POST FALLS - An aerospace parts manufacturer has broken ground on a $4.9 million, 65,000-square-foot facility just west of Kimball Office off Seltice Way.

Advanced Thermoplastics Composites (ATC) Manufacturing plans to move from Spokane Valley to the Post Falls site after the building is completed late next summer or early fall.

ATC employed 71 as of last month and expects to expand that number by as many as 45 in 2015, city officials said.

ATC Manufacturing was established in 2004 and started production in 2006. It specializes in the press forming of thermoplastic composites - materials which are processed with heat - primarily for the aerospace industry. It makes carbon fiber parts - the same material used for race cars - for aerospace equipment such as Boeing 777 airliners.

"We are excited to have the opportunity to bring better-paying jobs to Post Falls and to help build the tax base," said Hilary Anderson, Post Falls planning and economic development manager. "A company like ATC will be a great addition to the community and will help expand the aerospace industry in North Idaho."

A representative for The Haskins Company, the general contractor for the new ATC facility, said the office portion of the plant will be two stories and the manufacturing section single-story.

Dan Jorgenson, ATC president, couldn't be reached for comment.

ATC submitted a site plan on the facility to the city last month. A building permit was issued last week.

Other buildings The Haskins Company has constructed in the area include George Gee Pontiac, Huntwood and Telect.

Since the ATC site in Post Falls is in a former urban renewal district, infrastructure is available on the property.

The Post Falls City Council last month approved the creation of an industrial development corporation, or IDC, to set up tax-free financing for ATC to attract business to Post Falls.

IDCs are state-approved economic development tools in which as much as $10 million in tax-exempt bonds can be issued to for-profit entities. IDCs function separately from the city councils and county governments which form them.

City officials said the IDC will have no affect on taxpayers and no city funds will be spent. However, some building fees were waived as the city must show "meaningful" ways to help the state attract business.

The city council also passed an indemnification agreement with Lakeside Capital Group, which ensures the city will not have any liability in establishing the IDC.

IDCs have been formed to oversee financing of economic development projects in other Idaho cities, including Boise, Eagle, Fruitland, Idaho Falls, Twin Falls and Mountain Home.

Megan Ronk, spokeswoman for the Idaho Department of Commerce, said award recipients from the latest round of Tax Reimbursement Incentive applications considered by the Idaho Economic Advisory Council have not been announced and she didn't know when they will be. Awards are based on quality and quantity of jobs, impact on existing or emerging industry and economic impact to both the state and local community.