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A RESOLUTION APPROVING ECONOMIC DEVELOPMENT BUSINESS INCENTIVES FOR PERFORMANCE FOOD GROUP
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Summary & Background: Economic Development staff is requesting business incentives to help retain and expand an existing employer in Commerce City. Performance Food Group has outgrown their current operations in the city and is looking at various industrial sites throughout the northeast metropolitan Denver area to build a new facility. The project, also known as Project Bronco, will include an estimated $64 million capital investment for construction of a new facility and purchase of equipment. In addition, the company expects to retain 183 jobs and create at least 75 new jobs over five (5) years.
Resolution 2014-56 authorizes the use of business incentives as a strategic investment to help achieve the city’s economic development goals. Incentives are negotiated on a case-by-case basis. Incentive amounts are evaluated using several factors, including:
- New and/or retained jobs; wages paid
- Capital investment
- Catalytic nature of the project
City Council approves all city business incentives offered that are valued over $50,000. The estimated value for a business incentive package is based on the company's projected new capital investment. Typically, the incentive rebate amount paid is based on city fees and taxes paid for the actual capital investment made.
Business incentive requests are presented to City Council during an Executive Session to discuss terms. An Executive Session is necessary so that other communities vying for a project aren’t given a competitive advantage by knowing what Commerce City is willing to offer in incentives for a project. A Resolution with incentive terms typically goes to City Council on consent agenda once the company finalizes its site search and is comfortable with the company name being shared in public. Sometimes there is a large time gap between the Executive Session and the presentation of a Resolution because o...
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