The Danville Industrial Development Authority has approved a $19.5 million loan for Litehouse Inc. to expand its facility at Airside Industrial Park.
During its meeting Tuesday morning, the IDA agreed to get a $19.5 million loan from American National Bank and in turn loan the money to Litehouse so it can build a 48,000-square-foot addition at its facility.
The loan from American National Bank will be paid back over 10 years at a 4.25% interest rate. Litehouse, headquartered in Sandpoint, Idaho, will repay the loan to the IDA at the same interest rate, plus a 5% service fee that will go to the IDA, acting Danville Economic Development Director Corrie Teague Bobe said.
Litehouse’s repayment to the IDA will be through lease payments, Danville City Manager Ken Larking said. The IDA leases the Litehouse facility to the company.
“The monthly lease payments will cover the debt service payments,” Larking said.
When Litehouse announced last May it was bringing 160 new jobs to Danville, officials also said the company would expand the former Sky Valley Foods building where Litehouse would locate.
The company held its grand opening last July.
The current facility is about 141,000 square feet. The expansion would add refrigerated manufacturing and warehouse space.
In an interview after the IDA meeting, Board Chairman Neal Morris expressed surprise at how soon after the company began operations the expansion was happening.
“It was quicker than I thought it would be,” Morris said.
Litehouse did not return multiple requests for comment the Register & Bee left by email and telephone on Tuesday.
Work has already started on the expansion, Bobe said, estimating it should be complete in about four to six months.
Litehouse, which also operates manufacturing facilities in Idaho, Michigan and Utah, produces and markets refrigerated salad dressings, cheeses, dips, sauces, apple cider and freeze-dried herbs under the Litehouse label.
The products are sold through supermarkets, including Food Lion and Sam’s Club in Danville, and warehouse clubs across the U.S. and Canada.
Crane reports for the Register & Bee. He can be reached at (434) 791-7987.