Manufacturer receives incentive offer

LOUISVILLE – A sporting goods manufacturer based in Broomfield is considering moving to Louisville and is being offered a package of incentives to ease its relocation.

The Allen Company Inc., which makes sporting goods for hunting, fishing and other outdoor activities, has been offered a tax-rebate deal from Louisville to relocate to a 19.73-acre site in the Colorado Technology Center.

The company, which is based in Broomfield at 525 Burbank St., employs about 150 people and plans to expand to 225 in five years, according to a memo prepared for Louisville City Council outlining the inventive package.

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Calls to the Allen Company were referred to company president George Cavanaugh, who could not be reached before the Business Report went to press Sept. 13.

The Allen Company was founded in Broomfield in 1971 with two or three employees, Cavanaugh told Louisville City Council in June when the incentive package was approved. It is outgrowing its space in Broomfield, which is approximately 200,000 square feet.

If the Allen Company moves to Louisville it would be one of the eight largest employers in the city, the Louisville planning memo said. The city council unanimously approved the incentive proposal in June.

Building plans filed with the city indicate the Allen Company plans to build two industrial buildings totaling 313,290 square feet on an assemblage of five lots on the southwest corner of Boxelder and S. 104th streets.

Buckeye Investments LLP, a company registered to Cavanaugh, is listed as the applicant on the plans.

While Louisville has approved the incentive package, and the preliminary site plan has been approved, the company has not yet committed to moving to the city, Louisville Economic Development Director Bonnie Star said.

Louisville expects the company will invest more than $10 million in core and shell construction and tenant improvement costs, according to the memo for the tax incentive.

Another company registered to Cavanaugh, CTC Properties LLLP, is pursuing a $7.5 million loan from the Colorado Housing and Finance Authority. The money is earmarked for construction of an owner-operated manufacturing facility in the Colorado Technology Center.

The loan would be issued as part of a CHFA bond program intended to help businesses build or expand manufacturing facilities, said Masouda Omar, manager of the CHFA business lending team.

The bonds are privately placed with a bank or investor or backed by a letter of credit. About three or four companies receive loans from the program each year, Omar said.

A public hearing is scheduled for 2 p.m., Wednesday, Sept 21, at CHFA offices at 1981 Blake St. in Denver to review the proposal.

The financing process also is in the early stages, Omar said.

“This is more or less to start the clock for them,” she said.

The tax incentive package from Louisville would give the Allen Company a 50 percent rebate on the building use tax for construction materials, which the city estimated could be worth $75,750. It also is offering a 50 percent rebate on building permit fees, which has an estimated value of $47,500.

The deal is contingent on The Allen Company moving into the facility by Dec. 31, 2012, and remaining in business there for at least three years. It does not include provisions requiring the company to keep a certain number of employees on its staff.