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City staff recommends 4-year EDA for Project Short Circuit; presentation details jobs, rebates and net revenue
Summary
Economic development officer presented a proposed four‑year economic development agreement (EDA) for Project Short Circuit that would offer sales and use tax rebates tied to machinery, equipment and construction spending; staff projected about 70 jobs over eight years and net new city revenue after incentives.
Jesse Kimber, the City of Colorado Springs economic development officer, presented a proposed economic development agreement (EDA) for a prospect identified in staff materials as Project Short Circuit and recommended a four‑year agreement with performance‑based tax rebates.
The issue matters because staff said the EDA would enable a primary employer — defined as a company with at least 51% of revenue drawn from outside El Paso County — to expand in the city while receiving conditional rebates tied to capital expenditure and job creation.
Kimber said Project Short Circuit plans approximately $2,200,000 in capital investment over eight years, including building improvements, furniture and fixtures, and machinery and equipment, and projects 70 jobs over eight years with an estimated average annual wage of about $153,000. Kimber explained the recommended EDA structure: a sales and use tax rebate on machinery, equipment, furniture and fixtures (50% of the city’s general fund rate, or 1% total rebate) and a 50% rebate on construction materials purchases. Kimber said the recommendation was for a four‑year agreement because roughly 40 of the expected jobs would materialize within the EDA timeline.
Kimber presented an economic and fiscal impact analysis in the meeting packet. In the city’s model, staff projected four‑year new gross city revenue of roughly $179,000 and four‑year net city revenue after incentives of about $173,000 (average annual net approximately $43,000). Kimber described financial safeguards: rebates are performance‑based and will not be paid if the company does not meet spending or hiring thresholds.
Council did not record a vote during the work session; Kimber said the council is discretionary approval authority for EDAs and stood by for questions. No substantive public comment was recorded on the item during the work session presentation.
The presentation packet included statutory and code references for EDA categories and thresholds, and Kimber noted that the full details and an appendix were available in the packet. Kimber concluded by recommending council approve a four‑year agreement under the terms presented; council moved on to the next agenda item without a recorded vote during the work session.
