KINGFIELD — Arc Enterprises Inc. presented selectmen Monday evening with a plan for a $1.5 million expansion of its steel fabrication plant and a request for tax credits.

The Commercial Street business was established in 1985 and manufactures trusses, girders and other heavy construction materials.

A credit enhancement agreement with the town would allow owner Walter Kilbreth and the town to keep some of the new tax revenue for economic development and allow Kilbreth to reinvest in his business, Larry Warren, Maine Huts and Trail director, said.

Warren has been working with Kilbreth to draft a proposal that he can take to the bank to show he has municipal support for the expansion.

Kilbreth plans an 83,100-square foot addition that includes office space. He purchased abutting property to ensure plenty of room for vehicles to enter and exit Commercial Street, and paid for extension for water facilities to his building, Warren said.

“We’re in a different world,” Warren said. “It’s become extremely competitive.”

Kilbreth said he will hire at least six and up to 10 new employees through this expansion.

Board of Selectmen Chairman Heather Moody said she needed information before the issue is brought to a public hearing and town meeting.

The amount the town would return to Kilbreth could be negotiated, depending on the amount of money he decided to reinvest in his business, according to Moody.

“You write us a check for your taxes, and whatever that split is, we write you a check back for that amount,” she said.

A Tax Increment Finance agreement allows Kingfield taxpayers, as a public body, to invest in infrastructure and other public improvements by capturing the increased tax revenue for a set number of years.

Selectmen also discussed financing a project that could build a sidewalk from Depot Street to Kingfield Elementary School. The Maine Department of Transportation would have oversight over the design and would bill the town for that service.

Taxpayers would have to agree to contribute up to $80,000 to get available funding for the state Sidewalks to Schools program.

Selectmen agreed the program is appealing from a safety standpoint but questioned the investment considering how much the sidewalk would be used.

“I think it’s a lot of money,” Selectman John Dill said. “Parents drive students or they take the bus.”

They agreed to poll voters at the June town meeting on interest in the project.

Selectmen also agreed not to pursue buying the former Knapp parking lot next to Mt. Abram Health Center.

Administrative Assistant Leanna Targett had reported to Moody that the response to resident John Goldfrank’s proposal to spend $120,000 for the property and use it for public parking and community events was lukewarm.

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