January 2022: EDC Approved Job Growth Incentive Tax Credit and Strategic Fund Projects

The following projects were approved at the January 2022 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 project are:

These awards do not guarantee that the companies will accept the offer and/or expand or relocate to Colorado.

PROJECT NAME: Project Illumination

Summary

The company behind Project Illumination is a consumer product manufacturer focused on direct-to-consumer sales (D2C) through Amazon and its own website.  They are currently located in Montrose, CO. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Illumination represents the company's acquisition of one of the nation's largest consumer product manufacturers that is currently based out of Seattle, WA. The majority of said company’s sales are B2B. The company behind the project is considering whether to keep the jobs that are currently in Seattle, or relocate these jobs to their location in Montrose, CO. 

Jobs

Project Illumination, should it occur in Colorado, expects to create 52 net new jobs at an average annual wage of $41,692, which is 101% percent of the average annual wage in Montrose County. The jobs will include production roles, production managers, fulfillment managers, sales associates, etc. The company currently has 28 employees, all of whom are in Colorado. 

Incentive

Up to $260,827 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).  

Considerations

This project would support the state’s economic goals by creating net new jobs in the economy; creating high-wage jobs in a rural Just Transition community. This will support manufacturing and distribution in a rural part of Colorado. 

PROJECT NAME: Project Buffalo

Summary

The company behind Project Buffalo is a space company. The company leads programming with specific EDI outreach considerations and works with students across the country, particularly where the company has locations, to encourage STEM fields from a young age. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.

Project Buffalo represents the company's future acquisition of office space to support existing projects that they are pursuing. In addition to Colorado, the company is evaluating a new location in Arizona or expanding its existing site in Virginia. Within Colorado, the company is considering Douglas County. Key decision factors are access to talent, specifically aerospace and engineering talent, in addition to gaining proximity to key primes and other partners with locations in Colorado and the cost of doing business. They currently have 4,000+ employees nationwide, none of whom are located in Colorado. 

Jobs

Project Buffalo, should it occur in Colorado, expects to create 400 net new jobs at an average annual wage of $158,475, which is 225 percent of the average annual wage in Douglas County. The jobs will include engineers, business functions, and office roles.

Incentive

Up to $7,572,781 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).

Considerations

This project would support the state’s economic goals by bringing 400 net new jobs into the economy. This project will support innovation in the space sector, open up the door for future investment by this company, and bring high-paying net new jobs into the Colorado economy. The company also has proven to support the local communities that they locate in and will continue this investment should they locate in Colorado, where the community will see these benefits for years to come.

PROJECT NAME: Project Prima

Summary

The company behind Project Prima is a craft brewery that currently has a significant presence in Colorado and distributes beer to several other states. Due to the nature of the company, further, identification would jeopardize the company’s confidentiality.

The company has outgrown its current location in Colorado and is determining the best location for its headquarters.  In addition to Colorado, the company is considering San Antonio, Texas, which would give the company access to the Port of Houston. Within Colorado, the company is considering Northglenn where they are considering building a corporate headquarters, showpiece production facility, and world-class Biergarten at the Northglenn Marketplace. The City of Northglenn has approved $1.39m in sale tax rebates and the County $706k in personal property rebates.

Talent, cost of doing business, and proximity to the supply chain are all key driving factors in the company’s decision. 

Jobs

Project Prima, should it occur in Colorado, expects to create 203 net new jobs at an average annual wage of $88,443, which is 154 percent of the average annual wage in Adams County. The jobs will include administrators, brewers, quality assurance managers, supply chain managers, and engineers. None of the front-of-house jobs tied to the Biergarten are included in the scoring; only jobs related to their headquarters are included in this incentive package. The company currently has 100 employees, 50 of whom are in Colorado. 

Incentive

Up to $1,199,035 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).  

Considerations

This project would support the state’s economic goals by creating net new jobs in the economy and serving as a catalyst for the economic revitalization of the Northglenn Marketplace and proving Colorado’s business-friendly environment to local communities while supporting expansions of existing Colorado businesses. The City of Northglenn is very excited about this project as shown through their incentive offering. 

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