Town Meeting on Monday approved an agreement with T. Marzetti Company that will give the company a reduction in taxes for 20 years, paving the way for an expansion of its Chatham Village Croutons location in Wareham.

T. Marzetti plans to invest approximately $2.5 million in building improvements at its existing 15 Kendrick Road facility and at a new facility at 20 Kendrick Road. The company manufactures and packages its crouton products at the plant.

T. Marzetti has "essentially been busting at the seams and are looking to expand," said Robert Foley, who represented T. Marzetti at Town Meeting.

Though $2.5 million is a large sum of money, the company is just improving the inside of the buildings (walls, ceilings, and floors) so the property value will only increase by approximately $5,000, explained Community and Economic Development Authority Director Salvador Pina.

T. Marzetti requested a tax abatement on half of the projected increase in assessed value — approximately $2,500 — for 20 years.

Foley explained that the approval allows the company to go after state tax credits for the project.

Foley has repeatedly said that state and local tax incentives were a big factor for the company in deciding whether to expand in Wareham at a similar facility currently operating in the midwest.

After the expansion, T. Marzetti plans to close a facility in New Bedford, transfer 10 jobs to Wareham, as well as add 25 new jobs in Wareham.