The following projects were approved at the August 2023 Colorado Economic Development Commission meeting. The Colorado Economic Development Commission (EDC) develops incentive packages to assist with existing business expansions and new company relocations to grow jobs in all regions of the state. They typically meet on the third Thursday of every month.
The incentives requiring approval for these kinds of projects are:
Job Growth Incentive Tax Credit
Strategic Fund Job Growth Incentive
Location Neutral (LONE) Worker Incentive
These awards do not guarantee that the companies will accept the offer and/or expand in relocating to Colorado.
PROJECT NAME: Project Innovate CO
Summary
The company behind Project Innovate CO is a 3D housing printing company that aims to create lower-cost housing and infrastructure in economically distressed and underserved communities. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
In addition to Colorado, the company is considering expansion in Iowa and Virginia. Within Colorado, the company is considering Weld County. The main drivers for the decision are Colorado’s commitment to affordable housing and workforce development programs.
Jobs
Project Innovate CO, should it occur in Colorado, expects to create 79 net new jobs at an average annual wage of $73,987, which is 124.3% of the average annual wage in Weld County. The jobs will include project managers, executives, manufacturing workers, and business services.
Incentive
Up to $1,097,242 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 79 net new full-time jobs at a minimum average annual wage (AAW) of $59,501 (100% of Weld County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
- The company must provide proof (via bank statements or other such evidence), that they have raised $1.5M in capital, by the end of 2023 (this is 75% of the $2M in capital the company expects to raise in their current funding round) prior to the execution of this JGITC conditional agreement.
$335,000 in a performance-based Strategic Fund incentive over a 5-year period, 60 months, is requested from the EDC at $5,000 per net new job. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 67 net new permanent full-time jobs at a minimum average annual wage (AAW) of $71,401 (120% of the Weld County average annual wage).
- Or a payout of $3,000/NNJ for the creation of up to 67 net new jobs if the average annual wage is at least $59,501 (100% of the Weld County average annual wage at the end of the 5-year term).
- The maintenance of the net new jobs in Colorado for one full year before any grant payments are made.
- A $1:$1 local match of incentives by the City of Greeley and/or grants from other community partners that match the payout and term structure of the OEDIT incentives and will not result in the possibility of a clawback by the community partners and an undermatch of OEDIT’s payouts.
- The company must provide proof (via bank statements or other such evidence), that they have raised $1.5M in capital, by the end of 2023 (this is 75% of the $2M in capital the company expects to raise in their current funding round) prior to the execution of this Strategic Fund award contract.
Consideration
Project Innovate CO would support the state’s economic goals by creating new high-wage net jobs and supporting Colorado’s goal of creating affordable housing. In addition, the company plans to create a certificate program with Aims Community College for 3D-printing technology, supporting Colorado’s workforce in a strategically important industry. The company behind project Innovate CO is committed to support economically distressed communities and partnered with a nonprofit organization in the past to create and offer 3D-printed houses to homeowners at a lower cost. This company may also be eligible for other state incentive programs such as IHIP (for a factory loan) or any of the multiple programs being developed from the CO Affordable Housing Finance Fund (Prop 123).
PROJECT NAME: Project Thoroughbred
Summary
The company behind Project Thoroughbred is a Colorado-based engineering services company that provides systems engineering, software engineering, integration, and testing services to major prime integrators and the Department of Defense. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Jobs
Project Thoroughbred , should it occur in Colorado, expects to create 459 net new jobs at an average annual wage of $143,615, which is 138% of the average annual wage in El Paso County. The jobs will include engineers, analysts and managers. The company currently has 266 employees, 215 of whom are in Colorado.
Incentive
Up to $4,264,630 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 459 net new full-time jobs at a minimum average annual wage (AAW) of $60,151 (100% of El Paso County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Considerations
This project would support the state’s economic goals by creating high-paying net new jobs in the economy and bolster Colorado’s key aerospace industry.
PROJECT NAME: Project Stronghold
Summary
The company behind Project Stronghold is a veteran owned cybersecurity and technology integrator that was founded in 2014. The company is headquartered in Alexandria, VA. Their vision is to protect the US and transform the way their clients meet critical challenges by combining superior talent with cutting-edge technical solutions to ensure mission success. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Stronghold’s expansion will provide cybersecurity and Internet Service Provider(ISP) engineering and operations support to a US Government customer. In addition to Colorado, the company is considering Reston, Virginia and San Antonio, Texas. Within Colorado, the company is considering Broomfield County. The decision behind the location of Project Stronghold is contingent upon access to talent, quality of life for employees, and incentive support from the local and state governments.
Jobs
Project Stronghold, should it occur in Colorado, expects to create 130 net new jobs at an average annual wage of $184,990, which is 167% of the average annual wage in Broomfield County. The jobs will include administrators, analysts, engineers, managers, technicians, and other roles. The company currently has 500 employees, 65 of whom are in Colorado.
Incentive
Up to $2,010,864 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 130 net new full-time jobs at a minimum average annual wage (AAW) of $110,760 (100% of Broomfield County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
PROJECT CERTIFICATION
(OEDIT staff has the following signed certifications from the company on file)
Per statute (CRS 39-22-531 3), we, as applicants to the Colorado Economic Development Commission for financial assistance, certify that:
- "Receipt of the credit allowed in this section is a major factor in the taxpayer's decision" to pursue this project in Colorado.
- "Without the credit allowed in this section the taxpayer has a reduced probability of commencing the project in the state."
- This project was evaluated in at least one other state, as reflected in the Cost Differential Analysis provided in Section 4 ("Colorado Incentive Application") of the salesforce application.
- This project could reasonably and efficiently locate to that state if the incentive for this project is not approved.
Furthermore, we certify that the information contained in the electronically submitted materials via salesforce-in particular reference to the information provided in section 7 ("Prior Incentives") and section 8 ("Legal Status") of the salesforce application-are true and accurate statements, and represent fairly the financial and legal posture of the enclosed entity/entities as of the date stated herein.
Considerations
This project would support the state’s economic goals by building on Colorado’s growing concentration of cybersecurity infrastructure and creating high-paying net new jobs in the Colorado economy.
PROJECT NAME: Project Connect
Summary
The company behind Project Connect operates as a legal entity within a larger multinational company. The business performs manufacturing and product development activities in Colorado. The parent company is a global industrial technology leader creating a safer, sustainable, productive, and connected future. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
The entity is proposing to expand its footprint and workforce in Colorado over the next several years. The expansion includes the addition of employees, equipment to a new facility commitment. In addition to Colorado, the company is considering Carlsbad, California. Within Colorado, the company is considering Douglas County. The main drivers for where the project locates are cost of doing business and access to talent.
Jobs
Project Connect, should it occur in Colorado, expects to create 67 net new jobs at an average annual wage of $79,143, which is 100% of the average annual wage in Douglas County. The jobs will include engineers, operations, and sales occupations. The company currently has 27 employees, 25 of whom are in Colorado.
Incentive
Up to $493,671 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 67 net new full-time jobs at a minimum average annual wage (AAW) of $78,637 (100% of Douglas County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
PROJECT CERTIFICATION
(OEDIT staff has the following signed certifications from the company on file)
Per statute (CRS 39-22-531 3), we, as applicants to the Colorado Economic Development Commission for financial assistance, certify that:
- "Receipt of the credit allowed in this section is a major factor in the taxpayer's decision" to pursue this project in Colorado.
- "Without the credit allowed in this section the taxpayer has a reduced probability of commencing the project in the state."
- This project was evaluated in at least one other state, as reflected in the Cost Differential Analysis provided in Section 4 ("Colorado Incentive Application") of the salesforce application.
- This project could reasonably and efficiently locate to that state if the incentive for this project is not approved.
Furthermore, we certify that the information contained in the electronically submitted materials via salesforce-in particular reference to the information provided in section 7 ("Prior Incentives") and section 8 ("Legal Status") of the salesforce application-are true and accurate statements, and represent fairly the financial and legal posture of the enclosed entity/entities as of the date stated herein.
Considerations
This project would support the state’s economic goals by creating net new jobs in the economy and encouraging a Colorado company to continue growth in the State.