The following projects were approved at the April 2024 Colorado Economic Development Commission meeting. The Colorado Economic Development Commission (EDC) develops incentive packages to assist with existing business expansions and new company relocations to grow jobs in all regions of the state. They typically meet on the third Thursday of every month.
The incentives requiring approval for these kind of projects are:
Job Growth Incentive Tax Credit
Strategic Fund Job Growth Incentive
These awards do not guarantee that the company will accept the offer and/or expand or relocate to Colorado.
PROJECT NAME: Saffron
Summary
The company behind Project Saffron is a Danish company that supplies ready-to-use structural materials and composite parts for wind turbine blades, as well as logistical and engineering solutions for its clients. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
The company behind Project Saffron is seeking to open a manufacturing system in the US to enable better and more cost-effective logistics and services for their primary client, a Colorado-based company in the wind energy sector. In addition to Colorado, the company is considering Wyoming and South Carolina. Within Colorado, the company is considering Larimer County. The company’s decision for where it ultimately locates will be predicated on proximity to its clientele and supply chain, relative cost of commercial freight, and local incentives.
Jobs
Project Saffron, should it occur in Colorado, expects to create 210 net new jobs at an average annual wage of $78,230, which is 119% of the average annual wage in Larimer County. The jobs will include managers, engineers, technicians, HR, and admin roles. The company currently has 400 employees, 210 of whom are in Colorado.
Incentive
Up to $3,376,808 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 210 net new full-time jobs at a minimum average annual wage (AAW) of $65,468 (100% of Larimer County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Consideration
This project would support the state’s economic goals by supporting Colorado’s wind energy industry by situating a tier 1 supply chain operator within the state’s borders, and by supporting foreign direct investment in an important industry vertical in Colorado’s advanced manufacturing sector.
PROJECT NAME: Lightspeed
Summary
The company behind Project Lightspeed designs and manufactures technology for the communications industry. It has developed and sold solutions to the US military and government, NATO, and domestic and international private and governmental end users.
The company has recently partnered with an international company using and manufacturing LiFi (Light Fidelity communication). This project represents the company's effort to start a manufacturing facility in the US to manufacture this technology and develop the support structure of customer service, engineering, and sales.
In addition to Colorado, the company is considering Wyoming, Virginia, and Florida. Within Colorado, the company is considering El Paso County. The primary factors driving their decision include talent, costs, and proximity to DOD assets.
Jobs
Project Lightspeed, should it occur in Colorado, expects to create 120 net new jobs at an average annual wage of $68,108, which is 107% of the average annual wage in El Paso County. The jobs will include Sales, Engineers, and Warehouse roles. The company currently has 9 employees, 8 of whom are in Colorado.
Incentive
Up to $1,010,584 in performance-based Job Growth Incentive Tax Credits over an 8-year period, 96 months, is requested from the EDC. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 120 net new full-time jobs at a minimum average annual wage (AAW) of $$63,362 (100% of El Paso County) or 100% of the AAW of any county in Colorado the company decides to locate over 8 years.
- The maintenance of the net new jobs in Colorado for one full year before any credits become vested.
- The creation and maintenance of at least 20 net new jobs before any credits are issued.
Consideration
This project would support the state’s economic goals by supporting the growth of an aerospace and defense company in Colorado over growth in other US locations.
PROJECT NAME: Eleven
Summary
The company behind Project Eleven is a manufacturer of sodium-ion battery energy storage systems. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Eleven is developing a state-of-the-art R&D campus, which will include manufacturing and process development, sodium-ion cell R&D, design & development capabilities, as well as the First Battery Foundry.
In addition to Colorado, the company is considering Michigan, Kentucky, and California. Within Colorado, the company is considering Commerce City in Adams County. The main drivers for the location decision are incentives, a business friendly tax environment, access to talent, and renewable energy policies.
Jobs
Project Eleven, should it occur in Colorado, expects to create 162 net new jobs at an average annual wage of $120,000, which is 172% of the average annual wage in Adams County. The jobs will include engineers, managers, and manufacturing personnel. The company currently has 18 employees, 3 of whom are in Colorado.
Incentive
$1,053,000 in a performance-based Strategic Fund incentive over a 5-year period, 60 months, is requested from the EDC at $6,500 per net new job. The amount of this incentive as recommended above takes into account OEDIT staff’s analysis of the four factors identified in C.R.S. § 39-22-531 (3)(c).
This incentive is contingent upon:
- The creation of up to 162 net new permanent full-time jobs at a minimum average annual wage (AAW) of $90.888 (130% of the Adams County average annual wage).
- Or a payout of $3,000/NNJ for the creation of up to 162 net new jobs if the average annual wage is at least $69.914 (100% of the Adams County average annual wage at the end of the 5-year term).
- The maintenance of the net new jobs in Colorado for one full year before any grant payments are made.
- A $1:$1 local match of incentives by the City of Commerce City and/or grants from other community partners that match the payout and term structure of the OEDIT incentives and will not result in the possibility of a clawback by the community partners and an undermatch of OEDIT’s payouts.
Strategic Fund Local Support
As the local community’s Strategic Fund match, the City of Commerce City has offered cash incentives to project Eleven for generating new net jobs over a five year period. The city of Commerce City commits to pay out $6,500 for each net new job that pays 130% of the average annual wage in Adams County. The total incentive amount over this five-year period is $1,053,000.
Consideration
This project would support the state’s economic goals by creating net new jobs in the renewable energy sector and support one of the Governor’s top priorities, setting Colorado on a path to 100% renewable energy for the grid by 2040 and position Colorado as a leader in the clean energy economy.
Additionally, Project Eleven would bring critical supply chain benefits to the state as the global supply chain for higher energy density sodium-ion batteries is currently dominated by Asia. Project Eleven’s sodium-ion-based energy storage systems can present an alternative option to lithium-ion batteries due to their use of more abundant and less expensive sodium.