Crocs gets tax incentive for new Broomfield HQ

BROOMFIELD — Crocs Inc. (Nasdaq: CROX), the maker of iconic casual footwear, will receive a 10-year tax incentive when it relocates its headquarters to Broomfield.

Broomfield City Council approved an agreement Tuesday evening that provides a 50 percent rebate on the company’s personal property taxes. The value of the rebate over 10 years is $70,929.

Crocs announced in February plans to move from its current 98,000-square-foot Niwot headquarters at 7477 East Dry Creek Parkway. The company expects to occupy its new headquarters in 2020.

SPONSORED CONTENT

Empowering communities

Rocky Mountain Health Plans (RMHP), part of the UnitedHealthcare family, has pledged its commitment to uplift these communities through substantial investments in organizations addressing the distinct needs of our communities.

The new headquarters encompasses 88,000 square feet and is located at 13699 Via Varra Road. Crocs said the building is more convenient and centrally located for the company’s employees, providing easy access along the U.S. Highway 36 corridor, restaurants, shopping, trails and other amenities.

The building is part of Atria, a two-building project built by Etkin Johnson Real Estate Partners. Crocs has leased the space for an initial term of 10 years, with two five-year renewal options. Crocs has selected Denver-based Venture Architecture to design the workspace.

As part of the newly approved agreement with Broomfield, Crocs will employ at least 420 people at the new headquarters for the entire term of the incentive.

Councilman Mike Shelton did not support the agreement.

He acknowledged that the rebate does not represent a huge amount of lost tax revenue for the city and county, but also noted it’s also just a drop in the bucket for a major company like Crocs.

“I think the role of government should be making deals like this,” he said.

The deal is “unfair to all of the other businesses that are already here,” Shelton said. “They don’t get a break like this.”

Other Broomfield leaders countered by noting the importance of adding a large employer to the city’s economy and tax base. In addition to Croc’s discounted personal property taxes, the owner of the company’s headquarters facility is expected to pay about $363,000 annually in

ad valorem property taxes, according to Broomfield city documents.

“We really rely on our commercial [tax] revenue to provide the services our residents enjoy,” Councilwoman Guyleen Castriotta said. “… If it wasn’t for our robust economic income, we’d have to close down schools and fire districts.”