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Richmond, Va. –

The city of Richmond is preparing to spend $650,000 over 10 years to keep Pfizer Inc.’s research-and-development center on North Side.

After hailing the pharmaceutical company’s decision to retain the Sherwood Avenue facility, Mayor Dwight C. Jones’ administration is asking the City Council to approve a 10-year grant for the firm that would start in 2014.

Peter H. Chapman, deputy chief administrative officer for economic and community development, said it was critical to hold onto the more than 300 research-and-development jobs.

“When we look at the drivers of the local and regional [economy], we see life sciences as one of those drivers,” he said.

If approved by council, the grant would amount to a partial reimbursement of Pfizer’s real estate tax bill.

The installments would be the lesser amount of 10 percent of the company’s tax bill or $100,000. With Pfizer’s property currently assessed at $47 million, city officials estimate the annual payments will be about $65,000.

Overall, the grant would be capped at $650,000, although Pfizer would be able to request additional funds for every $50 million invested in the property. “It’s a performance-based grant — very modest,” Chapman said.

The grant was endorsed last week by the council’s Finance and Economic Development Committee and is scheduled for vote by the full council on July 26.

Last month, officials said that city and state incentives were being offered to retain the facility, although details of the city’s inducements weren’t disclosed until last week.

The state incentives call for grants for employee training, as well as an enterprise-zone designation that will allow Pfizer to qualify for tax benefits if it adds jobs or upgrades the facility as expected.

New York-based Pfizer, the world’s biggest drugmaker, acquired the Sherwood Avenue facility and others in the area last year as part of its $68 billion acquisition of Madison, N.J.-based drugmaker Wyeth.

In May, Pfizer announced plans to close a factory in Henrico County.

Officials said the company considered closing the Richmond facility and consolidating it with another research site outside Virginia. The local 270,000-square-foot center, which opened in 1998, houses research and development for over-the-counter consumer health products such as ChapStick, Preparation H and Centrum, as well as support functions.

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Contact Will Jones at (804) 649-6911 or wjones@timesdispatch.com.