To: Board of County Commissioners
Through: Michelle Halstead, Director, Commissioners’ Office
Prepared By:
prepared
Christine Shapard VP Economic Development, Denver South
end
presenter
Presenter: Christine Shapard, VP Economic Development, Denver South and Paul Wegman, CEO, Nova Automation
end
Subject:
title
3:00 PM *Nova Automation - New Business Personal Property Tax Rebate Request
end
Purpose and Request:
recommended action
The purpose of this request is two-fold; to help attract a primary employer to Arapahoe County (County) and facilitate the creation of high-quality employment opportunities for the citizens in the County and the Denver South region.
Denver South, on behalf of Nova Automation (Nova), requests consideration of a business personal property tax (BPPT) incentive agreement between the County and Nova for the period of ten years.
end
Background and Discussion: The purpose of this study session is to hear from Christine Shapard of Denver South, and Paul Wegman, CEO of Nova regarding the company’s proposed employment growth and capital investment associated with a new facility in the County. The request is for the Board of County Commissioners to consider a 10-year BPPT rebate for Nova.
Nova Automation is a 25-year-old manufacturing company located in the City and County of Denver that builds packaging machinery equipment to automate the bag filling, palletizing and stretch wrapping process. The company designs and builds its products in-house and controls its supply chain which gives them more capability and flexibility to meet their customers’ needs; and their lines are built end-to-end, which means customers do not need to integrate their systems with outside suppliers. Nova furthers its competitive advantage by innovating new products and entering new markets. They are investing in expanded marketing, a new enterprise resource planning system and employee training with Manufacturer’s Edge.
The company plans to expand from 51 to 214 employees within the next 8 years and has outgrown its current location of 32,000 square feet. They are considering relocating entirely to a build-to-suit facility in Dove Valley in unincorporated Arapahoe County but are also considering a location in Texas for the proposed expansion. Nova was recently awarded Colorado Economic Development incentives to help Colorado and Arapahoe County remain competitive as the company determines where it will relocate.
Over the next 8 years, the company will pay an average annual wage of $77,298, which is higher than the County’s current $69,992 average annual wage, and will invest an estimated $18 million in capital equipment, land and construction of a 100,000 square foot building. The company estimates an expansion of payroll to $12,599,700 between 2021 and 2028.
Nova’s potential workforce will include, but not be limited to, the following positions: fabricators, assemblers, electrical assemblers, engineers, sales, finance, project management and human resources. Denver South acquainted the company with the Cherry Creek Innovation Campus, and they are interested in partnering with the Advanced Manufacturing pathway to help build their workforce pipeline
Fiscal Impact: Direct fiscal impacts to the County include the tax revenues associated with the construction of a new commercial property. Between 2021 and 2028, the company expects to invest $7,100,000 in equipment. The estimated rebate amount over this time period is $24,734.
Alternatives: N/A
Alignment with Strategic Plan:
☐Be fiscally sustainable
☐Provide essential and mandated service
☐Be community focused
Staff Recommendation: N/A
Concurrence: N/A