SACO — The city has approved a tax increment financing district for a proposed molecular diagnostics business.

Maine Molecular Quality Controls, which, according to its website, “designs and markets molecular controls for use in inherited disease testing, infectious disease detection, and pharmacogenetics,” is planning to expand its business with a new building in the Mill Brook Business Park.

The city has approved a purchase and sale agreement with Maine Molecular Quality Controls. Inc., for either one of the two lots in the business park, said Finance Director and Interim City Administrator Cheryl Fournier. She said the proposed business would be the second building in the Millbrook Business Park.

The park was advertised as newly developed and ready for sale in an October 2005 city newsletter. Filling the park was listed as one of the City Council’s goals made last year.

Mill Brook Business Park, located off of Route 1, is a 10-lot, 70-acre park, with lots ranging from two to eight useable acres, according to promotional material from the city.

The City Council on Monday approved a tax increment financing district, or TIF, to give Maine Molecular Quality Controls an 80 percent refund of tax revenue generated from the business for 10 years.

Maine Molecular Quality Controls is designing a $5 million “state-of-the-art laboratory space,” with a footprint of about 16,000 square feet, to be expanded to 30,000 square feet in 10 years, according to written city council commentary.

Based on estimated tax rates and the creation of a $5 million building, the TIF is estimated to give the company $80,000 a year in tax revenue, and the city $20,000 in tax revenue for 10 years. After the terms of the TIF are over, all tax revenue from the building would go to the city.

According to written city council commentary, as the business looks to grow, the TIF would help it to expand its staff. The cost of a new scientist is about $80,000 a year, according to council commentary.

— Staff Writer Liz Gotthelf can be contacted at 282-1535, ext. 325 or egotthelf@journaltribune.com.