The Indianola City Council approved a development agreement with Phillips Floors at their meeting Monday, approving Tax Increment Financing to help the business expand and move.

Interim City Manager Charlie Dissell tells KNIA News Phillips Floors is relocating to a new $2.2 million facility, of which costs associated included sewer connections, the electrical infrastructure, and building permit costs, all a part of building operations cost. Dissell said the building is in a previously designated TIF district by the council, which will help offset the costs.

“What that does is essentially the land as it is today, we are only taxing the land as there are no structures on it. Then when the building is finished, we are then going to be taxing the structure. So the difference between the land value and now the value of the structure gets put into a fund and we are able to use that fund to reimburse on this development.”

The new facility will be located on N 9th St., just south of Hillcrest Ave.