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.

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.

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 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 an average of $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.

Mayor Dennis Coombs said he was in support of offering the incentive package to Smucker’s because it would create high-paying manufacturing jobs that Coombs said would not require college degrees.

“As a businessperson, it helps the entire community in getting the diversity of jobs that we really need,” said Coombs, who is a retired engineer and owns a restaurant. “We could land a high-tech company here with jobs that pay $130,000 a year, but those require a master’s degree and all kinds of stuff, and here you can make almost $50,000 without a college education.”

Erickson said that while Smucker’s would be required to offer annual wages that average out to $48,977, a majority of positions at the facility will be in that income range.

Coombs said that he supports the economic incentives for Smucker’s because it’s a good deal for the city.

“If you look at it from one point of view, if they don’t come here, we don’t get the personal property tax anyway. So if we can entice them with a discount for four years, that’s still a good deal,” Coombs said. “I’d rather have 50 percent of something than 100 percent of nothing.”

Rich Werner, president and CEO of Upstate Colorado Economic Development, said the organization also offered Smucker’s incentives for locating in Weld County. Upstate Colorado Economic Development focuses on persuading businesses to locate in Weld County.

“We did our standard program here of giving a personal property tax rebate to companies,” Werner said. “It’s a 50 percent rebate over 10 years.”

Werner estimated the value of the rebate to be between $2.4 million and $2.6 million and noted that it’s calculated based off of both phases of the facility.

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