Progressive Medical will add 125 jobs to its Westerville headquarters over the next three years.

Progressive Medical will add 125 jobs to its Westerville headquarters over the next three years.

The company announced the expansion Dec. 10, less than a week after Westerville City Council approved a five-year tax deal for new jobs created by the company.

Progressive Medical already employs more than 430 people in Westerville. The company offers pharmacy benefit management services and ancillary services in the workers' compensation and auto no-fault industries.

Company officials were considering whether to place the new jobs at its facilities in Memphis, Tenn.; Salt Lake City Utah; or at its Westerville headquarters, 250 Progressive Way.

At its Dec. 4 meeting, Westerville City Council unanimously authorized the city manager to offer a 20-percent income-tax offset to the company for any new jobs added to its Westerville location for the five-year period from 2013 and 2017.

If the jobs were added in Westerville, they could generate approximately $640,000 in additional income-tax revenue over the five-year agreement, with $160,000 being provided in an offset to the company, said Westerville economic development administrator Jason Bechtold.

The tax deal was put forward with the hope that Progressive Medical would be encouraged to expand in Westerville, Bechtold said.

City manager Dave Collinsworth said he was happy to see Progressive Medical's investment in Westerville.

"The City of Westerville is fortunate to help Progressive Medical grow within the Columbus Region," Collinsworth said in a press release announcing the expansion. "Job creation and financial investments like this are vital to building our local economy and making Westerville a better place to work and live."

The agreement would replace an agreement signed in October 2009 that is set to expire in 2015.

The agreement passed by the city will be used to leverage a Job Creation Tax Credit from the state, Bechtold said.