A development agreement between Knapp Properties Inc. and the city of Polk City was approved by the City Council last month, clearing the way for a 38-acre technology park on the north side of town.

Knapp is the owner and developer of the property, which it purchased in the early 1970s, said Jeff Saddoris, a broker with the company.

“Our goal was to produce a business park that will allow existing businesses to buy land at a very reasonable price and stay in Polk City,” Saddoris said.

As part of the agreement, which outlines the responsibilities of Knapp and the city regarding development of Big Creek Technology Park, such as the price of the land and how the streets will be laid out, the two parties will share the anticipated $450,000 cost of infrastructure installation on the initial 10 acres.

Phases two and three will likely be financed by a tax increment financing agreement, Saddoris said, which will allow the city to offer other incentives to businesses.

The area is also in the process of being rezoned to M-Restricted, said Gary Mahannah, city administrator, adding that the classification is more restrictive than zoning for general industrial use, and is intended to attract “clean businesses,” with fewer smokestacks and emissions.

Some of the restrictions will make the region more “flexible” for potential buyers as well, Saddoris said, as the zoning will allow the development of light industrial and office space for certain businesses.

The developer “will probably sell to industries and businesses that fit the M-Restricted classification,” Mahannah said. “I know there is some interest in the area.”

Saddoris said Knapp, which is directly targeting local businesses, said two Polk City companies have already expressed interested in purchasing a “couple of lots” and he hopes to see the improved parcels ready to build on by early June.