Just Transition communities

Just Transition communities are diversifying away from coal-dependent economic development strategies. Tier 1 Just Transition communities include Moffat, western Montrose, Morgan, Pueblo, Rio Blanco, and Routt.

Counties and municipalities will need to work with a sponsor entity to establish a rural jump-start zone. Sponsor entities are either:

• an approved economic development organization
• a designated institute of higher education

Economic development organizations

These economic development offices have been approved:

• Logan County Economic Development Organization
• Lincoln County Economic Development Organization
• City of Craig Economic Development
• Community Economic Development of Sedgwick County
• Morgan County Economic Development
• Region 9 Economic Development District of Southwest Colorado
• Routt County Economic Development Partnership
• San Luis Valley Development Resources Group
• Steamboat Springs Chamber Resort Association

Designated Institutes of Higher Education

A Designated Institute of Higher Education (DIHE) can also lead the rural jump-start zone application. Only a public school may serve as a DIHE. A private higher education institution may participate as a partner, but not lead an application.

Criteria for counties

In partnership with counties, an sponsor entity applies to become the sponsor of a rural jump-start zone. The Colorado Economic Development Commission (EDC) approves rural jump-start status in counties that meets:

• population criteria
• economic distress criteria

The EDC can approve an unlimited number of rural jump-start zones. Each municipality can contain only one rural jump-start zone. A rural jump-start zone may not be larger than a county. Once the EDC approves a rural jump-start zone, the zone will exist until the county loses its economically distressed status. An area will qualify as a rural jump-start zone based on population and economically distressed measures, as explained below.

Population
The area needs to be in a county with a population of fewer than 250,000 people.

Economic distress measures
Rural jump-start zones need to meet at least three of these requirements:

• per capita income is at least 20% below the state average
• county-wide personal income is at least 20% below the state average
• average unemployment level during the last five years is at least 20% above the state average
• during the past 5 to 10 years, the area lost population in the workforce age range
• percent of students eligible for free school lunch is higher than the state average
• designated as an Enhanced Rural Enterprise Zone
• be in a metropolitan statistical area as defined by the U.S. Census Bureau

Specifics for municipalities

If a county participates in the program, municipalities in the county are not automatically enrolled. A county or sponsor entity cannot force a municipality to participate in the Rural Jump-Start Program.

To be eligible for the Rural Jump-Start Program, a municipality needs to:

• be in a county that the Colorado Economic Development Commission designated as economically distressed (the municipality itself does not need the designation)
• be in a county that passed a rural jump-start tax relief resolution that the Colorado Economic Development Commission has approved
• work with an sponsor entity, which leads the application
• pass a resolution to participate in the program

A sponsor entity needs to lead and submit the application online in the OEDIT application portal. The sponsor entity can submit an application at any time. Before applying, the sponsor entity should know the boundaries of the zone, the participating municipalities, and any other relevant aspects of the zone.

County and municipality tax relief resolutions

Counties and participating municipalities need to pass tax relief resolutions to become a rural jump-start zone. The resolution needs to state that the jurisdiction will not impose a business personal property tax on new businesses. Partial relief from business personal property tax does not qualify. The jurisdiction needs to offer tax relief for up to eight years for each business.

Jurisdictions may also adopt resolutions with incentive payments and other tax relief including credits, exemptions, and refunds.

Unlike counties, municipalities may limit resolutions to specific businesses. Municipalities may restrict resolutions to certain geographic areas of the municipality.

After the county and participating municipalities pass resolutions, the DIHE can apply for rural jump-start zone designation.

Application materials

The sponsor entity need to include these materials with the application:

• list of all jurisdictions that have passed or are expected to pass tax relief resolutions
• copies of the county and municipality/ies tax relief resolutions
• list all economic development organizations working with the entity
• description of the geographic boundaries of the zone
• a strategy to implement the Rural Jump-Start Program
• a report of all businesses in the pipeline

If the sponsor entity wants to modify the zone by changing boundaries, adding or removing municipalities, the sponsor entity needs to file a separate application through the OEDIT application portal.

Eligible organizations may apply to be a sponsor entity before forming or while forming a rural jump-start zone.

Application materials

In the application, the entity needs to prove that it:

• intends to actively execute in its role in the rural jump-start zone
• has the resources to manage the program
• has designated a point person to work with businesses and our office

Every entity needs to:

• maintain a strategic plan for the rural jump-start zone
• adopt a conflict of interest policy
• keep a written record of all conflict of interest disclosures
• provide disclosures for the last calendar year to the Colorado Economic Development Commission (EDC) by January 31 of each year

The conflict of interest policy needs to state that:

• a representative of the entity may not use the relationship between the entity and the business for the representative’s private benefit
• a person who sells goods or services to the entity, an employee of such person, or a person with a business interest in such person’s business shall not vote on or participate on behalf of the entity in any transaction with such business
• if a representative of the entity is aware of any actual or potential conflict of interest, he or she shall advise the chief academic officers or executive director of the entity of the conflict