HomeMy WebLinkAbout20251360.tiffResolution
Approve Tax Incentive Agreement Pursuant to C.R.S. §30-11-123 and Authorize
Chair to Sign — Charm Industrial, Inc.
Whereas, the Board of County Commissioners of Weld County, Colorado, pursuant to
Colorado statute and the Weld County Home Rule Charter, is vested with the authority of
administenng the affairs of Weld County, Colorado, and
Whereas, the Board has been presented with a Tax Incentive Agreement Pursuant to
C R S §30-11-123 between the County of Weld, State of Colorado, by and through the
Board of County Commissioners of Weld County, on behalf of the Department of
Department of Finance, and Charm Industnal, Inc , commencing upon full execution of
signatures, with further terms and conditions being as stated in said agreement, and
Whereas, after review, the Board deems it advisable to approve said agreement, a copy
of which is attached hereto and incorporated herein by reference
Now, therefore, be it resolved by the Board of County Commissioners of Weld County,
Colorado, that the Tax Incentive Agreement Pursuant to C R S §30-11-123 between the
County of Weld, State of Colorado, by and through the Board of County Commissioners
of Weld County, on behalf of the Department of Department of Finance, and Charm
Industrial, Inc , be, and hereby is, approved
Be it further resolved by the Board that the Chair be, and hereby is, authorized to sign
said agreement
The Board of County Commissioners of Weld County, Colorado, approved the above
and foregoing Resolution, on motion duly made and seconded, by the following vote on _
the 19th day of May, A D , 2025
Perry L Buck, Chair Aye
Scott K James, Pro-Tem Aye
Jason S Maxey Aye
Lynette Peppler Aye
Kevin D Ross Aye
Approved as to Form:
Bruce Barker, County Attorney
Attest:
Esther E Gesick, Clerk to the Board
cc . Fi(4P/so ft<B/ss), AcT(gi/cn)
c A (88/KM)
05 /2.9 /2.S
2025-1360
F10082
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: Partial Personal Property Tax Rebate Request — Charm Industrial
DEPARTMENT: Finance
PERSON REQUESTING: Cheryl Pattelli
DATE: March 26, 2025
Brief description of the problem/issue:
Upstate is confidentially working with Charm Industrial, an existing Weld County manufacturing company that specializes in
decarbonization technologies and pyrolysis: bio-oil production. The company located their operations in Fort Lupton in 2022/2023,
and they are now looking to expand manufacturing operations and grow the facility's footprint to the adjacent site, north of the current
operation. As part of the expansion, the company is also looking to bring their HQ and engineering team from Califomia to their Fort
Lupton facility.
As part of Charm Industrial's expansion process for Phase 1, the company is looking to access any local resources that may be available
to them. Based on the company's estimated equipment investment of $2M, a Weld County partial personal property tax rebate is
estimated at $23,307 over 10 -years (depreciation schedule attached). Upstate has been working with City of Fort Lupton staff regarding
this project and they are supportive of Charm Industrial expanding operations at their current location, as well as the adjacent site. The
City of Fort Lupton is also considering a municipal personal property tax rebate for this project, and staff is working on an incentive
package that will be presented to City Council. This project will also be considered by the state EDC for the JGITC incentive since the
company is considering both Colorado and California for the engineering HQ. The proposed building is in the Enterprise Zone, and the
company may also be able to take advantage of Colorado First/Existing Industries Training Grants.
The proposed expansion of Charm Industrial's operations meets the Weld PP tax rebate criteria of establishing/expanding a new
business facility, investing in $1M+ of new equipment, strengthening the county's primary employment base, and further growing the
manufacturing industry sector in Weld County. The company's facility annual average wage ($100.000/year) is 152% of the 2025 Weld
County average wage ($65,767). The company also pays 100% of employee health premiums.
Please see the attached letter from Upstate and supporting documentation for more detail about the project and the personal property
tax rebate request.
What options exist for the Board?
1) Approve the PPT request. Direct Finance to work with Upstate Colorado on agreement with Charm Industrial that
will be brought to an upcoming BOCC meeting for approval. If approved at BOCC, Finance will include the additional
$23,307 transfer from the General Fund to the Economic Development Fund in the mid -year supplemental budget
request. This transfer will be needed to fund the PPT rebate
2) Do not approve the request
Consequences and Impacts: see attached documentation
Costs (Current Fiscal Year / Ongoing or Subsequent Fiscal Years): Estimated $23,307 over 10 -years
Recommendation: Weld County Finance, along with Upstate, recommends the Board approve Intersand America's PPT
rebate request.
Support Recommendation Schedule
Place on BOCC Agenda Work Session Other/Comments:
Perry L. Buck
Scott K. James
Jason S. Maxey
Lynette Peppier
Kevin D. Ross
2025-1360
5l°l
�onz_
AGREEMENT PURSUANT TO C.R.S. & 30-11-123
THIS AGREEMENT is made and entered into this IgtIlay of May, 2025, by and
between the County of Weld, a body corporate and politic of the state of Colorado, by and
through the Board of County Commissioners of the County of Weld, whose address is P.O. Box
758, 1150 O Street, Greeley, CO 80632, hereinafter referred to as, "Taxing,Authority," and
Charm Industrial Inc. whose corporate address is 2575 Marin Street, San Franciso, CA 94124
hereinafter referred to as, "Taxpayer."
WITNESSETH:
WHEREAS, Taxing Authority desires to promote economic development within Weld
County, Colorado, for the purposes of generating employment opportunities for residents of Weld
County, thereby stimulating the economic well-being of Weld County's citizens, and
WHEREAS, C.R.S. § 30-11-123 provides that the Taxing Authority may negotiate
incentive payments to taxpayers who establish new business facilities or who expand existing
business facilities, and
WHEREAS, Taxpayer represents that it has invested or intends to invest in qualifying
personal property and wishes to receive the incentive payment benefits available pursuant to
C.R.S. § 30-11-123, and
WHEREAS, Taxpayer has been determined to be currently eligible to receive the incentive
payment benefits available pursuant to C.R.S. § 30-11-123, and pursuant to the Board of County
Commissioners' policy concerning incentive payments passed by Resolution on February 20, 1991
("Resolution of the Taxing Authority").
NOW, THEREFORE, the parties hereto hereby agree to the following:
1. Subject to annual appropriation by Taxing Authority, fifty -percent (50%) of the amount of
personal property taxes paid by the Taxpayer for personal property located at Taxpayer's
Facility at 2290 S Rollie Avenue, Fort Lupton, Colorado ("the Facility"), placed into
service in Weld County in:
a. 2026, and appearing on the personal property declaration schedule submitted by the
Taxpayer to the Weld County Assessor, which personal property has not appeared
on previous schedules, shall be paid to the Taxpayer by the Taxing Authority for
the ten (10) tax years beginning 2026 and ending 2035 (hereinafter referred to as,
"10 -Year Term").
All tax incentive payments made pursuant to this Agreement shall hereinafter be referred
to as, "Tax Incentive Payments." Taxpayer shall submit to the Weld County Assessor an
affidavit certifying the aggregate cost and year of acquisition of Taxpayer's personal
property that, to Taxpayer's best knowledge, information and belief, qualifies for incentive
payments under C.R.S. § 30-11-123, for the 10 -Year Term. The amounts so certified shall
1
be subject to review by the Weld County Assessor.
2. Tax Incentive Payments shall be made by Taxing Authority only upon appropriation, and
only if:
a. All taxes and assessments levied and assessed on Taxpayer by Taxing Authority
for Facility are current, and
b. In each year of this Agreement, Taxpayer remains eligible to receive the Tax
Incentive Payments under criteria established in C.R.S. § 30-11-123 and the
Resolution of the Taxing Authority, and
c. Tax Incentive Payments are not calculated as being part of the Weld County
Home Rule five percent (5%) property tax limitation or State of Colorado
property tax limitation.
3. Any appropriated Tax Incentive Payments shall be made to Taxpayer by Taxing Authority
within 90 days of receipt of full payment by the Taxpayer of all personal property taxes
due and receipt of an affidavit from the Taxpayer stating that the Taxpayer remains
eligible for such payment pursuant to C.R.S. § 30-11-123 and the Resolution of Taxing
Authority.
4. The Tax Incentive Payments shall not be made by Taxing Authority if an amendment to
the Colorado Constitution limiting property taxes is subsequently passed after the date of
this Agreement, or if a court of competent jurisdiction declares any portion of this
Agreement, C.R.S. § 30-11-123 (as may be amended), or the Resolution of the Taxing
Authority, to be invalid or unconstitutional.
5. Any Tax Incentive Payments made under this Agreement that are determined not to be
legal under the laws of the State of Colorado or are determined to be part of the Weld
County Home Rule five percent (5%) property tax limitation or State of Colorado property
tax limitation, shall be repaid to Weld County.
6. TAX INCENTIVE PAYMENTS TO TAXPAYER SHALL ONLY BE MADE TO THE
EXTENT REVENUES ARE AVAILABLE AND APPROPRIATED IN EACH OF THE
TEN (10) TAX YEARS OF THE 10 -YEAR TERM.
7. This Agreement is not assignable.
8. Acceptance of any Tax Incentive Payment by Taxpayer constitutes agreement by both
parties to fund the Tax Incentive Payment for the tax year involved.
9. Claim for a Tax Incentive Payment must be submitted to Taxing Authority by Taxpayer by
October 1st of each year or Taxpayer waives the right to receive payment for that year.
2
10. Taxpayer agrees that it shall attempt to use reasonable efforts to ensure that a minimum of
fifty percent (50%) of its workforce employed at the Facility are Weld County residents
during the terms of this Agreement.
11. All notices required or permitted under this Agreement shall be given in writing and shall
be effective when delivered in the case of hand delivery, when transmitted, in the case of
facsimile transmission or five days after mailing, when mailed, provided that mailed notices
shall be sent by certified mail, return receipt requested. Notices shall be sent to the following
addressees at the following addresses or facsimile numbers or to such other addressees,
addresses or facsimile numbers as a party may designate from time to time by notice given
pursuant to this paragraph:
If to the County: Board of County Commissioners
P.O. Box 758
Greeley, CO 80632
With a Copy to: Weld County Attorney
1150 O Street
Greeley, CO 80632
If to Taxpayer: Tim Thomson
Chief Financial Officer
Charm Industrial Inc.
2575 Marin Street
San Francisco, CA 94124
12. Each of the parties will execute and deliver such other instruments and documents and
will take all such other actions as the other party may reasonably request and as may
reasonably be required in order to effectuate the purpose of this Agreement and to carry
out its terms.
13. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same instrument.
14. This Agreement constitutes the entire agreement between the parties and supersedes and
replaces all prior and contemporaneous agreements, representations, both written and oral,
between the parties with respect to the subject matter of this Agreement. No variation of
modification of this Agreement, and the waiver of the Agreement's provisions or
conditions, shall be binding unless made in writing and signed by duly authorized officers
of the County and Taxpayer. As permitted hereunder, this Agreement shall be binding
upon, and inure to the benefit of, the parties and their respective successors and assigns.
This Agreement shall be governed by and construed according to the laws of the state of
Colorado.
3
15. It is expressly understood and agreed that the enforcement of the terms and conditions of
this Agreement, and all rights of action relating to such enforcement, shall be strictly
reserved to the undersigned parties and nothing in this Agreement shall give or allow any
claim or right of action whatsoever by any other person not included in this Agreement. It
is the express intention of the undersigned parties that any entity other than the
undersigned parties receiving services or benefits under this Agreement shall be an
incidental beneficiary only.
The above and foregoing Agreement was hereby approved on the Er_hday of May A.D.,
2025.
ATTEST:j,� JCL;
Weld County Clerk to the Board
BY:
eputy Clerk to the B
APPROVED AS TO FUNDING:
Cheryl Pattelli, Chief Financial Officer
APPROVED AS TO FORM:
Bruce Barker, County Attorney
OARD OF COUNTY COMMISSIONERS
D COUNTY, COLORADO
ck, Chair
PPROVED AS TO SUBSTANCE:
Cheryl Pattelli, epartment Head
TAXPAYER:
Charm Industrial Inc.
Tim Thomson, Chief Financial Officer
4
2oZ5-13(00
Hello