LEBANON, Mo. — In an attempt to squash the rumor mill and in response to social media backlash from some area residents, the City of Lebanon issued a media release in the afternoon hours of Wednesday, September 23.
The controversy, which surrounds the local Ice Cream Factory, started with allegations that employees, former and current, are not receiving paychecks and haven’t been for weeks. As social media comments amped up over compensation, or lack thereof, so has talk of the city loaning the same business hundreds of thousands of dollars – $400,000, to be exact. Other accusations hurled in online posts pertain to the current Ice Cream Factory owner having a criminal past.
City officials have taken the reports seriously and, instead of standing idly by, have disclosed information in an act of transparency. The City of Lebanon Public Information Office, including Spokesperson Derek Gean, has released the following information.
The Facts Behind Ice Cream Factory Electrical Project Loan
The City of Lebanon is addressing recent public conversation about its financial involvement with the Ice Cream Factory, after a January 2026 advance became the subject of online speculation this week.
Quick facts:
• Amount City Council authorized: up to $400,000, interest-free, for building improvements to a building currently owned by the City of Lebanon
• Final project cost: $282,764.13 — project complete, upgrades fully functional. The full amount will not be needed.• Paid to: area contractors and local suppliers only, for inspected work
• Unused balance of the original authorization: $117,235.87 — never drawn, never spent
• Repayment begins: April 1, 2027
• The City already owns the building at 1201 Ice Cream Way and keeps it either
way — turning what was once a vacant, deteriorating historic building into an
industry-ready facility in a line of work that helps diversify Lebanon’s economy
How the Advance Worked
In January 2026, Council voted in open session to authorize the advance using Chapter 100 financing — one of Missouri’s most common economic development tools. Chapter 100 is not limited to manufacturing; cities use it for warehousing, distribution, research and development, and agricultural and food processing projects, among others. Lebanon has used the same structure with other local employers.
“We hear it constantly — Lebanon needs more jobs and a more diverse economy, something beyond what we’ve always relied on,” said City Administrator Troy Schulte. “Food manufacturing is exactly that kind of industry for us. This plant needed the electrical work to compete. Helping get them there is how we invest in what Lebanon’s economy looks like ten years from now, not just how we react when something’s
struggling.”
Why Cities Use This Kind of Financing
Chapter 100 financing helps local employers invest in their operations and make improvements they couldn’t otherwise afford, in exchange for keeping and growing jobs locally. Lebanon has used the tool with other employers before, for the same reasons: protect existing jobs, preserve a City-owned asset, and grow the local job base without touching general tax dollars.
Looking Ahead
City officials are aware that additional claims — involving the business owner’s history and reports of delayed employee paychecks — have circulated alongside discussion of this project. The city has not verified those claims, and they fall outside what the City oversees, which begins and ends with a completed, inspected electrical upgrade to a building Lebanon owns.
We remain hopeful that the Ice Cream Factory will be able to move forward, but if it does not work out, the City has an improved property ready for the next opportunity. The City’s focus stays on what this investment means for Lebanon’s future: growing local jobs and assets, building a more diverse local economy, and giving local employers the support they need to grow.
Instead of concentrating on hearsay, city officials are choosing to focus on the facts of the project. The future of Ice Cream Factory, as well as the jobs tied to it, remain uncertain.
The Carter Media news team will continue to investigate this story and update information as it becomes available.