MARLBOROUGH – Moderna, the Cambridge-based biomedical company that burst onto the scene in 2020 when it developed one of the most important COVID-19 vaccines, is Marlborough for its next major expansion.
Lately, the city is negotiating with Moderna about a potential new production facility to be built at 149 Hayes Memorial Drive. In a letter to Mayor Arthur Vigeant, Moderna senior vice president of production Scott Nickerson wrote that the company plans to invest up to $450 million in a new plant in Marlborough to manage the company’s planned growth.
“To prepare for the company’s expected growth, Moderna wants to expand its in-house production of mRNA vaccines,” Nickerson wrote. “As such, the company is comparing sites in the Marlborough area. The proposed allocation has an estimated investment of $350 million to $450 million, adding machinery, equipment, core and construction envelope. The facility is expected to employ between two hundred and 250 people, adding engineering, procedure management, maintenance and production technicians. »
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Nickerson added that Moderna’s facility would operate 24/7, 24/7 manufacturing.
The company is seeking a Tax Increase Financing Plan (TIF) that will be approved by the city. An FIT allows a business to pay a reduced tax rate for a certain period of time and is used throughout communities to attract businesses that create jobs. Last year, Marlborough signed a TIF with wholesale store BJ’s, which moved its headquarters (and up to 800 full-time jobs) to Westborough’s three hundred Campus Drives.
On Monday, the City Council voted to refer Moderna’s FIT application to the Finance Subcommittee, which will address the matter and give full council advice.
According to the application, Moderna plans complete renovations on two hundred 000 square foot assets on Hayes Memorial Drive and achieve maximum worker occupancy through 2026. As part of the TIF application, Marlborough asked Moderna to retain a minimum of two hundred workers there.
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The TIF has a duration of 20 years. It guarantees that Moderna is one hundred percent exempt from asset taxes, as part of the real estate exemption, until fiscal year 2026. The exemption will then be gradually reduced to 90% in fiscal year 2027 and then reduced to 10% every two years. , until fiscal year 2043. , after which the corporation would pay taxes at its general tax rate.
Meredith Harris, executive director of the Marlborough Economic Development Corp. , which works with the city to promote economic development, said the TIF plan follows state guidelines. He noted that the tax benefits only apply to innovations the company makes on the site, so the city doesn’t lose any benefit it may make from the property.
“TIF is based on rules set by the Massachusetts Office of Business Development (MOBD),” Harris said. “It’s to perceive that a TIF is based only on an improved price and the city doesn’t lose any tax gain through this program. “
Moderna was founded in 2010 in Cambridge and lately produces only one advertising product: its COVID-19 vaccine, which was authorized for emergency use in 2020. It has since then one of the two most common vaccines (Pfizer’s is the other) to combat COVID 19. The progression of the vaccine has driven significant expansion for Moderna, with annual revenue developing from approximately $48 million in 2019 to nearly $19. 3 billion in 2022.
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The company gradually expanded its operations, adding services in Norwood and Burlington. In the past, Marlborough courted life sciences corporations such as Quest Diagnostics, Cytiva, Akoya Biosciences and others in recent years. Harris said the arrival of a fast-growing life sciences company like Moderna would be another sign that Marlborough is hot with these types of companies.
“We are thrilled to see a well-known and successful company like Moderna interested in making Marlborough their home,” said Herris. “It would be a welcome addition to our existing biotechnology and life sciences center in the city. well known for their strong involvement in networking, and we look to the future to find spousal tactics through our school-to-company program and link them with Marlborough Hospital. “