The Chicopee City Council on Tuesday approved a 10-year tax increment financing (TIF) agreement for Robins Road Property LLC to support development of a 50,000-square-foot first-phase warehouse and future manufacturing at a long-dormant parcel on Robins Road.

City officials said the project represents a $9.5 million investment and includes a commitment from the developer and Trafta Pharmaceuticals Inc. to create at least 15 permanent full-time jobs with hiring preference for residents of the designated Holyoke Regional Economic Target Area and the City of Chicopee.

Mayor’s order materials and city planners describe the agreement as a 10-year incremental tax-exemption schedule beginning with a 90% exemption of the increment in the first fiscal year and tapering to 10% in the tenth year. City Planner Lee Poulyotte told the council the assessment baseline is the purchase price of the land, meaning no existing tax revenue is lost, and the assessor’s office analysis indicates the city will still realize net increases in tax revenue as the increment phases in.

Councilors on the TIF committee — including Councilors Fred Krampetz and Jerry Roy — participated in negotiations along with Treasurer Marie Laflamme, Assessor Laura McCarthy and Community Development Director Kathleen Lindenberg. The council voted to forward the certified project application to the Massachusetts Economic Assistance Coordinating Council (EACC) for certification and to enter a binding TIF agreement on approval; roll-call recorded 11 yes votes and one member out of the chamber at the time of the vote.

Officials said the approved agreement covers phase one (warehouse construction); any future TIF request for a second-phase manufacturing facility would be considered separately. The council’s motion included a detailed percentage schedule for the exemption by fiscal year. The city indicated that the developer will pay real estate tax on the purchase price and that the TIF is structured to produce net revenue rather than a fiscal loss for Chicopee.