Reuse loans given to hotel, chiropractor
Money lended for job creation.
Gothenburg has a new, upscale motel and a new chiropractor.
After several weather and construction delays, Comfort Suites began hosting guests July 14.
Dr. Tiffany Hicken began seeing patients in July.
But because of costs involved with the $5.2 million Comfort Suites investment that also includes some development of Terry’s Business Park by Terry Jessen and his partner Diana Unterseher and the development of a chiropractic business, the business owners qualified for reuse loans.
At their Aug. 17 meeting, Gothenburg City Council members approved a $160,000 reuse loan to begin operation of the hotel and $20,000 in operating capital for Hicken.
City attorney Mike Bacon said the granting of reuse loans is tied to job creation.
Following a public hearing the council gave the thumbs up on a five-year loan for the hotel which won’t have to be paid back under certain conditions.
If the hotel keeps eight full-time employees for five years, Bacon said the loan will become a grant.
Additionally, Bacon said five of the employees must have low- to moderate incomes.
“If they fail to meet this, they’ll have to pay it back,” he said.
He added that the grant is part of the recruitment package for the motel.
Hicken recently relocated her chiropractic business from Grand Island.
She will be charged 1.65% interest on the seven-year loan.
The reuse loan program started after Baldwin Filters was recruited to Gothenburg in 1990.
Bacon said state officials bolstered the city’s recruitment efforts with a $700,000 Community Development Block Grant which the city didn’t have to pay back.
When Baldwin Filters doubled its size, the city received an additional $500,000.
Although the $1.2 million has been whittled down through losses, Bacon said the loan program has created
Find the complete story in our print edition. Receive the entire issue of the Gothenburg Times on-line in PDF format each Wednesday for only $25 per year. Call 308-537-3636 to subscribe.
- Avenue I to get more sidewalk
- Wellness Center decision after budget workshop
- Airport Authority wants board member removed
- Eagle football looks to repeat last year’s success
- Rural Poll finds insights on rural Nebraskans’ activism
- Soybean farmers observe, evaluate work of checkoff
- District 20 enrollment creeps up
- Coaches remain confident after 15-4 loss to McCook