KINGFIELD — Selectmen on Monday night reviewed options in a possible credit-enhancement agreement with Walter Kilbreth, Arc Enterprises owner and president.

The company plans a $1.5 million expansion of its steel fabrication plant on Commercial Street. The addition would be about 83,000 square feet.

The workspace will have three bays to build highway trusses, girders and other construction pieces. The expansion costs could be up to $2 million, which qualifies the town and Kilbreth to ask for a state-approved tax shelter plan for as many years as the two parties agree, and with a percentage of the tax dollars divided between the two entities.

The Bangor-based Eaton Peabody law firm negotiated a similar agreement between the town and Poland Spring Water Co., so selectmen have asked for assistance with Kilbreth’s proposal. Administrative Assistant Leanna Targett presented several options the law firm’s consultant, Raegan LaRochelle, has prepared. Selectmen will continue the discussion at their next meeting.

Arc Enterprises was established in 1985.

Also Monday, selectmen held a brief public hearing and special town meeting required to send a Community Development Block Grant application to the Maine Department of Economic Development. Applicants Rob and Polly MacMichael own Rolling Fatties, which began as a mobile restaurant. They travel to events and serve burritos and other popular takeout food made from local ingredients.

Their business has grown, and they have secured a permanent location at 268 Main St., with plans to open April 4. They plan to renovate the commercial kitchen, add a dining room and bathrooms, build a parking area and do some landscaping.

The Micro-Enterprise Assistance Grant Program could approve $50,000, if the town agrees to administer the funds. Qualifying grant applicants must have five or fewer employees, and business owners must meet low-to-moderate income eligibility requirements.

Business owners who do not qualify for that income requirement must create up to two full-time equivalent jobs, depending on funds requested, for individuals in that category.

Board of Selectmen Chairman Heather Moody said the Herbert Hotel also would like to apply for a CDBG workforce development grant that would help fund training employees.