Last modified: Thursday, September 18, 2008 1:49 AM EDT

Medical firm planning expansion in Mansfield

MANSFIELD - A privately owned medical products company is planning the area's largest industrial construction project since 2001 if it can obtain tax incentives and other benefits to build a 325,000-square-foot distribution center in the Cabot Business Park.

Medline Industries, the nation's largest privately held health care supplies company, intends to construct the warehouse on 20 acres between Forbes Boulevard and Interstate 495. The company currently occupies a leased 204,000-square-foot warehouse elsewhere in the park, which would be vacated if a new building is built.

The new building is expected to cost $16.25 million, including $1.25 million for new equipment. The warehouse, covering more than seven acres, would be the largest such project since General Motors constructed a 394,000-square-foot distribution center in Norton seven years ago.

According to information provided by Medline Tax Manager Bob Kievert and local business consultant Lynn Tokarczyk, the plans would be contingent on the company receiving state and local tax breaks in the form of state tax credits and a local tax increment financing agreement.

A TIF agreement normally allows a company to pay reduced local property taxes over a pre-arranged term, usually five to 20 years.

Kievert, describing the company's plans to selectmen Wednesday night, said incentives would allow the company to add 10 new full-time jobs to its existing 48 warehousing positions. Kievert said the company's presence would also bring an estimated $500,000 in local spending by the company and its employees annually through local retailers and service companies.

No information was presented Wednesday on how great a reduction in property taxes the company is seeking, but Tokarczyk said a proposal will be submitted next week to a town committee for evaluation.

The request would have to be reviewed by selectmen and approved by town meeting and state officials. A special town meeting is expected to be scheduled sometime in October or November.

Medline is a medical supplies manufacturer and distributor whose products span surgical gloves to wheelchairs, according to the company's Web site.

The company has seven manufacturing plants in North America and 25 joint venture manufacturing partners overseas.

Kievert said the new structure would be the Medline's distribution hub for New England.

Medline is the second health care products company in the past month to seek incentives for a major expansion in the industrial park. Covidien, which currently leases six buildings in Mansfield, is seeking similar tax breaks to help it purchase a building at 777 West St. soon to be vacated by Albany International.