A controversial local manufacturer is the subject of a legal notice published in the Laclede County Record last week.
According to the notice, property connected to the Ice Cream Factory in Lebanon will be sold at approximately 1 p.m. Oct. 26 at the front door of the Laclede County Courthouse. The notice lists the location of the plant at what is now 1201 Ice Cream Way.
The business came to Lebanon in 2022 after a Chapter 100 agreement was reached to provide incentives, with the City of Lebanon owning the building and land.
Last Wednesday, the city clarified that the building and land is not part of the sale and will continue to be owned by the City of Lebanon.
“The potential sale stems from a private debt between a borrower and a lender. The City of Lebanon is not part of that debt and will not comment further on this private legal matter,” the city statement said. “The Ice Cream Factory remains in good standing for a loan authorized in January of 2026 for electrical improvements to the building. The City of Lebanon maintains ownership of the land and building at 1201 Ice Cream Way, under the same Chapter 100 agreement that has applied to the site since 2022. That ownership does not change based on the outcome of any potential Oct. 26 sale.”
The city said it would not comment further on the matter.
The company has been embroiled in controversy over the $400,000 loan involving the city earlier this year and more recent allegations that employees have not been paid. The subject of the Ice Cream Factory came up briefly two times at last week’s Lebanon City Council meeting.
The issue first came up during public comments to the council.
A speaker, Mendy Haley, noted that the city had granted incentives to the Ice Cream Factory and noted the business “is currently plagued by severe labor disputes, employee walkouts, and acute allegations of unpaid wages failing to distribute earned wages to workers as a direct violation of the federal fair labor standards act in Missouri State labor laws. “
She requested the city council and the city administrator initiate a compliance audit and direct city staff to “review the factory's active payroll and employment verification data to cross-reference reported metrics against actual wage disbursements, issuing a formal notice of default if there is a breach of the lawful operation.”
Among other actions, she said “the city must issue a formal in notice of default to the Ice Cream factory and initiate proceedings to suspend or dissolve their tax abatement structure.”
Ward 1 Councilman Jaret Scharnhorst also addressed complaints about the business not paying its employees in comments at the meeting.
“It’s kind of personal for me. I see people not getting paychecks,” he said. He added that his wife had considered taking one of the baking jobs.
“If we had made that sacrifice and she’s not getting a paycheck, that would not be great and I feel for people in that situation,” he said.
He noted the items the council was asked to consider during public comments and said he did not know that the city’s options were to consider.
The City of Lebanon also addressed recent public conversation about its financial involvement with the Ice Cream Factory, after a January 2026 advance became the subject of online speculation in recent weeks.
The City Council authorized: up to $400,000, interest-free, for building improvements to a building currently owned by the City of Lebanon. According to the city release, the final project cost was $282,764.13. Repayment begins April 1, 2027.
