Title
A Resolution approving an Economic Development Agreement between the City Of Colorado Springs and Project Kokua
Presenter:
Jessie Kimber, Economic Development Officer
Shawna Lippert, Economic Development Manager
Body
Summary:
Project Kokua is a fabless semiconductor company focused on design and software solutions. The company is searching for a U.S. location to expand their capabilities. This is a competitive project as the company is considering other U.S. locations for expansion. Project Kokua is a Primary Employer, as they generate more than 50% of their revenue from outside of El Paso County. Project Kokua plans to secure and remodel an existing Facility in Colorado Springs. Additionally, the company plans to hire 53 employees over the next six (6) years. With the creation of these new full-time jobs, Project Kokua 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 Kokua 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 $9.7 million in purchases of construction materials, furniture, fixtures, machinery, and equipment. The company expects to hire 33 new full-time employees over four (4) years (length of term), and a total of 53 new full-time employees over the next six (6) years, at an average wage of $83,333. 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 Purcha...
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