The Redwood Trust financial institution is expanding to Douglas County, Gov. John Hickenlooper has announced.
The California-based company chose Colorado for its new financial services operations center after Colorado offered economic incentives worth as much as $1.1 million.
The offer came at the recommendation of the Denver Economic Development Commission, which reached a deal with Redwood Trust in less than two months, said Lynn Myers, vice president of economic development, Denver South Economic Development Partnership.
The partnership worked with Redwood Trust as it decided whether to expand in California or select another location with a lower cost of doing business, Myers said.
“It happened very quickly,” Myers said. “The company was very well organized. We were fortunate enough that they chose us.”
Redwood Trust qualified for Colorado’s job-growth incentive tax credit, which offers a rebate of up to 50 percent of the state’s FICA tax, Myers said.
To qualify, a company must be bringing in jobs that pay at least 110 percent of the local average annual wage.
Redwood Trust estimates its average wage will be $66,847, which is 126 percent of Douglas County’s average annual wage. If Redwood Trust performs as promised, bringing in 552 jobs over the next five years, its tax credits will be slightly more than $2,000 for every new employee, Myers said.
The company selected an Inverness location for its expansion, aiming for a commuting location convenient to Interstate 25, with parking and amenities that would draw the mortgage talent Redwood Trust is looking for, said Mike McMahon, Redwood Trust spokesman.
Redwood Trust buys mortgage for investment, and securitization, McMahon said.
“We are excited about coming to Colorado,” he said. “We are thrilled about the reception we received, from the governor of all things, and we feel very welcome. We hope to be a good employer and meaningful participant in Colorado, which without question is one of the more beautiful states.”