Title
A Resolution Approving an Economic Development Agreement Between the City of Colorado Springs and Project Next
Presenter:
Bob Cope, Economic Development Officer
Body
Summary:
Project Next is a multi-national enterprise information technology company. The company is a global edge-to-cloud Platform-as-a-Service company that helps organizations accelerate outcomes by unlocking value from all of their data.
The company is expanding its capabilities and is focusing its growth, not only on research and development but now end-to-end development. This project request is for the City's participation to support Project Next's expansion plans in Colorado Springs, totaling at least 40 new information technology jobs and approximately $8,200,000 in capital improvements. The company is evaluating Colorado Springs or Texas for this expansion. The Executive Branch is recommending that the City provide certain performance-based incentives for the company's investment and job growth.
Background:
Project Next has investment plans for business personal property, construction materials, and job creation for its Colorado Springs facilities. The company estimates that it will invest $8.2 million in purchases of construction materials, equipment, and furniture and fixtures. The company expects to hire 40 new full-time employees over the next 4 years at an average wage of $110,000.
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 Purchases of Construction Materials (50% of the City's 2% General Fund Rate, or a 1% Total Rebate).
The Executive Branch is recommending a four...
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