HomeMy WebLinkAbout20210463.tiffRESOLUTION
RE: APPROVE AGREEMENT PURSUANT TO C.R.S. §30-11-123 AND AUTHORIZE CHAIR
TO SIGN - ELEMENTUM 3D
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
administering the affairs of Weld County, Colorado, and
WHEREAS, the Board has been presented with an 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, and Elementum 3D, 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 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,
and Elementum 3D, 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 above and foregoing Resolution was, on motion duly made and seconded, adopted
by the following vote on the 17th day of February, A.D., 2021.
BOARD OF COUNTY COMMISSIONERS
WELD COUNTY, COLORADO
ATTEST: detthA)
Weld County Clerk to the Board
BY:
APP
N
Deputy Cler to the Board i
ttorney
Date of signature: o
Steve •reno, C
Sco't�,p,� es, Pro-Tem
Perry L. mn uck
ike Freeman
Lori`aine
CC: F%(Dw/av), ACT0?c/co), CA(80
2/26/2 I
2021-0463
F10074
BOARD OF COUNTY COMMISSIONERS
PASS -AROUND REVIEW
PASS -AROUND TITLE: Elementum 3D Personal Property Tax Incentives
DEPARTMENT: Finance
PERSON REQUESTING: Don Warden
DATE: January 18, 2021
Brief description of the problem/issue:
Upstate Colorado is confidentially working with Elementum 3D, an existing company, headquartered in Erie
(Weld County's side), at 400 Young CT. Elementum 3D is an additive manufacturing research and
development company that specializes in the creation of advance metals, composites, and ceramics primarily
for the aerospace industry. Elementum 3D has been experiencing considerable growth, which would require
them to either expand into a new/additional facility or relocate their existing Erie headquarters. Elementum's
initial preference was to have all operations in one building, but they expressed a desire to staying in Erie and
Weld County, if possible, and believe that two buildings could suit their current expansion needs. The
company's current building at 400 Young CT is 12,295 square feet and they have identified an additional
11,153 SF at 2700 S. Main Street, Erie (Weld County's side) that they are interested in expanding into.
In this new location, Elementum 3D will be installing metal powder -based 3D printers used for printing under
the terms of a multi -year contract, rocket engines for space travel, and they anticipate manufacturing additional
aerospace components as well. The company is targeting March 2021 to begin construction/improvements on
the building.
Elementum 3D currently employs 29 FTE and anticipates creating 6 new jobs in the first year of the expansion,
12 new jobs between 3-5 years, and creating a total of 28 new jobs within 8 years of the expansion. Based on
the residency of their current employees, Elementum estimates that 60% of their new employees will reside in
Weld County, which 1 believe is a reasonable estimate. The annual average wage of the new Elementum
facility will be $65,000, which is 24% above the Weld County average wage of $52,338 (State 2020 AAW, most
recent). The total project investment is $5,500,000, of which $2,650,000 is equipment. Based on the
company's proposed equipment investment, a Weld County partial personal property tax rebate is estimated at
$31,511 over a ten-year period.
Upstate has been working with Erie staff and they have developed a local incentive program to support the
expansion and retention of Elementum 3D in Erie, as well as support primary -industry projects in Erie going
forward. The Town of Erie is considering waiving/rebating 100% of the project's sales tax, estimated at
$132,125, which will be proposed to council by the end of January. The Elementum 3D expansion project
meets the Weld County Personal Property Tax criteria by expanding operations in a New Business
Facility, strengthening the county's primary employment job base, and supporting targeted industry
growth in manufacturing and the aerospace sector.
What options exist for the Board? (include consequences, impacts, costs, etc. of options):
1. Approve the personal property tax rebate estimated at $31,511 over a ten-year period.
2. Disapprove the personal property tax rebate is estimated $31,511 over a ten-year period.
Recommendation: I recommend the Board approve the personal property tax rebate for Elementum 3D
estimated at $31,511 over a ten-year period. Funds are available in the Economic Trust Fund to cover the
rebate commitment. If the BOCC approves the rebate I will prepare an agreement for formal approval when the
company commits to moving forward with the project.
2021-0463
F=ool4
Perry and Lori,
Since this is your first one these personal property tax incentive projects, if you have questions or want more
information let me know. Thanks, ®on
Approve
Re ommendatlon Work Session Other/Comments:
Schedule
Perry L. Buck
Bike Freeman
Scott K. James, Pro-Tem
Steve Moreno, Chair
Lori Saine
AGREEMENT PURSUANT TO C.R.S. & 30-11-123
THIS AGREEMENT is made and entered into this l'j4%ay of February, 2021, 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
Elementum 3D whose address is 400 Young Court, Erie, CO 80516, 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:
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 400 Young Court, Erie, CO 80516 ("the Facility"), placed into service in Weld
County in.
a. 2021, 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 2022 and ending 2031 (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 G.R.S. § 30-11-123, for the 1.0 -Year Term.. The amounts so certified shall
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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:
All taxes and assessments levied and assessed on Taxpayer by Taxing Authority
for Facility are current, and
b. In each year of this Ageement, 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.K.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 trust be submitted to Taxing Authority by Taxpayer by
October 1st of each year or Taxpayer waives the right to receive payment for that year.
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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:
With a Copy to:
If to Taxpayer:
Board of County Commissioners
P.O. Box 758
Greeley, CO 80632
Weld County Attorney
1150 O Street
Greeley, CO 80632
Brent Bowyer
Chief Finance Officer
Elementum 3D
400 Young Court
Erie, CO 80515
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.
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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/7 day of February
A.D., 2421.
AT I EST:
Weld
BY:
!41eG / -ideo' e1
Clerk to the B
Deputy Cl to
BOARD OF COUNTY COMMISSIONERS
and WELD, COUNTY, COLORADO
Mo-L-e-va-e7"
Steve Moreno, Chair
FEB 1 7 2021
APPROVED AS TO FUN OVE
Oc,f,t---
S TO SUI STANCE:
Controller ( I �°�_�� lected Official or Department Head
ounty Attorney
TAXPAYER:
Elementum 3D
By:
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Brent Bowyer, Chief Finan.e Officer
020/-044 3
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