A mechanical contracting and systems engineering company is considering opening a new fabrication facility in Monument, north of Colorado Springs.

The Colorado Economic Development Commission approved up to $453,000 in Strategic Fund incentives to the unnamed company labeled as “Project Cobalt” on Thursday. The EDC often does not disclose company names to protect confidentiality throughout the competitive process of attracting businesses to the state.

State economic development officials said in meeting documents that the new facility would strengthen Colorado’s supply chain because it will source more materials locally, “supporting statewide construction projects and reducing lead times, costs and emissions.”

Project Cobalt would also create high-paying jobs in Monument, strengthen the town’s manufacturing sector and encourage more economic growth by increasing demand for local suppliers, contractors and service providers, they said.

The company currently has more than 6,500 employees, including 285 in Colorado.

Project Cobalt expects to create 135 jobs at an average annual salary of $87,037, or 133% of the average yearly wage in El Paso County. Roles include project managers, engineers and operations.

The company is also considering Peoria, Ariz., for the expansion.

Colorado’s Strategic Fund Job Growth Incentive program provides a cash payment over five years to companies that create and maintain permanent jobs in the state. Eligible companies must be considering Colorado and at least one other state for business expansion or relocation projects and must receive committed local government funding that matches requested state government incentives.

The town of Monument, as the local community’s Strategic Fund match, approved $243,000 in property tax rebates and $210,000 in use tax rebates for Project Cobalt if it selects the town for expansion.  

The match will be paid out over 10 years, five years longer than the state policy; Colorado EDC staff recommended the commission amend the policy in Project Cobalt’s case because Monument is a smaller community and hasn’t participated in state recruitment activities before.

The EDC on Thursday also approved nearly $3.25 million in job growth tax incentives to three other companies seeking to expand or establish a Colorado presence.

The majority, more than $2.1 million, was approved for “Project Sweet Summit,” a primarily remote company based in California with plans to transition to an office model. The company is looking to Denver for its in-person presence.

The company, which currently has more than 500 employees, focuses on customer relationship management for several industries including advanced manufacturing and distribution. It already has 20 employees in Colorado.

The hopes to attract the company come as Denver has struggled with a rise in empty office buildings as many companies have expanded remote and hybrid options following the COVID-19 pandemic. Downtown saw a rebound of the number of employees coming to the office over the last year, but it’s still far below pre-pandemic levels.

The move could create 173 new jobs for the state, according to the EDC.

The company is considering the entire metro Denver area for its office but is focused on Denver. Colorado is competing with Chicago, San Francisco and Raleigh, N.C.

The average wage of the jobs if the company came to Colorado is expected to be $140,295. It would include positions such as sales, marketing, software engineers and customer support.

The EDC said the company would support Colorado’s push to attract high-paying technology jobs and make the state a major tech hub.

“This would be a significant signal of support for companies choosing Colorado for workforce transitions and headquarters,” the EDC said.

“Project Coils,” an automotive manufacturer, was granted nearly $770,000 in tax incentives from the state to bring 50 new jobs for a new manufacturing line in Mesa County. The company is also looking at Missouri and Kentucky.

The EDC also granted a mining financing startup dubbed as “Project Neptune” nearly $375,000 in a bid to lure the company to open its headquarters in the state, which could bring 29 jobs.

The company is considering opening its main office in the Metro Denver area, but is also considering Nevada and Florida.