The Ankeny City Council on Monday evening approved a development agreement with Dickten Masch Plastics LLC that will enable the manufacturer to move forward with a $7.5 million warehouse, distribution and manufacturing expansion project that will add 30 new jobs.


The 48,000-square-foot facility will be located on a 3.4-acre parcel adjacent to the company's current location at 3401 Convenience Blvd. in the Metro North I Business Park. The project will be built and owned by Denny Elwell Family LC, which will lease the facility to the company.


Dickten Masch Plastics, a custom plastics molding company, currently employs 125 people at its Ankeny plant, which opened in 1988. Based in Nashotah, Wis., the company also operates a plant in Monterrey, Mexico. The expansion of its Ankeny facility will allow for additional on-site storage, manufacturing and assembly workstations, the company said in a release.


"As we continue to experience positive sales growth and acquire new customers and platforms, Ankeny remains the best location for our business and employees," said Jeff Hagmeier, director of western operations for Dickten Masch Plastics. "We have a number of relationships with Iowa vendors, and this new centralized warehouse will allow us to meet their demand for supplies in the most efficient way."


In April, the Iowa Economic Development Authority approved $160,050 in tax incentives through the state's High Quality Jobs Program for the expansion.


Through Ankeny's Urban Renewal Tax Increment Fund, the expansion project is eligible for city incentives that will provide property tax abatement and tax rebates for a five-year period.


It's the first project approved under the city of Ankeny's revised Local Business Investment Policy.


"It demonstrates that this policy continues to encourage economic growth and job creation while holding companies accountable to their job creation goals," Ankeny City Manager David Jones said. The policy has encouraged more than $125 million of new investment since it was approved in 2010.