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HomeMy WebLinkAbout11/20/2025 - Water Commission - SUPPLEMENTAL DOCUMENTS - Regular Meeting (2)Advanced Energy Variance Request NOVEMBER 2025 10,000 Total Employees 2 Leader in Precision Power Advanced Energy (NASDAQ: AEIS) 1,500+ Technical Team 1981 >70%$1.66B 2023 REVENUE $1.48B 2024 REVENUE 700+ 3 Advanced Energy Confidential Information © Advanced Energy Industries 2025 1981 AE Founded in Fort Collins 456 Total Employees 42 Patents Issued in 2024 220 Engineers 4 Buildings Advanced Energy - Fort Collins 50 Job Openings 4 Advanced Energy Variance Request The Issue Advanced Energy Confidential Information © Advanced Energy Industries 2024 Current Situation •AE leases three buildings in the Prospect Park East business park. •1625 Sharp Point is currently designated within the floodplain; proposed remapping removes it from that designation. •Due to Cumulative Substantial Improvement limits, we cannot make further improvements to the building under current regulations. Why This Matters •Advanced Energy designs and manufactures highly engineered, precision power conversion, measurement, and control solutions for mission-critical applications globally. •Innovation depends on modern, adaptable lab space. Without continuous improvement, R&D innovation stops. •If restrictions remain, we must shift R&D operations out of Colorado to other U.S. and international sites—impacting local jobs and economic progress. 5 Current vs Updated Floodplain Map 1625 Sharp Point 1625 Sharp Point 2400 Midpoint 2424 Midpoint 2400 Midpoint 2424 Midpoint Building in Floodplain Building out of Floodplain 1625 Sharp Point 6 Advanced Energy Confidential Information © Advanced Energy Industries 2024 What is a PVD Chamber? ▪A Physical Vapor Deposition Chamber is a precision device that provides a controlled vacuum environment for depositing ultra-thin, high-performance coatings on substrates, essential for semiconductor device fabrication ▪One of our largest customers have arranged for a PVD chamber to be loaned to AE for advanced R&D collaborations. ▪No AE competitors have access to similar equipment. ▪This chamber will enable extensive joint development on multiple new AE precision power platforms. Project cost: $1.5M ▪Plans issued for permit in March 2025, on hold since May 2025 Advanced Energy Variance Request Project Description Additional Requirements ▪Power ▪Chilled Water ▪Gases ▪Liquid Nitrogen ▪Compressed Air ▪Lifting Fixtures ▪Controlled environment9’ ~900sf 7 Advanced Energy Confidential Information © Advanced Energy Industries 2025 Advanced Energy Variance Request Expected Investments In Fort Collins •$1.5M PVD Chamber •$9M of renovated and new R&D labs in 1625 Sharp Point over the next two years •$30+M across all three buildings over the next five years 2026 $5.2M 2027 $6.2M 2028 $6.3M 2029 $6.1M 2030 $7M Current Labs – Fort Collins, CO New Labs – Boston, MA 8 Advanced Energy Confidential Information © Advanced Energy Industries 2025 Advanced Energy Variance Request Improving Our Center of Excellence Outdated labs threaten our leadership in precision power. Without immediate upgrades, R&D – and jobs – will shift out of Colorado to our advanced domestic and international facilities. 9 Advanced Energy Confidential Information © Advanced Energy Industries 2024 Advanced Energy Variance Request The Request With FEMA’s final map removing our site from the floodplain, AE requests a Variance after the LFD is issued but before the effective date. This eliminates further delays and poses limited risk to the City. PRECISION | POWER | PERFORMANCE | TRUST