Lebanon council approves $400,000 advance to ice cream plant after owner warns of job losses

Lebanon, Mo. — The Lebanon City Council on Jan. 27 approved an ordinance authorizing the city to advance up to $400,000 in economic development funds under Chapter 100 to finance electrical upgrades at the Ice Cream Factory, a move supporters said will preserve jobs and expand production.

The measure passed after debate on a 6–1 roll call vote with Councilman Evans recorded as the lone no vote. Troy (city staff) introduced the request and said the advance would be used to amend an existing Chapter 100 financing arrangement and to allow the owner to draw funds through a trustee as work is completed. Councilman Jordan moved the ordinance and Garner seconded.

Gail, who identified herself as the new owner of Ice Cream Factory and operator of Pivot North Consulting Group and PNC Specialty Foods, told council the plant occupies about 90,000 square feet but currently uses roughly 20,000 square feet of production space. She said current ice cream production is about 5,000 pints per day and that electrical constraints prevent additional equipment needed to scale; with upgrades she projected capacity could reach roughly 100,000 pints per day. "It's either we fix this electrical problem or there's no chance of saving that plant," Gail said, explaining she had assumed unexpected debt after buying the facility and had purchased roughly $2,000,000 of equipment but lacked collateral to finance the electrical work.

Gail said the plant currently employs about 39 people in Lebanon and that approving the advance would allow installation of equipment and expansion to additional product lines and bakery space, providing year‑round work. Council members pressed staff and the owner on payback timing and the city's exposure: the ordinance authorizes the advance and contemplates repayment within a year, but council discussed that the city technically holds the building under the Chapter 100 arrangement and would bear some risk if the venture fails. Troy and other staff noted prior public infrastructure spending tied to the site (streetscape, park components) and said those figures could be provided to council on request.

After further discussion about collateral, timelines and a contingency offer to convert the property to warehouse space if the plant closed, council approved the ordinance authorizing the advance; the council’s action converted council bill 69‑89 into ordinance 26‑19.