The city of Pueblo has officially decided to end its partnership with the Pueblo Economic Development Corp. (PEDCO) and is now preparing to engage new organizations focused on advancing regional economic growth. A public announcement confirmed that Pueblo delivered formal notice to PEDCO on September 29, activating the 90-day termination clause in their agreement, with services concluding by December 31. n nCity authorities emphasized that structured transition procedures are now in motion to ensure PEDCO fulfills all duties tied to the management of Pueblo’s half-cent sales and use tax before the year ends. n nMayor Heather Graham highlighted that this shift aligns with a City Council resolution passed on September 8, which called for a Request for Qualifications (RFQ) to identify potential future partners in economic development. n n“PEDCO has served the community for over four decades, but now is the moment for Pueblo to explore fresh collaborations with entities fully committed to transforming our city into Southern Colorado’s economic hub,” Graham stated. n nThe RFQ process will be open to all qualified groups, including PEDCO itself, allowing broad participation in shaping the next phase of economic strategy. The council approved the resolution with a 5-2 vote, as Councilors Dennis Flores and Joe Latino opposed the move, while Mark Aliff, Regina Maestri, Sarah Martinez, Brett Boston, and Roger Gomez supported it. n nMaestri stressed the importance of securing capable representation across all aspects of development. “We must ensure we’re working with the most effective partners possible,” she remarked during the council meeting. n nFlores raised concerns about the implications of ending the contract, noting that PEDCO operates primarily through membership fees rather than public funding. “Most board members are invested in their current roles and may resist outside influence from groups unfamiliar with local dynamics,” he explained. n nThe city is inviting organizations to take part in the upcoming RFQ to help define a modernized approach to economic advancement. n nWhile acknowledging PEDCO’s long-standing contributions, Graham expressed optimism that this change will lead to a more comprehensive economic vision—one extending beyond job recruitment to include broader community growth. n nJeff Shaw, President and CEO of PEDCO, told reporters the contract termination does not alter his organization’s operations. “The city’s funding supported external marketing and some operational costs at the Business and Technology Center, but it wasn’t central to our sustainability. We’ll continue promoting Pueblo, supporting business expansion, aiding retention, and attracting new enterprises,” Shaw said. n nEstablished in 1981, PEDCO has historically played a key role in evaluating business prospects for the city, assessing financial health, employment potential, workforce training links, and logistical needs like rail or road access. It also advised the City Council on allocating half-cent tax incentives, which often influenced corporate decisions to locate in Pueblo. n nThe decision follows failed attempts to revise the criteria for using the half-cent tax fund, including a proposal backed by PEDCO to allocate up to 10% of uncommitted funds for catalytic and place-making initiatives. Earlier efforts to introduce a 15% cap were rejected in June, and a ballot initiative for November 2025 was withdrawn in August. n nPueblo’s half-cent sales tax is set to expire on December 31, 2026, though voters can extend it to 2031 via Ballot Measure 2B in November. The measure permits funds to support primary employment, capital improvements, and dedicated revenue accounts. n
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Pueblo terminates PEDCO contract, seeks new economic development partners
The city of Pueblo is terminating its contract with the Pueblo Economic Development Corp. and seeking new economic development partners, according to a news release. n nIn accordance with the contract’s 90-day notice provision, the city provided official notification to PEDCO on Sept. 29 that its contract for economic development services would end on Dec. 31. n n“Formal transition steps are underway to ensure PEDCO completes all contractual obligations connected to the City ‘s half-cent sales and use tax before year-end,” city officials said in the release. n nPueblo Mayor Heather Graham said the contract’s termination is consistent with Pueblo City Council’s Sept. 8 resolution seeking the issuance of a Request for Qualifications (RFQ) for the city to seek new economic development partners. n n“PEDCO was founded over 40 years ago, and it’s time for the City to seek other committed partners dedicated to growing our City and helping us become the economic center of Southern Colorado,” Graham said in the release. n nCity council’s Sept. 8 resolution directed the city to issue an RFQ to all organizations, including PEDCO, for economic development services. n nCouncilors Dennis Flores and Joe Latino voted against the resolution, while Council President Mark Aliff and Councilors Regina Maestri, Sarah Martinez, Brett Boston, and Roger Gomez voted in favor. n n“We should be diligent in making sure we have, in every angle, we have the best representation possible,” Maestri said at the meeting, according to the city’s release. n nFlores expressed concerns about the termination. n n“PEDCO is a membership organization. So, the majority of their budget is paid by membership dues, not taxpayer dollars,” Flores said, according to the city’s release. “Most of the people on the board at PEDCO, they want to remain in the position they ‘re at. They don ‘t want someone else to come in and think that they understand Pueblo and understand the needs of Pueblo when this was their idea.” n nThe city is inviting interested organizations to participate in the upcoming RFQ process “to help shape the future of Pueblo’s economic development,” according to the city’s release. n n“As this transition unfolds, the City remains grateful for PEDCO’s many years of service and encourages their continued involvement in Pueblo’s general economic development,” Graham said. “The City is hopeful this move will cause an evolution of its economic strategy — one that encompasses a broader focus than just primary jobs and shows a commitment to the growth of Pueblo overall.” n n ‘It doesn ‘t change anything ‘: PEDCO ‘s work of marketing Pueblo to businesses continues n nPEDCO President and CEO Jeff Shaw told the Chieftain that the end of the contract with the city “doesn ‘t change anything for PEDCO.” n n“The contract that we have for the city only provided PEDCO with some dollars to help market the city externally, as well as to cover some of the expenses of the (Business and Technology Center). It ‘s not paying PEDCO operationally; we ‘re a private nonprofit, so it doesn ‘t change us at all,” Shaw said. n n”So for us, moving forward, it ‘s marketing the community. It ‘s working with the prospects we have. It ‘s trying to help companies expand. It ‘s trying to help companies stay here, doing what we can for retention purposes, and continuing to prospect and bring in companies to the community. So it doesn ‘t change us at all.” n nWhat is PEDCO? And what role has it played in incentivizing businesses to come to Pueblo? n nFounded in 1981, PEDCO ‘s mission is to attract, retain, and expand primary jobs in Pueblo County. n nPueblo City Council, which manages the city’s half-cent sales tax fund, has historically worked in tandem with PEDCO to bring prospects to the Pueblo area. n n“PEDCO is responsible for examining the true potential of businesses on behalf of the city — financial stability, growth potential, employment needs (and) connections to local educational institutions for training and development,” PEDCO officials explained in a July 2025 news release defining the organization ‘s role. PEDCO also works to “identify utility needs, access to rail or roadways for logistics” and guide the process. n n“PEDCO then recommends options to City Council for approval of the half-cent sales tax incentives to the company. Granting these incentive funds is often a deciding factor for companies to choose Pueblo,” PEDCO officials said in the release. n nThe termination of PEDCO ‘s contract comes after several proposed changes to the city ‘s half-cent sales tax criteria were shot down by Pueblo City Council. n nThe most recent effort, which was supported by PEDCO, would have allowed up to 10% of the city ‘s Sales and Use Tax Capital Improvement Fund ‘s uncommitted balance to be used for economic catalyst, place-making and economic leakage prevention projects. n nChanges to the half-cent sales tax criteria ordinance with a 15% cap were rejected by council in June and an attempt to put criteria changes on the November 2025 ballot failed in August. n nPueblo ‘s half-cent sales tax expires on Dec. 31, 2026, but voters will have the opportunity to extend it through 2031 in November through Ballot Measure 2B. n nLanguage in 2B states that funds generated through the half-cent sales tax may be used for primary jobs, capital improvement projects, creation of a special fund to deposit half-cent sales tax revenue and continuing revenue deposits. n nThis story was updated to include comments from PEDCO President and CEO Jeff Shaw. n nMore Pueblo business news: Let ‘s Talk Business in Pueblo: Silver Queen crowned and more local business news n nChieftain Editor Zach Hillstrom can be reached at zhillstrom@gannett.com or on X, at @ZachHillstrom. 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