An unidentified defense company is considering expanding into Colorado Springs, with plans to invest nearly $4 million into the community and create 130 new high-paying jobs.

The Colorado Springs City Council on Monday gave informal support for a $20,643 financial incentive request from the unnamed company identified as “Project Stronghold,” which provides cyber and intelligence solutions for government customers, according to a staff presentation.

Colorado Springs Economic Development Officer Jessie Kimber recommended the council approve a resolution at a future February board meeting authorizing a four-year economic development agreement between the city and the company.

Project Stronghold is contemplating spending $3.96 million over two years to expand into Colorado Springs, Kimber said. The company plans to secure and remodel an existing commercial space and later add secure facilities as part of its plan to conduct classified work, she said.

Colorado Springs may be just one location the company is considering for expansion.

The Colorado Economic Development Commission in August approved up to $2,010,864 in financial incentives over eight years for a veteran-owned Project Stronghold headquartered in Alexandria, Va. An Aug. 17 news release from the state board said at the time the company was considering expanding operations into Broomfield County, as well as considering expanding into San Antonio and Reston, Va. 

If the Colorado Springs City Council approves the agreement at its meeting Feb. 13, it’s expected to create 130 new local jobs over three years, with the average annual wage over $166,400. That projected salary is $100,000 more than the average annual wage in El Paso County, Kimber said.

The expansion could create an additional 221 jobs indirectly or through induced demand over the proposed four-year agreement term, bringing the total of new permanent jobs up to 351. Thirty construction jobs could be created as part of the agreement, Kimber said.

Colorado Springs is offering up to $20,643 in incentives for the project, according to a staff presentation. This includes a $1,650 sales and use tax rebate on Project Stronghold’s purchase of business personal property, such as machinery and equipment, furniture and fixtures, and a nearly $19,000 rebate on construction materials.

Kimber estimated the agreement will grow the local economy by just over $78 million over the four-year term and generate, after incentives, $971,650 in new city revenues over that time.

In the longer term, over 10 years, the proposed agreement would grow Colorado Springs’ economy by more than $292 million and generate about $3.2 million in new city revenues.

If Project Stronghold expands in Colorado Springs, it will add to a growing list of new local economic development efforts.

In 2023, the council approved nine economic development agreements, five of which were for local businesses that expanded in the city.

In December, Colorado Springs Chamber & EDC President and CEO Johnna Reeder Kleymeyer said that, over the last two years, more than 4,200, high-wage jobs have been announced for the Colorado Springs area by existing businesses or newcomers that are growing their operations and spending more than $2 billion on capital investments.