POCATELLO –– The Pocatello City Council approved a lease agreement Thursday evening for a plastic pipe manufacturing and distribution company. The company will set up shop on 30 acres of land at the southwest portion of the Pocatello Regional Airport. The lease term is for 50 years, with two 25-year renewal options.

City officials declined to identify the company at this time, referring only to the tenant as “Project Pipe.”

According to the terms of the lease agreement, the business will be responsible for driveways, pavement and any track leading up to the facility. However, the Pocatello Development Authority Board approved seeking a $6 million loan to tackle major infrastructure upgrades in order to make the site appealing to the company. Those improvements will include a new road, a railroad spur, additional electrical service and new water and sewer upgrades.

The $6 million loan is expected to be paid off over the next 19 years.

The rental rate for the pipe manufacturer will be $30 per year through 2024. From 2025 to 2029, the pipe business will have to pay $1,500 per year. After that, the rate goes up again to $9,000 per year. However, the rental rate will be negotiated for each renewal period.

The lease agreement is still subject to review by the city legal department.