Longmont City Council Considering Offer of Economic Development Incentives – Longmont Times-Call

Longmont City Council members plan to approve a package of roughly $ 300,000 in tax and fee reductions that the city would otherwise receive as part of expanding a business’s facilities on existing property, in order to bring the company to continue its multi-million dollar development. plan for this site.

Tuesday night’s board agenda includes possible action on a proposed economic development incentive package, in which analytical laboratory instrument maker MBIO Diagnostics, doing business as LightDeck Diagnostics, would expand. the company’s presence in Longmont at a property at 1844 Nelson Road, according to a memo from the city and Longmont Economic Development Partnership staff.

According to the memo, LightDesk Diagnostics is looking to invest a total of $ 37.5 million to create a facility that can accommodate 200 new employees at an average annual salary of $ 66,000.

Longmont City and Economic Development Partnership staff wrote: “Given the importance of primary jobs to the local economy, the size and scope of this project in terms of fiscal and economic impacts potential over Longmont and the local area, and the added benefit of its location in the recently vacated former GE Current facility at 1844 Nelson Road, the following is requested: a refund of building permit / examination fees City of Longmont qualifying plans and city sales / use taxes on building materials; and a reimbursement from the City of Longmont Business Property Tax of 50% for each of the first four years the business is located in Longmont.

The estimated value to the business of the requested rebates is around $ 300,000, according to the agenda note from Tuesday’s board meeting. He said based on the project’s estimated total direct tax impact of around $ 2 million, after these rebates, the city would still recognize an estimated net direct positive tax impact of $ 1.7 million over 10 years. .

Staff said the estimated direct fiscal impacts of the project over 10 years, based on investment estimates, include

  • $ 400,000 in property tax revenue;
  • $ 570,000 in business property tax revenues;
  • $ 800,000 in sales tax revenues;
  • $ 300,000 in permits and construction costs;
  • $ 2.2 million in utility revenues;
  • $ 125,000 in utility franchise fees;
  • $ 135,000 in other taxes and fees

City and economic development officials said the project could result in the creation of around 102 additional and indirect local jobs beyond the 200 that would be created directly by the company, and could result in an annual salary of 4, $ 6 million for these outside workers, as well as approximately $ 3.6 million in additional taxable sales and purchases at Longmont.

According to the order for a first council vote on Tuesday night, GE Current’s former site at 1844 Nelson Road consists of approximately 65,000 square feet of warehouse, manufacturing and developed offices. LightDeck Diagnostics intends to renovate the facilities currently on the property to accommodate its proposed operations, the renovations, according to the ordinance, would involve construction costs of approximately $ 10 million and purchases of machinery and equipment. of approximately $ 27.5 million for a total potential new investment of approximately $ 37.5 million. .

On Tuesday, board members are expected to consider voting for the initial approval of the ordinance establishing the incentive agreement with LightDeck. If it gets preliminary council approval on Tuesday evening, the economic development incentives ordinance is expected to go to a public hearing and a second council vote on October 26.

If you are going to

What: Regular meeting of Longmont municipal council

When: 7 p.m. Tuesday

Or: Civic Center Council Room, 350 Kimbark Street, Longmont

Agenda: tinyurl.com/56t7efvn


Source link

Leave a Reply

Your email address will not be published.