Dental supply company withdraws bid for TIF agreement in Marlborough

MARLBOROUGH — A local dental supply company will not be consolidating all of its offices in Marlborough anytime soon, despite attempts by the city to lure it to the community through a Tax Increment Financing (TIF) agreement. 

The company, Solmetex LLC, has withdrawn from the TIF process, reported Marlborough City Councilor John Irish during a June 6 council meeting.

Linda Martins, director of operations at the Marlborough Economic Development Corp., which works on TIF agreements on behalf of the city, said Solmetex had to withdraw from the process due to an issue with its prospective landlord in Marlborough. 

Solmetex, which sells amalgam separators — devices used in dentist offices to separate contaminated water — is based at 4 Mount Royal Ave. in Marlborough. The company also has offices in Northborough and Westborough.

According to an application filed April 19 with the City Council, the company's plan was to consolidate all three of its offices in Marlborough, moving into a single office at 1000 Nickerson Drive. The property is owned by Boston-based Lincoln Property Company, with a building currently being constructed.

Solmetex now uses its current Marlborough headquarters as office space, the Northborough location for manufacturing, and the Westborough location for warehouse space. Under the stated plan, the Nickerson Drive location would allow all three facets of the company to operate in one building.

The building is not expected to be completed until December 2023. The project would come at a cost of $20 million, with $18 million of that being paid by Lincoln Property Company as the property owner. 

Scott Faber, a senior vice president at Lincoln, said Solmetex could still move into the property, although Lincoln continues to negotiate with other interested tenants for the new space. 

“We would be happy to have Solmetex as a tenant," Faber said. "We are in active discussions and we are talking to a number of tenants, that process is still getting started."

Martins said that while the TIF process has been withdrawn, Solmetex could reapply if it still wanted to consolidate in Marlborough.

In its application for the TIF, Solmetex stated that because it would allow the company to pay a reduced property tax rate during its first several years in its new location, the TIF was critical for the company to be able to consolidate.

“The requested incentives are essential to offset the company’s investment for the new project," the application states. "The incentives would help Solmetex remain competitive and continue to lead the way in manufacturing and innovating cutting-edge products to serve the dental industry." 

The application also stated that 56 total jobs will either be retained or brought to Marlborough, with 32 new full-time jobs also created over the next five years. In a March letter to the city, Solmetex Chief Operating Officer Lauren Nagel said the addition of Solmetex’s new offices would benefit the city as an employer and taxpayer.

“The proposed project is expected to create a skilled workforce and provide new revenue to the city in the form of real estate taxes and other municipal fees,” Nagel wrote. 

Solmetex did not respond to a Daily News request for comment.