The City of Maryville this week approved $25.5 million in bond financing for the expansion of the city’s Kawasaki plant.

Under terms of the deal the city will take ownership of the plant, and lease it back to the company.  The city will abate 100% of the property taxes and 50% of the personal property taxes for the ten-year lifetime of the bonds.

Kawasaki hopes to finish construction of the plant by December 1st. They hope to add 30 new jobs. Until the bonds are repaid, the company agreed to keep at least 775 workers, which includes the 30 new jobs, or face default.

To cover at least some of the local school district’s tax-revenue stream, Kawasaki has agreed to make payments in lieu of taxes amounting to about a quarter million dollars per year.

The City Council in Maryville unanimously approved the bond package on Monday.