EXECUTIVE UPDATE / September 16, 2005

Intel plans to invest up to $190 million to upgrade its Colorado Springs operation. The investment is part of an upgrade to the second clean room module within the existing Fab 23 structure. Construction on the project is set to begin immediately to enable processing of advanced microprocessors in the second half of 2007. The total expansion is expected to create a few hundred new positions at the facility by 2008. Other employment needs will be met by contract employees and contract construction workers. Currently, there are approximately 900 employees on site at the facility on Garden of the Gods Road. www.intel.com/pressroom. (Source: Intel Corporation.)
The Springs Economic Monthly Indicators for July show more good news, according to local economist Dave Bamberger. For the past several months the message has been mostly mixed but seven of the monthly indicators for July signal good news and only one signals bad news. On an overall basis the local economy is clearly performing much better than in 2001-2004. Economic indicator charts illustrate how far the economy has come from the bottom of the recent recession. Click here to view charts and data comparisons.
Area employers are expected to hire at an active pace during the fourth quarter of 2005, according to the Manpower Employment Outlook Survey. From October to December, 37% of the companies interviewed plan to hire more employees, while 7% expect to reduce their payrolls. Another 56% expect to maintain their current staff levels. “Employers are showing much more confidence about hiring than they were a year ago when 23% of companies surveyed thought employment increases were likely and 20% intended to cut back,” commented Manpower spokesperson Nancy Cruikshank. (Source: Manpower.)
The Downtown Partnership and Nor’wood Development Group recently unveiled their vision for the future of downtown and the initial concepts for Pikes Peak Place, a mixed use building to be developed at the intersection of Pikes Peak Avenue and Nevada Avenue. Using the expertise of an award-winning architectural team and unique green building elements, Pikes Peak Place will feature residential opportunities, office and retail, parking and public community gathering space. “We collectively, as community leaders, need to plan for growth in a way that sets the bar for all future downtown development projects versus just letting that growth happen,” said Chris Jenkins of Nor’wood. Green design elements include improved indoor air quality, garden roofs, building materials that respect biological and technical nutrient flows, and solar panels. For more information, e-mail dharvey@nor-wood.com or call 593-2627.
Referendum C will cost families less than $287 a year if they qualify for four of TABOR’s most realistic refund mechanisms and the average individual will only receive a $25 refund in 2006. Additionally, Referendum C does not in any way affect a state income tax refund. Opponents of Referenda C and D and even some state legislators, claim Referendum C will cost families $3,200 over the next 5 years. This number is incorrect. Find out the facts about Referenda C and D - Contact Annie Oatman-Gardner at Ccyescandd@aol.com or Mike Kazmierski at mjkazmierski@csedc.org.
America has the best system of higher education, according to a Survey of Higher Education in the September 10 edition of The Economist. The Institute of Higher Education at Shanghai’s Jiao Ton University ranks the world’s universities on a series of objective criteria such as the number of Nobel prizes and articles in prestigious journals. Seventeen of the top 20 universities on that list are American. American universities currently employ 70% of the world’s Nobel prize-winners.
The IRS has announced that the optional standard mileage rate has increased by 8 cents for the last four months of 2005. Your business can take an income tax deduction of 48.5 cents for every business mile you travel between September 1 and December 31, 2005 in a company vehicle and allows companies to reimburse employees who supply their own autos for business travel up to 48.5 cents per mile. Click here for more details. (Source: BiggsKofford, Certified Public Accountants.)
City Manager Lorne Kramer will be the keynote speaker at the EDC luncheon, September 22, at The Broadmoor, Colorado Hall. Call (719) 475-6462 for reservations.
Celebrate Technology Awards Dinner and AeA Golf Classic will be held September 30 and October 1. For more information, go to www.celebratetechnology.org.
Making the Work Place Work for Families and Employers will be the topic of the third Employers’ Summit to be held Friday, November 4, at the Antlers Hilton. Participants will learn about innovative employee recruitment and retention strategies and how to incorporate family friendly policies and practices into business plans. Speakers will include Jim Hayes, President Emeritus of Junior Achievement Worldwide and Publisher Emeritus of Fortune Magazine, and Rob Grunewald from the Federal Reserve Bank in Minneapolis. For more information click here.