Medline Industries investing $65.3 million in Mebane site

As part of its upcoming agenda for its September 9 monthly meeting, the Mebane City Council is expected to approve a performance agreement with Medline Industries that would include a new 1.2 million square foot facility in western Orange County near the Alamance-Orange County border, and a projected capital investment of approximately $65,300,000 in local real and personal property on 175 acres. 

As part of its upcoming agenda for its September 9 monthly meeting, the Mebane City Council is expected to approve a performance agreement with Medline Industries that would include a new 1.2 million square foot facility in western Orange County near the Alamance-Orange County border, and a projected capital investment of approximately $65,300,000 in local real and personal property on 175 acres. 

Medline Industries, a private medical supply manufacturer and distributor based in Northfield, Illinois, is requesting annexation into the Mebane corporate city limits six parcels of property that has been recommended by the Mebane Planning Board to be rezoned M-2 (light manufacturing). 

Upon approval by the City Council, the Medline Industries facility will become the largest site, in terms of square footage, within Mebane’s corporate footprint, and nearly three times larger than the Walmart Distribution Center, which opened in the North Carolina Commerce Park back in the summer of 2016. 

At last month’s City Council meeting, the elected board approved as part of its consent agenda a petition from the six property owners - Irell Rohl Revocable Trust of 1987, Martha S. Brown, Donna G. Collins, James H. Whitfield, Gary L. Allison, and SL Efland Heirs, a North Carolina LLC - for voluntary non-contiguous annexation into the Mebane corporate city limits. The properties, totaling approximately 175 acres, sit adjacent to West Ten Road, Gravelly Hill Middle School, and the I-40/I-85 freeway corridor.

Orange County has prepared the area for industrial development with water and sewer infrastructure, and the new facility will join Morinaga, a Japanese candy manufacturer, as the second large corporate facility in this particular section of Mebane. 

The City Council is holding public hearings on Monday September 9, allowing the public to weigh in on both the annexation of the property into the corporate city limits, as well as the M-2 rezoning request on behalf of Medline Industries. 

The agreement is anticipated to bring approximately 250 new full-time jobs to Mebane in the first five years, with an average wage of $35,468. It is anticipated by city leaders and Medline officials that the number of jobs will reach 500 by 2027 and 2028, and approximately 600 jobs by the end of the next decade. The contract between the City and Medline Industries includes language representing that at least 180 of the new jobs will be filled by the end of 2022.

“The economic development project has been a cooperative effort between the City of Mebane and Orange County,” reads the City of Mebane’s information packet for the September 9 session. “This economic development project is expected to generate more than $2,600,000 in property taxes over the next ten years from current and proposed tax valuations. The city will also receive sales tax from construction along with the indirect benefits of creating 250 new jobs with an estimated annual payroll of over $8.8 million.”

The City of Mebane’s proposed incentives package for Medline Industries includes a one-time cash grant of $653,000, along with waived local impact, permitting, and inspection fees, which will save the company approximately $150,000 throughout construction. In turn, Medline Industries is guaranteeing the $65,300,000 capital investment and the 180 jobs within three years, with clawback provisions available to the City if the company does not perform as agreed.  

Mebane will make a total of five payments over a five-year period to Medline Industries in the amount of $130,600 once the company’s facility in the area is up and running.