Fort Collins, Larimer County consider tax breaks for Avago

FORT COLLINS – The city of Fort Collins wants to offer Avago Technologies additional tax breaks as the electronics manufacturer considers either Fort Collins or Taiwan for an expansion.

The electronics manufacturer, which maintains a Fort Collins manufacturing facility, also already operates in Taiwan and other cities worldwide. Avago currently is operating at 4380 Ziegler Road, but is considering expanding in unused space within the facility.

“That is in competition with some of their other international locations for this particular piece of additional production capacity,´ said Josh Birks, economic health director for the city of Fort Collins.

Aiming to keep the 136 jobs projected to be created by the local expansion, Birks wants Fort Collins city councilors to consider a 3-percent tax break on an estimated $100 million in equipment that Avago would buy for the space.

“If we can pull it off, it’s a great coup,” he said. “This is the kind of manufacturing that’s been going overseas in the last decade or so.”

Councilors will consider the proposal at their next Council Finance Committee meeting May 21.

Birks will ask the city to issue a tax break of a total of $3 million over ten years to Avago, which already receives a $1.5 million tax break on its equipment from a previous agreement with the city. Despite losses in equipment tax revenue, the city still would see a net gain in revenue from other taxes on Avago throughout the decade.

Birks approached Larimer County commissioners with a similar proposal Tuesday. He asked the county to grant a tax break of $300,000 annually during a five-year period.

“They generally were open to the idea of us bringing back a formal proposal,” he said.


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