Scottsbluff Council Approves Prime Metal Assistance Agreement

February 19th, 2020 | Dave Strang

The Scottsbluff City Council Tuesday evening approved a $1.5 million LB840 economic development assistance agreement for Prime Metal Products, Inc. to create a new operation for the manufacture and distribution of commercial HVAC duct systems in Gering.

The $7.1 million dollar project is anticipated to generate up to 70 new jobs over time with pay ranging from $13-26 per hour, plus benefits.

Scottsbluff Economic Development Director Starr Lehl told the council she has remained in contact with Prime Metal President Herb Gibson for over a year, after the original proposal was put on hold last April due to changing economic conditions, including higher steel prices.

Lehl said the project is being funded jointly, not only by the city of Scottsbluff, but the State of Nebraska has committed $789,000 in Community Development Block Grant funding, and the city of Gering has committed $211,000 in Community Development Block Grant reuse funds. She said the company is also applying for Nebraska Advantage, which would allow the city of Gering to use a portion of their sales tax revenue over the next 7 years to pay for the tax credits credits that the company will receive.

Gibson and a new group of committed investors will provide $1.2 million in cash, equipment and software, with the balance of the funding for the project to come from loans from Western States Bank and the Small Business Administration.

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