More than 1,000 jobs — nearly two-thirds of which would pay average salaries well over $100,000 — could be on their way to the Colorado Springs area.
The Colorado Economic Development Commission on Thursday approved a combined $13.1 million in financial incentives to help entice three employers — a Springs-based aerospace and defense engineering firm, a global solar manufacturer and an information technology startup — to create jobs in the Pikes Peak area.
If businesses expand or move into the Springs area, it would be the latest in a string of economic development wins for local businesses and government officials.
Since December, high-tech makers Entegris and Microchip Technology have announced plans to expand their existing operations in Colorado Springs with the addition of 1,000 jobs and combined investments of nearly $1.5 billion. Meanwhile, Zivaro, a Denver-based information and technology company, announced it would bring more than 300 jobs to the Springs.
“The city’s economic vitality, business-friendly culture and educated workforce are attracting considerable interest from businesses looking to locate or expand in Colorado Springs,” said Bob Cope, chief economic development officer for the City of Colorado Springs, via email.
The “support and partnership” of the Economic Development Commission, an independent panel whose members are appointed by the governor and legislature, and Colorado’s Office of Economic Development and International Trade — the state agency that promotes economic growth — helps strengthen local and state economies, Cope added.
It’s unclear when the three companies that were approved for the incentives Thursday will make their employment decisions. It’s also unclear how strong the Springs’ chances of landing the jobs are; the city competes with other metropolitan areas and states for each of the projects, according to state officials.
The businesses have been approved for Job Growth Incentive Tax Credits, a state program designed to encourage businesses to create jobs in Colorado. To be eligible, employers must create at least 20 net new jobs in the state over eight years; jobs must pay an average annual salary of at least 100% of the average annual salary in the county where the employees would work.
None of the three companies have been identified by state officials, who routinely offer anonymity to employers who might add or bring jobs to Colorado. Instead, each company was given a code name.
According to state officials, these are:
• Project Bullseye, described as a women-owned aerospace and defense engineering company headquartered in Colorado Springs. The company plans to create 620 jobs over eight years at an average annual salary of $160,484, or 266% of the average annual salary in El Paso County. Jobs will include software and systems engineers; the company has 400 employees, 240 of whom work in Colorado.
“The company is in strong growth mode through business acquisitions to build capacity and bid for new government and commercial contracts with these recent acquisitions,” the information presented to EDC said. “Their goal is to double in size over the next 5-8 years, and they’re considering where to focus that growth. To support those contracts, they’ll be building a large SCIF (sensitive compartmented information center) space next year.”
The company plans to create jobs in El Paso County and Colorado Springs, as well as Huntsville, Alabama, and Weber County, Utah; it has an “existing presence” in both areas “and could reasonably relocate that growth,” according to the state.
“This project would support the state’s economic goals by creating net new, high-wage jobs in the economy, supporting the continued growth of an award-winning, women-owned business in Colorado, encouraging (Department of Defense) contracted companies to stay and grow in Colorado as they win new projects, and solidify our status as the best aerospace economy in the world,” Office of Economic Development staff members said in their submission to the Economic Development Commission.
The commission approved up to $7,499,388 in job growth incentive tax credits for Project Bullseye.
Meanwhile, the Colorado Springs City Council is due to consider its own economic development agreement for the Bullseye project during its Monday business session.
The deal provides $24,000 in incentives — a $14,000 sales and use tax rebate on the company’s purchase of personal property (machinery, equipment, furniture and fixtures) and a similar $10,000 rebate on its purchase of building materials, according to a presentation city employees will make to the council.
This presentation, which also does not identify the company behind Project Bullseye, goes into additional detail.
In addition to the 620 jobs to be added, which the City sets at a slightly lower average annual salary of $153,125, the company’s expansion will create 1,053 indirect jobs.
The company also plans to spend $3.4 million over 10 years on buildings and improvements, furniture and fixtures, and machinery and equipment, according to the presentation from city staff.
“A small, fast-growing company that provides cybersecurity, software, and engineering solutions to government customers,” is how city employees describe Project Bullseye, which “intends to expand into a new strategic location to expand its capabilities and be close to customers.”
Over 10 years, the city staff presentation shows that the Bullseye project would have a total economic impact of $843 million.
Although neither the state nor the city has identified the company behind Project Bullseye, its descriptions could point to Boecore, the Springs-based space and missile defense company that operates in Huntsville and Ogden, Utah.
Boecore was founded in 2000 by businesswoman Kathy Boe, who made the company one of the Springs’ most successful defense contractors; Boecore was acquired in January 2022 by Enlightenment Capital, a Washington, DC-based investment firm that focuses on aerospace, defense, government and technology companies.
Boecore chairman Tom Dickson declined to comment on Thursday.
• Project Blanc, which is an industrial manufacturer of solar cells and solar modules, headquartered in Switzerland and with production facilities in Germany and the United States, state officials said. The company, according to the state, is planning “a 2 GW photovoltaic/solar cell manufacturing plant that will require significant construction contractor involvement as well as a semiconductor-like manufacturing supply chain.”
The company behind Project Blanc is also planning to move its US headquarters to the site of the manufacturing plant. The company is considering El Paso County, but is also considering expansion into New York, Indiana and Arizona.
“The main drivers of the decision are an existing facility, Colorado’s commitment to renewable energy and access to talent,” the state said. “In addition, the company behind Project Blanc values a local supply chain: more than 80% of the purchasing volume of its German production plant was purchased from local suppliers. Establishing an American manufacturing plant in Colorado would support a network of local suppliers. »
Project White plans to create 380 jobs at an average annual salary of $77,842, or 129.4% of the El Paso County average, according to the state. Jobs will include project managers, operators, facility managers, process engineers and maintenance personnel. The company has 1,400 employees, none of whom work in Colorado.
“Project White would support the state’s economic goals by creating net new, high-wage jobs and supporting Colorado’s transition to clean energy,” Office of Economic Development staff members said. “The project would create green jobs and help Colorado move toward zero-emission buildings, as outlined in the Governor’s administration’s roadmap to 100 percent renewable energy by 2040.” Staffers also said they had confidential discussions with the National Renewable Energy Laboratory, which has campuses in Arvada and Golden, about the technologies being developed by the company behind Project Blanc and the agency “provided positive statements about the inclusion of this type of facility in (Colorado).”
The Economic Development Commission has approved up to $4,944,960 in Job Growth Incentive Tax Credits over eight years.
• Project Verge represents a technology company “focused on modeling, simulation and cybersecurity”, according to state officials. The company behind Project Verge plans to increase modeling and simulation support for Department of Defense customers; it considers the Colorado Springs metro area, but also weighs Albuquerque, NM, and Fort Walton Beach, Florida.
“The main drivers of their decision are talent, cost of doing business and proximity to (the Department of Defense) contractors,” state officials said.
The company plans to create 61 jobs at an average annual salary of $130,253.17, or 216.51% of the El Paso County average. Jobs will include software developers and analysts; the company currently has 49 employees, including one in Colorado.
“This project would support the state’s economic goals by creating net new jobs in the economy and increasing the density of cybersecurity businesses in Colorado,” state staff told the Economic Development Commission. “This project would reinforce Colorado’s reputation as a leader in the cybersecurity industry and demonstrate our competitiveness against other markets with strong aerospace and cybersecurity sectors.”
The Economic Development Commission has approved up to $691,288 in Job Growth Incentive Tax Credits over eight years.
In May, the city council reviewed Project Verge, which at the time was described by city employees as a veteran-owned information technology startup that planned to spend $2.2 million over four years to expand to Colorado Springs.
In June, city council approved an economic development agreement that provided $14,000 in sales tax refunds for the company behind Project Verge.
