loans but continue to work on projects.


Councilman Ted Fairbanks says over the years, there ‘s been some adjustment in the use of LB 840 program loans. "A number of years ago, we looked at the landscape of it and when we had somebody request this, they had a brick and mortar loan and working capital loan....and we segued into that, kind of reluctantly, but that's the problem when that's the road you go down. I don't disagree with you, but when it's allowed in state statute...and don't necessarily have written policy against it....but, it's probably a good loan."


During a semi-annual report from the Citizen’s Advisory Review Committee, it was noted that all loans to businesses under the program are current, and that there is a balance in the fund of about $535,000.


In other action Monday night, the city council approved the appointment of Chad Lottman to the Beatrice Airport Advisory Board and Tammy Brown to the Beatrice Housing Authority Board.  Mayor Bob Morgan publicly thanked Stan Meyer, who is ending his service on the advisory board, formerly known the Beatrice Airport Authority Board. Meyer had served as a member of the body for 25 years.