Wagner SprayTech plans to build a 270,000-square-foot, $15 million distribution facility, 32.4 miles northwest of Minneapolis, in Otsego, Minnesota.

The company, which specializes in manufacturing and marketing paint sprayers, applicators and decorating products for the consumer and contractor markets, said it will build a manufacturing facility in the Gateway North Business Center, near Highway 101.

Construction is expected to begin this year and will be completed by October. The expansion will also include creating new jobs to assist in the operations of the facility.

As an incentive, the Minnesota Department of Employment and Economic Development is supporting the expansion with a $180,000 grant from the Job Creation Fund. The company will receive the funding after meeting its investment and hiring commitments.

“Wagner SprayTech is growing thanks to an emphasis on innovative and quality products,” said DEED Commissioner Katie Clark Sieben. “This expansion will bring new jobs and investment to the Otsego area and help the company respond to increasing demand for its products.”

The Job Creation Fund, which was first proposed by Governor Mark Dayton in 2013, is a pay-for-performance program that provides funding to businesses after they meet certain criteria, including minimum requirements for job creation and private investments. Under the program, businesses must create at least 10 full-time jobs and invest at least $500,000 to be eligible for financial assistance.