Title
A Resolution approving an economic development agreement between the City of Colorado Springs and Relius Medical, LLC
Presenter:
Bob Cope, Economic Development Officer
Chelsea Gaylord, Economic Development Project Manager
Body
Summary:
Relius Medical, LLC is a medical device manufacturer that engineers and manufactures orthopedic and non-orthopedic products. Relius purchased previously held assets of another company and was able to retain many of the previous employees, ultimately saving over 100 jobs. Since commencing operations in 2014, Relius employs 135 people and has been committed to developing and growing its workforce through collaborative efforts with community organizations such as Pikes Peak Community College, Pikes Peak Workforce Center, and Mount Carmel Veterans Service Center. Relius occupies an 89,000 square foot facility that allows for expansion opportunities, including their current progress on a sterile 10K clean room that will provide a one-stop shop for their customers. The company desires to expand its number of full time employees and invest in manufacturing equipment. The Executive Branch is recommending that the City provide certain performance-based incentives for investment and job creation.
Previous Council Action:
N/A
Background:
Relius Medical, LLC has investment plans for business expansion and job creation. The company estimates that it will invest $5 million in machinery and equipment. The company expects to hire 25 new full time employees over the next 4 years at an average wage of $34,337.
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 and job creation. The proposed City incentive is:
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).
The Executive Branch is recom...
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