Gering council approves L.B. 840 loan to cash flow Magnolia North Dakota project
The Gering City Council Monday evening approved a $350,000 LB-840 loan request from Magnolia Homes to help them with a $4.2 million dollar apartment project in North Dakota.
Twin Cities Development Executive Director Rawnda Pierce says the company has plenty of work lined up, but just needed some help with operating capital to carry them through until the project is completed and more payments come in.
Magnolia has repaid similar LB-840 loans from the city of Gering in the past. However, this is the the first time Magnolia has requested such a loan since the company was purchased by Karsten Homes in June of 2012.
Pierce says Magnolia has 100 employees, 85 in the plant and 15 on the administrative side. She says the North Dakota energy boom is providing a lot of work for Magnolia but she adds the company is working on getting more dealerships in place in the Midwest to guarantee additional work in the future.
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