Agilent agrees to expand data and technology centers in Springs
California-based Agilent Technologies is moving forward on a $121 million, 55,000-square-foot expansion at its northwest side campus after inking an economic development agreement with Colorado Springs that calls for the company to receive $656,000 in city incentives.
The 15-year agreement was signed by Agilent on Sept. 15, said Bob Cope, an analyst with the city’s Economic Development Division. The City Council had approved an incentives package for the company in May.
The deal hasn’t received as much fanfare as one the city entered into with Wal-Mart, which calls for the retail giant to construct a data center on the Springs’ north side. That’s possibly because Wal-Mart issued a news release at the time it decided to move forward in July; at that time, Agilent still was analyzing its project and then didn’t announce its decision to sign the agreement with the city.
Nevertheless, city officials say Agilent’s decision to build a 20,000-square-foot data center and 35,000-square-foot technology center will provide a similar-sized economic boost to the Springs as the Wal-Mart project, while enhancing the company’s local presence.
The overall economic impact to the community of Agilent’s investment — in terms of construction, wages paid to new employees and taxes collected by local governments — would total about $711 million over the life of the deal, according to a Gazette analysis of figures assembled by the city.
“They’re a great company, they provide great jobs,” Cope said. “It would further anchor them to the community and we’d be optimistic that this would be a turning point and it would become a growing campus.”
Amy Flores, a spokeswoman in Agilent’s California headquarters, said Friday the company was “very pleased” with the deal.
“We think it’s a win for both Colorado Springs and Agilent,” she said.
Flores didn’t have a timetable on when construction would begin on the data and technology centers, although she said the first phase is estimated to cost $35 million through 2015. The projects will be constructed within existing structures at Agilent’s 555,000-square-foot campus, which covers 116 acres along Garden of the Gods Road.
Based on information city officials provided to the City Council in May, Agilent will add 131 full-time employees over the 15-year deal with the city and pay them an average annual salary of $74,000. On Friday, Flores said the project will result in new jobs, but she didn’t have a specific headcount.
Agilent looked at a number of sites for the data and technology centers, but chose the Springs because of the incentives offered and the city’s quality workforce, Flores said.
As part of the agreement with the city, Agilent will receive sales-and-use tax rebates on building materials it buys locally that are used in the construction of the data and technology centers, as well as sales and use tax rebates on building equipment bought locally. Agilent also will receive a rebate on the city’s personal property tax, which is levied on machinery and equipment.
City officials have said the incentives are performance-based; Agilent only receives them if the company proceeds with its project.
Agilent was spun off from technology giant Hewlett-Packard in 1999; HP’s history in Colorado Springs dates to the early1960s. Today, Agilent manufactures test and measurement equipment in the Springs that’s sold worldwide.
