Garden City officials are considering entering into a $1.1 million loan agreement with ethanol plant operators.
The agreement under consideration would allow Bonanza BioEnergy to solicit state assistance for the construction of a rail project and allow the development of a 50-acre industrial park.
As part of the possible partnership, Finney County and Garden City would pay $1 million of a Kansas Department of Transportation loan at 2 percent interest.
Bonanza BioEnergy is looking to build an additional railroad spur at its ethanol plant to bolster its market. It would pay the rest of the loan and in exchange would deed over a piece of undeveloped property.
The agreement also includes a $500,000 grant from the state for the estimated $2.58 million rail project.