CITY INCENTIVES
-A 100 percent property tax abatement for up to 12 years on building improvements;
-Property improvement reimbursement grant to make 805 Liberty Lane a more permanent location – valued at about $559,125;
-A $100,000 forgivable loan to provide company cash infusion for relocating;
-Property improvement reimbursement grant- matching up to $2,500 for signage, landscaping and other external improvements;
-Signage at Liberty Lane and Alex Road.
Source: City of West Carrollton.
A global medical device company planning to move its Fairborn operations to West Carrollton — bringing nearly 300 jobs there — will invest $39 million in building and equipment, documents show.
Records also state NuVasive Inc. estimates a payroll in 2017 of $4.7 million. That’s about one third of the $14.2 million annual total West Carrollton officials said the San Diego-based company will show upon full employment at 805 Liberty Lane — a site it chose for its manufacturing headquarters instead of moving out of Ohio.
Those figures are part of an incentive package that West Carrollton City Council on Tuesday is expected to approve, authorizing City Manager Brad Townsend to sign with NuVasive Chairman and Chief Executive Officer Gregory T. Lucier. The West Carrollton agreement is part of a deal that also involves state and county incentives in what Townsend called "a huge win for the region."
NuVasive said last week it plans to invest $45 million over two years in moving its manufacturing operations from 1 Herald Square in Fairborn – where it employs 97 workers - to West Carrollton by the end of 2016. It had also been considering sites in Moraine, Vandalia and as well as Memphis, Dallas and Asia, Townsend said.
The company plans to buy the former Motoman Robotics site, what West Carrollton Mayor Jeff Sanner called an “excellent location,” a 160,000 square foot facility on 9 acres visible from Interstate 75. Townsend said meetings about work needed to the building have already started.
“We anticipate them getting started on the renovations is in January – right away,” he said. “They’ve indicated they want to get in there and working as soon as possible.”
Renovations to site “will take the majority of calendar year (20)16,” and Townsend said he does not anticipate NuVasive being “up and running until about the fourth quarter of next year – about this time, maybe sooner, depending on how things go.”
The company said its future site will be a state-of-the-art medical device facility for spinal implant and instrument manufacturing. Once building upgrades are complete, West Carrollton will take action to ensure the company “receives 100 percent tax abatement on all building improvements and related expenses” for up to 12 years, according to the agreement.
The city will also provide two property improvement reimbursement grants, the largest of which will involve a 35 percent rebate to “all employee payroll taxes” for five years, the agreement states. It estimates this incentive to be worth $559,125.
“Within approximately” three years of the date of the agreement, NuVasive will hire “up to 195” more workers, with an average salary of $48,000, Townsend said.
The Ohio Tax Credit Authority earlier gave the project a 65 percent, seven-year job creation tax credit while the Montgomery County commission last week passed $350,000 in funding after a joint application from Moraine, West Carrollton and Vandalia.
In an August letter, the city of Fairborn expressed support for the proposed project.
“Working together collaboratively with NuVasive and our community partners provided the support the company needed to stay in the Dayton region and continue to grow,” said Jeff Hoagland, president and chief executive officer of the Dayton Development Coalition.
During the payroll tax rebate, a fully staffed workforce is projected to bring in about $200,000 a year for the city, West Carrollton Finance Director Tom Reilly said. After the rebate expires, that figure is expected to jump by $100,000 annually, he said.
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