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Council reallocates CDBG downtown funds, forgives an LB840 loan and approves USDA grant application
Summary
Council approved reallocations of unspent CDBG downtown revitalization funds to seven applicants, forgave a portion of an LB840 loan to Engage/rare earth project, and authorized a USDA grant application to support downtown strategic planning.
The Beatrice City Council approved three economic-development actions: reallocating leftover downtown CDBG funds, forgiving part of an LB840 loan to a business project, and approving an application to a USDA business development grant.
Nut graf: The council passed Resolution No. 7519 reallocating roughly $42,800 in leftover funds from the CDBG Downtown Revitalization grant to multiple applicants; approved Resolution No. 7520 forgiving Phase 1 of a prior LB840 loan related to an Engage/Rare Earth Salts project and terminating the remaining unused phases; and passed Resolution No. 7521 authorizing a USDA business development grant application to fund downtown strategic planning and feasibility work.
Details: Staff said the CDBG reallocation stems from the typical pattern where some projects come in under budget or recipients decline funds; the $42,800 will be distributed to seven applicants under the same loan-forgivable terms as their original awards. Resolution No. 7520 covers a 2015 loan agreement that had three phases; only Phase 1 advanced and the council forgave $100,000 for that phase, closing the agreement and terminating Phases 2 and 3. Staff corrected a typographic date in the record regarding the original 2015 loan.
The USDA grant application (Resolution No. 7521) seeks approximately $65,000 for a downtown strategic planning and feasibility project with a city cash match of just under $10,000. Staff said they had discussed the application with the USDA local representative prior to submission and would return when award decisions are known.
Votes: All three resolutions passed unanimously (8–0). Council members praised the downtown program’s uptake and asked staff to continue outreach; staff noted a growing waiting list for the grant program.
Why it matters: The actions reallocate and close out existing downtown revitalization funds, clear older loan obligations, and pursue federal support to plan downtown business recruitment and development under the CAST initiative.
What’s next: Staff will finalize loan amendments and documentation for the CDBG reallocation, record the loan forgiveness and termination for the LB840 file, and proceed with the USDA application process pending federal review and award timelines.
