Brownwood City Council approved an infrastructure loan through the Brownwood Economic Development Corporation to Lortscher Animal Nutrition, Inc. (LANI) to help build a rail spur in an amount not to exceed $200,000.

LANI is a major supplier of pet food manufacturers in the Southwest, including Ethos Pet Nutrition, and the Brownwood Economic Development Corporation has been working with this company since November 2013, according to Brownwood City Manager Bobby Rountree.

LANI has been shipping ingredients into Brady by rail to serve Ethos and desired to purchase a facility in Brownwood due to the reliable short line railroad, more abundant workforce and proximity to Ethos.  The company purchased the former Brownwood Manufacturing facility on Custer Road and since that time, the scope of the company’s plans has grown significantly, according to BEDC Director Emily Crawford.

The company’s most pressing need is rail service and the estimated cost of the rail spur and dirt work ranges from $205,871 – $231,800.   A request from the company for assistance from the BEDC for the cost of the rail infrastructure was made recently.

The total economic impact to the community over a 10 year period is estimated to be $9 million (salaries and sales tax).  The estimated direct economic impact to the City/BEDC from the company over this 10 year period is about $300,000 (from sales and property taxes, utility, and fees).  The company currently has 5 employees with a minimum wage of $35,000/year.  In the next 12 months, LANI anticipates hiring seven more employees, according to BEDC information.

The loan, funded by the BEDC, is requested up-front due to the past and future capital outlay by the company.  The terms of the up to $200,000 loan for the infrastructure and related development  include a 7 year term with graduated annual payments, job creation/retention credits with wage restrictions for payback of note and it will be secured by a real estate lien.