C & C Processing is looking to expand in the Beatrice area by adding a new facility in spring 2016.
Originally established in 1994, C & C Processing is a USDA meat processing plant that includes a small grocery and retail meat store in Diller and Beatrice.
Since its inception, the business has had a steady increase in sales and has expanded its services.
C & C has worked to become known nationally for private labeling of jerky and meat snacks.
At the Diller location, C & C averages 34,000 units of jerky production per day.
On a daily basis the company produces 8,000-10,000 pounds of various jerky products, owner Chad Lottman said.
Chad and Courtney Lottman own and manage the company.
In 2003 the company remodeled its Diller retail area and then by 2010 added the Beatrice retail facility.
The Lottmans have proposed an expansion with the creation of an additional facility in Beatrice. They are seeking to repurpose a 57,000-square-foot building at 700 Park St.
During the Monday night City Council meeting, Lottman gave a presentation explaining his business -- where the company has come from to what the company is today and what they plan for the future.
The Lottmans asked for $400,000 in LB840 funds for help with the expansion project, which the council approved.
“We’re looking to expand operations and continue what we do,” Lottman said.
Within the last six months the company began to consider an expansion as it hit its maximum production capacity through the summer, he said.
“We’ve been pushing everything to the limit since then and we still have customers asking for more,” he said. “For what we do, the size of the building (at Park Street) is suited to meet our needs.”
The company produces up to 10,000 2.5-ounce bags per day, he told the council.
“That’s our biggest need for expansion,” Lottman said.
According to the LB840 application, the new plant will be a production facility only.
Of the 57,000-square-foot space, approximately 25,000-30,000 square feet will be used for production space including freezers, coolers and smokehouse facilities, and 3,000-3,5000 square feet on the southeast side of the building will be used for office space, according to the application.
Much of the building will be utilized for warehouse space and production areas that do not require any additional construction. The remainder will be used for future expansions.
“We have limited walking space before we start packaging,” Lottman said.
The loan will also help C & C create new jobs in the area.
Currently C & C employs 35 full-time and 10 part time-employees in Diller and four part-time employees at the Beatrice retail.
The expansion is expected to employ a minimum of 30-35 people in the first 12 months and maintain an average of 40-50 employees within three years of opening, Lottman said.
Lottman said they hope to take possession of the building by Dec. 1 and plan for an April 16, 2016 opening.
They plan to begin hiring after the first of the year and employees will be fully trained by the opening date.
Grant Jones, chairman of the Citizens Advisory Review Committee that reviews LB840 applications, said they are in favor of providing the money to the Lottmans for the expansion.
The loan will be spread over several years.
“The loan will be given this way to allow for cash flow for the operation and ease of transition with it,” Jones said.
The CARC board recommended the loan 4-0 with a one-person abstention, he said.
The first portion of the loan will be $200,000 that will be paid back quarterly over the course of 10 years with a 2-percent annual interest rate.
The second portion will be another $200,000 that will have a deferred payment after five years with a zero-percent interest rate.
“We thought Chad and Courtney’s application was one of the best -- if not the best -- that we have seen in a while,” Jones said. “They are bringing in the community a growth from an area of business to the tune of 35-50 jobs.”
The city council approved the LB840 loan agreement for $400,000 unanimously, 7-0.