Agenda Date: 11/18/2014
Subject:
Title
Resolution approving a General Use Tax Rebate Agreement with Foro Energy, Inc. to retain and expand operations with the City of Littleton
Body
Presented By:
Denise Stephens, Economic Development Director
POLICY QUESTION:
Does city council support the rebating 50% of the use tax paid on new equipment purchases by Foro Energy, Inc. over the next eight years?
BACKGROUND:
Foro Energy, Inc. opened offices in Littleton in 2009. The company opened an office with 15 employees in Houston 2011. Foro Energy developed patented innovations revolutionizing operations in the oil, natural gas, geothermal, and mining industries. As an example, its laser technology is a safer, more efficient method for locating and extracting gas and oil than current fracking methods. The company's ground-breaking technologies enable high- powered lasers to drill, complete, and decommission wells in a way previously believed scientifically impossible.
Besides industry changing technology, Foro Energy creates primary jobs. A primary job produces goods and/or services for customers predominantly outside the community. This creates new "outside" dollars for the community. Once an employer recovers its investment, it redistributes that wealth in the community through wages paid to employees and through suppliers. Foro has created and will add additional high paying jobs.
The City of Houston is offering incentives hoping Foro will locate all of its operations in Texas. The state of Colorado Office of Economic Development and International Trade (OEDIT) and Arapahoe County support retaining Foro in Littleton. The Colorado Economic Development Commission on September 11, 2014, approved $1,009,800 in performance-based Job Growth Incentive Tax Credits for Foro Energy's proposed expansion and investment project in Colorado. Approving this incentive was based on Foro Energy's commitment to create 64 new full-time, highly skilled, highly technic...
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