Hewlett-Packard Co. is considering a 300,000-square-foot expansion of its existing warehouse and distribution center at 3600 Army Post Road as part of a national consolidation of its logistics operations, according to a report prepared for the Des Moines City Council.

The expansion would create about 150 jobs and retain another 440 at its present location.

The report was prepared in conjunction with a request that the City Council approve an application to the Iowa Department of Economic Development for financial assistance for the project.

Hewlett-Packard estimates construction costs of around $13 million, with an additional $1.4 million in upgrades in electrical and security services and new equipment, according to the report from the city’s economic development department.

The company is seeking $1.6 million in assistance, with the package consisting of a $600,000 forgivable loan from the Grow Iowa Values Fund, a $450,000 refundable credit for sales and use taxes on construction materials, another $60,000 sales tax refund, and jobs tax credits of $498,000.

The city is proposing a three-year, 100 percent tax abatement on the proposed improvements and the vacation/conveyance of the southern portion of Southwest 34th Street.

New construction would generate an additional $450,000 per year in property taxes after the three-year tax abatement expires, according to the report. Current property taxes are $1.2 million a year on an assessed value of $26.8 million, according to Polk County property records.