The following projects were approved at the February 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 kinds of project are:
Job Growth Incentive Tax Credit
These awards do not guarantee that the companies will accept the offer and/or expand or relocate to Colorado.
PROJECT NAME: Balloon
Summary
The company behind Project Balloon was previously approved for a Job Growth Incentive Tax Credit by the commission at the December 2023 EDC meeting; this approval was revoked at the January 2024 EDC meeting as the company behind Project Balloon did not complete the required documentation to finalize the incentive agreement with the state. The company has stated that it wanted to reconfigure its NDA with the state prior to completing its documentation, despite OEDIT staff’s recommendation to finalize the documentation; however, the company has now submitted all required materials that represent the same project and parameters that previously received approval by the EDC. We recommend the EDC reconsider their reapproval of the project.
The company develops transformative, affordable technology, platforms, and systems. The company has two segments the first is comprised of an aggregation of operating segments, including its microwave electronic products, space, training, and cybersecurity, modular systems, turbine technologies, and defense and rocket support services operating segments and The Unmanned Systems segment that consists of unmanned aerial, unmanned ground, unmanned seaborne and related command, control, and communications system businesses. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Jobs
Project Balloon represents the company's efforts to capture more DOD funding through contracts. In addition to Colorado, the company is considering Pennsylvania. Within Colorado, the company is considering El Paso County. The primary factors driving their decision include talent, costs, and proximity to DOD assets.
Project Balloon expects to create 200 net new jobs at an annual average wage of $112,000, which is 186 percent of the annual average wage in El Paso County. The company currently has 5,000 employees, 600 of whom are in Colorado.
Incentive
Up to $669,375 in performance-based Job Growth Incentive Tax Credit over an 8-year period, 96 months, is requested from the EDC.
This incentive is contingent upon:
- The creation of up to 200 net new full-time jobs at a minimum average annual wage (AAW) of $60,151 (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 net-new jobs in Colorado for one full year before any credits become vested.
- Before any credits are issued, the company must create and maintain at least 20 net new full-time jobs.
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: Da Vinci
Summary
The company behind Project Da Vinci provides quick-turn product development and manufacturing services to the aerospace, medical, industrial and commercial marketplace. The company creates products integral to advanced manufacturing and assembly, and offers engineering development and product integration support. Due to the nature of the company, further identification would jeopardize the company’s confidentiality.
Project Da Vinci represents the company’s expansion into new product lines and services for their clients, as well as growth and development of the company’s clientele and customer base. In addition to Colorado, the company is considering Tulsa, Oklahoma. Within Colorado, the company is considering El Paso County. The company’s decision is predicated on proximity to clientele and supply chain, labor force availability, and financial support from the local community and state.
Jobs
Project Da Vinci, should it occur in Colorado, expects to create 101 net new jobs at an average annual wage of $85,407, which is 135% of the average annual wage in El Paso County. The jobs will include roles such as marketing & sales, engineers, inspectors, accountants, production associates, administrative support, and technicians. The company currently has 54 employees, all of whom are in Colorado.
Incentive
Up to $1,281,974 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 101 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 bolstering the state’s advanced manufacturing sector and retaining a Colorado-based company involved with many of the state’s leading industries via its product lines.