The purpose of this incentive policy is to encourage economic opportunities for primary industries to locate or expand within the City of Brush. This policy does not commit or restrict the City from providing additional incentives but contains guidelines and procedures necessary to effectively and fairly administer the provisions of economic development incentives.

Targeted Industries:

Targeted Industries include but are not limited to:

    Environmentally clean manufacturing/processing with minimal water use

    Warehousing/Distribution

Ag related i.e. biotech- pharmaceutical, building products, machinery and equipment, etc.

    Research and development/Hi-Tech

    Renewable Energy

Businesses must demonstrate:

Minimum capital investment of $200,000

Create 10 new jobs or an increase of 10% over the base number of employees for an expanding business.

The average wage for full-time employees must be equal to or greater than the average individual wage or Morgan County (as documented by the Colorado Dept of Labor and Employment).

No corporate reorganization or sale of business will qualify unless the business has been closed for 24 months.

Applicant must own the real and personal property.

Incentive requests must be submitted in writing prior to commencement of construction.

Property tax incentives may be offered on a sliding scale. Example: 75% the first year following completed construction and the business is fully operational, 50% the second, 25% the third and 25% the fourth.

Additional or alternate incentives, dependent upon the needs of the business, may include waiving of building permit fees, sales or use tax, or cost sharing of infrastructure. City sales and use tax may be

waived on construction materials and/or fixed equipment for qualifying businesses for the period of construction or expansion only. In addition, the City will explore and assist with any available grant monies to offset initial investment.

The City will accept an application (attached) or an introductory letter and written documentation addressed to the Brush City Council providing the following information:

Name and address of business, principal owners and officers, contact information, telephone and fax numbers.

A general description of project, nature of business, history and experience.

Explain how this project meets criteria (listed above).

A site plan of the proposed project or improvements.

Existing businesses shall provide average total monthly employment figures for the past 12 months.

Number of new jobs to be created by type, position, and salary for each, and whether health insurance is available.

Statement of how proposed business will maintain or enhance quality of life and provide social, economic, or cultural benefits to community.

Statement that the business operation will not adversely impact the City’s water, air, or noise quality.

Demonstration of financial sustainability.

City Staff will review and rate the request based on each point of eligibility aforementioned and the total economic impact derived from the documentation provided. Based on the findings and ratings, a suggested agreement setting forth specific terms and conditions will be presented to the Brush City Council at a regularly scheduled meeting for formal approval.

No reimbursement or waiver of fees shall be permitted unless the City Council first determines that the establishment or expansion of the particular business is expected to generate, within a reasonable period of time, increased revenues to the City in the form of taxes or otherwise in an amount equal to or greater than the amount of the fees to be waived. Therefore, nothing in this policy shall be construed as establishing any right or entitlement.

ECONOMIC DEVELOPMENT INCENTIVE APPLICATION

General Information

Name of Business:__________________________________ Date:__________________

Address of Business: ________________________________ Phone: ________________

Contact Person: ____________________________________ Fax: __________________

Principal Owners and Officers:

_____________________________ ________________________________

_____________________________ ________________________________

Name of Owner: ______________________________________________________

Address: _____________________________________________________________

General Description/Nature of Business: ____________________________________

_____________________________________________________________________

General Description of Proposed Building Project or Expansion __________________

_____________________________________________________________________

Estimated Capital Costs: Land & Building: $______________________

Equipment, Furniture, Fixtures $______________________

Requested Incentive:

Property Tax Abatement ____ Sales/Use Tax _____ Permit Fee Waiver _____

Infrastructure _____ Other ________________________________________

Existing Business: Total number of employees for the past 12 months: ______________

Current average annual wage ______________

Proposed number of full time employees with expansion ______________

Proposed average wage of new employees: ______________

New Business: Anticipated number of full time employees: ______________

Proposed average wage: ______________

How will the proposed business (or expansion) maintain or enhance the quality of life and provide social, economic, or cultural benefits to the community:

____________________________________________________________________________

____________________________________________________________________________

What impacts will the proposed business (or expansion) have on the City’s environment? (water, odor, noise, smoke, heat, lighting, etc.)

____________________________________________________________________________

____________________________________________________________________________

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I __________________________ hereby declare that the information provided herein and all attachments are true, correct and complete to the best of my knowledge.

___________________________________ _________________________

Signature Date

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Site Plan Attached

Economic Impact Analysis Performed

By: ______________________________________________________

Staff Overall Rating ___________

Economic Impact ___________

Scheduled for review by Brush City Council _________________________

STATE INCENTIVES

Colorado FIRST Training Assistance: This is a program administered by the Colorado Office of Business Development and the Morgan Community College.  The program can be used to offset qualifying training costs. The amount of funds available is based on training needs, salary levels, timetable and resources available.

Eligible training reimbursement costs include instructor wages, travel and per diem allowances, curriculum development and materials, training supplies, and costs related to training equipment and space.

Colorado Economic Development Commission (EDC): This state entity was established in 1987 to encourage, promote and stimulate economic development efforts in Colorado. The EDC considers projects based on economic merit and can grant low interest, short-term or interest write-downs on loans. A local match is required and must be approved by the Commission after staff approval by the Colorado Office of Business Development.

Colorado Enterprise Zone Program: This program is to assist with revitalization efforts of distressed areas throughout the state. Companies located within an established state Enterprise Zone can be eligible for the following various state income tax credits. 

For more information contact the enterprise zone administrator, Larry Worth at (970) 867-9409 ext. 233 or lworth@necalg.com

Colorado One Percent Investment Credit: All companies can take advantage of the regular 1% investment tax credit available statewide.

Colorado Research & Development Sales Tax Refund: During fiscal years in which the state has excess revenues, a qualified taxpayer may claim a refund of a certain percentage of all state sales and use tax paid on the sale, purchase, storage, use or consumption of tangible personal property, including machinery used in Colorado for research and development.

Colorado Personal Property Tax Rebate: Effective in 1999, taxpayers may take a credit of $500 (or actual amount paid if less than $500) on Colorado income tax for local personal property taxes paid. If tax liability is over $500, an additional credit of 13.3 percent of personal property tax is allowed. Both credits are contingent upon a state surplus in a given fiscal year.

Colorado Sales/Use Tax Exemption for Manufacturing Equipment: Purchases of machinery or machine tools, over $500 is exempt from state sales and use tax (currently three percent) statewide when used in the manufacturing process. The items shall be used directly, and exclusively in manufacturing tangible personal property for sale or profit. Component parts, fuels and electricity, ink and newsprint, and packaging materials are also exempt from the state sales and use tax. All other local sales and use tax still applies to equipment purchases unless negotiated otherwise. For business located outside an enterprise zone, the purchase must be capitalized. At the time of purchase, a company must file a "Purchase of Machinery and Machine Tools" Form DR 1191 with the vendor from which the item is purchased and with the Colorado Department of Revenue.  For more information see Department of Revenue publication - FYI Sales 10. http://www.state.co.us/gov_dir/revenue_dir/fyi/html/sales10.html

UTILITY INCENTIVES
Xcel Energy: Qualified companies may be eligible for the following business incentives through Xcel Energy. For more information contact (303)425-3944.

• Customized Industrial Process Efficiency Solutions (CIPES): Xcel will assist in conducting a process audit for industrial customers in an effort to identify process improvements that have the potential of reducing peak demand. After the audit is completed, Xcel will customize an incentive to help offset the installation cost of qualified energy-efficient equipment.
• New Construction Rebate Program: For buildings smaller than 50,000 square feet, specific rebates are given for the installation of eligible products such as lighting, motors and rooftop HVAC units. For new buildings that can potentially reduce monthly electric demand by at least 20 kilowatts, or are larger than 50,000 square feet, Xcel will work with the customer to determine energy-efficient alternatives. Xcel must be contacted prior to the purchase or installation of any equipment.
• Equipment Replacement for Existing Buildings: Xcel will provide specific rebates for companies that purchase eligible products, including lighting, motors, and rooftop HVAC units. For equipment replacements that can potentially reduce monthly electric demand by at least 10 kilowatts, or buildings that are larger than 30,000 square feet, customized rebates on energy-efficient alternatives can be negotiated.
• Xcel Energy also provides a number of other services, including Fleet-Fuel Feasibility Studies; Cogeneration; Billing Inquiries and Energy Management Assist.