PARK RIDGE, ILL. — Koch Foods Inc. is planning to build a $220 million expansion onto its existing poultry processing facility in Fairfield, Ohio.

The company will add approximately 402,000 square feet north of its current location, which is also expected to add at least 400 jobs within three years of completing the expansion, acording to a document from the Fairfield City Council Meeting on Sept. 27. The poultry processor is also expected to retain the 1,190 full-time employees currently working at the plant. 

Koch Foods plans to add two production lines along with other improvements as part of the renovation. The document said $120 million will be spent on additions and new construction. New machinery and equipment will cost $80 million, and $20 million will be spent on the improvements to the existing buildings. 

The project is expected to start on Oct. 1 with completion slated for December 2022. 

The city documents showed that Koch Foods will ask the council to enter into an agreement that would provide a 10-year 75% property tax incentive on the assessed value of the expansion. 

A second agreement would be a four-party compensation agreement. Koch Foods agreed to pay the Fairfield City School District and Butler Tech annually in amounts of 30% and 0.5%, with the property tax abatement each during the life of the tax exemption, the document said. The city is planning on doing $1.5 million in sanitary sewer improvements near the facility. 

Koch Foods is the largest utility user in Fairfield, and the new project would increase water and sewer revenue for the city according to the city.