On Monday night, the Clear Lake council approved the purchase agreement for $1.62 million in general obligation bonds which will fund a 10-year forgivable loan from the city.

This is not the final step in the process, however. The council is expected to pass a resolution authorizing the issuance of the bonds at its March 17 meeting. The bond closing will be on March 31.

Chip Schultz with the underwriter D.A. Davidson & Co. of Des Moines said Clear Lake Bank & Trust, Manufacturers Bank & Trust and Farmers Savings Bank, Northwood -- all North Iowa banks -- are purchasing the bonds.

"You had very excellent local support on the financing," Schultz said.

Last month, the city of Clear Lake and Cerro Gordo County approved an incentives package to help secure the project.

The proposed site is a 39-acre undeveloped area west of Titan Pro SCI in the Clear Lake Industrial Park.

City Administrator Scott Flory said the city is offering a 15-year, 90 percent property tax rebate on new taxable valuation with annual appropriation provisions. The aggregate amount of the property tax rebates is not to exceed $7.3 million, based on the new taxable valuation of $19 million.