City of Brighton, BURA, Vestas outline sales tax pact at council meeting

BRIGHTON – The City of Brighton and Brighton Urban Renewal Authority will be entering into a sales tax agreement with wind-energy giant Vestas. The agreement, which was approved unanimously by city council on Sept. 18, will allow the corporation to recoup a portion of sales tax from products that are sold within the city. City Manager Manuel Esquibel said now the manufacturing component is in place, there is a potential for them to be able to sell their products on site. “Recognizing that, we sat down with them and said, ‘Hey, if this is the case, then why don’t we begin developing a process so we can start receiving sales tax?’ and at the same time recognize there’s a potential for them to also benefit from this effort as well,” he said.

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The Vestas plant in north Brighton

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Under the agreement, the City of Brighton will receive 2.25 percent of the 3.75 percent total city sales tax generated from Vestas sales, and the corporation will receive 1.5 percent of the total city sales tax.

Assistant Director for BURA Jac Cuney said the agreement was initiated by the city and represents a consensus between the city, BURA, the city attorney, BURA’s attorney, Vestas staff and legal counsel.

“The purpose of this agreement is to share back in the recognition of the substantial investment made by Vestas in Brighton and the continued partnership among Vestas, Brighton City and the Urban Renewal Authority is to share some portion of that sales tax; give a competitive option for the buyer and Vestas to consider when doing a pro forma for a business sale and to eliminate some of the challenges of transferring a product before the buyer is ready,” Cuney said.

He said there is no downside for the city, although there is a potential upside. He said it’s the market that will dictate and drive the potential on the upside.

Mark Buschenfeldt, site selection and real estate administrative services director with Vestas, said the agreement “sets the stage for the future possibility of a win-win” for all parties involved.

Susan Innis, Government State Relations Senior Manager with Vestas, said the agreement has quite a lot of flexibility for Vestas in terms of the different business models their customers use.

“You guys have been reading the news, it’s a very competitive market, so small steps like this really make a big difference for us,” she said. “You know, one, two percentage points in terms of taxes paid on million-dollar wind turbines really make a bid difference so we really appreciate the continued support from the Brighton community.”

 In other business:

• Council voted unanimously to purchase a 1.24-acre parcel of property from School District 27J in the amount of $67,900 for the expansion of Carmichael Park. The land will be sold with no encumbrances, as stated in the purchase and sale agreement, and will be purchased with funds available from the open space fund.
• The heating, ventilation and air conditioning system at the Brighton Police Department will be replaced. Council re-appropriated funds and unanimously awarded a bid for the installation project to the lowest and most responsible bidder, Building Technology Systems, Inc, in the amount of $199,045. The project is a budgeted expense.
• Improvements will be made to Village Square Shopping Center. Council voted unanimously to allow a number of improvements to be made to the property over the next five years, including additional storage and sales area for Bomgaars, resurfacing and adding landscaping to the parking lot and the addition of up to 10,000 square feet to the existing building.
• An application for senior affordable housing assistance and a fee waiver have been approved for the Libretto apartment project. Council voted unanimously to approve the items which would designate six units at 30 percent of area median income, nine units at 40 percent AMI, six units at 50 percent AMI and seven units at 60 percent AMI. The Brighton Housing Authority, developer Marc Hendricks and Brighton Urban Renewal Authority closed on the property on Sept. 17 and a ground breaking is expected in October.
• Parks and Recreation Director Gary Wardle will be submitting a grant application to the Colorado State Historical Fund for the third phase of the Bromley-Hishinuma Farm restoration project. Council unanimously supported the submission of the grant, which asked for $31,500 for the exterior rehabilitation and reconstruction of the farm’s silo.
• JVA Incorporated of Boulder was awarded a design services contract in the amount of $224,300 for the fluidized bed denitrification project. Council awarded the bid 8-1 with Councilman Chris Maslanik opposed.
• Council voted unanimously to approve the first reading of an ordinance which would allow the annexation of a 4.7 acre piece of property known as the 221 Kuner Road Property Annexation into the city for water and sewer service.
• Council voted unanimously to approve the first reading of a zoning change to the Healing Place Property. The ordinance would change the property’s zoning from Adams County agricultural use to City of Brighton zoning designation as public land.
• A special study session has been set for 5:30 p.m. on Oct. 2 to discuss related to water prior to council’s regular 7 p.m. session.
• A budget retreat has been scheduled for 8 a.m. Oct. 5 at Riverdale Golf Course to discuss the budget for the 2013 fiscal year.
• A special study session has been scheduled for 6 p.m. Oct. 16 regarding the regional transit prior to council’s regular 7 p.m. session.