The city's offer is part of a bigger incentive package that includes $30 million from the state and $7 million from Cumberland County over 10 years. The deal calls for Goodyear to invest $200 million to renovate its 40-year-old factory on Ramsey Street.
Under the agreement, the city will stop making $100,000 annual payments if employment drops below 2,000 jobs at the plant.
The plant currently employs around 3,000 people.
The agreement also requires the company to complete the $200 million upgrade by the end of 2012 before any payments are made.