MEDC Incentive Policy

MEDC Policy: Incentives


MEDC may provide incentives to primary employers who would like to relocate or expand in Montrose County who can demonstrate a positive economic impact on the Montrose County communities. Incentives may be provided by a combination of any of the following: MEDC, the State of Colorado, Region 10, cities of Montrose, Olathe, Nucla, Naturita, Montrose County, and RE-1J School District.

Sections


MEDC Incentives


Incentives are used as stimulators, and are not entitlements.
  • Approval is on a case-by-case analysis, and therefore "discretionary", rather than "by right". A discretionary process enables MEDC to have more flexibility to target limited resources towards those businesses that are most important to Montrose, and to have more control over the terms of any incentive
Criteria includes but not limited to:
  • In all instances, a minimum of 5 (five) new jobs must be created.
  • Diversification of local economic base.
  • Compliance with City and County plans.
  • Average wages paid need to be higher than the County average as determined by the Colorado Department of Labor.
  • Predicated on the availability of funding, incentive(s) allowed will be calculated using the salary value listed below:
 Montrose County 2015 Average Wage: $39,624 (Source: CO Dept. of Labor/Employment)
 110%  $1,000  $43,586
 115%  $1,250  $45,568
 120%  $1,500  $47,549
 125%  $2,500  $49,530
 135%  $2,750  $53,492
 150% or>  $3,000  $59,436

  • The businesses must provide group health insurance for each worker to be eligible for incentives.
  • The normal work year (overtime excluded) consists of 2,080 hours or twelve months for salaried positions.
  • Wages paid below County average will be considered on a case-by-case basis.
  • Separate consideration given to start-up companies
  • Desired Goal: At least 50% of new jobs created should be filled by local Montrose County residents.
  • The allowance calculation is determined over the first 5 (five) years of normal operations.
  • In all instances of new job creation calculation, the principles of the business will not be counted as new jobs.
  • Businesses that make capital investments, create new jobs, rehabilitate old buildings, contribute to economic development plans, and do research and development in the Montrose County Enterprise Zone may be eligible to receive certain tax credits from the State.  To be eligible, a company must have a tax liability with the State.
  • MEDC may deny assistance to a prospective business that is in direct competition with existing Montrose County businesses.
  • Businesses normally must wait for an interval of 5 years before requesting additional assistance from MEDC.

Investment


  • Legislation allows cities and counties to negotiate corporate property tax rebates. MEDC may assist new and existing manufacturing, research and engineering, processing, and wholesale/distribution businesses in making application for a Property Tax Rebate to all participating local governmental bodies. MEDC may consider grants equal to amounts up to 50% of the property tax.
  • MEDC may assist new and existing manufacturing, research and engineering, processing, and wholesale/distribution businesses in applying for Small Business Administration (SBA), Colorado Housing and Finance Authority (CHFA), and Region 10 loans as requested by the business.
  • MEDC may reduce the costs of land controlled by MEDC based on the amount and types of investment. Possible consideration could be:
Percent Property Improvements
Personal Property
25%
For an investment of at least:
$1,000,000
$500,000
50%
For an investment of at least:
$2,000,000
$1,000,000
75%
For an investment of at least:
$4,000,000
$2,000,000
95%
For an investment of at least:
$6,000,000
$3,000,000

State of Colorado Programs


  • MEDC may assist qualifying businesses in preparing application to the State of Colorado for Colorado First Training Funds and for grants from the Colorado Economic Development Commission.
  • MEDC may identify to the qualifying business tax credits available through the Colorado Enterprise Zone.

Information Required by MEDC Prior to Granting MEDC Incentives


  • Business description and business plan (including marketing plan);
  • Ownership and management structure;
  • Years in business;
  • Description of product/service;
  • Financing and planned usage;
  • Incentives requested;
  • Status of existing loan(s);
  • Financial summary of prior three years operations;
  • Cash flow schedule for next four years of Montrose-based operation(s);
  • For all privately held corporations, a copy of financial statements of all principals and corporate officers;
  • Brief description of project:
    • Building square footage
    • Acres
    • Timing of project
  • Capital investment projected over four years:
    • Building
    • Land
    • Equipment
  • Annual employment, payroll, and average salaries projected over four years.

Additional Information Which May be Requested by MEDC

  • Appraisals as requested,
  • Buy/sell or other management agreements,
  • Franchise agreement,
  • Construction budgets,
  • Key personnel resumes, 
  • Other items deemed necessary by the MEDC Board of Directors, Finance Committee, or President.

MEDC Membership for all Businesses receiving Incentives/Assistance from MEDC:


Businesses must agree to become an investor in MEDC at time of receipt of assistance and/or incentive for a minimum of five (5) years, amount to be negotiated.

MEDC may evaluate the total economic impact to Montrose County which includes capital investment, job growth, and wage levels to determine incentive proposals.

The MEDC Board of Directors must approve all requests for incentives or assistance.