MARLBOROUGH — Moderna, the Cambridge-based biomedical company that burst onto the scene in 2020 when it developed one of the most prominent COVID-19 vaccines, is eyeing Marlborough for its next major expansion.

The city is currently in negotiations with Moderna over a potential new manufacturing facility to be built at 149 Hayes Memorial Drive. In a letter to Mayor Arthur Vigeant, Moderna Senior Vice President of Manufacturing Scott Nickerson wrote that the company anticipates investing as much as $450 million in a new facility in Marlborough to help handle the company's anticipated growth.

"To prepare for the company's anticipated growth, Moderna has a need to expand its internal manufacturing of mRNA vaccines," Nickerson wrote. "As such, the company is evaluating sites in the Marlborough area. The proposed project has an estimated investment of $350 million to $450 million, including machinery, equipment, building core and shell. The facility is estimated to employ between 200 and 250 people, including engineering, process management, maintenance and manufacturing technicians."

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Moderna's new facility would manufacture products

Nickerson added that the Moderna facility would operate 24/7, including around-the-clock manufacturing.

The company is seeking a Tax Increment Financing (TIF) plan to be approved by the city. A TIF allows a company to pay a reduced tax rate for a certain period of time, and is frequently used by communities to attract businesses that will add jobs. Last year, Marlborough signed a TIF with wholesale retailer BJ's, which relocated its headquarters (and as many as 800 full-time jobs) to 300 Campus Drive from Westborough.

Marlborough is requiring at least 200 employees

On Monday, the City Council voted to refer the TIF application submitted by Moderna to the Finance Subcommittee, which will study the matter and issue a recommendation to the full council.

According to the application, Moderna plans to complete renovations on a 200,000-square-foot property on Hayes Memorial Drive and to attain maximum employee occupancy by 2026. As part of the TIF application, Marlborough is requiring Moderna to retain a minimum of 200 employees there.

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The TIF lasts for 20 years. It arranges for Moderna to be 100% exempt from property taxes, under the real property exemption, through fiscal 2026. The exemption will then gradually decrease, moving to 90% in fiscal 2027, then decreasing by 10% every other year, through fiscal 2043, after which the company would pay taxes at its normal assessed 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. She stressed the tax benefits only apply to improvements the corporation is making on the site, so the city is not missing out on any revenue it would normally collect on the property.

"The TIF is based on guidelines set forth by the Massachusetts Office of Business Development (MOBD)," Harris said. "It is important to understand that a TIF is based on the improved value only and the city does not lose any tax revenue through this program."

What products does Moderna make?

Moderna was founded in 2010 in Cambridge, and currently produces just one commercial product — its COVID-19 vaccine, which was authorized for emergency use in 2020. It has since become one of the two most common vaccines (Pfizer's is the other) for fighting COVID-19. The vaccine's development has has resulted in tremendous growth for Moderna, with annual revenues increasing from about $48 million in 2019 to nearly $19.3 billion in 2022.

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Where does Moderna have facilities?

The company has steadily expanded its operations, adding facilities in Norwood and Burlington. Marlborough has already courted life science companies including Quest Diagnostics, Cytiva, Akoya Biosciences and others in recent years. Harris said landing a fast-growing life science company like Moderna would be another sign that Marlborough is attractive for that type of business.

"We are thrilled to see a well known and successful company such as Moderna interested in calling Marlborough their home," Herris said. "They would be a welcome addition to our existing biotech and life science hub in the city. In addition, Moderna is well known for robust community engagement, and we look forward to finding ways to partner through our school to business program and hopefully connecting them with Marlborough Hospital."

This article originally appeared on MetroWest Daily News: Moderna seeks to employ up to 250 at Marlborough manufacturing site