HomeMy WebLinkAbout15075RESOLUTION NO. 15075
A RESOLUTION AUTHORIZING PARTICIPATION BY THE CITY
OF PUEBLO, A COLORADO MUNICIPAL CORPORATION, IN
THE STATE OF COLORADO’S RURAL JUMP-START
PROGRAM
WHEREAS, the State of Colorado has recently enacted the Rural Jump-Start Zone
program (CRS 39-30.5-106) for the express purpose of encouraging economic development in
the rural areas of Colorado; and,
WHEREAS, the City Council recognizes that it would be beneficial to increase economic
development in the City; and,
WHEREAS, the City Council has determined that it is in the best interests of the city to
participate in the Rural Jump-Start program; NOW, THEREFORE,
BE IT RESOLVED BY THE CITY COUNCIL OF PUEBLO, that
SECTION 1.
The City Council of the City of Pueblo supports further investigation and planning
regarding the feasibility of constructing an automated transit network in the City.
SECTION 2.
In the course of this participation, the City of Pueblo does hereby agree to provide
incentive payments, exemptions, or refunds, as appropriate, for 100% of the municipal business
personal property tax imposed on all new businesses that are approved by the Colorado
Economic Development Commission to participate in the Rural Jump-Start program, for as long
as the Colorado Economic Development Commission designates these new businesses as
approved for the Rural Jump-Start program, with the understanding that such tax relief is limited
by state statute to eight years for each new business.
SECTION 3.
The officers and staff of the City are authorized to perform any and all acts consistent
with this Resolution to implement the policies and procedures described herein.
SECTION 4.
This Resolution shall become effective immediately upon final passage and approval.
INTRODUCED: November 28, 2022
BY: Larry Atencio
MEMBER OF CITY COUNCIL
APPROVED:
PRESIDENT OF CITY COUNCIL
ATTESTED BY:
CITY CLERK
City Clerk's Office Item # M12
Background Paper for Proposed
Resolution
COUNCIL MEETING DATE: November 28, 2022
TO: President Heather Graham and Members of City Council
CC: Mayor Nicholas A. Gradisar
VIA: Marisa Stoller, City Clerk
FROM:
Nicholas Gradisar, Mayor
SUBJECT: A RESOLUTION AUTHORIZING PARTICIPATION BY THE CITY OF
PUEBLO, A COLORADO MUNICIPAL CORPORATION, IN THE STATE
OF COLORADO’S RURAL JUMP-START PROGRAM
SUMMARY:
The attached Resolution authorizes the City to participate in the State of Colorado’s
Rural Jump-Start Program.
PREVIOUS COUNCIL ACTION:
Not applicable to this Resolution.
BACKGROUND:
The Rural Jump-Start Zone program (based on Senate Bills 15-282 and 21-229) is a
grant and tax relief program for New Businesses and New Hires which locate in
designated rural, economically distressed areas of Colorado which have created a
Rural Jump-Start Zone. The program offers the following benefits for New Businesses
approved for the program in the City and County of Pueblo:
Grants up to $40,000 on a 3:1 reimbursement basis for business expenses
Grants up to $5,000 per net New Hire in the program
Grant amounts are double that of a normal economically-distressed county
because Pueblo County is a Tier 1 Just Transition Community
Relief from state income taxes
Relief from the state sales & use tax
Relief from county and municipal business personal property tax
Relief from personal state income taxes for the New Hire
This program is jointly administered by the Colorado Office of Economic Development
and International Trade (OEDIT), the Colorado Economic Development Commission
(EDC) and the Colorado Department of Revenue.
The following counties have formed Rural Jump-Start zones:Alamosa, Archuleta, Clear
Creek, Delta, Dolores, Fremont, Garfield (excluding Glenwood Springs and
Carbondale), Huerfano, Las Animas, Lincoln, Logan, Mesa, Moffat, Montezuma,
Montrose, Otero, Phillips, Prowers, Pueblo, Rio Blanco, Rio Grande, Routt, San Juan
and Sedgwick.
This program is a collaborative effort between economic development organizations,
institutes of higher education, counties, municipalities, businesses and employees.
Sponsoring entities include institutes of higher education (IHEs); two- and four-year
public colleges in Colorado and certain specialty schools; and Economic Development
Organizations (EDO). The Sponsoring Entity is a key liaison between the public and
private sectors in each county. Every business which applies to the program must be
endorsed by and apply through a Sponsoring Entity in their specific Rural Jump-Start
Zone. Pueblo County has two sponsoring entities: Colorado State University – Pueblo
and Pueblo Community College.
To participate in this program, a county must be designated as economically distressed
by the EDC. Once designated, the county must pass a resolution to offer tax relief and
be approved by the EDC to participate in the program. Pueblo County has passed such
a resolution and is a participant in this program.
To participate in this program, a municipality must first be in a county that has passed a
resolution and approved by the EDC to become a Rural Jump-Start Zone. The
municipality must also pass a resolution to participate and offer tax relief. No
municipality can be forced to participate in the program, and a municipality is not
enrolled in the program simply because the county is.
A business that wishes to participate in this program must be a new business that is
locating into the Rural Jump-Start Zone. Furthermore, the business must apply to the
IHE/EDO and be endorsed by the IHE/EDO.
Employees who wish to participate in the program must be working for a business that
has been approved by the EDC. Employees must earn at least the county average
annual wage, be a full-time employee spending 80% or more of their work time in the
county and be with the new business for six months to receive benefits.
FINANCIAL IMPLICATIONS:
Under the attached Resolution, the City of Pueblo agrees to provide incentive
payments, exemptions, or refunds, as appropriate, for 100% of the municipal business
personal property tax imposed on all new businesses that are approved by the
Colorado Economic Development Commission to participate in the Rural Jump-Start
program, for as long as the Colorado Economic Development Commission designates
these new businesses as approved for the Rural Jump-Start program, with the
understanding that such tax relief is limited by state statute to eight years for each new
business.
BOARD/COMMISSION RECOMMENDATION:
Not applicable to this Resolution.
STAKEHOLDER PROCESS:
Not applicable to this Resolution.
ALTERNATIVES:
City Council could decide not to increase the funding for this sewer infrastructure
project.
RECOMMENDATION:
Approval of the Resolution.
ATTACHMENTS:
None