Hemp grower, city agree to LB 840 loan repayment

Western Farms LLC, can have to pay again a part of a loan it obtained from the City of Scottsbluff’s LB840 committee after the hemp farm closed.

Western Farms LLC entered into an financial growth help settlement with the city on Jan. 21, 2020, with the utmost principal quantity set at $500,000. Western Farms requested $434,000 for its hemp seed operation, decreased from an preliminary request of $1.8 million.

Since the enterprise’ actions have ended, the difficulty was introduced earlier than the city council on Monday, May 16.

Starr Lehl, financial growth director for the city,knowledgeable the council that the LB 840 citizen’s advisory committee met on May 3 to overview loans. The Western Farms loan was not in compliance, Lehl stated.

“The citizen’s advisory committee for LB840 looked over this agreement and is now referring it to council,” Lehl stated.

A proposed loan modification settlement was agreed upon by Western Farms’ president Arthur Hoehn and wanted council approval. The phrases of the modification require the defunct enterprise to repay the stability. The unique settlement included a clause the place a portion of the loan might be offset by job credit up to $75,000 per yr over the following three years by creating a minimum of 17 jobs.

Council member Nathan Green requested how a lot of the loan was forgiven. Green was one in all two council members who opposed the preliminary LB840 fund request in January 2020.

After making use of job credit of $5,400 underneath the phrases of the EDA settlement, the quantity owed for the primary fee is $140,516.87, which is due on June 1, in accordance to the data offered to council. The remaining stability — simply over $145,000 — should be paid by Dec. 15 to repay the stability on the Promissory Note totaling $291,180.05.

“Our attorneys do a great job on these contracts and they cover us very well,” Lehl stated.

The council permitted the modification.

The Star-Herald had not but obtained remark from Western Farms as of publication.