The city of Ankeny is considering a development agreement that would give a local company an incentive to stick around.

Quality Automation Graphics, which has outgrown its facility at 1605 N. Ankeny Blvd., plans to lease 6,000 square feet of space in a new 15,000-square-foot office building being developed by DRA Properties LC at 1250 S.W. State St.

If approved, the proposed development agreement would allow the city to rebate a portion of the property taxes paid by Quality Automation on that space for five years. The city would also give Quality Automation a $20,000 loan, 20 percent of which would be forgiven each year for five years provided the company maintains at least 15 permanent full-time employees.

Quality Automation would be the first tenant to locate in DRA’s 84-acre Vintage Business Park in Prairie Trail.

“They are doing site work right now,” said Ashley Johnson, a DRA spokeswoman, adding that the building is slated for completion in January 2011.

According to a city report, “The economic development department staff worked with (Quality Automation) to identify ways to retain the company in Ankeny by making the cost for new office space competitive with the many other options in the metro area.”

A public hearing on the development agreement has been scheduled for Oct. 18.