State-of-Colorado_T3-Advisors-RFI-072216

State of Colorado Governor’s Office of Economic Development and International Trade T3 Advisors Request for Information July 22, 2016 Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Table of Contents Colorado Team Colorado: A Destination for Company Relocations & Expansions Coastal Companies Expanding in Colorado Recent Company Relocations and Expansions Building Place: Talent | Housing | Transportation The Presence of Tech Talent in Metro Denver 10 A Workforce Gold Rush 10 Millennial Magnet 12 Higher Education in Colorado .13 Training Tech Talent in Colorado 13 Housing in Metro Denver .14 Transportation .15 Denver International Airport 15 RTD Light Rail 16 Colorado’s Performance-Based Incentives & Next Steps 17 Incentive Analysis 18 Colorado’s Performance-Based Incentives 19 Approval of State Incentives 21 Next Steps with State Incentives 22 Local Incentives 23 Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Colorado Team Below lists contact information for the project team which will grow to include incentive experts, local economic development contacts, elected officials, etc as the project expands Organization Name Title Phone / E-Mail Colorado Office of Economic Development & International Trade Sam Bailey Senior Manager, Global Business Development 303.892.3725 Sam.bailey@state.co.us Laura Blomquist Senior Manager, Strategy & Analytics 303.892.3859 Laura.blomquist@state.co.us Colorado Office of Economic Development & International Trade Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Colorado: A Destination for Company Relocations & Expansions Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Coastal Companies Expanding in Colorado Colorado has become a magnet for companies looking to relocate or expand their operations from Silicon Valley and New York City Colorado offers a cost-competitive market equipped with the nation’s second most educated workforce The Colorado Office of Economic Development and International Trade (OEDIT) has taken proactive steps to ensure companies considering Colorado has a transparent and efficient transition into the state’s business ecosystem The following case studies highlight several coastal companies that have made major expansions in Colorado with the focus on hiring a highly-skilled workforce: Gusto (Formerly ZenPayroll) Headquarters: San Francisco, CA Colorado Location: Denver, CO Locations Considered: Denver, CO | Salt Lake City, UT | Austin, TX Gusto evaluated several locations for the expansion of over 1,000 employees to grow their central operations Gusto identified Denver, Colorado for its growing and talented Millennial workforce, investments in downtown Denver, and available recreational opportunities for their millennial workforce Gusto selected Denver, Colorado and was approved for a $18 million dollar Job Growth Incentive Tax Credit for the creation over 1,750 jobs Press Coverage: Fortune Magazine & DenverPost FiveStars Headquarters: San Francisco, CA Colorado Location: Denver, CO Locations Considered: Denver, CO | Phoenix, AZ | Austin, TX FiveStars was visited by the OEDIT in February 2015 to discuss the expansion of a jobs opportunity in Denver FiveStars was planning to double its staff and needed to dip into a new talent pool Denver was one of three cities considered for this new operation A month later, FiveStars was approved for a $3.6 million dollar Job Growth Incentive Tax Credit for the creation of 242 jobs The company formerly announced their selection of Denver in April 2015 Press Coverage: DenverPost Governor’s Office of Economic Development & International Trade | July 22, 2016 Page On Deck Headquarters: New York City, NY Colorado Location: Denver, CO Locations Considered: On Deck is no stranger to Denver In November 2012, On Deck opened its first presence outside of New York in Denver by creating an operational sales center for 200 jobs The company identified Denver for its millennial workforce and growth of the financial services industry With the success of its first Denver office, the company identified further opportunity to expand by 400 employees and was approved for a $10.1 million dollar Job Growth Incentive Tax Credit to expand again in August 2015 Today, the company has over 300 employees in Denver and is on track to employ 600 employees in 2018 Press Coverage: DenverPost Brooklyn Boulders – Headquarters Relocation Headquarters: Denver, CO as of March 2016 Locations Considered: Denver, CO | Salt Lake City, UT Lance Pinn, Co-Founder of Brooklyn Boulders (BKB), sat down for coffee in Denver with OEDIT in August 2015 The company was ready to move the headquarters out of New York and identify a market that balanced work and lifestyle After conducting real estate searches for the company, OEDIT identified viable properties for BKB in the RiNo neighborhood that fir the company’s needs The company was approved for a $556,346 Job Growth Incentive Tax Credit to support the creation of 33 new jobs in Colorado Today, the company’s leadership skis in Vail and is finalizing the architectural plans for their new headquarters ZingFit – Headquarters Relocation Headquarters: Boulder, CO as of May 2016 Locations Considered: Boulder, CO | Charlotte, NC | Dallas, TX Based in East Hampton, NY, ZingFit looked West to identify a community that could support aggressive growth within information technology’s intersection with the fitness industry Having visited Boulder, the company’s founder, John Bogosian, had found that he could easily relocate the company and hire skilled talent to support the company’s 80% year-over-year growth Press Coverage: BizWest Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Sunrun Headquarters: San Francisco, CA Colorado Location: Denver, CO Locations Considered: Denver, CO | Phoenix, AZ Having just met with FiveStars, OEDIT headed over to Sunrun as the company was considering a major jobs creation project of 800 employees outside of San Francisco Denver, Colorado was competing with rival Phoenix, Arizona The company identified Arizona and Colorado for being solar-friendly, possessing a lower cost of labor as compared to California, and developing policies that provide solar companies the ability to loop into utility companies After two months of evaluation, Colorado saw a major policy shift in the Public Utilities Commission making the Rocky Mountain State the place for Sunrun On December 11, 2015 company joined Governor Hickenlooper and Denver Mayor Michael Hancock to welcome the company’s CEO, Lynn Jurich, and the growth of 800 new jobs Press Coverage: DenverPost Partners Group – Headquarters Relocation Headquarters: Formerly NY & CA, now Broomfield, CO Locations Considered: Broomfield, CO | Charlotte, NC | Phoenix, AZ | Atlanta, GA Partners Group, a global private markets investment manager, selected Broomfield, Colorado for the relocation of its corporate headquarters Colorado was identified for a growing network of young, high-skilled financial services workers The company is relocating employees from California and New York to support the company’s North American headquarters operations The company received a $4.3 million dollar Job Growth Incentive tax Credit for the creation of 150 net new full-time jobs, however the company now projects their job growth to surpass 400 employees in Colorado Press Coverage: DenverPost General Assembly Headquarters: New York, NY Colorado Location: Denver, CO Locations Considered: Denver, CO | Dallas, TX | Minneapolis, MN New York-based General Assembly (GA) did not need much time to identify where its next campus had to be With the growing startup community, GA saw Denver’s ecosystem as a major draw with a thriving startup community demanding many of the skills offered by GA GA was approved for a $306,571 Job Growth Incentive Tax Credit to jump start their Denver operations with 24 employees and begin offering courses Today, GA is based at WeWork’s Platte Street offices in the River Front Park neighborhood Press Coverage: BuiltInColorado Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Recent Company Relocations & Expansions Colorado is experiencing a boom of in-migration of people and companies More than one in ten Colorado households that filed a tax return in 2014 lived in another state the year before The majority of individuals moving are coming from Arizona, California, Florida, Illinois, and Texas U.S News & World Report named Denver the best place to live in America in April 2016 On the business side, companies across diverse industries have identified Colorado as a major market for growth Diversifying away from oil and natural gas, Colorado has become home to high-growth information technology and financial services companies Most recently, Colorado has been able to secure job creation projects from existing Colorado companies and out-of-state firms targeting the millennial workforce The following chart outlines recent relocations and expansions to Colorado: Company City/Community Incentive Amount Net New Jobs Altitude Digital Partners (HQ) Ardent Mills (HQ) Cognizant (HQ) Comcast Coyote Logistics Craftsy (HQ) Crown Peak (HQ) DaVita (HQ) Fidelity Investments Granicus Software (HQ) HomeAdvisor (HQ) Denver Broomfield Greenwood Village Larimer Denver Denver Denver Denver Greenwood Village Denver Denver, Golden, & Colorado Springs Denver Denver Fort Collins & Longmont Denver Boulder $ 2,131,851 $ 5,593,675 $ 8,690,622 $ 8,146,005 $ 1,756,771 $ 2,575,559 $ 2,955,657 $ 12,709,615 $ 8,131,621 $ 3,239,369 $ 14,449,316 157 300 500 635 200 236 198 800 400 221 1,030 $ 3,323,275 $ 1,993,139 $ 5,861,005 $ 2,903,402 $ 3,517,329 181 129 188 312 220 Lakewood Loveland Denver Denver Denver Colorado Springs $ 15,540,178 $ 2,920,474 $ 1,500,000 $ 1,595,358 $ 2,420,145 $ 23,183,766 500 346 330 213 160 1,323 Boulder Broomfield Broomfield $ 5,555,435 $ 698,380 $ 8,529,553 209 210 443 Ibotta (HQ) Inspirato (HQ) Intel Corporation Layer3 TV (HQ) Life Time Fitness (Information Technology Division HQ) Lockheed Martin Space Systems (HQ) Madwire Media (HQ) Panasonic Enterprise Solutions (HQ) Personal Capital (HQ) ReadyTalk (HQ) Sierra Nevada Completion Systems (HQ) SolidFire (HQ) Viega (HQ) Webroot (HQ) Governor’s Office of Economic Development & International Trade | July 22, 2016 Page Building Place: Talent | Housing | Transportation Governor’s Office of Economic Development & International Trade | July 22, 2016 Page The Presence of Tech Talent in Metro Denver To better serve your evaluation of Colorado competitive workforce, our office has compiled a collection of workforce studies of positions that routinely are sought after in the information technology space Furthermore, we have benchmarked the Denver community against the Austin, Texas market as a frame of reference Please click on each of the following links to open a workforce profile of the position:        Administrative Service Manager Human Resources Network and Computer Systems Administrator Sales Engineer Sales Manager Sales Representative Software Developers and Programmers A Workforce Gold Rush The Colorado Office of Economic Development and International Trade (OEDIT), in partnership with Mercer Consulting, today announced the results of an economic analysis on Colorado's future economy The study was conducted to determine how occupations in Colorado are suited for current and future state, national and global trends, as well as determine the type of occupations that should be retained or recruited to meet current and future demands The findings of the study will help OEDIT strategize its future recruitment, expansion and retention activities Key Findings Jobs:     Colorado currently has a high concentration of high-skilled, high-paying jobs and is producing goods and services that are in demand in today's knowledge and information-based economy, which makes the state well positioned for success in the global economy As a result of this economic positioning Colorado has a higher median wage ($37,946) than the national median ($36,200) Colorado's workforce needs are projected to grow faster than the nation, especially in the knowledge economy jobs such as engineering, computer and business Growth in engineering, computer and healthcare jobs are projected to be higher than 2.5% over the next ten years in Colorado, which is higher than the overall workforce growth Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 10 Workforce:    Colorado's existing workforce is more highly educated and skilled than other competitive states and the nation as a whole This has been a huge draw for knowledge based industries to the state Colorado ranks third nationally in net inflow (in-migrants minus out-migrants), and is an attractive destination across education and income levels Even with a strong existing workforce and net inflow we will have more knowledge based higher paying jobs available than people to fulfill them, so it is critical to develop a comprehensive instate talent pipeline for the benefit of Coloradans and to continue to fuel the state's economy "This analysis helps us better understand the existing fundamentals of our overall state economy and where we need to focus to ensure that we are as well positioned as possible so that all Coloradans have access to economic opportunity in the future," said Fiona Arnold, executive director of OEDIT "Overall, the results show that Colorado is one of the strongest knowledge-based economies in the nation, which positions us extremely well for future economic success We will use these findings to help us refine our efforts to maintain and strengthen this position while at the same time we continue to deploy significant time and effort in areas of the state that are experiencing lagging economic conditions and opportunities." The report shows that Colorado's main competitive advantage is its highly educated and skilled workforce Compared to the nation as a whole, a greater percentage of Coloradans are employed in higher paying knowledge based occupations such as engineering, computer and business occupations Additionally, Colorado has a greater percentage of workers employed in mining and professional services, and a smaller percentage of workers employed in manufacturing and healthcare The state's workforce is projected to grow faster than the nation, especially in the knowledge economy "The United States is transitioning to a post-industrial society increasingly comprised of knowledgebased enterprises," said Laura Blomquist, senior manager of strategy and analytics at OEDIT "These enterprises create higher paying jobs that typically require significant preparation through higher education and a high degree of complexity and innovation in the work itself This knowledge-based economy is even more pronounced in Colorado, which is not surprising given Colorado's high concentration of educated individuals and growth in the millennial cohort." Findings of the report will be used to help provide future projections of occupations and industry clusters, defining the optimal mix of occupations and wage levels across industries and how it relates to business retention and recruitment in the state To access the full report, please click here Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 11 A Startup Community with Recreation on the Mind Colorado’s entrepreneurs were recently surveyed by OEDIT and found that next to having a Culture of Openness, Outdoor and Recreational Activities (skiing, hiking, golf, biking, etc.) were among some of the biggest drivers for being in Colorado Colorado’s business leaders love Colorado for its business-friendly, innovative atmosphere as well as a community that supports active lifestyles Millennial Magnet If there has been one group on the move to and in Colorado, it has been the Millennials Colorado has become a destination for the Millennial generation Futhermore, Boulder and Golden were both recognized by NerdWallet in a 2015 article Best Places for Millennial Job Seekers in Colorado Here is what NerdWallet had to say about Boulder and Golden: In April 2016, the Denver Post highlighted Colorado’s attraction to the Millennial workforce Within the April 2016 article Colorado has More People on the Move than any Other State, the Denver Post notes that Colorado and the Metro Denver area have become major destinations for Millennials on the move The story also sourced information from Mayflower Move Insights Study Here are a couple items noted from the story:  Denver ranks 3rd among the cities that Mayflower’s millennial customers moved to last year after Dallas and Chicago  Millennials like to live in areas where other Millennials are flocking, and they used social media to share their experience, which has helped create migration magnets Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 12 Higher Education in Colorado Colorado is home to some of the highest ranked institutions of higher education In Metro Denver, 42.5 percent of the population are college graduates and 90.2 percent are high school graduates Colorado has the nation’s second-most highly educated workforce, with 38.3 percent having a bachelors degree or higher The information below highlights enrollment numbers as of 2014 of private and public fouryear colleges and universities College or University Colorado School of Mines Colorado State University University of Colorado University of Colorado University of Colorado University of Northern Colorado Metropolitan State University Community College of Denver Regis University Johnson & Wales University of Denver Location Golden Fort Collins Boulder Colorado Springs Denver Greeley Denver Denver Denver Denver Denver 2014 Enrollment 5,795 27,503 30,570 11,153 18,498 10,275 21,123 10,296 9,722 1,391 11,556 Training Tech Talent in Colorado Outside of the traditional classroom, companies like Galvanize (www.galvanize.com) are creating the next generation curriculum Galvanize offers intense courses through their G School that transform individuals into developers, data scientists, data engineers, and other technical roles Galvanize has multiple locations in Denver, Boulder, and Fort Collins Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 13 Housing in Metro Denver The Metro Denver median sales price of existing single-family homes was $353,600 in 2015, and $280,677 in Northern Colorado in 2014, while the national median home price was $223,900, according to the National Association of Realtors For renters, the average rent in the first quarter of 2016 was $1,315 per month in Metro Denver, according to the Metro Denver Economic Development Corporation As it pertains to 2015 records of condominiums and townhomes, the following chart outlines the market in Denver and surrounding communities: Condo & Townhomes Number of Sales Total Sales Volume High Sales Price Low Sales Price Avg Sale Price Median Sale Price Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson 1,913 4,735 1,185 149 4,137 1,395 2,938 $349,943,158 $924,413,966 $350,849,701 $30,849,500 $1,134,271,977 $356,813,678 $584,575,310 $652,900 $1,720,000 $3,750,000 $389,000 $4,550,000 $855,000 $828,100 $32,700 $25,000 $25,931 $112,000 $24,000 $55,000 $23,000 $182,958 $195,230 $297,290 $247,931 $275,778 $263,357 $199,460 $184,500 $178,000 $250,000 $244,000 $211,000 $245,000 $185,000 As it pertains to 2015 records of single family detached homes, the following chart outlines the market in Denver and surrounding communities: Single Family Detached Home Number of Sales Total Sales Volume High Sales Price Low Sales Price Avg Sale Price Median Sale Price Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson 7,007 8,617 4,523 1,072 8,900 6,448 8,370 $1,998,567,910 $3,135,957,330 $2,333,332,754 $418,271,478 $3,775,163,536 $2,891,048,297 $3,226,303,447 $1,775,000 $5,940,000 $5,050,000 $2,900,000 $4,100,000 $4,300,000 $6,800,000 $23,100 $23,100 $30,000 $32,500 $22,000 $21,000 $22,000 $285,224 $364,400 $518,098 $393,582 $424,350 $451,753 $385,689 $265,000 $305,000 $415,500 $348,750 $350,000 $400,000 $340,000 Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 14 Transportation In Colorado, you will be able to leverage the second most educated workforce in the nation along with world-class infrastructure such as Denver International Airport, institutions of higher education, openspace for play and more Furthermore, the average commute times for employees in the Metro Denver area is 27 minutes Denver International Airport At the center of the Denver metropolitan area’s aviation industry is the Denver International Airport (DIA), the 5th busiest airport in the US Ranked the best airport in North America by Traveler Magazine, Denver International Airport (DIA) is served by 10 U.S.-flag and four foreign-flag airlines providing scheduled commercial passenger services, offering exceptional access to markets DIA schedules more than 1,500 daily flights on scheduled commercial passenger airlines Located 23 miles northeast of downtown Denver and soon to be connected with the Regional Transportation District’s (RTD) light rail system, DIA is the primary airport serving the city and state Project Mission will be able to benefit from being located near a light rail stop with service to Denver International Airport Fifteen commercial carriers provide nonstop service to more than 180 domestic and international destinations including 25 international locations in Canada, Costa Rica, Dominican Republic, Germany, Iceland, Jamaica, Japan, Mexico, Panama and the UK DIA has more opportunity for commercial development than any other airport in the United States with 9,400 gross acres even after full build-out to 12 runways Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 15 RTD Light Rail The Light Rail system allows for connectivity throughout the Denver Metro area and to Denver International Airport Below, you can find a map of existing lines and lines that have been planned for construction The transit center and commuter rail began service from Denver to DIA on April 22, 2016, allowing passengers to connect to the city in just 35 minutes Union Station, one of the metro area’s major infrastructure projects completed this year, serves as a transit hub for buses, commuter and light rail, and trains Several expansion projects are underway and are expected to be completed in the coming year, connecting Denver to the airport and the surrounding suburbs Metro Denver’s average commute time is 20 to 30 minutes Metro Denver continues to invest in mass transit Over $7 billion has been invested to buildout the mass transit system by 2019, adding 122 miles of rail rapid transit along six new lines This represents the largest build out of a U.S transit system since the Washington, D.C Metro system All orange lines in the graphic below are expected to be completed in 2016 Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 16 Colorado’s Performance-Based Incentives & Next Steps Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 17 Incentive Analysis Our office has calculated the following incentive values based on the project’s future growth of 313 employees at an average annual wage of $80,000 These are estimations based off available information and are subject to further due diligence The programs listed below are administered by the Colorado Office of Economic Development and International Trade Incentive Program Description Years & Job Growth Potential Value of Incentives *Job Growth Incentive Tax Credit JGITC provides a 8-year performance-based state corporate income tax credit to businesses undertaking job creation projects 313 Net New Full-Time Jobs Over Years $4,996,980 *Strategic Fund Strategic Fund provides a 5-year performancebased cash incentive to businesses undertaking job creation projects Colorado First Customized Job Training Grant Colorado Enterprise Zone Program (EZ) $1,200 performancebased cash grant for customized, technical training for new employees as identified by the company EZ encourages job creation and capital investment in economically distressed areas by providing tax credits to businesses to promote and encourage economic development activities $1,095,500 313 Net New Full-Time Jobs Over Years Subject to ($1:$1) Local Matching Incentives from Community 313 Net New Full-Time Jobs Over Years Up to $375,600 EZ Credits may be utilized during company’s operation in Colorado Dependent on Company’s Final Location *The Job Growth Incentive Tax Credit and Strategic Fund programs are mutually exclusive An individual project can take advantage of one program or the other, not both Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 18 Colorado’s Performance-Based Incentives The following information outlines the descriptions of each of the proposed incentive programs *Job Growth Incentive Tax Credit The Job Growth Incentive Tax Credit provides a state income tax credit to businesses undertaking job creation projects that would not occur in Colorado without this program and that have met certain requirements under the Economic Development Commission’s (EDC) Job Growth Incentive Tax Credit Program A business may receive funding if it proposes to create new jobs in Colorado that are maintained for at least one year Program may operate as a pass-through tax credit and has a 10 year carry-forward A business must also meet the requirements below:     Inter‐state competitive factors Company must create a minimum of 20 net new full-time jobs over an 8-year period The average annual wage of the job creation project must be at least 100% of the county average annual wage where the company locates The Job Growth Incentive Tax Credit cannot be converted to a cash outlay if the company does not have adequate tax liabilities to offset against the incentive Job Growth Incentive Tax Credit Fact Sheet *The Job Growth Incentive Tax Credit and Strategic Fund programs are mutually exclusive An individual project can take advantage of one program or the other, not both Strategic Fund The Strategic Fund Incentive program supports and encourages new business development, business expansions and relocation that have generated new jobs throughout the state over a five year period A business may receive funding if it proposes to create new jobs in Colorado that are maintained for at least one year A business must also meet the requirements below:    Inter‐state competitive factors The average annual wage of the job creation project must be at least 100% of the county average annual wage where the company locates Strong level of local matching commitments ($1:$1 required) o OEDIT will work with local economic development organizations to identify the $1:$1 local match on behalf of the company Non-Enterprise Zone $ Incentive Per Eligible Average Annual Wage % Job 100% $2,500 120% $3,500 140% of > $5,000 Enterprise Zone $ Incentive Per Eligible Average Annual Wage % Job 100% $2,500 110% $3,000 120% $4,000 130% or > $5,000 Strategic Fund Fact Sheet Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 19 Colorado First Customized Job Training Grant Program The Colorado First Customized Job Training Grant Program provides companies relocating or expanding in Colorado with job training grants These job training grants support customized and technical job skills that improve company competitiveness, employee efficiency and development, and provide resumebuilding, transferable jobs skills for Coloradans The program provides up to $1,200 per employee in training that can be provided by one of Colorado's community colleges, a provider of the company's choosing, or an in-house trainer The program is highly flexible to meet the needs of innovative, growthoriented companies in Colorado The commitment is subject to an evaluation of proposed training, available legislative funding, the company’s submission and subsequent approval of the standard training grant request and compliance with all Colorado First eligibility guidelines Colorado First Customized Job Training Grant Fact Sheet Colorado Enterprise Zone Program The Colorado Enterprise Zone (EZ) Program was created by the Colorado Legislature to promote a business friendly environment in economically distressed areas by offering state income tax credits that incentivize businesses to locate and develop and non-profit organizations to assist with the needs of these communities Colorado Enterprise Zone Fact Sheet In-State Tuition Benefit House Bill 07-1256 provides the Office of Economic Development and International Trade with the ability to grant immediate in-state tuition rate benefits to employees and their direct dependents that relocate to Colorado as a result of receiving an economic development incentive from the state or a local government Should your company take advantage of any state or local incentive listed in this proposal, OEDIT will work with the company’s employees to ensure a streamlined usage of this substantial benefit In-State Tuition Benefit House Bill 07-1256 Venture Capital Authority & External Resources The Colorado Venture Capital Authority (VCA) was established in 2004 to make seed- and early-stage capital investments in businesses The VCA was allocated $50 million in premium tax credits, which it subsequently sold to insurance companies The VCA selected fund manager High Country Venture, LLC, and established Colorado Fund I and Colorado Fund II, each with approximately $25 million High Country Venture is independently operated and generally makes funding decisions State approval is limited to ensuring that businesses receiving funding meet minimum specified requirements The minimum and maximum investment size generally ranges from $250,000 - $3.375 million Venture Capital Authority Fact Sheet Colorado is home to a variety of angel networks and venture capital firms The following link will provide you a list of Colorado-based organizations that may be able to assist with your company’s growth External Venture Capital Resources Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 20 Approval of State Incentives The Colorado Economic Development Commission (EDC) is the governing-body that approves the Job Growth Incentive Tax Credit and Strategic Fund for businesses undertaking job creation projects The EDC is comprised of 11 commissioners that meet once a month, usually on the third Thursday of the month Your OEDIT representative will assist in the preparation of your project for incentive approval by the EDC In order to bring this project to the EDC for approval of state incentives, OEDIT will require the following: Item Colorado Employment Plan Three Years of Company Financials Colorado Incentive Application & Cost Differential Analysis Status Outstanding Outstanding Outstanding As part of the approval process, OEDIT will require the items noted above prior to the EDC meeting As a hypothetical, if your project wanted to be approved at the September 29, 2016 EDC meeting, the following milestones would need to be met: Item Colorado Employment Plan & Three Years of Company Financials Colorado Incentive Application & Cost Differential Analysis Due Date August 19, 2016 August 29, 2016 As mentioned before, the EDC meets every month and OEDIT will adjust timing to work in conjunction with your project’s timeline In addition, future EDC meetings are scheduled for October 20th, November 17th, and December 15th of this year Prior to approval by the EDC, the company may not begin hiring, purchase or lease a building or land, make any formal announcements, or other actions signaling their final selection of Colorado The company may provide a letter of intent for any real estate options Your OEDIT representative can provide template information for a letter of intent Approval of incentives at the EDC is the state’s commitment to the company, not the company’s commitment to the state The EDC will vote to approve your project for the Job Growth Incentive Tax Credit or Strategic Fund at 9:00am MDT on the third Thursday of the month EDC Commissioners will vote and approve the project Generally, projects introduced at 9:00am MDT are approved by 9:30am MDT Once the company has approved by the EDC, the company may make a final decision or continue their analysis for a period of time before notifying OEDIT as to their final decision Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 21 Next Steps with State Incentives We are thrilled at the opportunity to work with T3 Advisors and the company on this significant job creation project As you review the proposal from OEDIT, we welcome feedback As part of the analysis, OEDIT would like to understand the company’s Colorado Employment Plan to evaluate the year-to-year ramp up of the company and the company’s average annual wages in Colorado The Colorado Employment Plan allows you to articulate the company's planned job creation project over the course of eight years In the spreadsheet marked Example, you can see a sample of how to complete the employment plan Your company’s job creation project should be completed in the spreadsheet labeled CO Employment Plan This will allow for the Office of Economic Development and International Trade and the City of Denver Office of Economic Development to refine and solidify incentives and programs to support the company’s expansion in Colorado Click on the following link to access the Colorado Employment Plan: Colorado Employment Plan Once the company has completed the Colorado Employment Plan, OEDIT will provide you with a Colorado Incentive Application to complete The application will contain the final incentive calculations so your company will know the exact value of the states incentives Until we receive the Colorado Employment Plan, we have provided a template version of the Colorado Incentive Application so you may review the information that will be asked of the company Please click the link below to access the Colorado Incentive Application: Colorado Incentive Application Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 22 Local Incentives OEDIT will work with communities under consideration by the company to maximize a state and local incentive package Within the Metro Denver area, communities offer unique programs tailored to a company’s project criteria These programs can be deployed in conjunction with the states incentives Based on the available information, the company may qualify for the following local incentives:     Business Personal Property Tax (BPPT) Credit – Companies can generally receive a BPPT credit of 50% over ten years This is subject to an evaluation or review by each individual community to determine eligibility for the BPPT credit Real Estate Assistance Workforce Development Funding for Customized Training Discretionary Local Incentives OEDIT will work with communities to identify further incentive calculations once the project has provided a detailed project scope Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 23 Thank you for considering Colorado Colorado Office of Economic Development and International Trade 1625 Broadway, Suite 2700 | Denver, CO 80202 303.892.3840 | FAX 303.892.3848 www.advancecolorado.com Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 24