City Council Agenda and Packet 2015 06 02

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City„ Louisville COLORADO • SINCE 1878 CITY COUNCIL COMMUNICATION AGENDA ITEM 5D SUBJECT: RESOLUTION NO. 34, SERIES 2015 — A RESOLUTION APPROVING A BUSINESS ASSISTANCE AGREEMENT WITH HOPE FOODS, LLC FOR AN ECONOMIC DEVELOPMENT PROJECT IN THE CITY OF LOUISVILLE DATE: JUNE 2, 2015 PRESENTED BY: AARON DEJONG, ECONOMIC DEVELOPMENT SUMMARY: Staff requests City Council action on a proposed Economic Development Business Assistance Package (BAP) for Hope Foods' expansion at 1850 Dogwood Street in Louisville. The proposed business assistance is similar in nature to others recently granted, including a partial rebate on the building permit fees, construction use taxes, and consumer use taxes for improving an existing building at 1850 Dogwood Street in the City of Louisville. DISCUSSION: Hope Foods is a Louisville based food manufacturing company that produces high quality, organic, gluten free, vegan, and kosher dips and spreads. Hope Foods' products are never heat - pasteurized but are kept safe through High Pressure Processing (HPP), allowing them to maintain the integrity, freshness, and flavor of the raw materials. HPP machines are capable of placing up to 87,000 psi on their products which destroys bacteria cultures without affecting the taste of the product, unlike heat - pasteurization. HPP is becoming the industry standard for high quality foods but is not used by many conventional dip brands which keeps Hope Foods on the cutting edge. Hope Food products are sold nationally, primarily in natural food grocery stores like Whole Foods and other independents, and the company began distributing to Costco this year. The company is considering a major expansion to increase their production capacity to satisfy the next several years of expected growth. Hope Foods moved to Louisville in 2013 into their owner occupied location at 1850 Dogwood. The building had expansion room when they moved in. The project is a 4 -phase project to significantly increase the manufacturing capacity at the building with tenant improvements and significant equipment purchases. Total expected costs for improvements and purchases are $7,900,000. This expansion project estimates hiring 39 new employees earning nearly the Boulder County average wage. This expansion project would bring Hope Foods total employment to nearly 120 employees. This will create the capacity for the company to more than double their production and sales. CITY COUNCIL COMMUNICATION 33