City Council Agenda and Packet 2019 11 04

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City Council Meeting Minutes October 15, 2019 Page 3 of 10 City Manager Heather Balser reviewed the proposed business assistance package: • Medtronic, Inc. is a medical technology leader, working to alleviate pain, restore health and extend lives • Planning relocation and expansion of some of the Company's business within Colorado — Currently 2,000 existing Colorado jobs, 500 employees in Louisville — 2,300-2,500 jobs in Louisville by 2022 — 3,000 or more employees within the first 5 years — Wages above the Boulder County average • Project would build new 450,000-500,000 square foot phased campus on 90-100 acres • Build on previous ConocoPhillips site • Anticipate construction to begin 2020 • Anticipate construction in 3 phases, with final phase to be completed June -October 2022 • Multiple states currently under review by the company including Minnesota and Tennessee • $23,000,000 in tenant improvements — $2,940,000 paid in City Permit Fees and Building Use Tax — $383,000 of amount is for Open Space, Historic Preservation and Rec Center purposes • $15,000,000 in equipment purchases — $548,000 in Consumer Use Tax — $98,000 of amount is for Open Space, Historic Preservation and Rec Center purposes Proposed Assistance: • 50% rebate of City Building Permit Fees — $392,000 value • 50% rebate of Building Use Taxes — $885,000 value • 40% rebate of Consumer Use Taxes — $180,000 value • Total Proposed = $1,457,700 Staff recommends approval of this Resolution approving a Business Assistance Package with Medtronic, Inc. Councilmember Keany confirmed the rebate is only on the General Fund and does not include the tax numbers mentioned for Open Space, Historic Preservation, and Rec Center purposes. Lisa Hough with Metro Denver Economic Development Corporation noted the incentives offered by the State. On August 15, 2019 the State approved $24.8 million in performance based job growth incentive taxes over an eight year period. The incentive is 23