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Colorado vNet Gets up to $705,000 to Stay in Loveland, Colo.
Maker of lighting and whole-house control systems requests and receives a cash incentive to stay in its home town of Loveland, Colo.
Colorado vNet, Loveland, Colo.
Colorado vNet’s home town of Loveland, Colo., wants to keep the up-and-coming manufacturer of lighting controls and multiroom audio systems.
Last night, the Loveland city council voted 7-2 to pay Colorado vNet $500,000 to stay in town, and to relocate its manufacturing plant there. As part of the agreement, the city also is waiving $10,000 in taxes and fees. If, by the end of 2011, Colorado vNet employs 350 full-time employees, the city will fork out another $195,000.
Today, Colorado vNet employs 81 people, with a payroll of about $6.2 million.
That’s mighty ambitious – quadrupling the firm in four years. “Well, I’ve done it before with the numbers even bigger,” says Colorado vNet founder Bill Beierwaltes, who launched four of his five companies in Loveland. "I think it can be done again."
Before the city council vote, Beierwaltes told me that Colorado vNet wasn’t “threatening” to leave Loveland if the city voted down his request for “relocation expenses.” But he did say, “We’d have to review our options.”
Beierwaltes said that nearby cities were aggressive in luring high-tech companies like Colorado vNet. Boulder, for example, “has already made it abundantly clear that they would treat us well,” he says.
Meanwhile, Loveland “wants to get back in the tech sector,” Beierwaltes says. The city recently lost Agilent Technologies, which was a big blow to the community, he adds.
I spoke to Beierwaltes yesterday after the vote, and he said much of the dicussion at the city council meeting centered on the potential of the home-control industry. “They tend to believe in what could happen,” he says.
Founded in 2002, Colorado vNet makes lighting and automation systems, including whole-house audio products.
It’s not unusual for cities and states to spend big bucks to attract certain types of companies, especially of the high-tech variety.
Typically, I’m not a big fan of these arrangements. For example, I’d like to see the Mall of America double in size (Oh how I love shopping), but as a Minnesota taxpayer I don't care to foot the bill for the privilege of letting developers make their profits here.
Still, I can’t begrudge Colorado vNet for trying. If Loveland wants to pay the company some $705,000 to stay put, then good for them! Maybe that windfall will translate into more R&D, better service, and other perks that could trickle down to Colorado vNet dealers. What’s good for Colorado vNet is good for us.
Local citizens have mixed opinions about Colorado vNet’s position. The following are some of their comments posted with a story by the Reporter Herald.
Last night, the Loveland city council voted 7-2 to pay Colorado vNet $500,000 to stay in town, and to relocate its manufacturing plant there. As part of the agreement, the city also is waiving $10,000 in taxes and fees. If, by the end of 2011, Colorado vNet employs 350 full-time employees, the city will fork out another $195,000.
Today, Colorado vNet employs 81 people, with a payroll of about $6.2 million.
That’s mighty ambitious – quadrupling the firm in four years. “Well, I’ve done it before with the numbers even bigger,” says Colorado vNet founder Bill Beierwaltes, who launched four of his five companies in Loveland. "I think it can be done again."
Before the city council vote, Beierwaltes told me that Colorado vNet wasn’t “threatening” to leave Loveland if the city voted down his request for “relocation expenses.” But he did say, “We’d have to review our options.”
On another note...the Reporter Herald shows Bill Beierwaltes with this handheld device running a Colorado vNet application. It looks suspiciously like a Nokia N800, one of the hottest new handhelds for home control. Perhaps we'll see a demo at EHX Spring 2008, March 12-15 in Orlando. Colorado vNet is at booth 612.
Beierwaltes said that nearby cities were aggressive in luring high-tech companies like Colorado vNet. Boulder, for example, “has already made it abundantly clear that they would treat us well,” he says.
Meanwhile, Loveland “wants to get back in the tech sector,” Beierwaltes says. The city recently lost Agilent Technologies, which was a big blow to the community, he adds.
I spoke to Beierwaltes yesterday after the vote, and he said much of the dicussion at the city council meeting centered on the potential of the home-control industry. “They tend to believe in what could happen,” he says.
Founded in 2002, Colorado vNet makes lighting and automation systems, including whole-house audio products.
Paying to Play
It’s not unusual for cities and states to spend big bucks to attract certain types of companies, especially of the high-tech variety.
Typically, I’m not a big fan of these arrangements. For example, I’d like to see the Mall of America double in size (Oh how I love shopping), but as a Minnesota taxpayer I don't care to foot the bill for the privilege of letting developers make their profits here.
Still, I can’t begrudge Colorado vNet for trying. If Loveland wants to pay the company some $705,000 to stay put, then good for them! Maybe that windfall will translate into more R&D, better service, and other perks that could trickle down to Colorado vNet dealers. What’s good for Colorado vNet is good for us.
Local citizens have mixed opinions about Colorado vNet’s position. The following are some of their comments posted with a story by the Reporter Herald.
I used to work at Colorado Memory Systems—one of the successful businesses that Bill founded and lead. I would work at one of his business again in a heartbeat because of the way he treats his employees. An earlier comment noted that everything Bill touches turns to gold—this is true. He is smart, inspires people to do their best, and gives back to the community. We should welcome him to Loveland.
Janet, Loveland, CO 2/1/2008 5:50:18 PM
I would suggest to the council members that they look at the industry Colorado vnet operaate inside of. Historically few companies in the "home automation" market ever gain the size and scale that they claim to be able to reach let alone in the time frame mentioned. As a sales orginization, how many of these jobs will actually be based in Loveland?
Past Employee, Loveland, CO 2/1/2008 3:16:04 PM
I think this company is exactly the type of homegrown primary employer Loveland needs to support. However, to what degree? How can the City Council justify paying a company to move out of one struggling area of town without some plan for mitigation. The Council says they support downtown, but then continues to work against it. Are they really supporters of the free market?
Tyler Durden, Loveland, CO 2/1/2008 9:32:27 AM
Approval of this proposal would be a very positive move for the city of Loveland. Everything that Bill Beierwaltes touches turns to gold. Loveland needs that type of business and work ethic that comes with a business run by Bill Beierwaltes.
Gloria, Loveland, Colorado 2/1/2008 9:31:13 AM
Is this for real? What a crackpot. Am I the only one who has noticed all the businesses that want to beg more money than they've ever made from local gov'ts?
They should tell this guy to pound sand,
Tricky , loveland, co 2/1/2008 7:07:44 AM
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About the Author
Julie Jacobson, Editor-at-large, CE Pro
Julie Jacobson is co-founder of EH Publishing and currently spends most of her time writing for CE Pro, mostly in the areas of home automation, networked A/V and the business of home systems integration. She majored in Economics at the University of Michigan, earned an MBA from the University of Texas at Austin, and has never taken a journalism class in her life. Julie is a washed-up Ultimate Frisbee player with the scars to prove it. Follow her on Twitter @juliejacobson.
4 Comments (displayed in order by date/time)
Where is Ron Paul when you need him?
Yes, Ron Paul is the only presidential candidate (and possibly the only Congressman) who actually considers the Constitution in his decisions and actions. In my opinion, he is the only presidential candidate who could take the oath of office for the Presidency (swearing to “uphold the Constitution”) without perjuring himself in the act of taking the oath.
I think Loveland definitely made the right decision in giving the money to Colorado Vnet. This way Loveland is potentially gaining 219 families (tax-payers) instead of losing 81. Not to mention that these are well paid people who will spend more money than the average Joe. Any intelligent person or smart-thinking entity would have made the same decision. And as far as Bill Beierwaltes goes, good for him. That was a great business move.
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I’m sure Bill Beierwaltes is just being a “practical” business guy and trying to do the right thing for his company, but I wish he would instead think about principles and reconsider.
Tax breaks are one thing—and I fully support tax breaks for businesses because corporate taxes ultimately get passed to the consumer. Supposed taxes on business are just another way of taxing people without people realizing they are being taxed. However, all businesses should be given tax breaks—not just a select few picked as “winners” by the government.
Going directly after public money is another matter, and in fact, DO begrudge him for trying and hope the city (and any city he goes to thereafter) does the right thing and sends him packing!
The money he is going after is taxpayer money. He is asking the council for a blatant wealth transfer. For anyone who feels their tax money is involuntarily expropriated (i.e. stolen), Colorado vNet is not only complicit in the thuggery, they are aggravating and promoting it. I think anyone who goes after public grants or solicits public money is no better than a welfare recipient. At least with welfare, it’s not something to be proud of. Grant seekers, on the other hand, go around braggging to people “I’ve applied for this . . . ” or “I got that . . .” I sit there with a knot in my stomach thinking “why should my hard earned money be expropriated from me for your pet project?” This is not the proper role of government.
Dawn