UPDATED: Dublin City Council members voted 5-0 on Sept. 9 to approve an incentive package for Covetrus Inc. to retain offices in the city and add 100 new jobs to its workforce by the end of 2027.
Council members Michael Keenan, Cathy De Rosa, Christina Alutto, Jane Fox and John Reiner voted to approve the package. Mayor Greg Peterson and Vice Mayor Chris Amorose Groomes did not attend the meeting..
Covetrus, a company in the animal-health technology and services industry, has its North America distribution corporate offices at 400 Metro Place North in Dublin, according to a July 31 memo to council.
Sean Henderson, CEO for Covetrus, North America, told council members the company is working with a landlord on the company’s Metro Place facility.
The company’s international headquarters are in Maine.With more than 5,500 employees, Covetrus operates in 25 countries.
Henderson said Covetrus’ accounting, information technology and some administrative roles will operate from the Dublin office as well.
Covetrus will retain 228 jobs in Dublin, bringing the total of employees there to 328, according to the memo. The company is required to sign a lease through at least Dec. 31, 2030, for an office within the city, according to the memo.
The proposal is a nine-year, 20% performance incentive on withholdings collected from 2019 through 2027 and capped at $955,000 for the term of the agreement, according to the memo.
The city typically pays companies incentives in such agreements from the city’s nontax revenue, such as licenses, fines, building permits and services provided to outside agencies, such as the Northwest Regional Emergency Communications Center.
Colleen Gilger, Dublin’s economic-development director, has said all such incentives must come from nontax revenues, per state law.
She said the company “is required to sign a lease through the end of 2030, thus we calculate our ‘expected to receive’ dollar amount on the years of the actual agreement term (through 2030) minus what we expect to pay if the company hits annual targets.”
“The performance incentive only runs until 2027, and the $955,000 is a ‘max’ payment if the company achieves higher growth than the expected annual targets,” she said. “The city also captures 100% of the withholdings, with no incentive paid, for years 2028-2030.”
Dublin also is renewing a dark fiber IRU agreement with the company though Dec. 31, 2030, according to the memo. The IRU is an “indefeasible right to use” Dublink fiber optics, Gilger said.
Dublin owns Dublink, and Covetrus will be granted use of some of the broadband capacity within the Dublink system, she said. The IRU contract runs the same term length as the lease term agreed to in the economic-development agreement, she said.
Dublin expects to net about $3.6 million in income-tax revenue over the term of the agreement, according to the memo.