As the city of Menlo Park worries about the potential departure of Sun Microsystems, another of the city's top sales tax producers has announced that it's folding.
XTENT, a medical device company that produces drug-emitting stents for the treatment of coronary artery disease, announced May 15 that its board of directors had approved a plan to dissolve the company. The plan will require approval from stockholders, the company said in a press release.
Located in the city's light industrial sector east of U.S. 101, XTENT had been among the city's top 25 producers of sales tax revenue as recently as late 2008, according to information provided by city Finance Director Carol Augustine.
City Council members have touted medical device companies as part of a wave of new industries that they believe the city should try to accommodate. Does the closure of such a prominent company represent a bad omen for the city's efforts to retain businesses in its industrial sector, and develop new ones?
"As far as I know, this seems to be pretty isolated," said Mayor Heyward Robinson, adding that the city has known about the impending closure since January. When it comes to innovative start-up companies, there's bound to be some turnover, he said.
City officials recently met with representatives of OfficeMax, which has a regional distribution center in Menlo Park. The company "assured us it's not going anywhere," Mr. Robinson said, though he acknowledged that a business like that "can be pretty sensitive to (changes in) the economy."