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 incentive requiring approval for this kind of project is:
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: Project Peaches
Summary
The company behind Project Peaches is a Florida-based company that designs and manufactures orbital launch vehicles, in-space propulsion systems, and advanced missile engines using non-toxic and non-explosive hybrid rocket propulsion technology.
Project Peaches represents the company's plans for a new manufacturing facility for mass production of hybrid rocket engines, along with a test facility to support vertical and horizontal rocket engine testing. In addition to Colorado, the company is considering Florida. Within Colorado, the company is considering Pueblo, Colorado. The primary factors driving their decision include talent, costs, and proximity to DOD assets.
Jobs
Project Peaches, should it occur in Colorado, expects to create 165 net new jobs at an average annual wage of $89,091, 166% of the average annual wage in Pueblo County. The jobs will include Engineers, Technicians, and Management. The company currently has 55 employees, none of whom are in Colorado.
Incentive
$1,072,500 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 165 net new permanent full-time jobs at a minimum average annual wage (AAW) of $89,091 (166% of the Pueblo County average annual wage).
- Or a payout of $3,000/NNJ for the creation of up to 165 net new jobs if the average annual wage is at least $53,729 (100% of the Pueblo 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 PEDCO 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.
- Prior to contracting this award is contingent upon Company raising at least $37.5M (75%) of their $50M expected funding and providing proof via bank statements, financial reports, etc.
Consideration
This project would support the state’s economic goals by supporting the growth of an aerospace and defense company in rural Colorado versus growth in other US locations.
PROJECT NAME: Project Maverick 2024
Summary
The company behind Project Maverick 2024 is a manufacturer in the renewable energy space. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
The company is looking to expand their current location in Colorado. In addition to Colorado, the company is considering Columbia, South Carolina. Within Colorado, the company is considering Adams County. The main drivers for their decision are the costs of doing business as well as state and local incentives.
Jobs
Project Maverick 2024, should it occur in Colorado, expects to create 40 net new jobs at an average annual wage of $77,823.90, which is 111% of the average annual wage in Adams County. The jobs will include production operators, chemists, and engineers. As the local community’s Strategic Fund match, a municipality in Adams County has offered economic development incentives to the company for creating and maintaining new permanent jobs in the County. $787,500.00 for a Sales/Use Tax Rebate.
Incentive
$160,000 in a performance-based Strategic Fund incentive over a 5-year period, 60 months, is requested from the EDC at $4,000 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 40 net new permanent full-time jobs at a minimum average annual wage (AAW) of $76,905.4 (110% of the Adams County average annual wage).
- Or a payout of $3,000/NNJ for the creation of up to 40 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 Adams county municipality 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.
Consideration
This project would support the state’s economic goals by retaining a well-established and valued renewable energy company in Colorado and add new, good-paying jobs in the renewable energy sector, supporting Colorado’s path to 100% renewable energy by 2040.