After four years of uncertainty, Colorado Springs businesses got an answer on whether the U.S. Space Command, its 1,200 employees and $1 billion in annual economic impact will remain in southern Colorado when President Joe Biden on Monday canceled its move to Alabama.

The long-awaited announcement, reversing the move to Huntsville, Ala., ordered in January 2021 by former President Donald Trump two weeks before he left office, will allow military contractors, aerospace companies and others who provide products and services to the command to firm up plans on where they might expand, economists and industry officials said. Those decisions could come as quickly as a few weeks but probably will play out over several years.

Solar cell manufacturing facility planned for Pikes Peak region with more than 350 jobs

“This decision makes Colorado Springs more attractive to current and future businesses. Everybody can now get on with making decisions and plans,” said Seth Harvey, CEO of Bluestaq, a Colorado Springs-based defense technology contractor with 100 employees. “It also makes this community more attractive and desirable to startups (in aerospace and space). There will be a greater pull to attract the next (aerospace and space) entrepreneurs and startups to Colorado and Colorado Springs.”

The command was revived in 2019 at Peterson Space Force Base as its temporary home, but the Department of Defense immediately began a selection process for the headquarters that initially picked Colorado Springs.

However, the Pentagon, facing political pressure, reopened the process that later led to Trump selecting Huntsville for the headquarters, triggering two government investigations over the decision and the drawn-out process reversing it.

Space Command employs about 1,200 service members from across the military branches to defend an area starting 62 miles above the Earth. It is separate from the Space Force, which is charged with organizing, training, and equipping guardians to carry out the Space Command mission. Trump ordered the standup of Space Force and Space Command.

Colorado Springs also is home to another joint command, Northern Command, that is responsible for defending North America and includes the U.S.-Canadian North American Aerospace Defense Command.

Robert Beletic, aerospace and defense manager for the Colorado Office of Economic and International Trade, said the agency is working with several aerospace companies and military contractors that are considering whether to bring thousands of jobs to the state.

He said many companies and contractors already are based in or have operations in Colorado to “be near where they (the military) formulate requirements” for weapon systems and services the military wants.

“How much of that will occur, I can’t speculate. But being near the command is important,” Beletic said. “Space Command is part of a greater (military space) ecosystem in Colorado. It is difficult to quantify the impact, but a lot of our leads bear fruit.”

Biden’s decision to keep the command in Colorado Springs may already be producing results. Dan Jaworowski, president of Colorado Springs-based Infinity Systems Engineering, said the decision “definitely is influencing our expansion plans,” especially where the expansion will happen.

He said the expansion involves a new product line but declined to provide further details about those plans, because the company hasn’t yet made its decision on a location.

“This (Biden’s) decision keeps a lot of talent in Colorado Springs and brings more (talent) here, making this market more attractive to us and our peers,” Jaworowski said. Infinity is negotiating with local and state officials about the planned expansion, he said.

“The decision is timely for us and is a variable we will consider. It tips the scales more toward Colorado than other locations,” which also included Huntsville and several other cities he did not identify.

Infinity employs 220 people in Colorado Springs and 65 in nine states and five international locations to provide engineering services for mission and space operations to the Space Operations Command and other military organizations.

For some companies like Colorado Springs-based Delta Solutions & Strategies, the nation’s prime contractor of the year with a $187 million contract with Space Command, Biden’s decision meant keeping hundreds of employees in Colorado Springs.

Mark Stafford, Delta’s president and CEO, said more than 200 of his employees had their long-term plans in flux for the past couple years, over whether they would move to Huntsville or stay in Colorado Springs. Those workers will stay here and the company will move forward with a 10,000-square-foot expansion of its headquarters.

“Those 200-plus people sit with the government every day,” Stafford said. “So, part of our contractual requirement is for those people to be embedded with the government personnel they support both active-duty, reserve guard.”

Fourth Sprouts location debuts in revitalized area of Colorado Springs

Delta creates military training products and modeling simulations, and won the $187 million contract nearly a year ago, making the company’s work in lockstep with U.S. Space Command as its primary contractor.

Stafford said the company will add employees in personnel, contracts, finance, security and recruiting as a result of the command’s headquarters permanently remaining in Colorado Springs.

Tom Dickson, president of aerospace and defense contractor Boecore, said the company has been growing faster in Huntsville than in Colorado Springs, where more than half of Boecore’s 400 employees are based.

But Space Command’s location is a factor in Boecore continuing to invest in Colorado Springs. ?For example, Boecore completed a series of acquisitions during the past year, including a local satellite and communications firm.

“Having them (Space Command) here just reinforces what a great community Colorado Springs and Colorado is overall for space-based companies,” Dickson said. “Space is probably the No. 1 targeted area for which we’re trying to grow.”

Boecore works with operational military units more than Space Command, Dickson said, but access to military leaders in Colorado Springs and networking within the city’s aerospace and defense ecosystem is invaluable.

“They get the leaders to come to luncheons and do briefings …,” Dickson said. “And if they’re not here, that just doesn’t happen.”

O’Neil Group, a major investor in Bluestaq that also owns the Catalyst Campus development near downtown that houses many aerospace and technology startups, probably will shift its expansion focus more toward Colorado Springs.

The company also operates other campuses in Ogden, Utah, and near Washington, D.C., and had been considering a fourth location in Huntsville but probably instead will expand in Colorado Springs and possibly Florida, said O’Neil Group CEO Kevin O’Neil.

“This creates more opportunity for growth; what it looks like is to be determined,” O’Neil said. “We have had multiple conversations about where to grow. We had been studying coming to Huntsville, and we had a partner and support from the city. This allows us not to have to move forward with those plans and we could instead open a campus in Florida, move our D.C. facility to a better location or expand here. With the command here, there is more activity and a greater ecosystem to support.”

O’Neil said Catalyst Campus is submitting bids to host two new research laboratories planned by Space Command focused on space domain awareness and surveillance, reconnaissance and tracking.

He said winning either bid would trigger expansion at Catalyst’s Colorado Springs location.

Keeping Space Command in Colorado Springs also could mean that aerospace and defense companies in Huntsville may have to consider expanding to Colorado Springs instead of Colorado Springs companies studying whether to expand to Huntsville, O’Neil said.

Jessie Kimbers, vice president in defense development for the Colorado Springs Chamber & EDC, said the Space Command decision has impact on economic development beyond Space Command personnel and space industry jobs.

“For every new employee, or new mission that gets picked up, you’ll see impacts across all of our sectors,” Kimber said. “Folks need housing, folks need to eat out, folks need all those variety of services that come with relocating.”

That’s why Kimber said the chamber prioritizes jobs with competitive wages and is concerned about affordable housing options.

“We can bring business in here,” Kimber said. “But if folks can’t find attainable or affordable housing, then it’s kind of a nonstarter.”

Tatiana Bailey, executive director of Data Driven Economic Strategies, a Colorado Springs nonprofit focused on economic and workforce research, said keeping the command’s headquarters here will help entrepreneurs and investors be more confident in starting and expanding businesses in Colorado Springs.

Biden’s decision also means the local economy avoids the loss of the command’s 1,200 employees, defense contractors and restaurants, retailers and others that serve those workers.

“It really opens up opportunities for subcontractors who depend on government spending and solidifies their confidence level. Would you relocate or expand here for a temporary headquarters? Now that the location is permanent, business expansion is a distinct possibility,” Bailey said. “The main impact is that we avoided the downside. The potential is huge. All of the investment (by businesses) hasn’t materialized yet. Those who were on the sidelines were waiting for this decision.”

Colorado Springs-area housing market: Reversal of fortune continues

Gary Horvath, a Broomfield-based economist, said winning the command’s permanent location “will mean a lot for (Colorado’s) economy and makes a statement that Colorado is a player in aerospace. There is such a strong aerospace and defense industry in Colorado Springs and Colorado has the largest number of aerospace employees per capita (person) in the nation. The aerospace industry is a big part of the culture and economy of the state.”

Joe Craig, interim director of the University of Colorado Colorado Springs Economic Forum, said keeping the command’s headquarters at Peterson is “great for the overall economy, especially since the jobs with the command are higher-paying positions. He is concerned, however, that military contractors may still be reluctant to make major investments in Colorado Springs with Alabama politicians saying they will fight to get Congress to overturn Biden’s decision.

Colorado Springs Chamber & EDC will host a public celebration for officials, military leaders and business owners for keeping the permanent headquarters of U.S. Space Command in Colorado Springs.

Monday, August 7, 5 to 6 p.m. at America the Beautiful Park Sen. Michael Bennet, Sen. John Hickenlooper, Rep. Doug Lamborn, Gov. Jared Polis, Mayor Yemi Mobolade, City of Colorado Springs, and Commissioner Stan VanderWerf, El Paso County will speak.