After two years and several loan extensions, the city of Beatrice appears to have completed its business with Dempsters.
On Monday, the Beatrice City Council approved releasing collateral secured from Dempsters, LLC following repayment of an LB840 loan the company received in 2015.
“I'm sure everyone's familiar with the history of this loan,” City Administrator Tobias Tempelmeyer said, “but at one point the city made a loan to Dempsters LLC and to Ryan Mitchell and a couple of extensions.”
In June of this year, Ryan Mitchell, president of Dempsters, repaid the LB840 funds and interest after two rounds of loan extensions for the original $250,000 economic development loan.
In September of 2015, the city council approved a loan to Dempsters for a period of one year at 3 percent interest, but it remained unpaid by September of 2016. The city council then approved a loan extension agreement in December of 2016, followed by a second loan extension agreement in May of 2017 before the loan was paid off in June.
“All of those funds have been repaid to the city of Beatrice,” Tempelmeyer said, “so, at this point, we just need to file a release and release all the collateral we had secured.”
The voter-approved LB840 funds come with no regulations for granting extensions, and it’s up to the council to decide if extensions are granted and what the terms will be.
According to Dempsters' loan application for the funds, the company planned to use the $225,000 to do a fall 2015 and spring 2016 run of 30 spreaders each.
The total of 60 spreaders had a value of $430,000-$450,000, depending on which options they're equipped with.
The September 2015 loan was the second round of LB840 funds Dempsters received from the city.
In February 2015, a $110,000 loan to build 30 spreaders for the spring 2015 line was approved. That loan was repaid in full in August 2015.
Dempsters focuses largely on its fertilizer spreader division, while also selling AlleyCat recycling trailers and maintaining a parts division.