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File #: 23-025    Version: 1 Name: Project Octo EDA - Microchip Technology, Inc.
Type: Resolution Status: Mayor's Office
File created: 12/28/2022 In control: City Council
On agenda: 1/24/2023 Final action: 1/24/2023
Title: A resolution approving an Economic Development Agreement between the City of Colorado Springs and Project Octo. Presenter: Bob Cope, Economic Development Officer
Indexes: Economic Development Agreement
Attachments: 1. Project Octo EDA Resolution DA 12 29 22, 2. Project Octo EDA CC 1-3-23, 3. EDA City Council Work Session undisclosed1-9-23, 4. Signed Resolution No. 08-23 (needs signed EDA).pdf

Title
A resolution approving an Economic Development Agreement between the City of Colorado Springs and Project Octo.

Presenter:
Bob Cope, Economic Development Officer

Body
Summary:
Project Octo is a leading provider of smart, connected and secure embedded control solutions. The company's solutions serve customers across the industrial, automotive, consumer, aerospace and defense, communications and computing markets. The company plans to upgrade and expand its facilities in Colorado Springs. Project Octo expects a significant investment of approximately $880 million in construction and machinery and equipment over 6 years. The expansion will create an estimated 418 direct jobs over 6 years with an average wage of $72,148 which is 21% above El Paso County's Average Annual Wage. The company currently employs approximately 700 in Colorado Springs.

Background:
The company plans to upgrade and expand its facilities in Colorado Springs. Project Octo expects a significant investment of approximately $880 million in construction and machinery and equipment over 6 years, The expansion will create an estimated 418 direct jobs over 6 years with an average wage of $72,148 which is 21% above El Paso County's Average Annual Wage. The Company currently employs approximately 700 in Colorado Springs. This is a competitive project in that the company is seeking to invest its capital in the most efficient and productive manner when comparing opportunities at its other existing facilities in the US. Performance-based incentives have been proposed by the City of Colorado Springs, El Paso County, Colorado Springs Utilities, and the Colorado Springs Chamber and EDC.

As an inducement to Project Octo to undertake the investment in Colorado Springs, the Administration is recommending that the City enter into an Economic Development Agreement (EDA) with the company that will provide for certain performance-based incentives. The proposed incentives are:

Sales and Use Tax ...

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