Gov. Heineman awards $205,000 CDBG funding to Madison Foods

LINCOLN, NEB. (January 4, 2007)—Governor Dave Heineman has awarded the City of Madison a $205,000 Community Development Block Grant (CDBG) to help Summit Foods, Inc. dba Madison Foods expand its operations. The project will create 10 new full-time supervisory and production positions. Economic impact analysis indicated that the 10 new jobs at Madison Foods will result in 10.4 spin-off jobs in other industries in and around Madison County.

The company will use $200,000 to help build a 10,000 sq. ft. warehouse addition to the existing warehouse and production facility. The expansion will allow the company to double production of all its featured food brands. The City of Madison will use the remaining $5,000 for administrative-related expenses.

Loans totaling $400,000 from the Bank of Madison and Northeast Nebraska Economic Development District will go toward construction costs and packaging equipment. The city provided an easement to make way for the expansion. Madison Foods has purchased an additional parcel of land to locate a freezer to allow for future expansion.

Madison Foods started with only one product, “Bettur”, a soy-based butter substitute manufactured for the commercial food service market. In 1995, the company diversified operations and added a variety of barbeque and pasta sauces, and salsas, including Savory Kitchen Marinara, Calvin & Cleo’s Salsa, and Savory Kitchen Salsa for food service and retail markets. It works closely with the University of Nebraska-Lincoln’s Food Processing Center and Nebraska entrepreneurs to co-pack locally developed products. The company’s solid markets for its products, including several Las Vegas casinos, combined with a unique manufacturing capability that allows it to produce cold- and hot-packed products in glass or plastic, fuels its excellent growth potential.

Federal funds are made available to Nebraska from the U.S. Department of Housing and Urban Development’s CDBG program, which assists with the development of businesses and communities throughout the state.

FOR INFORMATION, CONTACT:

Sheryl Hiatt at 402-340-6180, or email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it ,
or Bob Doty at 800-426-6505, 402-471-2095, or email: This e-mail address is being protected from spam bots, you need JavaScript enabled to view it