Council approves $200,000 LB840 loan for NuStar Sourcing & Service to build premix facility
May 29, 2024 | City of Fremont City Council Meetings, City of Fremont, Dodge County, Nebraska
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The Fremont City Council on May 14 approved Resolution 2024-139 authorizing the mayor to sign a Local Option Economic Development (LB840) loan agreement with NuStar Sourcing & Service LLC (branded in staff materials as NewStar/NewStar Sourcing) to support construction of a premix feed facility in Fremont.
Angie Olsen, plan administrator, told the council the project's estimated cost is $200,000 supported by an award recommendation of $200,000 from the LB840 fund. Staff recommended structuring the award with $100,000 repayable at 2% interest and $100,000 eligible for performance-based forgiveness if the company meets milestones: build the premix facility, retain 13 full-time positions and add two full-time positions, and maintain positions for five years. Olsen said the LB840 fund balance was just over $1.3 million as of April 30 and that the fund typically grows by $80,000$100,000 monthly.
A company representative described the move from Omaha to Fremont and said NuStar intended to add manufacturing to its distribution operations; the speaker (introduced to council by staff as Tony Calanino, CEO) said the firm started about seven years ago and anticipated growth from the premix plant. Olsen and council members discussed FTE calculations and average wage information: staff reported a quoted average hourly wage for the positions tied to the award of $29.35 (noted as excluding executive salaries; including executive pay raised the average in their calculation).
Councilors pressed on how contracts count full-time-equivalent jobs (applying 2,080 hours per year for a full-time position) and praised the company's benefit package; NuStar's representative said the company pays roughly 85% of employee health premiums. Councilman Horner moved to authorize the mayor to sign the loan agreement; Councilman Jensen seconded. The motion passed 7-0.
The staff report said $100,000 of the award would be repayable and $100,000 eligible for forgiveness conditioned on performance; the loan agreement contains milestones and enforcement measures in the staff-reported contract terms. Council members framed the award as supporting local job creation and raising average wages in Fremont.
The council welcomed NuStar to the city and closed the item without further amendment.
Angie Olsen, plan administrator, told the council the project's estimated cost is $200,000 supported by an award recommendation of $200,000 from the LB840 fund. Staff recommended structuring the award with $100,000 repayable at 2% interest and $100,000 eligible for performance-based forgiveness if the company meets milestones: build the premix facility, retain 13 full-time positions and add two full-time positions, and maintain positions for five years. Olsen said the LB840 fund balance was just over $1.3 million as of April 30 and that the fund typically grows by $80,000$100,000 monthly.
A company representative described the move from Omaha to Fremont and said NuStar intended to add manufacturing to its distribution operations; the speaker (introduced to council by staff as Tony Calanino, CEO) said the firm started about seven years ago and anticipated growth from the premix plant. Olsen and council members discussed FTE calculations and average wage information: staff reported a quoted average hourly wage for the positions tied to the award of $29.35 (noted as excluding executive salaries; including executive pay raised the average in their calculation).
Councilors pressed on how contracts count full-time-equivalent jobs (applying 2,080 hours per year for a full-time position) and praised the company's benefit package; NuStar's representative said the company pays roughly 85% of employee health premiums. Councilman Horner moved to authorize the mayor to sign the loan agreement; Councilman Jensen seconded. The motion passed 7-0.
The staff report said $100,000 of the award would be repayable and $100,000 eligible for forgiveness conditioned on performance; the loan agreement contains milestones and enforcement measures in the staff-reported contract terms. Council members framed the award as supporting local job creation and raising average wages in Fremont.
The council welcomed NuStar to the city and closed the item without further amendment.
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