Dublin and Nestle USA Inc. are working on a cooperative arrangement that includes a proposed tax-increment-financing agreement to allow Nestle to expand its Quality Assurance Center at 6625 Eiterman Road.

Dublin and Nestle USA Inc. are working on a cooperative arrangement that includes a proposed tax-increment-financing agreement to allow Nestle to expand its Quality Assurance Center at 6625 Eiterman Road.

Dublin City Council was expected to consider a first reading of an ordinance authorizing certain incentives during its Nov. 28 meeting, but Nestle, the world’s largest food company, asked the city to table the issue until Dec. 12.

“They just have some additional (matters) they need to complete,” city manager Marsha Grigsby said after the meeting. “We don’t anticipate any problems.”

According to documents provided by the city, Nestle had approached Dublin about expanding the Eiterman Road facility. That center was built in 1991 and currently employs about 150 people.

Nestle has added about 50 of those employees in the past year. The company recently informed Dublin officials that it would like to expand rather than relocate and “invest $10 million in new renovations and building expansions to solve its space needs,” Grigsby told council members in a Nov. 23 staff memo.

The company wants to expand on property currently owned by Ohio State University, just west of the facility.

Under terms of the proposal, Dublin would purchase about 17.7 acres from OSU at a cost of nearly $1.78 million.

Nestle then would buy about 5 acres from the city for about $475,000. In addition, Nestle would purchase another 4.7 acres of adjacent land already owned by the city for about $240,000. The city plans to use the remaining OSU land for future needs, such as roadway projects.

Nestle also would agree to cooperate in the creation of a TIF from which it would make payments for the funding of future infrastructure improvements in that general area. The non-school TIF is expected to generate about $115,000 a year in payments in lieu of taxes, or service payments, for Dublin, Grigsby said.

The Dublin City School District and Tolles Career and Technical Center would receive annual service payments from the company, based on their effective millage.

Grigsby told ThisWeek that she doesn’t know what the construction timetable would be if council were to approve the plan.

In other business, council:

• Approved a new collective-bargaining contract for 12 employees in the communications-technician bargaining unit. Those employees, represented by the Fraternal Order of Police Ohio Labor Council, previously ratified the three-year agreement.

Under terms of the agreement, workers will receive a 1.75-percent salary increase effective Jan. 1; a 2.5-percent increase effective Jan. 1, 2013; and a 2.5-percent increase effective Jan. 1, 2014.

The contract runs through Dec. 31, 2014, and will cost the city about $100,935. Employees in the first wage step will earn $44,239 a year beginning in January. That will rise to $46,479 on Jan. 1, 2014.

• Authorized the city manager to acquire rights of way and easements necessary for construction of a roundabout at the intersection of Hyland-Croy and Brand roads.