BY SUE KIESEWETTER
Enquirer Contributor
FAIRFIELD -- Income taxes paid by employees of a pharmaceutical subsidiary will add an estimated $250,000 annually to Fairfield's coffers, city leaders say.
Merck-Medco Managed Care, part of New Jersey-based Merck & Co., announced Thursday it plans to open a mail-service pharmacy in the long-vacant former Central Hardware store on Dixie Highway. With it will come 100 jobs by year's end and 550 by 2001.
City Planning Director Tim Bachman said he based his income tax calculations on payroll projections provided by the firm. The city won't receive the full amount until all 550 employees begin work.
"Clearly, this is an exciting opportunity for the city," Councilman Erick Cook said. "The jobs they will bring, it's my understanding, will pay from $25,000 and up. If things work out, there might be research brought here as well."
Fairfield Schools leaders say they, too, will benefit from the firm. A tax incentive package negotiated will abate Merck-Medco's real estate and personal property taxes 100 percent for 10 years. But it also includes a provision that will bring an estimated $500,000 to Fairfield Schools over the abatement period. The schools would receive full taxes once the abatement period ended.
"That's about 50 percent of what we would have received with the site fully developed with no abatement," said James Rowan, treasurer for the Fairfield Schools. "We're very pleased to be able to help promote economic growth."
The Fairfield Board of Education is to vote on the tax package Thursday, Mr. Rowan said. Fairfield City Council and Butler County commissioners have scheduled meetings for Friday.
The final step will come in mid-June after Ohio officials approve a job creation tax credit now being worked out, Mr. Bachman said. Altogether the abatement and tax-credit package will be worth between $200,000 and $500,000, Merck-Medco spokesman Kevin Colgan said.
Fairfield's proximity to Cincinnati and Dayton area workers, along with planned road improvements, favorably influenced the firm's decision to locate in Fairfield, Mr. Colgan said. City and county officials say the Symmes and Muhlhauser road improvement projects planned by the county's Transportation Improvement District (TID) were key factors in the firm's decision.
"They needed to know they could draw employees from a wide area. When we put the TID together . . . we did it to build a transportation network that's attractive to employers," said Michael Fox, TID chairman and a county commissioner.
"If we did not have these projects in place, I don't think we would have been able to get Merck to locate here. Transportation access was critical to them."
Employees at the Fairfield facility will review prescriptions for drug conflicts, proper dosage and other protocol. After approving the prescription electronically, medication will be dispensed from a network of retail pharmacies or from sites in Columbus and Las Vegas.
In 1997, the company had 1,100 clients, serving 51 million people. Clients -- including Fortune 500 companies, unions and government entities -- spent $12 billion on prescriptions. "Clearly, this is an exciting opportunity for the city. The jobs they will bring, it's my understanding, will pay from $25,000 and up. If things work out there might be research brought here as well.' -- Councilman Erick Cook
