OXFORD – The largest taxpayer, employer and manufacturer in Oxford proposes a $215 million, 960,000-square-foot expansion that promises to create 500 new full-time jobs within five years.

IPG Photonics Corp. is seeking tax relief from the town in the form of a tax increment financing agreement.

As a result of the company’s continued success and the continued increase in global demand for its products,

On Wednesday night, Timothy P.V. Mammen, chief financial officer and senior vice president at IPG, told selectmen of increasing global demand for the company's products and said IPG has outgrown its 401,000-square-foot campus at 50 Old Webster Road.

“We’ve been looking both locally here, as well as in the rest of Massachusetts, and even national, on where we are going to expand,” Mr. Mammen said. “We identified Oxford, very definitely, as a viable spot for further expansion.”

The proposed expansion would consist of constructing an estimated 500,000-square-foot, four-story office, manufacturing and research facility and a parking garage for a total expansion of 960,000 square feet, Mr. Mammen said.

The project investment is estimated at $215 million, Mr. Mammen said: $135 million in construction costs and $80 million for personal property.

With the expansion, the company would keep 1,500 full-time jobs in Oxford and create at least 500 net new permanent full-time jobs in five years, Mr. Mammen said.

“The average salary of the employees that we have in Oxford is about $83,000 and we offer very significant benefits,” Mr. Mammen said. “We have a very low turnover of staff, which I think is a reflection of the quality of jobs but also the competitive pay and benefits that we provide to people.”

IPG and its employees spend an estimated $2 million on products and services from a variety of local businesses, Mr. Mammen said.

The expansion would provide substantial revenue to the town in the form of real estate taxes, meal taxes and permit fees, he said.

In addition, it would allow IPG to retain and attract a highly skilled workforce to the community and continue its history of community involvement, charitable giving and support for educational programs in Oxford, Mr. Mammen said.

Lynn Tokarcyzk, government incentives consultant at Business Development Strategies Inc., said IPG is applying for a TIF exemption. She explained that the TIF is “a discount on future taxes” and “the town doesn’t lose a dime on existing taxes.”

Currently, IPG has a 20-year TIF agreement with the town that will end in 2019. Ms. Tokarcyzk said all the current buildings that IPG owns are under the old TIF agreement.

“The new TIF would cover this new property because the previous tax parcels, they were basically three tax parcels covered under the current footprints,” Ms. Tokarcyzk explained. “There’s a vacant land parcel that was not included in the previous TIF. So this is a land parcel that is where the proposed expansion would be located.”

Ms. Tokarcyzk said the selectmen would have to approve the TIF agreement, then it would have to go to a town meeting vote and, if passed at town meeting, it would go to the state for a final vote of approval.

Selectman John G. Saad said there has to be some negotiation before approving a new TIF agreement.

“This whole TIF thing is very important to this town,” Mr. Saad said. “So whatever deal we come up with, in my opinion, has to be a deal that is not one-sided, that satisfies IPG and the community of Oxford in total. … We’re working together on this. What can you get? What can we get? And is it going to be equal across the board.”

Mr. Saad said he wanted to know what the financial impact is going to be for the town.

The selectmen unanimously approved establishing a “TIF team” that will include the town assessor, town finance director, acting Town Manager Dennis A. Power and Mr. Saad, to help come up with a TIF deal.

Founded in 1990 and headquartered in Oxford, IPG is a leading developer and manufacturer of high-performance fiber lasers, amplifiers and diode lasers used worldwide for such things as materials processing, research, defense, communications and medical applications.