More than 100 new jobs will come to Dublin, thanks to two economic development agreements approved May 23. City, CVB ready for Memorial crowd, boost to economy
More than 100 new jobs will come to Dublin, thanks to two economic development agreements approved May 23.
Dublin City Council approved agreements to retain City Barbeque and Netsmart within the city and add 109 jobs.
The approved agreement would retain 104 jobs and create 99 new jobs, and Netsmart would have to sign a five-year lease in Dublin.
Michael Littman, vice president of financial planning for Netsmart, told council members recent federal regulations mean more business for the software company.
"Netsmart is the leading provider of software in the behavioral-health community," he said.
The New Jersey-based company looked at several locations to expand, but Dublin's infrastructure, location and economic development offer "clinched it," Littman said.
The agreement includes a four-year, 10-percent performance incentive (reimbursement) on income-tax withholdings collected. Under the terms of the agreement, the city would reimburse the company 10 percent of its annual income-tax withholdings, provided that the company's actual withholdings meet city expectations. The city would reimburse no more than $100,000 in income-tax withholdings over four years.
The company also could receive a $30,000 retention grant for a three-year lease extension beyond the initial five-year lease. A second $30,000 retention grant also is available for a second three-year lease extension.
According to the staff report, the city estimates a payment to Netsmart totaling about $150,000 over the term of the agreement but a net gain of about $2.7 million in withholdings.
The agreement with City Barbeque includes a $7,500 location grant and a five-year, 20-percent performance incentive on income-tax withholdings collected over the term of the agreement, capped at $45,000.
In return, the company will build a new headquarters of at least 5,000 square feet in Dublin. The company must retain 17 jobs in Dublin and create 10 by the end of 2015.
Economic development administrator Colleen Gilger told council the agreement arose when the Dublin-based restaurant outgrew its current headquarters on Riverside Drive.
Don Feibel, representing City Barbeque, said the company has been in Dublin for more than 12 years and wanted to stay.
"(City Barbeque founder and president) Rick (Malir) has determined that he really wants to stay in Dublin," he said. "We hope, assuming council approved the incentive package, to start construction in the fall."
Council also heard the first reading of an incentive package of about $165,000 for Pain Care Specialists LLC. The incentive could result in 34 new jobs. The package includes a location grant and a five-year, 20-percent performance incentive on withholdings.
The city could net $525,000 in withholdings over the six years of the agreement.