Council schedules several items for April 8 consent calendar, including Project Kokua incentives and bond issuances

Colorado Springs staff asked the City Council on April 1 to place a package of routine and time-sensitive items on the April 8 consent calendar, including a proposed economic development agreement for “Project Kokua,” boundary adjustments to a business improvement district, two limited-tax bond issuances for First and Main business improvement districts, and the council’s annual report to citizens.

Staff briefing and recommendation: Shauna Lippert, economic development manager, presented an overview of Project Kokua, a semiconductor design-and-software firm being recruited to the city. Lippert said the company plans a six-year capital investment projected at $9.7 million, including about $7.8 million in machinery and equipment, and would add a projected 53 new jobs over six years with an average wage above $83,000. Staff recommended a four-year performance-based economic development agreement (EDA) that would rebate 50% of the city’s 2% general-fund sales-and-use tax on eligible machinery, equipment and construction materials (a 1% rebate) if the company meets hiring and investment milestones. Staff estimated gross new city revenue of about $344,000 over four years, incentives of about $66,500, and net new revenue of roughly $277,000 over four years. Lippert asked that the EDA be placed on consent for April 8.

Other items proposed for consent: - Gold Hill North Business Improvement District: Kevin Walker, city planning director, explained a technical exclusion to remove about 1,700 square feet from the district’s boundary caused by a survey legal-description mismatch. He said the change is small and the petitioner requested approval before a pending bond issue; staff recommended placement on consent for April 8. - First and Main Business Improvement Districts: Allison Stocker, senior planner, briefed the council on two separate limited-tax general-obligation bond issuances — one not to exceed $3,294,184 (First and Main) and one not to exceed $1,484,000 (First and Main No. 2). Both bond series were described as funding public and private improvements in the districts; staff said final resolutions would be read and considered April 8. - City Council annual report: Alex Bridal, council communications specialist, presented a draft annual report covering April 1, 2024–March 31, 2025, and said the final report and any distribution plans will be before council on April 8 by resolution, not on consent.

Council response: Council members asked clarifying questions about the EDA minimum criteria (minimum 10 new primary jobs and at least $1,000,000 capital investment), timing for consent placement, and the narrow scope of the Gold Hill North exclusion. No council member raised an objection to placing the items on the consent calendar; staff said the items will receive final action or second readings on April 8.

Why it matters: The Project Kokua EDA would use performance-based sales-tax rebates to recruit a technology firm and is estimated to create dozens of jobs and contribute net new tax revenue if performance milestones are met. The bond issuances are time-sensitive because they support infrastructure and public-improvement financing in two business improvement districts and are tied to district budgets and prior authorizations.

Next steps: All items were scheduled for action on the April 8 council agenda; no final votes were taken on April 1.