Title
A Resolution approving an Economic Development Agreement between the City Of Colorado Springs and Project Phoenix
Presenter:
Jessie Kimber, Economic Development Officer
Shawna Lippert, Economic Development Manager
Body
Summary:
Project Phoenix is a renewable energy company and industrial manufacturer. The company has several locations in the U.S. This is a competitive project as the company is considering three (3) U.S. locations for expansion. Project Phoenix is a Primary Employer, as they generate more than 50% of their revenue from outside of El Paso County. Project Phoenix plans to secure and remodel an existing Facility in Colorado Springs. Additionally, the company plans to hire 378 employees over the next ten (10) years. With the creation of these new full-time jobs, Project Phoenix plans to invest in business personal property, including furniture, fixtures, machinery, equipment, and construction materials for its facilities development and expansion. The Executive Branch is recommending that the City provide certain performance-based incentives for the company investment and job growth.
Background:
Project Phoenix has investment plans for business personal property, construction materials, and job creation for its potential Colorado Springs facilities. The company estimates that it will invest $587.5 million in purchases of construction materials, furniture, fixtures, machinery, and equipment. The company expects to hire 378 new full-time employees over the next 10 years at an average wage of $105,509. The Executive Branch is recommending that the City enter into an Economic Development Agreement to provide certain performance-based incentives for the company to invest in business personal property, construction materials, and job creation. The proposed City incentives are:
Sales and Use Tax Rebate on Annual Purchases of Business Personal Property (50% of the City's 2% General Fund Rate, or a 1% Total Rebate).
Sales and Use Ta...
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