Fort Collins council adopts updated business incentive policy

The Fort Collins City Council voted June 2 to adopt Resolution 2026-076 updating the city’s business assistance incentive policy. The measure passed 4-0 and is intended to modernize a policy framework dating to 2013 and 2018 so the city can compete more effectively for employers and targeted retail while keeping future incentive packages subject to separate council approval.

Economic Health Director Sana Kendall said the update is meant to align the city’s business incentives with council priorities around “bolstering a thriving economy.” She said the policy is designed to help Fort Collins attract primary employers that create high-quality jobs, support local spending and respond to competition from neighboring communities. Kendall said the city is currently at a disadvantage because of the kinds of incentives other communities can offer, and described the policy as a way to “level the playing field.”

Kendall said the policy itself is the "what," while later programs and projects will address the "how." She said staff plans to return with follow-up code updates and emphasized that every business assistance package would still come back to council individually. “Council will ultimately be the ones that will decide and approve any of the assistance packages,” Kendall said.

Lead Business Specialist Michael Bussman said the update also creates a framework for retail incentives, which Fort Collins does not currently have. He said the city wants a more proactive approach to recruit retailers that can fill gaps in the local market, reduce retail leakage and generate durable new sales-tax revenue. Among the tools discussed were sales- and use-tax rebates or sharebacks, expedited review, fee waivers or reimbursements, and amortization options for larger projects.

Staff also told council it expects to return Aug. 11 at a work session to discuss a proposed economic development fund, which Kendall said would help put the new policy into practice, including support for small businesses. The newly adopted policy does not itself approve any specific incentive deal; those would require future council action on a case-by-case basis.