The Hastings City Council voted unanimously to authorize the city to apply for Community Development Block Grant (CDBG) funds to support an expansion by Pacha Soap Company.

During a public hearing, Laurie Ferguson of the South Central Economic Development District explained the program and the city's role as applicant. Ferguson said the grant application would support Pacha Soap’s production expansion and that, if funded, it would create five full-time-equivalent jobs, of which at least 51% must be held by or made available to low- to moderate-income individuals. She summarized program mechanics: HUD provides federal funding to states; the Nebraska Department of Economic Development administers the funds and requires the municipality to apply on behalf of the business. The council then voted to authorize the mayor (chief elected official) to sign the application.

Nut graf: The meeting record contains two different dollar amounts for the same item. During the public hearing Ferguson and others referenced a $175,000 CDBG request; later the resolution authorizing the chief elected official to sign the application is recorded in the meeting packet and on the floor as $185,000. The council vote authorized the city to submit the application as presented on the agenda and in council action. The record does not resolve the discrepancy between the two amounts; the packet and the council motion recorded $185,000 in the resolution language.

Details and program terms cited at the hearing
- Jobs and income requirements: The grant would be tied to the creation of five full-time-equivalent jobs; at least 51% of those positions must be low- or moderate-income as determined by household-size income thresholds and a self-certification process. - Match and repayment: Ferguson described a 1:1 match requirement; funds are typically disbursed to the business for eligible expenditures and certain portions may be forgiven if job and other conditions are met. Part of the funds can return to the local economic development organization to be reused in local loan pools if conditions are met. - Application and eligibility: Ferguson said the state’s business development consultant (Kelly Jawicki) and program representative at the Nebraska Department of Economic Development are the usual points of contact for applicants and pre-application vetting.

Action and next steps
- Motion and vote: Motion to adopt Resolution No. 2025-28 (authorizing the chief elected official to sign the CDBG application for Pacha Soap Company) was moved and seconded; the council approved the resolution 7-0. - Implementation steps: If the state awards funding, the city and the business will execute agreements that specify job retention/creation and conditions for forgiveness or repayment; Hastings Economic Development Corporation will participate as the local development partner.

Quote
Laurie Ferguson: “Should this be funded … the grant would provide $175,000 in direct financial assistance to be made available to Pacha Soap Company for the expansion of their production facility here in Hastings.” (Ferguson also discussed program requirements and the 1:1 match.)

Ending
Council action authorized the city to submit the state CDBG application; award decisions will be made later by the Nebraska Department of Economic Development. The council’s authorization does not guarantee funding and the record shows two different dollar figures on the same item that the city will need to reconcile with the state and the applicant if an award is made.