City may give money to bakery seeking to grow business, add jobs

The growth of Luke’s Custom Cakes in downtown Hamilton is set to be spurred by a financial boost from the city.

Hamilton City Council today will consider an economic development agreement that would provide Luke Heizer, owner of Luke’s Custom Cakes, with a $20,000 forgivable loan. Heizer opened his retail shop at 221 High St. in downtown Hamilton in August, and in January began an expansion project that finished this month. He expanded his kitchen into the former technology center from Lane Library ― now in the former Journal-News building on Court Street ― which also includes an office area.

The economic development agreement is backed by the city’s administration and would provide Luke’s Custom Cakes the loan through the city’s Commercial Revolving Loan Fund, which is forgivable if certain performance criteria are met. This loan was reviewed and recommended for approval last month by the Hamilton Community Improvement Corporation. The money can only be for equipment.

“One of the conditions of the loan is job creation,” said Hamilton Economic Development Director Jody Gunderson.

The bakery and retail shop has three full-time and seven part-time employees and plans to hire two or three additional full-time and three part-time employees over the next couple of years. The 22-year-old started his business in the kitchen of his parents’ home when he was 12, and his mom recently left her job to help her son with the business.

Once the job requirements are filled, Luke’s Custom Cakes will have six full-time and 10 part-time employees.

Heizer said filling those job requirements is likely to happen sooner rather than later because he’s having to turn down orders because of the lack of skilled decorators. The expansion has provided Luke’s Custom Cakes the capacity to produce more cakes and cupcakes, but he said “it’s just a matter of decorating those products.” He said a skilled decorator is one of the hardest positions to fill.

Heizer is in the process of interviewing decorators and already hired one this week.

Gunderson said the Hamilton CIC reviewed the business and “saw this as a great mix for the (High Street) corridor.”

“We’re looking for that mix of retail businesses that will increase the walkability, that will get people curious enough to get out of their car and going up and down (High Street),” he said. “He’s a very talented young guy and they make a very good product.”

Luke’s Custom Cakes are open 11 a.m. to 5 p.m. Tuesdays through Fridays, and 10 a.m. to 3 p.m. Saturdays. They are closed Sundays and Mondays.

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