Magpul Gets Millions In Incentives To Leave Colorado

Colorado-based gun accessory maker Magpul.

Colorado-based gun accessory maker Magpul.

As the Denver Post's Carlos Illescas reported yesterday:

Magpul Industries threatened to leave Colorado after the legislature passed a measure banning weapons magazines with more than 15 rounds.

And now that is official.

The Erie-based ammunition magazine manufacturer said Thursday it is relocating its operations to Cheyenne and Texas.

Most of the 200-plus employees will [NOT–Pols correction] be moving to Wyoming, where manufacturing and distribution will take place, said spokesman Duane Liptak.

From plastic ammunition magazine maker Magpul's press release:

The company is relocating manufacturing, distribution and shipping operations to Cheyenne, Wyoming. Magpul is leasing a 58,000 square foot manufacturing and distribution facility during the construction of a 100,000 square foot build-to-suit facility in the Cheyenne Business Parkway. The Wyoming relocation is being completed with support from Governor Matt Mead, the Wyoming Business Council and Cheyenne LEADS.

"Moving operations to states that support our culture of individual liberties and personal responsibility is important,” says Richard Fitzpatrick, Chief Executive Officer for Magpul Industries. “This relocation will also improve business operations and logistics as we utilize the strengths of Texas and Wyoming in our expansion.”

Erie-based Magpul originally vowed to leave the state during debate over last year's House Bill 1224–legislation limiting the capacity of magazines sold in Colorado to 15 rounds. Their threat to leave was originally a negotiating chip for Republican opponents of the law, but became a retaliatory act once the bill was signed into law. Months dragged on, leading to news reports noting their lack of action to move out of Colorado as threatened. It's worth restating that nothing in House Bill 1224 prevents the manufacture of high capacity magazines in Colorado, only their retail sale to the general public. But Magpul, unlike their defenders in the legislature, was always honest about the fact that they were leaving the state to "defend principle"–not for any real economic reason created by the state's new gun safety laws.

Well, folks, as it turns out, there is an economic motive–but the Denver Post curiously omitted it.

Randy Bruns, CEO of Cheyenne’s economic development organization, said it is working with Magpul on a financial package that could include up to $13 million in state grants and loans to help the company move to Cheyenne. [Pols emphasis]

For Magpul, the passage of House Bill 1224 was an opportunity, not a crisis. Our understanding is that this company is no stranger to taxpayer-funded business incentives. And now, with the pretext of "defending principle" in hand, Magpul is leaving Colorado to custom build a new 100,000-square-foot manufacturing plant in Cheyenne with millions of dollars in Wyoming state grants and loans. Apparently they're going to get more taxpayer money from Texas Gov. Rick Perry to build a corporate headquarters in north Texas.

Far from a hardship, could be the most profitable "crisis" in Magpul's history! We think that detail, and maybe the fact that this is the manufacturer of the high capacity magazines used in the Newtown school shootings a year ago, should be included in these stories about Magpul leaving the state. At the very least, readers will understand that this wasn't just some altruistic defense of principle. And others might not be as sorry to see them go at all.

29 Community Comments, Facebook Comments

  1. The Post article gets something else wrong.

    Most of the 200 jobs will be moving to Wyoming. Most of the employees will be out of a job once they move.

  2. The article (maybe Magpul's statements) are confusing. On one hand, they say that manufacturing and distribution will be in Cheyenne. On the other hand, they say that the dual Texas/Wyoming presence will be an expansion and that it will allow them to better tackle nationwide distribution.

    So is the Texas facility going to be strictly HQ (so that the execs can live in sunny warm Texas while the employees live in cold Cheyenne)? Or will they be building out in Texas with manfacturing and/or distribution as well?

  3. mamajama55mamajama55 says:

    Magpul's statements are intentionally weasel-worded to leave their options open, taking advantage of this sweet deal, while still proclaiming their political agenda. . They "plan to" relocate within 12-16 months. Wyoming's warehouse is a temporary facility while funding and construction happen on their new facility. Magpul is leaving operations in Colorado during the transition, and maybe afterwards. Most of their business is online, anyway, so it can happen anywhere.

    Duke the Builder knows how likely this is to happen by deadline and under budget, with this many variables.  The Texas facility depends on legislative support from Rick Perry and the Texas legislature. Perry is not seeking reelection in 2014, and Wendy Davis has a good shot at the governorship. Texas probably won't renege on businesses coming in to the state, but it may not be quite as gun-friendly an environment as Magpul's Fitzpatrick would wish.



    • Duke CoxDuke Cox says:

      12 to 16 months should be plenty of time. These things can happen pretty fast.

      • mamajama55mamajama55 says:

        So they could make it work. Adios Magpul, then. I hope that they keep their promise and take 90% of their current workforce with them, just for the sake of those workers. I still think that they'll have a presence in Colorado through 2015

        And I hope that our current legislators won't allow themselves to be bamboozled about this "gun laws are causing job loss" narrative.

  4. OrangeFreeOrangeFree says:

    And in the coming months, as another sign of their utter hypocracy, be on the look out for the brand new Magpul Colorado-legal 15-bullet capacity magazines coming to a store shelf near you! 

    There also rolling out a new slogan – Magpul: Standing up for your freedom, profiting from your lack of it.

  5. HarleyHarley says:

    Well, look at the bright side—Magpul won't be stamping "Made in Colorado" on its products anymore!blush

  6. davebarnesdavebarnes says:

    At least 25 other "news" outlets mentioned the $13M.
    What is with the Denver Post?

  7. Gilpin Guy says:

    Will be interesting to see if the honchos move or leave administration in Colorado.  Building their manufacturing in Cheyenne means a 1 hour trip from Denver to oversee the facilities.

  8. ModeratusModeratus says:

    It's hard when you liberals discover that jobs have value, and that if we don't want them in Colorado, others will be glad to take them. Good for Magpul.

    • Curmudgeon says:

      The jobs and revenue from legalized Marijuana will more than make up for Magpul's crawling away.  You're welcome to crawl right after them, Moddy.

      • Gilpin Guy says:

        Slither is probably a better description.

        Colorado citizens don't have to fork out any bribes to get the recreational Marijuana business and the tax revenue generated by this new business will dwarf anything the asshole owners from Magpul will ever pay in their lifetimes.  You can go with them anytime Moderatus and cleanse Colorado of you violent vermin.  Live your vicious values and leave.  You're not a real Coloradan asshole.

    • It's not that we didn't want Magpul's jobs – it's just that (a) we weren't interested in paying taxpayer dollars to keep a company that wanted to leave anyway, and (b) was interested in spending of hundreds of thousands and maybe even millions of dollars in attempts to overturn the popularly elected Senate majority because they wanted people in the state to purchase more of their 30-round extended magazine for – you know, shooting more things (living or dead not specificed) in a row without reloading.

      Do you think taxpayer dollars spent on profitable industries are a good use of citizen dollars?

    • Diogenesdemar says:

      "Good for Magpul" . . . 

      . . . and take Moderatus with you . . .

  9. notaskinnycooknotaskinnycook says:

    See? Told you they were leaving. I posted a diary on Thursday about this story. If Wyoming wants the liability of having this comany in their state I'm good with that. 

    I sill have trouble understanding why people whoown guns are too lazy to reload after ten shots. They try so hard to convince people that on the one hand they're just target shooting, but on the other hand that they need those extra-long magazines. What for? The paper target will still be hanging there after they change magazines. The only two reasons I can think of for needing the extended magazine are 1) they are too lazy to reload, or 2) they want to be able to kill a whole lot of people, really fast. Neither is a good reason.

    • Gilpin Guy says:

      I think they have manhood issues Chef.  Inadequate people compensating for their insecurities with as much killing power as they can get their hands on.  Pathetic little people who believe they are real Christians when in reality all they really worship are their pathetic little egos while they masturbate with their guns groping for some little ray of happiness in their pathetic self absorbed lives.

  10. skeptical citizen says:

    Another news analysis in which the Denver Post did not provide the full story, just that of this right-leaning paper. Really glad I gave the Post the boot last year.

  11. Gray in Mountains says:

    a facility with some capacity for manufacturing will be available. Until sold owners will have to pay property tax. Perhaps OEDIT and local economic development folks can get this building occupied positively

  12. thiris13 says:

    Poszukujesz informacji na temat produktów, które stają się powszedniością młodzieży? Jeśli tak, to link rc kaufen z pewnością Ci pomoże. Wejdź teraz na polecany serwis internetowy oraz zobacz, jak wiele dzięki nam masz prawo dowiedzieć się na temat produktów, które z powodzeniem zamieniają narkotyki. Już dzisiaj dowiesz się, gdzie zakupić takie towary i jak je używać.

  13. rathmone says:

    Details on deal here, and it's pretty sweet. $8M "grant,", $5M loan, and another $1.5M for refurbishing temporary building. Wyoming taxpayers just paid Magpul almost $10 million to move there, with another $5 million to be paid back…eventually.

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