The Longmont City Council next week will consider whether to give J.M. Smucker an estimated $6.5 million in tax and fee rebates in exchange for building a 200,000-square-foot manufacturing facility in the city.

Smucker's announced Tuesday that the company has plans to build the manufacturing facility east of County Line Road on land that is in both Weld County and Longmont city limits.

If you go

What: Longmont City Council meeting

When: 7 p.m. Tuesday

Where: Council Chambers, 350 Kimbark St.

More info: Read full agenda and more at Bit.ly/LM-City-Council

The first phase of the facility is estimated to cost about $200 million, with the possibility for an additional $140 million, 200,000-square-foot expansion in the future.

The company anticipates that the facility will create at least 250 full-time jobs in the first phase. The second phase would create 250 more full-time jobs.

In order to receive the Longmont rebates, Smucker's would have to pay its employees $48,977 annually, which is 105 percent of the annual average wage in Weld County, which is $46,644.

The facility is supposed to generate about $12.34 million for the city before rebates after both phases are complete, according to a staff memo to council.

That $12.34 million comprises:

• $6 million from 10 years of real property tax

• $4.2 million from 10 years of business personal property tax

• $140,000 one-time payment for the Longmont transportation community investment fee

• $200,000 per year of electric franchise fee revenue to the city's general fund for a total of $2 million over 10 years

Jessica Erickson, president of the Longmont Economic Development Partnership, said in the memo to the City Council that the city estimates there will be indirect impacts to Longmont as well that include $3 million in construction-related materials and 650 construction jobs.

In return, Longmont would rebate Smucker's $6.5 million in incentives. An incentive package above $75,000 has to be approved by City Council rather than by City Manager Harold Dominguez.

The $6.5 million in incentives comprises:

• Rebate for building permit or plan review fees

• Rebate for Longmont sales and use tax on construction materials

• 100 percent rebate of Longmont business personal property tax for each of the first four years and 50 percent rebate for each of the second four years of each phase

• Waiving the escrow contribution from Smucker's for extending Fairview Road beyond the railroad tracks

• Rebate of the money from the company required for greenway improvements

• 75 percent rebate of the cost to install a traffic signal at Colo. 119 and Fairview Road if a traffic study shows that one is necessary

The Longmont City Council is scheduled to discuss and vote on the incentives package Tuesday night.

Karen Antonacci: 303-684-5226, antonaccik@times-call.com or twitter.com/ktonacci

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