The Waukee City Council has approved an economic development package for an office development by entities created by Knapp Properties and businessman Jim Cownie for the new headquarters of Holmes Murphy & Associates.

The city will provide economic development incentives estimated at $3.48 million to the developers, with the funds coming from tax increment financing. The developers will return $25,000 from each annual property tax refund to the city to help pay for improvements in the area.

A portion of the refunds will be based on the value of public improvements, including a street, that will be paid for initially by the developers.

The incentives come from two Waukee economic development programs, one for business expansion and the other for the installation of public infrastructure.

The project will be located on the west side of Grand Prairie Parkway just north of Ashworth Road. A 90,000-square-foot, two-story office building is planned on about 8 acres. Also as part of the development, the city and developers are swapping a little more than one-third of an acre.

The Iowa Economic Development Authority last month approved nearly $1 million in tax incentives that had been requested by Holmes Murphy to help finance the move. Ashworth Properties Development Inc. is the real estate development arm of the Knapp and Cownie partnership, while KC Kettlestone LC is the office development entity.