(KLZA)-- The Falls City Council has entered into an agreement with the State of Nebraska, Department of Economic Development on a Community Development Block Grant contract.

The $305-thousnd loan is for the Falls City Foods Company located at 404 Pacific Street.  The City is not responsible for paying back the loan. It is required the CDBG funds, go through a local government entity.

Of the total amount, $5-thousand dollars will go to Southeast Nebraska Development District for general administration of the contract.

In addition, Falls City previously agreed to provide $125,000 in CDBG Re-Use Program Income to Falls City Foods.