Estherville, IA (northwestiowanow) — The City of Estherville is moving forward with plans to support a major industrial expansion on the city’s south side.

During Monday’s regular city council meeting, the council approved an agreement related to the construction of a 60,750-square-foot addition at a property located at 602 South First Street. The project is intended to accommodate an expanding manufacturer in the community.

City Administrator Penny Clayton says the agreement will help the city address infrastructure concerns

The project is also expected to qualify for tax incentives through Estherville’s Urban Revitalization Program, which phases in property taxes on new value created by development.

Council members also began the process of restructuring the city’s Tax Increment Financing, or TIF, districts.

Clayton explained that the current urban renewal area and TIF districts are scheduled to expire at the end of 2032, making it necessary to establish a replacement district.

A public hearing on the proposed new TIF district has been scheduled for November 2.