City Council Agenda and Packet 2020 08 25 SP

Home Browse Search

LL 1tyof_ CITY COUNCIL COMMUNICATION Louisville AGENDA ITEM 1 COLORADO • SINCE 1878 SUBJECT: RESOLUTION NO. 64, SERIES 2020 — A RESOLUTION APPROVING A BUSINESS ASSISTANCE AGREEMENT WITH THE COPLEX LLC FOR AN ECONOMIC DEVELOPMENT PROJECT IN THE CITY OF LOUISVILLE DATE: AUGUST 25, 2020 PRESENTED BY: MEGAN E. PIERCE, ECONOMIC VITALITY DIRECTOR SUMMARY: Staff requests City Council action on a proposed Business Assistance Package (BAP) for The COplex LLC, which is negotiating a deal in hopes of constructing a sports complex in the City of Louisville. Attachment #1 is a Resolution to approve the requested business assistance and Attachment #2 is the proposed agreement between the City and applicant. DISCUSSION: The owners of The COplex LLC, Kyle and Sharon Rhatigan, have a long background in the club sports world and are seeking to create a facility catering to regional sports users. The idea was sparked several years ago, and since that time, they have been evaluating locations in the Boulder County region. Their focus now is on a build -to -suit option at 1776 Boxelder Street in the Colorado Technology Center (CTC), though they have also considered options in Lafayette and Broomfield. The COplex LLC envisions a 23,000 square foot facility at the location, which they hope could open by late summer 2021. Although the facility would focus on basketball and volleyball club users, it would incorporate flexible gym space so that it can cater to other regional and local sport needs. The COplex LLC hopes to reach agreement on the proposed space in the very near future to meet their opening timeline. The new construction is estimated to be valued between $4.1 and $4.3 million. Tenant finishes and purchasing required fixtures and equipment is currently estimated to cost between $500,000 and $750,000. A number of these types of fixture purchases will be subject to the City's 3% Consumer Use Tax. Although the owners had considered incorporating a shop or small cafe in the building, there are not any anticipated Sales Tax Revenues that would be generated at this time. Since this is a new company, the owners are projecting that employee growth would take place over the first five years of operation, depending on the types of clubs and activities that take place. They estimate growing to have between 5 and 15 full-time employees and between 50-100 part-time employees. The COplex projects payroll between $400,000 - $600,000, with most staff members earning between $30,000 - $35,000. CITY COUNCIL COMMUNICATION 2