Lake Effect Ice Cream will receive a $100,000 short-term loan from the City of Lockport's development agency to help the company start construction of its new production facility.
The company, owned by Lockport High School teachers Erik Bernardi and Jason Wulf, recently spent $125,000 to buy a 7,000-square-foot vacant former auto parts store at 43-49 Niagara St., which they plan to convert into an ice cream factory.
Lake Effect, whose current scoop shop is located at 79 Canal St., Lockport, plans to open its second location this spring at 1900 Hertel Ave., Buffalo. Its ice cream also is sold at numerous area supermarkets.
Brian M. Smith, city planning and development director, said the loan, approved Thursday, is due in 120 days, and was sought as bridge funding until Lake Effect's other financing for the Niagara Street plant is completed. The annualized interest rate is 4 percent, Smith said.