HomeMy WebLinkAboutMinutes - Finance Committee - 07/05/2011 -_____C.Finance Administration____I 0
—a ••2~FloorI-Ort CoLLins Fort Collins CO 80522
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Council Audit &Finance Committee
Minutes
7/5/11
4:00 to 5:00
City Manager’s Conference Room
Council Attendees:Mayor Karen Weitkunat,Mayor Pro Tern KeLly
Ohlson,Ben Manvel
Staff:Darin Atteberry,Mike Freernan,Josh Birks,Diane
Jones
Others:Anne Hutchison,Fort CoLLins Charnber of
Corn rnerce
AVAGO Wafer Fabrication PLant Expansion Package
Presenter Josh Birks:Project overview
The proposed Location to Fort ColLins and the incentive package was expLained by Josh
Birks with additionaL information from Mike Freeman.The new site location for
AVAGO couLd bring 92 high tech jobs and about 155 spinoff jobs to Fort ColLins.
AVAGO Reason for Fort CoLLins site Location:Low cost of power,operational
efficiencies,labor,and an existing faciLity which will reduce turn-around time for the
products.They pLan to do the construction frorn August to October and pLan to have it
operationaL by falL 2012.They are aLso being courted by Taiwan and ItaLy.The
incentive package is a tooL to bring them to Fort CoLLins.The City wilL go through an
appLication process to protect the interests of the City of Fort ColLins.
Assistance package:
City and state incentives:equipment use tax rebate,personal property tax rebate,
design assistance,buiLding re-commissioning,Evaporative cooling credit,CEDC
strategic fund,and CoLorado FIRST Training Funds.
Net impact to City:
$4,125,000 Estimated Revenue
$2,145,000 Rebate
$1,980,000 Net Revenue
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The figures are 10 year estimated totals for equipment spinoff,and spinoff property
tax.
Manufacturing use tax is 2%,and 2/3 would be rebated.It was suggested that it be
approved first as a current poLicy.
Bldg 4 has about 30,000 Sq Ft available meant for manufacturing.
They are looking at significant green retrofit.The environmental impacts are listed
with some net positive impacts.
This is the first time we have offered an incentive for green retrofit in a package that
includes information from Utilities.They are also investing some of their own money
to retrofit.
Councilmember request:Please bring council a tailored package with selective
suspension.We have criteria for rebates now.We should have a substantive policy
conversation regarding this package.Make the criteria clear.URA and DDA policies
should be consistent.
Steve Wooley from AVAGO has been asked to present something that speaks to the
green issues,and talk about the positive impact on green.
Since this information is now public and no longer confidential.Josh will provide this
information to Sarah Kane to pass along to the council members.
Josh will provide the Finance Committee with more contexts and a more detailed
table of information.
Solix Business Retention Package
Retention Presentation:
Solix has a history in Fort Collins and with CSU.They have looked at least 6 sites in
the area and selected one in Fort Collins.Proximity to CSU and availability of
facilities are two reasons for their selection.Other communities have courted them
and their central location is in Denver.We are becoming more of a draw for
companies because the technical workforce is still here.
Part of the conversation with Solix for the last year was to culminate them and find
facilities to accommodate them.A positive aspect for them is the reuse of the
buiLding.More positive reasons to offer Solix an incentive is available.However,
Council feedback is important to determine how much criteria is needed for future
presentations.Staff prefers to give the needed information without being a ‘sell’
presentation.
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Solix investors are their first priority.They want to keep costs down and be quick to
the market.Locating in Fort Collins is a lower priority to them.Solix reached out
early because they have a desire to stay and it will accomplish lower costs and a quick
turnaround.
We are seeing surrounding communities getting more aggressive courting companies
offering more incentive with property and/or cash.
Personal property tax and Equipment Use tax is 10 year estimate,and the CEDC
membership is one year.
This Committee agrees that both companies will be good for the community.Josh will
present the topic on July 19 at the City Council meeting as a discussion item.
Representatives from both companies will attend.
Next meeting July 18