An incentive package by the city for Quality Pork Processors, Inc. took shape during an Albert Lea city council meeting that took place earlier this week.

Albert Lea City Manager Paul Sparks said the city would issue a $3.47 million, 15-year maturity general-obligation bond for building the 51,000 square-foot facility. The 11-acre site in the Northaire Industrial Park would be leased by Greater Jobs Inc. at $25,500 a year.

During a 15-year period, the building would be leased to QPP. And after that, the ownership would be transferred to the company, if it chooses.

Though the city would be responsible for paying back the bond, if QPP somehow failed to come up with the lease, Sparks intends to equip a failsafe by having Hormel Foods Company, QPP's co-packer and exclusive customer, guarantee the lease or enter a coterminous producer agreement with QPP that ensures sufficient business transactions between the two firms.

QPP plans to expand its operations and Albert Lea is one of the candidates for the new plant along with Clear Lake, Iowa, and Austin. The facility would be a pork-loin processing plant that would eventually employ up to 200 workers.

Other actions in the council approved in the meeting are:

n A contract with Alliant Energy for installing methane-conversion generators at the wastewater treatment plant. The device will utilize the methane gas coming out in the wastewater treatment process and reduce the electricity bill by $60,000 a year. The payback period for the investment is around two to two-and-a-half years.

n An allocation of $678,000 in interest earnings from the Police and Fire Pension Return Funds to the general fund: $125,000 for the development of a water plant, $100,000 for storm alarm unit replacements and $20,000 for life rescue system renewal. The balance will be used for downtown projects.

n Variances for the county on Newton Avenue and the alley south of the new criminal justice center, where the county will work on footings and telephone cable duct installation as a part of the new courthouse project.