§ 24-46.5-103 — Intergovernmental agreements

Colorado § 24-46.5-103

• Jurisdiction: Colorado
• Title 24: Government
• Art.: Colorado Business Incentive Fund

Text

(1) (a) The state of Colorado
is hereby authorized to enter into intergovernmental agreements with local
governments or the Colorado housing and finance authority, or both, under which
moneys from the Colorado business incentive fund shall be expended for economic
development purposes. No intergovernmental agreement shall be entered into by
the state pursuant to this section prior to the approval of such agreement by the
attorney general of the state as to form. For purposes of this section, the state of
Colorado shall be represented by the Colorado economic development commission
created pursuant to section 24-46-102 and, in addition to any other duties or
powers imposed by law, said commission shall review and recommend to the
governor expenditures of moneys of the Colorado business incentive fund for the
financing of incentives pursuant to this article.

(b) (I) Any entity establishing a new business facility or operation and
participating in this article 46.5 shall give due consideration to the provision of
intrastate air service to all areas of Colorado. The state shall consider each of the
following guidelines in determining whether to enter into an intergovernmental
agreement:

(A) The significance of the support and financial incentives to be provided by
the local jurisdiction in which the new business facility or operation is to be located;

(B) The significance of the number of jobs in the state which are likely to be
generated directly or indirectly as a result of the new business facility or operation
and ancillary facilities thereto;

(C) The extent to which the entity establishing the new business facility or
operation intends to employ Colorado residents at the new business facility or
operation and ancillary facilities thereto;

(D) The extent to which the entity establishing the new business facility or
operation intends to contract with Colorado residents and Colorado-based
companies for services and goods at the new business facility or operation and
ancillary facilities thereto; and

(E) The extent of the public benefits to be derived from the agreement.

(II) The guidelines set forth in subparagraph (I) of this paragraph (b) shall not
be a basis for challenging or voiding all or any portion of any intergovernmental
agreement.

(2) At a minimum, any intergovernmental agreement relating to the
establishment of a new business facility shall be subject to the following
requirements:

(a) No intergovernmental agreement shall be entered into unless there is an
agreement between the local government or the Colorado housing and finance
authority, or both, and the entity which is to establish a new business facility that
the entity will operate the facility for no less than thirty years;

(b) The terms of the intergovernmental agreement shall provide that the
entity shall employ no less than three thousand employees at the new business
facility by July 1 of the tenth year following the effective date of such agreement
for the operation of said facility and that the average annual salaries of all
employees at the facility at the time specified in the agreement shall be at least
forty-five thousand dollars. The terms of such agreement shall further provide for
sanctions, including but not limited to termination of the agreement or any benefits
thereunder, if the entity fails to meet reasonable projections of the rate of growth in
the number of employees.

(c) The terms of the intergovernmental agreement shall provide that the
entity shall employ no less than a total of two thousand employees at ancillary
facilities within Colorado to the facility by July 1 of the tenth year following the
effective date of such agreement for the operation of said facility and that the
average annual salaries of all employees at such ancillary facility at the time
specified in the agreement shall be at least twenty-two thousand five hundred
dollars. The terms of such agreement shall further provide for sanctions, including
but not limited to termination of the agreement or any benefits thereunder, if the
entity fails to meet reasonable projections of the rate of growth in the number of
employees.

(d) An intergovernmental agreement shall provide that the agreement
between the local government or the Colorado housing and finance authority, or
both, and the entity include procedures and remedies to enforce the terms of such
agreement including, but not limited to, the forfeiture of real and personal property
rights and interests or liens upon real and personal property, or both.

(3) Effective January 1, 1992, local governments may enter into
intergovernmental agreements in relation to the establishment of new business
facilities which shall employ a substantial number of new employees receiving an
average annual salary of no less than the average annual salary for such local
government. Said local governments shall apply to the state of Colorado in order to
qualify for financing pursuant to this article; except that no intergovernmental
agreement shall be entered into or financed by the state pursuant to this
subsection (3) if the person or entity which would benefit from such agreement is
establishing a new business facility for which financing could have been received
under the provisions of subsection (1) of this section or has established a new
business facility for which financing was received pursuant to said subsection (1).
The general assembly may appropriate such moneys as may be available for
purposes of funding intergovernmental agreements entered into pursuant to this
subsection (3).

(4) As used in subsections (2) and (3) of this section, salary means the total
compensation paid or stipulated to be paid by the entity to employees, before
deductions, for services rendered while on the payroll of the entity. Salary does
not include any amount paid by the entity on behalf of employees for fringe
benefits, including, but not limited to, contributions for group health or life
insurance, employee retirement, social security, and workers' compensation. For
determining the average annual salaries of the employees at the new business
facility and ancillary facilities, each employee's salary shall only be counted up to
the amount of one hundred twenty-five thousand dollars.

(5) The amount of incentives financed for any person or entity under
intergovernmental agreements under this article by the Colorado business
incentive fund shall not exceed one hundred fifteen million dollars.

(6) Notwithstanding any other provision of law to the contrary, a city, town,
or county, whether home rule or statutory, or a city and county may contribute
moneys for the financing of incentives from the Colorado business incentives fund
pursuant to this section.

Legislative History

Source: L. 91, 1st Ex. Sess.: Entire article added, p. 10, � 1, effective July 5. L. 97: (1)(b)(I) amended, p. 784, � 1, effective May 8. L. 2019: IP(1)(b)(I) amended, (HB 19-1209), ch. 91, p. 337, � 2, effective August 2.