Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 1

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 2

Table of Contents

Colorado Team ........................................................................................... 3

Colorado: A Destination for Company Relocations & Expansions ................ 4

Coastal Companies Expanding in Colorado ..........................................................................5

Recent Company Relocations and Expansions ......................................................................8

Building Place: Talent | Housing | Transportation....................................... 9

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 3

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

Colorado Office of Economic

Development & International Trade

Laura Blomquist

Senior Manager, Strategy & Analytics

303.892.3859 Laura.blomquist@state.co.us

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 4

Colorado: A Destination for Company Relocations & Expansions

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 5

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 6

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 7

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 8

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) Denver $ 2,131,851 157

Ardent Mills (HQ) Broomfield $ 5,593,675 300

Cognizant (HQ) Greenwood Village $ 8,690,622 500

Comcast Larimer $ 8,146,005 635

Coyote Logistics Denver $ 1,756,771 200

Craftsy (HQ) Denver $ 2,575,559 236

Crown Peak (HQ) Denver $ 2,955,657 198

DaVita (HQ) Denver $ 12,709,615 800

Fidelity Investments Greenwood Village $ 8,131,621 400

Granicus Software (HQ) Denver $ 3,239,369 221

HomeAdvisor (HQ) Denver, Golden, & Colorado Springs

$ 14,449,316 1,030

Ibotta (HQ) Denver $ 3,323,275 181

Inspirato (HQ) Denver $ 1,993,139 129

Intel Corporation Fort Collins & Longmont $ 5,861,005 188

Layer3 TV (HQ) Denver $ 2,903,402 312

Life Time Fitness (Information Technology Division HQ)

Boulder $ 3,517,329 220

Lockheed Martin Space Systems (HQ) Lakewood $ 15,540,178 500

Madwire Media (HQ) Loveland $ 2,920,474 346

Panasonic Enterprise Solutions (HQ) Denver $ 1,500,000 330

Personal Capital (HQ) Denver $ 1,595,358 213

ReadyTalk (HQ) Denver $ 2,420,145 160

Sierra Nevada Completion Systems (HQ)

Colorado Springs $ 23,183,766 1,323

SolidFire (HQ) Boulder $ 5,555,435 209

Viega (HQ) Broomfield $ 698,380 210

Webroot (HQ) Broomfield $ 8,529,553 443

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 9

Building Place: Talent | Housing | Transportation

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 10

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 11

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 in-

state 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 knowledge-

based 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 12

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 13

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 four-

year colleges and universities.

College or University Location 2014 Enrollment

Colorado School of Mines Golden 5,795

Colorado State University Fort Collins 27,503

University of Colorado Boulder 30,570

University of Colorado Colorado Springs 11,153

University of Colorado Denver 18,498

University of Northern Colorado Greeley 10,275

Metropolitan State University Denver 21,123

Community College of Denver Denver 10,296

Regis University Denver 9,722

Johnson & Wales Denver 1,391

University of Denver Denver 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 14

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

Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson

Number of Sales

1,913 4,735 1,185 149 4,137 1,395 2,938

Total Sales Volume

$349,943,158 $924,413,966 $350,849,701 $30,849,500 $1,134,271,977 $356,813,678 $584,575,310

High Sales Price

$652,900 $1,720,000 $3,750,000 $389,000 $4,550,000 $855,000 $828,100

Low Sales Price

$32,700 $25,000 $25,931 $112,000 $24,000 $55,000 $23,000

Avg. Sale Price

$182,958 $195,230 $297,290 $247,931 $275,778 $263,357 $199,460

Median Sale Price

$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

Adams Arapahoe Boulder Broomfield Denver Douglas Jefferson

Number of Sales

7,007 8,617 4,523 1,072 8,900 6,448 8,370

Total Sales

Volume $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

High Sales Price

$1,775,000 $5,940,000 $5,050,000 $2,900,000 $4,100,000 $4,300,000 $6,800,000

Low Sales Price

$23,100 $23,100 $30,000 $32,500 $22,000 $21,000 $22,000

Avg. Sale Price

$285,224 $364,400 $518,098 $393,582 $424,350 $451,753 $385,689

Median Sale Price

$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 15

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, open-

space 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 16

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 17

Colorado’s Performance-Based Incentives & Next Steps

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 18

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 5 Years

$4,996,980

*Strategic Fund

Strategic Fund provides a 5-year performance-based cash incentive to businesses undertaking

job creation projects

313 Net New Full-Time Jobs Over 5 Years

$1,095,500

Subject to ($1:$1) Local Matching Incentives

from Community

Colorado First Customized Job Training Grant

$1,200 performance-based cash grant for

customized, technical training for new

employees as identified by the company

313 Net New Full-Time Jobs Over 5 Years

Up to $375,600

Colorado Enterprise Zone Program (EZ)

EZ encourages job creation and capital

investment in economically distressed areas by providing tax

credits to businesses to promote and encourage economic development

activities

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 19

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 Enterprise Zone

Average Annual Wage % $ Incentive Per Eligible

Job Average Annual Wage %

$ Incentive Per Eligible

Job

100% $2,500 100% $2,500

120% $3,500 110% $3,000

140% of > $5,000 120% $4,000

130% or > $5,000

Strategic Fund Fact Sheet

Governor’s Office of Economic Development & International Trade | July 22, 2016 Page 20

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 resume-

building, 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, growth-

oriented 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 21

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 Status

Colorado Employment Plan Outstanding

Three Years of Company Financials Outstanding

Colorado Incentive Application & Cost Differential Analysis

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 Due Date

Colorado Employment Plan & Three Years of Company Financials

August 19, 2016

Colorado Incentive Application & Cost Differential Analysis

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 22

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 23

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 24

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