St. CLOUD -- The St. Cloud City Council has approved a tax abatement plan with Arctic Cat.

The ATV engine manufacturer in south St. Cloud lost its JOB-Z status because it failed to create 50 jobs after the plant opened in 2005. But, Arctic Cat has created more than half the jobs meaning the city was willing to negotiate a new tax relief agreement.

As part of the deal, Arctic Cat will also return 40 acres of test track land to the city.

St. Cloud City Administrator Mike Williams told council members the tax plan is a benefit to the community because the plant plans to expand its operations in 2013 when it begins making snowmobile engines.

The tax abatement will go into effect in July.