The Colorado Economic Development Commission transferred $ 7.5 million to the Colorado Department of Transportation Thursday morning to help them purchase Burnham Yard in downtown Denver, an area of 59 acres used to upgrade Interstate 25 is critical, as well as a planned railroad line along the Front Range that Amtrak would like to see built.
“It’s one of those one-off generational projects,” Jeff Kraft, director of economics, finance and incentives for the Colorado Office of Economic Development and International Trade, told commissioners, comparing it with efforts to keep Union Station in Denver as a transit hub .
The money will come from the state’s Strategic Fund, which is typically used to incentivize business relocation and support a variety of economic development efforts across the state. OEDIT had invested $ 9.5 million in this fund to land large corporate relocations, but the commission approved the diversion of $ 7.5 million to the large package south of Colfax Avenue and east of I-25 in to give state hands.
“Our understanding is that if the state had not moved forward, it would be very likely to spiral out of control and into private hands,” CDOT executive director Shoshana Lew told commissioners.
Union Pacific deactivated the freight yard, which was mainly used for repairs, in 2016. CDOT was about to purchase the property in February 2020 when the pandemic broke out and departmental budgets became tight. CDOT will raise an additional $ 7.5 million to cover the down payment, with its High Performance Transportation Enterprise arm borrowing $ 40 million.
About 16 acres will be required for transportation and the remaining lots are expected to be sold for private commercial and residential development, Lew said. If CDOT does not repay OEDIT from infrastructure grants proposed by the Biden administration, Kraft said the proceeds from package sales would be used to repay the strategic fund.
These property sales could take up to five years and a longer payback carries some risk to OEDIT as less funds are allocated to relocating a “Big Fish” business. These opportunities don’t come often, however, and the Strategic Fund is expecting a one-off shot of $ 15 million, which is three times the usual $ 5 million annual allocation that lawmakers receive from federal funds to accelerate economic recovery provides.
Although the expansion of the funds could be seen as an advantage for Denver over other areas of the state, Kraft said the location provides good context for a proposed Amtrak passenger line connecting Pueblo to Fort Collins and Wyoming. That would benefit residents up and down the front range. The location would also be a good connection point for future railroad lines going east or west into the mountains.
The commission also approved five incentive rewards on Thursday. That included $ 844,130 for an aerospace startup looking to build a headquarters, research and development facility, and small satellite factory. The company expects to create 105 full-time jobs with an average annual wage of $ 90,476.
A Denver area company that helps healthcare providers improve efficiency plans to create 250 new jobs in the state with an average annual wage of $ 131,572. It was approved for $ 7.46 million in employment growth incentive tax credits.
An Indian technology company that provides virtual reality systems for training production workers is considering Fort Collins for its US headquarters. The commission granted her $ 494,747 job growth tax credits for creating 54 jobs for an average annual wage of $ 71,676.
A New Zealand software-as-a-service provider is also considering Metro Denver for its US headquarters, creating 144 jobs at an average annual wage of $ 102,049. It was approved for $ 1.69 million in employment growth incentives.
A mobile home manufacturer in Vernal, Utah, is considering Craig for a new manufacturing facility that will create 28 jobs. The EDC approved $ 182,000 in cash incentives for job creation for the company, part of a larger government effort to help displaced coal-mining workers.
Comments are closed.