On the same day that the city and Smucker’s announced a new $340 million manufacturing operation in a sliver of Longmont that’s also in Weld County, the Longmont council passed a measure on second reading that would reduce the threshold developments such as Smucker’s would have to pay employees to receive economic development incentives.
City Manager Harold Dominguez confirmed to the Times-Call that the two are related.
Before the ordinances passed the council unanimously Tuesday night, companies received Longmont economic incentives to pay 105 percent of average Boulder County wages.
The Smucker’s manufacturing facility is expected to bring as many as 500 new jobs to Longmont, according to news releases.
However, Boulder County average wages are higher than Weld County average wages, with Longmont average wages in between the two, according to a staff memo to council.
Average wages in Boulder County are $60,710 while in Weld County average wages are $46,644. Longmont is in between with average wages at $51,480, city staff wrote in the memo.
The new ordinance stipulates that when a company is receiving either Bahis Siteleri state or county economic development incentives, the company would need to pay employees 105 percent of the county average wages.
The change affects future developments receiving either state or county economic development incentives that want to build in the area that is both in Longmont city limits and in Weld County.
Under both the old and new ordinance, the city manager or his or her designee can administratively approve fee or tax rebate requests up to $75,000. Requests above $75,000 must be approved by City Council.
One resident, Leo Boohaker, spoke in opposition to the ordinance on second reading on Tuesday.
Boohaker said he had several problems with the ordinance, including his belief that the city was subsidizing large companies at the expense of small businesses. Additionally, Boohaker said allowing Dominguez to approve requests up to $75,000 was essentially “giving him a blank check.”
Mayor Dennis Coombs rebutted Boohaker’s comments during the council’s comments portion at the end of the meeting. Coombs said $75,000 in fee waivers is a small price to pay for 500 new jobs in Longmont.
“That’s a trade I’ll make any day of the year,” Coombs said. “It’s great economics for the city.”
Karen Antonacci: 303-684-5226, antonaccik@times-call.com or twitter.com/ktonacci
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