Urban Renewal Projects Funding at Risk

 City Council Vote Puts Urban Renewal Projects and Employee Funding at Risk

At the September 22 City Council meeting, council members made a decision that could have serious consequences for Pueblo, its taxpayers, and city employees. Council voted not to extend the Capital Improvement Projects Fund from the 1992–2026 Sales and Use Tax into 2026. This fund has been the backbone of our urban renewal projects, which include improvements to public facilities, infrastructure, and other initiatives that directly benefit the community. Without this extension, ongoing and future projects could face delays or even cancellation, affecting the quality of services and the work environment for city employees.

What happened with PURA

The Pueblo Urban Renewal Authority (PURA) also presented a proposal during the meeting. In 2017, PURA needed financing to expand the convention center, which included the arena and parking garage. To secure a loan from a private financer, PURA received two loans totaling $14.4 million from the half-cent sales tax, which is funded by taxpayers.

To date, PURA has only paid the interest on these loans—approximately $1.7 million—and has not repaid any of the principal. Now, PURA is asking the city to accept the parking garage as repayment in lieu of the loan. They argue that future revenue from parking fees, currently split between PURA and the city, would go entirely to the city, and that this arrangement “right[s] a past wrong.” However, testimony from PURA’s treasurer suggests there was no original intent to repay the loans, which raises serious ethical and legal questions.

Why this matters to city employees and taxpayers

President Aliff and other leaders pointed out a critical issue: this money came from the half-cent sales tax, which is taxpayer money intended to fund city projects. If the city accepts the parking garage instead of repayment, taxpayers could lose $14.4 million in expected funds. This decision also sets a dangerous precedent, showing that council can make major financial changes without public input.

For city employees, this matters because these funds help pay for critical city services and infrastructure projects that impact their daily work environment. Without adequate funding, projects that support public safety, facilities, and essential city operations could be delayed or cut, making it harder for employees to do their jobs effectively and safely.

The bigger picture

This situation underscores why changes to the half-cent sales tax criteria should go to a vote of the people rather than being decided solely by council members. When council has unchecked authority to alter how taxpayer dollars are used, both public projects and city employees pay the price.

Taxpayers and union members alike deserve full transparency on how these funds will be handled and how decisions like this could affect the city’s ability to provide services, maintain public facilities, and support the employees who serve our community every day.