The City Council this week informally supported a $19,300 financial incentive request for an unidentified Colorado Springs high-tech manufacturer considering an expansion in the city that is estimated to add 110 local jobs over eight years.

Economic Development Officer Jessie Kimber presented plans for “Project TIB” to the council at its work session Monday. She recommended the board approve a resolution at its next regular meeting March 12 authorizing a four-year economic development agreement between Colorado Springs and the unnamed manufacturer that caters to markets in the medical, aerospace, commercial and industrial sectors.

The company is considering spending $5.93 million over eight years to expand in Colorado Springs. It plans to purchase and remodel an existing building to support its growth, Kimber said.

If the City Council approves the agreement it would create 110 jobs over eight years, 55 of which would be created over the four-year agreement term, with an average annual salary of $83,797. The estimated wages are about $23,000 more than the average annual wage in El Paso County, Kimber said.

Another 67 jobs could be created indirectly or through induced demand over four years and 180 jobs over the next 10 years, for a total of 280 new permanent jobs over the next decade. Since the company is considering making a lower investment in construction, Kimber said just four additional construction jobs could be created as part of the agreement.

Kimber said the city would offer up to $19,300 in incentives for the project. The agreement includes a $14,300 sales and use tax rebate on the company’s purchase of business personal property like machinery, equipment, furniture and fixtures; and a $5,000 rebate on its purchase of construction materials, a staff presentation shows.

Under the agreement the local economy is estimated to grow by about $25.1 million over four years and $175 million over 10 years. After incentives, it would generate $253,348 in new city revenues over four years and about $1.2 million in new city revenues over 10 years.

The company is already located in Colorado Springs. Kimber estimated if its current operations remained here and it expanded locally it would result in 264 combined permanent jobs over four years, the local economy will grow by $71.8 million and it will generate $531,063 in new city revenues during that time.

Over a 10-year period, retaining and expanding the company would create 432 combined permanent jobs, would grow the economy by $314 million and generate just over $2 million in new city revenues.

If Project TIB did expand in Colorado Springs it would be the latest in a series of recent local economic developments.

On Thursday, Alexandria, Va.-based Invictus International Consulting announced it selected Colorado Springs for expansion. According to its agreement with the city, the veteran-owned cybersecurity and technology company plans to invest nearly $4 million into the community and create at least 130 jobs averaging nearly $170,000 a year.

A look at downtown Colorado Springs.

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