GRAND RAPIDS, Mich. (WOOD) — Drugmaker Perrigo has cleared another hurdle in plans to relocate their world headquarters on Grand Rapids Medical Mile.

Tuesday, City Commissioners approved a 12-year property tax break on the $35.5 million project proposed for the corner of Monroe Avenue and Michigan.

It will be part of the Michigan State University School of Medicine’s Innovation Park.

Perrigo will take up about half of the 10-story building.

“This project was in national competition with national site consultants and we were selected over the southwest Florida and Chicago markets,” said Grand Rapids Economic Development Director Jeremiah Gracia.

While the city will lose out on those property taxes, the project will generate $2.6 million in additional income tax revenues, with 150 new jobs headed downtown.

“When you have a project of this magnitude land in a community of our size… a company that could go anywhere, it also resonates beyond our city. It resonates with other businesses who say if Perrigo can do this, let’s take a look at Grand Rapids,” said Birgit Klohs, president and CEO of The Right Place. “I look at this as a huge win for the city and the region.”

Construction on the project could begin as early as February.