Colorado

What Makes Colorado Colorado?

The State of Colorado wants to know – What makes Colorado Colorado? This under the “Making Colorado” initiative, a social branding initiative that aims to tap the wisdom of the crowds to come up with a new brand for Colorado.

Making Colorado

Making Colorado (photo – makingcolorado.tumblr.com)

Instead of hiring a single creative agency for place branding, the state has come up with a platform (makingcolorado.gov) where all Coloradans can submit their creative ideas and thoughts.

This will be a multi-stage five month process, with all the incoming data being filtered by 10-12 creative experts who will be part of the Making Colorado team.

The overall head of the Making Colorado initiative is Aaron Kennedy, Colorado’s chief marketing officer and founder of Noodles & Co. This entire effort aims to fulfill one of the core objectives outlined in the Colorado Blueprint, which is the state’s framework for economic development.

Kennedy says they looked at an array of branding programs before picking successful practices which felt right for Colorado.

“By defining what makes Colorado great, we can preserve all that we love about our state while enhancing the stability, growth and global reputation of Colorado for generations to come,” added Kennedy.

He added that their team had gone to great lengths to ensure a collaborative and inclusive process, and the program’s success now depends on the public support and participation that can be generated.

That we can find out in August, when Gov. John Hickenlooper reveals the results of the five-month long process at the Colorado Innovation Network (COIN) Summit.

In addition to the platform and social elements, the initiative also includes a Making Colorado Brand Council comprised of influential people and representatives from companies that have a vested interest in the Colorado brand. The staff working on the program will be looking at this council for recommendations on critical decisions.

The brand council members include, among others, Hikmet Ersek, CEO of Western Union; Lynne Valencia, vice president for Community Relations at 9News; and Larry Drury, chief marketing officer for First Data.

Another rather interesting aspect is the Making Colorado Youth Ambassador Council. One high school senior will be selected from each of the state’s 64 counties to be a “youth ambassador” on this council, charged with the responsibility of contributing content from their respective hometowns, and providing updates to people back home about the project’s progress.

Site Selection Worries in Colorado Over Abattis Plant

Vancouver, British Columbia -based Abattis Bioceuticals Corp. announced last week that it plans to set up a plant in Boulder, Colorado to manufacture heath drinks. Specifically, the company will be producing a fermented tea called kombucha laced with cannabidiol (CBD), which is a cannabis product.

Abattis Bioceuticals

Abattis Bioceuticals (photo – abattis.com)

Abattis chose the Boulder location for its plant because of supportive laws and the potential market in Colorado and Washington, both states which have legalized medical marijuana.

The company will not require any construction, and will simply be spending $500,000 to install equipment and 10 employees for fermenting and bottling in a ready-to-use 3,000-4,000 sq ft space.

The capital investment and jobs created by the project would seem to bolster the arguments of Amendment 64 proponents who said legalizing marijuana would provide a boost to Colorado’s economy.

A study had estimated that direct annual marijuana sales would add up to $342 million, resulting in $32 million in additional state tax revenues and another $14 million in local taxes.

However, there’s another side to this debate, and it’s not just about the economic benefits vs. the social perils of legalizing marijuana. Colorado is facing uncertainty in terms of site selection, as regards the impact of legalized marijuana on its workforce.

Amendment 64 offers protection to employers by providing them with discretion to prohibit marijuana usage by employees while at work. But they can legally use it when they are not on the clock.

Brandon Coats, a telephone operator for Dish Network, was fired after he tested positive, even though he was a registered medical marijuana patient who posited he had used it only during off-duty hours. Coats filed a lawsuit against the company, and the case is now making its way through the appeals process.

Until the case is resolved, site selectors will have to consider whether corporate drug testing and enforcement policies have the potential for conflict with the state’s new laws.

Meanwhile, Abattis says kombucha is growing in the Canadian market at 40 percent, and they have similar plans in the U.S., starting with the friendly markets in Colorado and Washington. In states where federal laws get in the way of a cannabis-laced health drink, the company may offer a plain kombucha drink minus the cannabidiol.

If the product takes off in the U.S. market as expected, the company says it may add another 20 jobs in addition to the initial 10 positions being created for the new plant in Colorado.

Magpul Looking at TX, WY, NE for Relocation from Colorado

Erie, Colorado-based Magpul Industries, a manufacturer of firearms accessories, had last month threatened to relocate out of the state if Colorado passed House Bill 1224, a law banning standard capacity magazines which Magpul makes in Colorado.

Magpul relocation from Colorado

Magpul relocation from Colorado (photo – Magpul Industries)

Colorado Gov. John Hickenlooper made good on his commitment to gun control by signing three new gun laws last week, including one that bans magazines holding more than 15 rounds.

For its part, Magpul has now announced that it too will make good on its threat to relocate, and said in a Facebook posting that it will manufacture its first PMAGs (holding 30 rounds) outside Colorado within a month.

The company added that they are looking at setting up operations in multiple locations.

“We will likely become a multi-state operation as a result of this move, and not all locations have been selected. We have made some initial contacts and evaluated a list of new potential locations for additional manufacturing and the new company headquarters, and we will begin talks with various state representatives in earnest if the Governor indeed signs this legislation.”

The company’s COO Doug Smith is reportedly planning on meeting with economic development officials from Texas, Wyoming and Nebraska.

Magpul has 200 employees in Colorado, and claims that it contributes $85 million to the state economy. They also claim to support another 400 jobs in their supply chain.

“We could choose to stay in a state that wants our jobs and revenue, but not our products, and lose half the jobs we are fighting to save, or potentially the entire business, when our customers stop buying,” said COO Smith. “Or, we can take the company and those 600 jobs out of Colorado to continue our growth and the growth of American manufacturing in a state that shares our values. This is not really a choice.”

Some of these suppliers have indeed confirmed that they too will follow Magpul to its new location. One of them is Denver-based Lawrence Tool & Molding, which gets more than half of its business from Magpul, and has confirmed that it will also move out of Colorado if Magpul does. Lawrence Tool & Molding has 82 employees in the state.

“It is heartbreaking to me, my employees, and their families, to think that we will be forced to leave,” said Richard Fitzpatrick, founder, president, and CEO of Magpul Industries.

Fort Collins, CO Secures Woodward HQ With $23.5M Incentives

The City Council of Fort Collins, Colorado has preliminarily approved a $23.5 million incentives package to prevent Woodward Inc. (NASDAQ: WWD) from moving out.

Woodward

Photo – Woodward.com

Woodward will be relocating 600 jobs from its other facilities to Fort Collins, and creating another 400 new jobs with average annual wages of $76,000.

This is on top of the 700 existing Woodward jobs that were retained and would have otherwise been moved elsewhere.

Not to mention more than 1,650 construction jobs to build the planned four-phase construction of 944,000 square feet of manufacturing facilities along with office space and retail outlets.

Woodward plans to invest $169 million for the construction and another $50.5 million for equipment.

The company had just moved out of Rockford, Illinois and relocated to Fort Collins in 2007, and made it known last year that it was looking for a new headquarters again. They also claimed to be looking at some 20 sites across the map for the relocation.

One of these 20 sites was in Fort Collins – the Link-N-Greens golf course.  Woodward showed its interest in the 101 acre site in Jan 2013 by providing the city with extensive documentation on its proposed new headquarter plans for the site.

The city moved quickly on it, with the zoning board approving Woodward’s proposal in February. They asked for and got an economic impact study that was prepared by an Austin-based company. The study showed Fort Collins would lose $28.8 million in a decade if Woodward moved out.

The incentives package includes an 80 percent rebate on the expected $4.7 use tax for equipment and construction material, another $2.7 million rebate for capital expansion, and waiver of $300,000 out of the development fee.

The city has also agreed to bear the millions of dollars it will take to move power lines running through the golf course, and also the cost of relocating the Poudre River Trail. Woodward, for its part, will purchase the site next month and give back the city 29 acres for use as open space.

Woodward Inc. manufactures control systems used in the energy and aerospace sectors. It has plants and facilities in 14 countries, including 11 locations in the United States.

Denver Launches JumpStart 2013 Economic Development Plan

Denver, Colorado Mayor Michael B. Hancock launched JumpStart 2013, the second iteration of an economic development plan launched last year to further spur job creation, business development and the building of sustainable communities.

Denver

Denver (photo – denvergov.org)

“To compete and succeed in a global marketplace, it is critical we create an economy that is built to last,” said Mayor Hancock. “Denver supports dozens of major development projects throughout the city and works to boost the region’s primary industries while keeping our attention on growing our small and start-up businesses. JumpStart 2013 features a wide range of innovative strategies that will carry these initiatives forward.”

The 26-page JumpStart 2013 strategic plan identifies immediate steps Denver’s Office of Economic Development (OED) will take this year to bolster business development, community lending, and investment and workforce development. The plan also includes a broader, three-year plan.

Highlights of strategies included in the plan:-

- Economic Development Summit: Host a Denver economic summit and publish a strategy that identifies methods of collaboration.

- Business Investment Program: Initiate and market the new business development and expansion investment tax credit program created through voter-approved Measure 2A.

- Publish a Denver “State of Venture Capital and Business Investment” report.

- Establish a new sustainable energy business program, offering loans for energy efficiency improvements as a recruitment tool to firms.

- Create an Affordable Housing Preservation Strategic Plan to help preserve expiring restrictive affordable housing units.

- Target OED business loan programs to companies providing good, middle-skill jobs.

- Manufacturing Center: Encourage development of a Denver-based manufacturing park for innovative and precision manufacturers.

- Workforce Development – Train and place at least 200 individuals in key sectors (information technology, manufacturing and healthcare).

“We’re taking an intentional, data-driven approach to economic development that is designed to further strengthen Denver’s standing as a world-class city,” said OED Executive Director Paul Washington. “Our plan provides a clear signal to the community as to how we are working to build a stronger Denver, with jobs and housing opportunities for all.”

Read the full JumpStart 2013 plan – Download (pdf)

National Governors Association Report on Advanced Manufacturing

A new report published by the National Governors Association (NGA) chronicles the progress of eight states in preparing new strategies intended to build a foundation for success in advanced manufacturing.

NGA advanced manufacturing report - Making Our Future

NGA advanced manufacturing report – Making Our Future (photo – nga.org)

The report is titled “Making” Our Future: What States Are Doing to Encourage Growth in Manufacturing through Innovation, Entrepreneurship, and Investment.

It was prepared by the NGA Center for Best Practices, with support and collaboration from the U.S. Commerce Department’s Economic Development Administration (EDA) and National Institute of Standards and Technology (NIST) Manufacturing Extension Partnership Program.

“We are committed to supporting American businesses and workers in advanced manufacturing, which will help create jobs and strengthen our economy while boosting our global competitiveness,” said Acting U.S. Commerce Secretary Rebecca Blank. “The Commerce Department is proud to have partnered with the National Governors Association to produce a report that will undoubtedly prove valuable in helping our nation’s governors grow their local economies.”

The eight states whose strategies are outlined in the report include California, Colorado, Connecticut, Illinois, Kansas, Massachusetts, New York and Pennsylvania. Together, these states represent 30 percent of total manufacturing gross domestic product, one-third of U.S. manufacturing jobs and more than 25 percent of U.S. exports of manufactured goods.

Teams from these states participated in an intensive, year-long strategic planning process under the NGA Policy Academy to support advanced manufacturing. The interesting policy aspects developed by each state, and how it fits into an overall pattern of best practices for other states, are described in detail starting from page 21 in the report.

Excerpts below:-

Although the eight states arrived at their agendas independently of one another, their agendas are remarkably similar in key issues and priorities… Four objectives rose to the top across all states as the focus for their strategies:

- Pursue an integrated approach to developing an advanced manufacturing strategy, connecting large and small manufacturers, as well as state, federal, and regional partners;

- Develop and implement industry-driven priorities and partnerships;

- Boost the innovation and commercialization capacities of manufacturers, particularly small and midsized firms, by connecting them to partners, consortia, and a whole system of supports; and

- Provide talent both to fill the immediate specialized needs of employers and to deliver lifelong, industry relevant training for workers at all levels.

Broadly, there were three approaches to strategy development:

- Using statewide councils comprising large, midsized, and small manufacturers(Pennsylvania and Massachusetts);

- Emphasizing a regional, bottom-up process, involving a series of meetings of local public and private stakeholders (Colorado, New York, and California); or

- Assembling, improving, and coordinating activities that are already in progress (Kansas and Connecticut).

“Manufacturing in the U.S. is changing,” said Pennsylvania Gov. Tom Corbett. “It is important that governors continue to learn so they are able to determine the best way forward, ensuring good businesses and jobs for our citizens.”

Read the full “Making” Our Future report – Download (pdf)

Colorado Medicaid Expansion May Create 12,000 Jobs

The Colorado legislature will soon have to decide whether to accept the federal Affordable Care Act offer to expand government health insurance coverage and care in Colorado to uninsured 160,000 Coloradans.

Affordable Care Act

Affordable Care Act (photo – dol.gov)

Coloradans will be eligible if their annual incomes are less than 133 percent of the federal poverty level – this means $30,657 per year for a family of four, or $14,856 per year for individuals.

Federal funding will cover the entire cost of expanding the program from 2014 through to the end of 2016. In 2017,

Colorado will have to chip in with a contribution of five percent of the total cost, and this will increase to ten percent in 2020.

This works out to about $12.28 billion in additional federal funds for Colorado. According to an estimate provided to Colorado Public News by Tom Clark, CEO of Metro Denver Economic Development Corp., this influx of funds would create around 12,000 permanent new jobs.

The jobs would range from medical care personnel to construction jobs and computer support jobs. The state would be spending about $1.2 billion over a 10 year period as its share of the expansion cost.

Out of this $1.2 billion, Colorado tax payers would be responsible for about $128 million over 10 years. It may not even come to that, because the Governor’s office estimates that an additional $280 million in savings can achieved over the same 10 years through cost control and by making Medicaid more efficient.

“We are focusing on transforming our health system to ensure all Medicaid recipients have access to the right services, at the right time, in the right setting and at the right price,” said Susan E. Birch, executive director of the Department of Health Care Policy and Financing (HCPF). “We will reset the cost trajectory of Medicaid by building on the successful work we’ve started with our Accountable Care Collaborative.”

The remaining part of the $1.2 billion would come from provider fees and other health-care revenue streams, such as a fee that is already paid by hospitals to match federal Medicaid funding.

Colorado Gov. John Hickenlooper announced his support for the plan earlier this month.

“We worked diligently over the past several months to find savings in order to expand coverage,” Hickenlooper said. “Not one dollar from the state’s general fund will be used for this expansion, even in 2017 when the federal government begins to reduce its share.”

The state legislature will have to make changes to state law to give HCPF the spending authority for the changes. HCPF will then file a State Plan Amendment with the U.S. Department of Health and Human Services (HHS).

Redwood Trust Expansion to Add 550 Jobs in Douglas County, CO

Mill Valley, CA-based Redwood Trust, Inc. (NYSE: RWT) president Brett Nicholas and Colorado Governor John Hickenlooper jointly announced the expansion of Redwood Trust’s new financial services operations center in Douglas County, CO.

Redwood Trust

Redwood Trust (Photo – snl.com)

The expansion will add 550 jobs over the next five years. These are jobs with an average annual wage of $66,847 per employee, which is 126 percent of the average annual wage in Douglas County.

“Redwood Trust is a significant and welcome addition to Colorado’s financial services industry,” said Gov. Hickenlooper. “Companies like Redwood that are expanding in Colorado help us to improve access to capital, attract investments and fuel the economy across every industry. We are committed to supporting business growth and will do all we can to fuel their success.”

The types of positions that will be hired include managers, residential loan origination and servicing specialists, as well as quality control, human resources, information technology, and other administrative employees. Most of the 550 jobs will be filled in the next two years, with almost 290 positions slated to be filled within a year.

Redwood Trust is based in the San Francisco Bay Area and has plenty of space and excess capacity at his headquarters to expand, but started looking at locations outside the Golden State to keep labor costs low.

Colorado had a leg up in the selection process since Brett Nicholas, a University of Colorado graduate, was well aware of Douglas County’s growing reputation that has recently motivated employers such as Visa to expand operations here.

“We’re excited about the potential to grow in the Denver area,” said Nicholas. “We’ve looked at a number of locations outside California and determined that Colorado’s pro-business environment and the deep mortgage-lending and financial talent pool in Denver would best support the growth of Redwood’s business.”

Not to mention the fact that the company will receive tax credits from Colorado’s Job Growth Incentive Tax Credit. Last month, the Colorado Economic Development Commission (EDC) approved up to $5.39 million in performance-based tax credits for the company.

A number of economic development organizations collaborated with the state to recruit Redwood’s expansion, including the Metro Denver Economic Development Corporation and the Denver South Economic Development Partnership.

“We want to thank and acknowledge the State and our local elected officials for the for their partnership and support in welcoming this outstanding company to the Denver South region and we look forward to Redwood Trust’s success in Colorado,” said Mike Fitzgerald, president and CEO of Denver South Economic Development Partnership.

Visa Tech Center Expansion in Colorado Creates 400 Jobs

Colorado Governor John Hickenlooper announced that Visa Inc. (NYSE: V) will expand its existing Global Technology Center in Douglas County.

Visa

Photo – Visa

Visa anticipates leasing 66,000 square feet of new space in Colorado to accommodate their growth, with approximately $9 million in capital investment.

“We are excited that Visa has selected Colorado for its expansion,” said Gov. Hickenlooper. “This news helps demonstrate that Colorado, with its innovative ecosystem and strong technology base, is a state where business grows and thrives.”

The company will receive tax credits from Colorado’s Job Growth Incentive Tax Credit for the creation of up to 406 new jobs over five years. The jobs are in the IT, financial, and client support sectors, and Visa will be offering average annual wages of $106,000.

Last month, the Colorado EDC approved upto $5.7 million in tax credits for Visa. At that time, the incentives were approved under an economic development project code name without naming Visa, since the company was also looking at sites in Virginia and Utah for this expansion.

“As Visa’s business continues to grow, it is important that we expand our operational capabilities to advance our business,” said Michael Dreyer, Global Head of Technology and CIO, Visa, Inc. “This partnership with the State of Colorado enables us to increase our existing operations with key talent while stimulating the local economy.”

The Denver South Economic Development Partnership with support from the Metro Denver Economic Development Corporation collaborated with the State to help find a home for Visa’s expansion.

“Once again, Douglas County has demonstrated its ability to attract new businesses and expand existing ones,” said Senator Mark Scheffel (R-Parker). “Visa’s decision to expand their operations shows their commitment to the people of the Douglas County and the caliber of our workforce.”

San Francisco, CA-based Visa inc. is a global payments technology company that connects consumers, businesses, banks and governments in more than 200 countries. The company has approximately 7,500 employees around the world, including 700 in Colorado.

Congress Extends Wind Energy Tax Credits for One More Year

The U.S. wind energy industry’s 75,000 workers are celebrating the extension of the wind energy Production Tax Credit (PTC) and Investment Tax Credits for community and offshore projects that was approved by the United States Congress as part of the fiscal cliff deal.

Wind turbines in Colorado

Wind turbines in Colorado (photo – nrel.gov)

The PTC was slated to expire at the end of the year in 2012, and its loss was forecasted to cause a reduction of 37,000 jobs in the wind energy industry.

Congress not only extended the tax credits for a year, but also modified their definition to cover all wind projects that start construction in 2013. Companies that manufacture wind turbines and install them sought that definition to allow for the 18-24 months it takes to develop a new wind farm.

Reactions to the PTC extension below:-

“On behalf of all the people working in wind energy manufacturing facilities, their families, and all the communities that benefit, we thank President Obama and all the Members of the House and Senate who had the foresight to extend this successful policy, so wind projects can continue to be developed in 2013 and 2014,” said Denise Bode, outgoing CEO of American Wind Energy Association (AWEA).

“Not only did Congress extend the Production Tax Credit, it also extended the Investment Tax Credit and Bonus Depreciation. In essence, US Treasury is paying for 30% of the capital costs of a wind project in the US. This amount is hugely significant and infers that the United States is still the No. 1 place in the world to be building, owning and operating wind and solar facilities.” – Jeff Ciachurski, president of Vancouver, British Columbia-based Western Wind Energy

“Now we can continue to provide America with more clean, affordable, homegrown energy, and keep growing a new manufacturing sector that’s now making nearly 70 percent of our wind turbines in the U.S.A.” – Rob Gramlich, AWEA’s new interim CEO.

“Although this deal is not perfect, I am glad my colleagues have acknowledged what I have spoken about regularly on the Senate floor: Wind energy creates jobs and benefits every American. I look forward to continuing to lead the fight for our wind industry and an all-of-the-above energy policy in 2013.” – Colorado Senator Mark Udall.

“We applaud the wind industry and Congress for working together on an extension of the production tax credit. This will give manufacturers, developers and others in the industry the confidence to move forward with new projects. We also continue to encourage Congress to pass a federal energy policy that provides investors and businesses with certainty and levels the playing field among all power sources.” – Phyllis Cuttino, director of Clean Energy Program, Pew Environment Group

“The Sierra Club thanks President Obama and Senators Reid and Baucus for fighting to include an extension of the Wind Production Tax Credit in the final budget package. The extension of this critical tax incentive will put thousands of Americans back to work, and will ensure that the wind industry continues to provide clean, renewable energy to our homes and businesses.” – Michael Brune, executive director of the Sierra Club

“Vestas commends the President and Congress for having agreed to extend the PTC, which confirms the bipartisan U.S. commitment to a balanced, clean-energy portfolio.” – Vestas president and CEO Ditlev Engel.

Turbine manufacturer Vestas’ statement included the caveat that there will be a significant reduction in 2013 wind energy installations relative to previous years due to the late timing of the extension. Vestas had already reduced the company’s workforce in 2012 based on the PTC not being extended.

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