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Council approves airport business-assistance program and infrastructure fund to attract aircraft and aerospace firms
Summary
The council approved a five-year, performance-based business assistance program for the Northern Colorado Regional Airport that rebates part of aircraft sales tax and credits manufacturing-use purchases to support airport infrastructure; resolution passed 7-1.
The Loveland City Council on Sept. 16 approved a resolution creating a business assistance program intended to attract aircraft purchases, aviation and aerospace businesses, and private investment to the Northern Colorado Regional Airport.
Why it matters: The airport has more than 200 acres of developable land inside the fence but only a limited amount of shovel-ready parcels; the program aims to make it easier for buyers and firms to base aircraft and operations in Loveland and to fund airport infrastructure not eligible for FAA grants.
Program basics: The proposal has two principal components. First, a rebate on sales tax tied to aircraft purchases (proposed for new and used jets above $1 million), with an example cited of a 50% rebate of the city sales tax portion of a high-value jet purchase and a clawback if the aircraft relocates within three years. Second, a manufacturing-use tax credit for aviation/aerospace equipment purchased in the airport influence area, modeled on similar credits the city offered for other projects.
A new Airport Infrastructure Development Fund (AIDF) would receive half a cent of sales-tax revenue captured by covered transactions; the fund's dollars are intended for roads, taxiways, utilities and other infrastructure categories not usually financed by FAA airport grants. A small review committee including economic development, planning and airport stakeholders would evaluate projects and applications.
Council discussion and concerns: Mayor Jackie Marsh said she supported improvements to the airport but opposed the aircraft sales-tax rebate portion, saying buyers of very expensive jets could "afford to pay" the tax. Other councilors called the program a way to capture net new revenue and jobs that would not otherwise come to Loveland. Some speakers urged the council to evaluate comparable programs in other jurisdictions; Councilor Mike Kovach asked staff to provide comparisons showing when similar measures were adopted and the effects.
Public comment: Chamber and business representatives and airport proponents spoke in favor, citing potential high-paying jobs and regional economic benefits. Opponents raised concerns about subsidizing high-value aircraft purchases and about using a resolution rather than an ordinance for the financial mechanism.
Vote and next steps: The resolution (R 68 20 25) was approved by roll call, 7 yes to 1 no. Council directed staff to proceed with implementation steps described in the program, to prepare application and contract materials, and to market the program to airport stakeholders and FBOs. The program sunsets on Dec. 31, 2030, unless council acts to extend it.
Ending: The council approved the five-year pilot program to incentivize aircraft registration and aerospace investment at the Northern Colorado Regional Airport and set the framework for an airport-focused development fund to pay for infrastructure improvements.
