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Council approves $360,000 CDBG application to support Bruckman Rubber expansion
Summary
The council authorized the city to apply for a Community Development Block Grant to support Bruckman Rubber Company's expansion. The application requests $350,000 to the company plus $10,000 for grant administration; HEDC will administer loan terms and a portion of the award is structured to be repaid into a revolving loan fund.
The Hastings City Council authorized the chief elected official to sign a Community Development Block Grant (CDBG) application seeking $360,000 to assist Bruckman Rubber Company's planned expansion, including $350,000 to the company and $10,000 for grant administration.
Why it matters: The CDBG award would support local job creation and product-line expansion at a long-standing local manufacturer. Grant requirements call for projects to create or retain jobs for low- and moderate-income individuals; proponents told the council the expansion will create roughly 10 full-time-equivalent jobs that will be targeted to low- and moderate-income applicants.
Laurie Ferguson of the South Central Economic Development District (SCEDD) explained the typical CDBG structure: half of the grant may be structured as a deferred loan and half as a repaid loan (repayment terms up to seven years at 0% interest) following successful completion and certification of project conditions. "The company is going to match the $350,000," Ferguson said, and the local Hastings Economic Development Corporation (HEDC) will administer loan agreements and revolving fund use if repayment occurs.
Sydney Erickson of HEDC voiced organizational support for the project and said the funds would help Bruckman introduce a new product line and add local jobs. Terry Anstine, past HEDC president, spoke in favor of the application and emphasized the company's local roots and steady workforce.
Council members asked clarifying questions about the dollar amounts and whether the grant money would come from city coffers; Laurie Ferguson and HEDC confirmed the CDBG funds are state-administered federal dollars awarded to municipalities, not direct city expenditures. Councilors also clarified that the $10,000 for administration goes to SCEDD to administer the grant.
What happened: A resolution authorizing the chief elected official to submit the CDBG application for $360,000 (including admin fees) passed 8–0.
Next steps: If awarded by the Nebraska Department of Economic Development, HEDC and SCEDD will execute loan documents, monitor job-reporting requirements and, as applicable, place repaid funds into HEDC's revolving loan fund for reuse in other local business projects.
