Title
A resolution approving an economic development agreement between the City of Colorado Springs and Jaxon Engineering Maintenance LLC
Presenter:
Bob Cope, Economic Development Officer
Chelsea Gaylord, Senior Economic Development Specialist
Body
Summary:
Jaxon Engineering designs, constructs, tests, and maintains military grade Electromagnetic Pulse (EMP) hardening and survivability structures for government and commercial clients. The company offers a full range of services from engineering design, development and maintenance of EMP structures. Jaxon Engineering is moving and expanding its location in Colorado Springs from 21,000 square feet to 56,000 square feet at 5825 Mark Dabling Boulevard. The company currently has 65 employees, and over the next four years plans to hire an additional 35 employees. With the creation of these new full-time jobs, Jaxon Engineering desires to invest in business personal property and construction materials for its facilities expansion. The Executive Branch is recommending that the City provide certain performance-based incentives for the company investment and job growth.
Background:
Jaxon Engineering has investment plans for business personal property, construction materials, and job creation for its Colorado Springs facilities. The company estimates that it will invest $1.785 million in purchases of construction materials, equipment, and furniture and fixtures. The company expects to hire 35 new full-time employees over the next 4 years at an average wage of $75,000.
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 Tax Rebate on Pur...
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