An ordinance that authorizes the city manager to enter into an agreement with a packaging supply manufacturer was approved during Tuesday’s City Council meeting.

The ordinance will eventually allow the company Intertape Polymer Corporation to acquire land, immediately south of 2200 N. McRoy Dr., and a non-interest bearing loan from the city to expand its company, according to the meeting agenda. In return, this will create 37 more jobs with the company and promote a healthy relationship between the city and the company, city manager Kevin Baity said in an email.

Intertape already maintains a Carbondale facility and has 68 employees.

The $194,500 loan Intertape receives will be used for the facility’s expansion, plant operations, machinery relocation to the Carbondale facility and to increase the work force.

However, Intertape must attain and maintain the employment standards over a five-year period, Baity said in the email, and the company will receive 20 percent of the loan amount each year the requirements are met.

If at any time Intertape fails to meet the requirement for a year, the 20 percent must be paid back, he said. If the company ceases operation, Intertape will pay back the balance owed.

Councilman Lee Fronabarger said he was pleased with the ordinance and congratulated the city on its ability to cooperate with the established company.

“I just want to commend the city staff,” Fronabarger said. “Economic development is key to progress and promotes the community. I’m very happy with this.”

Councilman Chris Wissmann said while he supports the opportunity to have Intertape expand, he would like to explore the possibility for the original facility to remain in operation.

Despite this, he said he was happy to see more job opportunities open up in the city.

“I don’t care if they buy new equipment and leave the old stuff in the old factory,” Wissmann said. “I just want 37 jobs. This is a company with options, and they chose us.”

Curtis Clark, operations manager of the Carbondale factory, said the employee amount has grown since September, and all signs indicate the company will meet employment standard requirements.

Clark said some employees have been hired out of the Carbondale area.

“We started with the original 68 employees, and on September 30th we were up to 85,” he said. “There are three or four more employees that are transferring to live here.”

Clark said he fully expects to have the full 105 employees with the company by Dec. 31.

The ordinance was passed unanimously.