The Round Rock City Council approved an economic development agreement Dec. 3 with ProPortion Foods LLC for the company to expand to Round Rock.

ProPortion Foods creates and packages frozen foods and distributes to retailers. The company is based in Los Angeles and has two facilities currently operating there.

Ben White, vice president of economic development at the Round Rock Chamber, said this is the first of multiple steps to bring the company to Round Rock at a later date.

According to the agreement, ProPortion Foods will hire 400 full-time positions in Round Rock as well as invest at least $13 million in renovation and equipment in a facility at 101 Chisholm Trail, formerly occupied by food distributor Sysco. In exchange, the city will provide a 50 percent property tax abatement for seven years as well as economic incentive payments for three years: $200,000 in 2017, $100,000 in 2018 and $100,000 in 2019, totaling $400,000, according to the agreement.

White said the project started last year after the mayor, city manager, and momentum investor toured the LA facilities while on an economic development trip.