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August - 2011 Edition: Some information may be out of date.

Business Expansion Spurs Local Manufacturing

Avago Technologies recently announced expansion plans at their facility on Harmony Road. The City is assisting with the expansion through a Business Investment Agreement with Avago. The total investment package relates to revenues the City would not otherwise collect, if the expansion did not occur within the city.

The two performance-based investments include a one-time use tax rebate on manufacturing equipment purchased as part of the expansion, and a personal property tax rebate on the same equipment for ten years.

City Support of Business Expansion

Community members often wonder what can the City do to create jobs and stabilize the economy. Investing in expansion projects like this helps a global company bring key manufacturing back to the United States and our area, and relates directly to City economic strategies found in the Economic Action Plan (PDF) and Plan Fort Collins.

Expansion Details and Projections for New Jobs

Avago is retrofitting an existing building on their property to accommodate wafer fabrication process. Approximately 10,000 square feet will be remodeled and $57.5 million in wafer manufacturing equipment will be brought in. It is estimated that 92 new jobs will be added—consisting of engineers, technicians and operators. An economic impact analysis shows that another 155 spin-off secondary jobs will be needed across the community to support the new positions.

State and local investments are valued at $3.2 million, including some cost reductions offered by Fort Collins Utilities. Read more about the Business Investment Agreement (PDF) from the July 19, 2011 City Council meeting .