PUEBLO, Colo. (KOAA) — A proposed economic development project in Pueblo, known as 'Project Falcon,' has been paused indefinitely, according to a statement sent to the city from the company.
The company cites "divisiveness in the community" as the reason for the pause. But the controversial project has sparked major debates among Pueblo leaders.
The project, which was under negotiation and protected by a non-disclosure agreement, involved an approximately $800 million industrial development, creating nearly 300 jobs in the area.
Mayor Heather Graham confirmed that the project is a tissue manufacturing facility that would have been placed across from the St. Charles Reservoir. The lot is roughly 300 acres.
Despite saying she's neither in support of nor against the project, Mayor Graham believes that Pueblo needs more transparency and an independent analysis before moving forward.
She says that the city is being asked to provide $68 million from the city's half-cent sales tax fund.
"Project Falcon may or may not ultimately prove to be a good fit for Pueblo," said Mayor Graham. "I'm against the process and this incentive package."
Pueblo City Councilmember Ted Hernandez, who has been involved in project discussions, also defended the proposal and criticized the mayor's decision to publicly oppose the package before formal negotiations are complete.
News5 sat down with Councilmember Hernandez on Saturday, after he confirmed that the company had decided to pause the project due to community backlash.
He says that he believes that negotiations between the city and the company, but the public perception of the project made the parties unable to finalize an agreement.
"I believe that we were quite close to an agreement. We were at least close to a point where we could give full public disclosure," said Hernandez. "...Unfortunately, I think that, um, there was a lot of uh mischaracterization of, of where we were in the process intentionally."
Despite the pause on the project, the councilmember believes that there's still an opportunity to have Project Falcon come to Pueblo.
He says "I don't think it's gone. I'm not a quitter, and counselors, the other counselors are not quitters. We will still work to try to get Project Falcon to come back to the table with us. We have an agreement, I believe, that we will be able to make."
Project Falcon is still on the city's agenda for Monday, June 8, but Councilmember Hernandez says that he expects the item to be pulled.
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