Two local companies are considering investing nearly $30 million combined to expand operations in Colorado Springs and adding almost 700 new high-paying jobs to the community in the coming years.

The Colorado Springs City Council on Monday heard two financial incentive requests that could persuade both companies to grow their companies in the city; the first was a proposed $102,590 sales and tax use rebate over 10 years for an unidentified Colorado Springs-based high-tech small business, code name “Project Star Trek,” considering an expansion that over the next three years would add an estimated 200 jobs, with an average annual wage of $140,000. 

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The second proposed agreement was to provide $82,379 in sales and use tax rebates over 10 years to Colorado Springs defense contractor Infinity Systems Engineering. The company is considering adding 459 jobs to the area over the next decade, with an average salary of $143,625 a year.

“This is another potential big win,” said Bob Cope, Colorado Springs’ economic development officer who will retire from the role Sept. 2 after 15 years of employment with the city. “This is a large number of jobs at very high salaries.”

City staff recommended Monday the council approve, at its regular meeting Sept. 12, resolutions authorizing two 10-year economic development agreements between the city and each of the companies. Both are also considering expanding into other locations, making them competitive projects, staff said.

Project Star Trek, which provides technology services and software products to government and commercial customers, is considering spending $15 million over two years to expand locally. A staff presentation on Monday showed the unidentified company plans to remodel an existing commercial location, mostly of office space and secure facilities.

The company plans to create 200 new jobs as a direct result of expansion, but the project could create 340 jobs indirectly or through induced demand over the proposed agreement term, bringing the total of new permanent jobs up to 540. Another 105 construction jobs could also be created, the city’s Senior Economic Development Specialist Shawna Lippert said.

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Colorado Springs would offer up to $102,590 in incentives for the project, including a $55,510 sales and use tax rebate on the company’s purchase of business personal property like machinery, equipment, furniture and fixtures; and a $47,080 rebate on its purchase of construction materials, a staff presentation shows.

Lippert estimated the agreement would grow the local economy by about $455 million over 10 years and would generate, after incentives, about $4.5 million in new city revenues during that time.

If the company’s current operations remained in Colorado Springs and it also expanded, Lippert said over the proposed 10-year agreement it will result in 729 combined permanent jobs, the local economy will grow by $628 million and it will generate about $6.13 million in new city revenues.

Infinity Systems Engineering provides systems engineering, integration and testing services to major prime integrators and the Department of Defense. Cope said Monday the company, under code name “Project Thoroughbred,” could spend $14.7 million over 10 years to create 459 new jobs in that time. 

The company plans to add a new product line that will incorporate new software using artificial intelligence and machine learning into its systems engineering services. The business expansion requires additional renovated commercial space, Cope told the council.

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Infinity Systems Engineering could create another 780 jobs through induced or indirect demand, for a total of 1,239 permanent jobs. Forty-five more construction jobs could also be created as part of the expansion, Cope said.

The city plans to offer as much as $82,379 in incentives for Project Thoroughbred. This includes $18,160 in sales and use tax rebates for business personal property and $64,219 in rebates for purchases of construction materials.

Cope said this agreement would grow the local economy by about $605 million over 10 years. After incentives over that period, it’s expected to generate around $5.9 million in new city revenues.

Should Infinity Systems Engineering remain and expand in Colorado Springs it will create 1,819 combined permanent jobs, the local economy will grow by $1.14 billion and it will generate about $10.3 million in new city revenues, Cope said.

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The Colorado Economic Development Commission on Thursday approved up to $4.26 million in state tax credits for Project Thoroughbred. 

The proposed financial incentive requests are among a series of economic development announcements in Colorado Springs over the last year that would add 2,300 jobs – many paying significantly more than El Paso County’s average wage of $60,151.

The council is scheduled to formally consider a 10-year agreement with Swiss solar cell manufacturer Meyer Burger at the board’s regular meeting Tuesday. If approved, the city would agree to provide up to $3.04 million in rebates to the international company.