Title
A Resolution approving an Economic Development Agreement between the City Of Colorado Springs and Project Rey
Presenter:
Jessie Kimber, Economic Development Officer
Shawna Lippert, Economic Development Manager
Body
Summary:
Project Rey is an existing semiconductor manufacturing and design company. The company is searching for a U.S. location to increase capacity and expand their capabilities. This is a competitive project as the company is considering other U.S. locations for expansion. Project Rey is a Primary Employer, as they generate more than 51% of their revenue from outside of El Paso County. Project Rey plans to secure and remodel an existing facility in Colorado Springs. Additionally, the company plans to hire 70 employees over the next four (4) years. With the creation of these new full-time jobs, Project Rey plans to invest in 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 Rey has investment plans for purchases of furniture, fixtures, machinery, equipment, construction materials, and job creation for its potential Colorado Springs facilities. The company estimates that it will invest $20.3 million in purchases of construction materials, furniture, fixtures, machinery, and equipment. The company expects to hire 70 new full-time employees over four (4) years (length of term) at an average wage of $87,000. 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 furniture, fixtures, machinery, equipment, 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, ...
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