City Council Minutes 2013 09 03 - Laserfiche WebLink

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City Council Meeting Minutes September 3, 2013 Page 4 of 22 FOR IMPROVEMENTS TO 1886 PRAIRIE WAY IN THE COLORADO TECHNOLOGY CENTER IN THE CITY OF LOUIVILLE Mayor Muckle requested a staff presentation. Economic Development Director DeJong requested City Council action on a proposed Economic Development Business Assistance Package (BAP)for the relocation of Trelleborg Sealing Solutions US, Inc. The proposed business assistance is similar in nature to others recently granted, including a partial rebate on both the building permit fees and construction use tax for tenant improvements to 1886 Prairie Way in the Colorado Technology Center (CTC). Trelleborg Sealing Solutions is a multi-national corporation based out of Trelleborg, Sweden. Trelleborg specializes in engineered polymer solutions that seal, clamp and protect critical applications in demanding environments. Trelleborg is considering moving their area operations from a leased facility in Broomfield into 1886 Prairie Way in the Colorado Technology Center. 1886 Prairie Way will be the former home of Pearl iZumi, after they move to their newly constructed headquarters on Taylor Avenue. Trelleborg would make tenant improvements to the building to meet the needs of their operations. They estimate the construction costs for the tenant improvements at $1,000,000 to $1,200,000. The company is also considering other locations in the area. The company would occupy 76,000 square feet in the 91,700 square foot building. Trelleborg currently has 155 employees in Broomfield and anticipates growing to 175 within 5 years at the new location. The local facility services mainly the aerospace division of the company, making it a good fit with other companies in the Colorado Technology Center. The company meets the general criteria by which assistance may be granted in accordance with the Business Assistance Policy. The assistance would be funded by permit fees and construction use tax from the construction of the new facility. City staff estimates Trelleborg will generate new revenue of approximately $40,000 from building permit fees and construction use taxes directly to the City in the first year of operation, given an investment of$1,200,000 for the tenant improvements. Approximately $3,000 of that amount in fees is designated for Open Space and Historic Preservation purposes. The total fiscal impact would not exceed a total of 50% of the City's permit fees and 50% building use taxes paid (excluding the 0.375 % open space tax, 0.125% Historic Preservation tax, water and sewer tap fees, and impact fees), or $16,000, whichever is smaller, based on the tenant improvement estimated cost of $1,200,000 at 1886 Prairie Way in the Colorado Technology Center. Staff recommended City Council approve Resolution No. 46, Series 2013, a Business Assistance Agreement with Trelleborg Sealing Solutions US, Inc. for tenant