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On Thursday, members of the Joint Appropriations Committee queried Wyoming Business Council officials on the number of jobs involved with the move and the involvement of Cheyenne LEADS, the city's and Laramie County's economic development organization, among other items.

CHEYENNE Key legislators on Thursday had a slew of questions about the proposed $13 million state loan grant package designed to lure a Colorado firearms accessories manufacturer to Cheyenne.

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He asked for information on how much money the state provides where an economic development agency still owns the building.

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Sen. Eli Bebout, R Riverton, questioned the buildings' ownership.

So much for the conservative "invisible hand" free market philosophy. Lets face it under the guise of economic diversity and diversifying the economy, we've allowed corporations to extort money from tax payers. In this case, it's Magpul, which is getting the taxpayers of Wyoming to build them a 100,000 sq foot manufacturing facility all for the benefit of gaining 91 jobs in the state. Do the math. $13 million divided by 91 jobs, equals $142,857 per employee. For the state to recapture that revenue, each employee would need to spend in excess of $2 million for the state to recapture those funds from sales tax. As for the claim that this only happens in Cheyenne, we need only look at Eleutian Technology in Cody, or L Industrial in Gillette, for other companies/communities that have benefited from taxpayer funded grants.

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Wyoming legislators question Magpul incentives

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"We see this as sort of a flagship project," Jensen said. "It brings a manufacturing component that really doesn't exist here in this county and it also attracts other companies."

"Some of the communities in the state need help with keeping their economic development efforts alive," Jensen said.

During that time a larger $10 million facility paid with a $5 million grant and $5 million loan will be built in LEADS' East Business Park in Cheyenne.

The smaller building will be available for another company to rent or buy.

Business Council CEO Bob Jensen said the relocation package for Magpul includes a $5 million loan and an $8 million grant.

"I'm not just picking on Cheyenne," he said. "It happens all over the state: We have the situation with economic development groups; they bring jobs in and end up owning the building and the state kind of is left out," Bebout said.

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Jensen said that is part of the strategy the Business Council employs.

Bebout later said that the economic development money gets concentrated in certain parts of the state. He said he believes some of the money should come back to the state so it can be redistributed.

Sen. Drew Perkins, R Casper, asked if there were any restrictions on whether LEADS, for example, can use money Nike Cortez Lumberjack

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The agency wants the local groups to do some economic development on their own with money from the state grants. The loans come back to the state and the Business Council and to the pool of funds available, he said.

Rep. Steve Harshman, R Casper, the co chairman of the Joint Appropriations Committee, asked why Magpul is locating its corporate office in Texas instead of Wyoming.

Jensen said he wouldn't characterize it as enhancing salaries, but said part of the money that is recaptured could be used to support ongoing economic development operations.

Eli Bebout is clueless when it comes to economic development an how it works. Without the lease payments the local Eco dev groups would have no incentive and no way to operate. I'm not sure how an option to purchase is working, that's clearly contrary to our state laws. That's why they exist and in this case they did their jobs very very well. Passionate views, pointed criticism and critical thinking are welcome. Name Womens Nike Cortez Trainers calling, crude language and personal abuse are not welcome. Moderators will monitor comments with an eye toward maintaining a high level of civility in this forum. Our comment policy explains the rules of the road for registered commenters.

LEADS will also own the larger building. It will pay back the loan from rent Magpul pays on the building, but the company will have an option to buy, Jensen said.

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The move to Cheyenne includes an estimated 91 jobs. Jensen said some of the employees will commute from Colorado while others will move to the capital city.

package, $3 million in grant money will go to LEADS to buy an existing 68,000 square foot building from a private owner to enable Magpul to move to Cheyenne immediately and provide a location for two years.

The proposal is scheduled to go before the council's board of directors on Jan. 31 during a teleconference.

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the sale of property for salary increases.

The Business Council, he added, currently has staff at the Shot Show in Las Vegas, the biggest firearms industry trade show in the nation. Jensen said Wyoming is receiving interest from companies both inside and outside the state.

The legislature funds LEADS and the WYO Business Council and dozens of other business councils throughout the state to bring these businesses here with grants (no repayment) and super low interest loans.

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Erie, Colo. based Magpul Industries announced earlier this month it will move its manufacturing and shipping operation to Cheyenne and its headquarters to a to be determined location in Texas. The company cited new, stricter gun laws in Colorado.

Jensen said the corporate office involves only 10 to 12 people. The decision on Texas isn't final and the company may change its mind, he said.

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