MIDDLETOWN — Approval of a contractor to oversee a brownfield industrial cleanup site is the latest step toward creating about 25 new jobs that would bring an additional $1 million in payroll for a Middletown company.

Midwest Service, which provides services and rubber covers for the paper and metals industries, has invested $2.2 million since 2007 at its Clark Street location, and has plans to expand over the next two years.

“Midwest Services is a success story for two reasons. No. 1, we received a brownfield grant to demolish a significant portion of the existing facility that will allow them to expand to meet their current needs. And No. 2, they are expanding their employee base, so this is a real success story all the way around and we are very, very proud of this project,” said Don Brown, plant manager.

Those 25 new jobs to come are part of recent job growth for the city with a 12.9 percent unemployment rate. Recently, Paychex added 100 jobs to the city after it relocated to Middletown after consolidating its Cincinnati and Dayton offices in the city’s Renaissance District. And, a major project, the $340 million SunCoke Energy cokemaking and electric co-generation plant off Yankee Road, has taken another step forward in the regulatory process. That project will have 500 temporary construction jobs and 70 to 80 permanent jobs once it begins operations.

Middletown City Manager Judy Gilleland said the recent job growth amounts to the city catching up after it was caught off guard by the recession.

“I believe had it not been for the national economy hitting bottom, Middletown would have seen growth and expansion starting a year or two ago. We are seeing things picking up in Middletown and I am hopeful about the future,” she said.

In terms of keeping company’s like Midwest in the city, Gilleland said they have made a big push for business retention, an initiative she began a year ago with retention team visits that include a mixture of local business leaders and city economic development staff.

“The visits involve business leaders along with economic development staff visiting with existing businesses to inquire about their needs and how the city can help them be more successful in Middletown. We’ve received lots of positive feedback. It’s a great example of a private/public partnership.”

Last week, Middletown City Council approved a $93,589 contract with WESTECH Environmental Solutions of Cincinnati to serve as the certified professional to oversee the environmental remediation of the Midwest Service site at 605 Clark St.

WESTECH will oversee some demolition of some of the facility’s older sections as part of a $750,000 Clean Ohio Assistance Fund grant.

The project will enable Midwest Service to move forward in adding to their capacity to include servicing rolls in the steel industry.

“We hope the economy supports us in our goals,” Brown said. “We’re excited about it. It’s going to be good for the neighborhood.”

According to a staff report from Denise Hamet, the city’s economic development program manager, the 135,000-square-foot facility has several interconnecting structures, some of which date back 100 years.

The building previously was owned by Black Clawson before it was purchased in 2007 by Midwest Service, which was acquired in 2007 by Midwest Service was acquired in 2007 by Vail Rubber Works, a privately held company based in St. Joseph, Mich.

Hamet’s report said the project involves demolishing 75,000 square feet of the building, which has been a target for vandalism, and the removal of four feet of soil around the former lead smelter for lead remediation, and removal of asbestos throughout the building.

“This will create a clean and safe environment for them,” Hamet said.

Demolition and environmental remediation activities should be completed by mid-October, Brown said.

The overall project is expected to be completed by November 2011.

Staff Writer Jessica Heffner contributed to this report.