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Willows council authorizes application to reloan CDBG program income to Masters Gallery Foods
Summary
Council approved a resolution authorizing the city manager to pursue a Community Development Block Grant (CDBG) program‑income over‑the‑counter loan to Masters Gallery Foods contingent on payoff of the existing Romano Cheese loan; vote was unanimous.
The Willows City Council unanimously approved a resolution authorizing the city manager to pursue a Community Development Block Grant (CDBG) over‑the‑counter, program‑income loan application to offer financing to Masters Gallery Foods once the existing Romano Cheese loan is paid off.
City manager Marty Brown and Community Development staff told council that Romano Cheese’s existing CDBG over‑the‑counter loan would become program income if paid off; with state Housing and Community Development (HCD) approval, the city could reloan those funds to Masters Gallery Foods to support modernization and expansion of the local facility. “If all goes according to plan, sometime tomorrow, we’ll be the new owners of the Romiano facilities here in Willows,” Jeff Gentine, president and CEO of Masters Gallery Foods, told the council.
Staff said the Romano loan principal originated from a 2018 economic development agreement and that roughly $330,000 in program income has accumulated from repayments; the specific amount to be reloaned would depend on payoff figures and HCD approval. The council approved the resolution 5–0.
Council members welcomed the potential buyer and said they hoped the company would invest in the facility and the community. Gentine described Masters Gallery Foods as a Wisconsin‑based cheese packaging company planning its first West Coast expansion and said capital investment for modern packaging lines typically ranges from several million to about $10 million. The council did not set loan terms at the meeting; staff said staff will calculate the current payoff, any daily interest adjustments and work with the third‑party loan servicer and HCD as part of the application process.
The resolution authorizes the city manager to pursue a program‑income OTC loan application and to work with HCD and the loan servicer; final loan terms and any transfer of an existing loan would require subsequent approvals and adherence to HCD rules.
