Members of the Denver Economic Development Council spoke for the first time about the incentives deal being offered to Republic Airline Holdings to keep rughly 900 Frontier Airlines jobs in Denver. Jeff Romine, Chief Economist for the Denver Economic Council told the Denver Post Wednesday that the city had a "very narrow" set of options due to budget shortfalls that have resulted from the struggling economy.
From the Denver Post:
Republic is reviewing incentive packages from its headquarters city of Indianapolis; Milwaukee, where Midwest is based; and Denver. While Denver doesn't know what is in the other offers, Romine said, "We know our competition's costs are virtually zero. We would have to write down millions of dollars."
Frontier jobs will not apply to Colorado's job-creation tax credits because they do not pay enough.
Many of the incentives proposed will only be valid in Frontier adds jobs.
So, the package that was offered stipulates that the incentives are only valid if the Denver area sees a net gain in jobs. Officials are playing this card as a way of trying to convince Republic leaders that Denver is the right place for long-term expansion of the business, Pettigrew said.
Republic Airline Holdings is expected to make announcement on the matter later this month.