Glenwood Springs gives construction a boost
Glenwood Springs, CO Colorado
GLENWOOD SPRINGS, Colorado ” City Council approved the tier two economic incentive program, designed to spark local construction projects, at its regular meeting last week.
The city already has an incentive program in place where contractors can qualify to receive a sales tax rebate for up to 20 percent without being required to use any local labor or suppliers in the project.
The additional tier two provides added incentive for contractors by allowing them to qualify for up to an 80 percent sales tax rebate if they use between 25 and 50 percent of local contractors and suppliers in the construction of the project.
“This represents an effort by the city to encourage projects that are very close to being able to be done, but are not quite there,” said City Manager Jeff Hecksel.
Rebates could be applied toward such city-imposed fees, costs and taxes as water and sewer system improvement fees, fire and emergency service impact fees, or costs incurred for extension of the city’s electric lines. Building fee and city-required public improvement rebates would only be available for tier two applicants.
Contractors who can provide documentation that 25 percent of the project cost went to local materials and supplies, excluding land, would be eligible for up to 40 percent of the eligible sales tax rebate.
If they can provide documentation of 50 percent then the contractors would be eligible for up to 80 percent of the eligible sales tax rebate associated with the project.
“We are saying that if you want to do construction in Glenwood Springs, we will accelerate the rebate substantially but, in exchange for that, you have to use either local suppliers or local labor for a large percentage of it on the project,” said Mayor Bruce Christensen.
Christensen said that the program is designed to accelerate the rebate program. The existing program provides up to 20 percent of the fees rebated annually for up to five years, where those who qualify for the tier II program will receive the rebate much faster.
“What we are trying to do is accelerate that rebate so that people can recover that faster because of the economic climate,” Christensen said. “But in exchange for that we are saying that you have to do some of your business in Glenwood.”
All applications must be made to the city’s director of finance on or before July 15 of the following year for which the tax rebate is being applied. Tier two applications will only be accepted from May 22, 2009, to July 15, 2010.
The struggling local economy is the reason behind the additional incentive program. The city hopes that this will spark more business for the local construction industry.
“I think it’s a really good thing for us to be doing right now,” Christensen said.
Contact John Gardner: 384-9114
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