Heartland Energy & LAIC secure $3.7M in USDA loans to fuel community development
November 5, 2024The Lake Area Improvement Corporation (LAIC) is excited to announce a monumental financial boost. The local economic development organization has been awarded two separate Rural Economic Development Loan and Grant (REDLG) loans, facilitated in partnership with Heartland Energy, totaling $3.7 million.
These critical financing awards, consisting of 10-year loans at 0% interest with a 1% annual fee, represent a significant boost for the community, helping fund pivotal projects that will shape Madison’s future.
The United States Department of Agriculture’s REDLG program provides low-interest loans to rural areas, empowering organizations like the LAIC to tackle large-scale initiatives that may otherwise be out of reach. By securing these low-cost financing options, each project saves hundreds of thousands of dollars, enabling LAIC to do even more to serve Madison’s businesses and families.
These REDLG funds will drive two pivotal projects forward:
Lakeview Industrial Park Expansion
Madison’s Lakeview Industrial Park continues to see new businesses set up shop. This past summer, the LAIC held a groundbreaking ceremony for a much-anticipated expansion project which will enhance the park’s infrastructure and provide additional space for future tenants.
The LAIC received 80% of the necessary funding for the expansion through a $3.6 million grant from the U.S. Economic Development Administration (EDA). The additional 20% of the project’s cost, including engineering expenses, is being funded through a collaborative effort between the LAIC, City of Madison, and Lake County to improve and expand local roads.
This local investment was financed through a $1.4 million REDLG loan. This strategic financial package provides greater flexibility for future land sales, creating new opportunities for business growth in Madison.
“Industrial parks drive economic growth, create jobs and foster innovation,” said Heartland Director of Economic Development Casey Crabtree. “They serve as a catalyst for local businesses to thrive, create opportunities and ultimately enhance the quality of life. We are proud to play a part in the future success of Madison’s industrial park.”
Madison Early Learning Center
The LAIC celebrated the groundbreaking of a long-awaited childcare center in October, a milestone that promises to address the immense need for additional childcare resources in the region.
The $4.5 million project has been brought to life financially through a combination of grants, gifts, and pledges. While gifts and grants provide immediate funding, pledges span the next 10 years. A successful $2.3 million REDLG loan maximizes the impact of these funds, reducing financing costs so more resources can go directly into the project.
“Childcare is as essential to economic development as any other infrastructure,” said Crabtree. “It is necessary to support a growing workforce, and we commend the LAIC for undertaking such a worthy project.”
While LAIC has spearheaded the project and will own the building, a reliable partner was needed to provide high-quality programming for children. EmBe, a renowned organization committed to empowering children and families, will operate the comprehensive, state-of-the-art facility dedicated to fostering growth and opportunities for young children.
With a capacity to accommodate 140 children, the center will support local families and businesses as well as strengthen Madison’s economy. This strategic financing approach benefits families indirectly by ensuring more dollars are dedicated to creating a high-quality learning environment.
Construction is expected to be completed by October 2025.
Heartland Energy: A crucial partner
Heartland Energy has been an invaluable partner in bringing these bold projects to life, facilitating pathways to progress for businesses, families, and the entire Madison community. The REDLG program provides loans to local utilities such as Heartland Energy, which they, in turn, pass through to the ultimate recipients.
“The LAIC is incredibly grateful to Heartland Energy for their collaboration in securing these funds which helped push both of these projects across the finish line,” said LAIC Executive Director Brooke Rollag. “Partnerships are the key to successful economic growth and we are lucky to have organizations like Heartland in our community, willing to work together for the overall success of the community.”
As the wholesale power supplier to the City of Madison, Heartland Energy is eligible to apply for REDLG funding. Through this collaboration, LAIC is investing in the infrastructure and resources that make Madison an even better place to live and work.