The Johnston City Council has approved a development agreement that clears the way for construction of a $40 million research facility at Pioneer Hi-Bred International Inc.

Under the agreement, the city will provide tax increment financing (TIF) of nearly $4.3 million for five years on an estimated $30 million in property improvements.

Pioneer is expected to create 400 jobs under the agreement with the city and an incentives package from the Iowa Department of Economic Development (IDED). State documents indicate the jobs will pay a minimum of $23 an hour.

After the TIF expires, the development will generate nearly $1.2 million in annual property tax revenue, said Johnston City Administrator Jim Sanders.

Three research buildings will be built along Northwest 62nd Street. Pioneer will pick up about $450,000 of the costs to expand the street.

Pioneer said when it announced the research center in March that it would include state-of-the-art laboratories in multiple connected buildings. Research will focus on advanced plant genetics.

Construction is expected to be completed in early 2012.

The project qualified for $7.3 million in tax incentives under IDED’s high quality jobs program.