Economic Vitality Committee Agenda and Packet 2021 08 20

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SUBJECT: BAP ANNUAL ANALYSIS DATE: AUGUST 20, 2021 PAGE 2 OF 5 • Medspa Services of Colorado LLC — new business (active) • Louisville Cyclery LLC — existing business expansion (active) • C2X Group LLC (DBA Louisville Beer Garden) — new business (active) • Studio Shed Acquisition LLC — existing business expansion (active) • Yoga Junction LLC — existing business expansion (active) Two more business assistance agreements were approved by City Council on August 3, for LuLu's Low Country Kitchen LLC and Umoja Biopharma Inc., but these are not reflected in the data analysis that follows. Based on the number of active prospects in the pipeline as well as proposals submitted through Metro Denver Economic Development Corporation, staff expects 2021 to remain busy with incentive requests. Program Outcomes Included as Attachment #2 is a visual presentation of the annual data analysis, which is also summarized below. Consistent with last year's first report, staff has prepared analysis of internal and external data sources and developed several indicators to assist in monitoring the current program as well as in evaluating its historical success. The primary data sources include permit and construction information from the Planning & Building Safety Department, Sales Tax Data from the Finance Department, and jobs and wage data from the State of Colorado's Quarterly Census of Employment and Wages (QCEW) data. The QCEW for calendar year 2019 was unfortunately delayed due to the pandemic. The detail about specific incentives comes from Economic Vitality staff files. Please note that much of the data presented here is highly confidential, unless presented in aggregate or summary form. Staff can provide some additional insights and answer questions about sources but would not be able to breakdown individual sales tax or employment data by a specific business. Please note that staff has attempted to create a full and consistent data set, but there are some items where data was not reported. Outside of the measures that summarize approved vs. paid assistance packages, the data presented generally reflects only those assistance packages where the City has made payments. Data on revenues, employment, and wages reflects 77 companies, but missing data points include: • 8 businesses reported no local sales or use tax in 2020; • 7 businesses did not report employment statistics to the State under the entity name from City licensing; and • 13 businesses have closed or relocated since receiving their BAP. From a cursory review, it does not appear that these closures impacted the clawback terms from past agreements. Since 2007, the City has approved $9,085,346 in incentive rebates. Staff employs the rebate "cap" number from the agreements, because that is the maximum the City would be obligated to pay should a business locate or expand in Louisville. 43% of the approved incentives have occurred since 2019. Though the average number of applications is Agenda Packet P. 8