HUTCHINSON —The Hutchinson City Council approved a tax abatement request and development agreement with GEO Chemcial LLC on Tuesday.

Under the tax incentive agreement, GEO will pay in lieu of taxes 5% of the property value. That number will increase by 10% for the first five years and top out at 50% for the remaining five years of the 10 incentive package. The abatement will be dependent upon employment numbers, which GEO said will be 50 to 75 workers over a two-year period. The city has the authority to recoup the incentive if employee numbers are not met.

Enid, Okla-based GEO Chemicals specializes in the manufacturing and sale of oil and gas field specialty chemicals. The company has purchased a building on East 14th on the former Consolidated Manufacturing property and plans to build a 10,000-square-foot, $400,000 building adjacent to the existing building. Total investment for the project is estimated at $4.4 million.

The council also approved several recommendations from planning and zoning and a development agreement with the company.