PUEBLO, Colo. (KOAA) — A proposed economic development project, known as “Project Falcon,” has become the center of an increasingly public debate among Pueblo leaders, with supporters calling it a transformational opportunity and critics questioning whether taxpayers have been given enough information to justify a potentially historic incentive package.
The project, which remains under negotiation and protected by non-disclosure agreements, is expected to involve an approximately $800 million industrial development across all phases. Supporters say it could create nearly 300 jobs.
While details about the company have not been officially released, Mayor Heather Graham said during a press conference that the project is a tissue manufacturing facility.
The facility would be built across from the St. Charles Reservoir, on the opposite side of I-25 near the CS Wind America Ince manufacturing plant.
The vacant lot is roughly 300 acres.
Mayor Graham said she is not opposed to economic development or to the project itself, but believes Pueblo residents deserve more transparency and independent analysis before city leaders move forward.
According to the mayor, the city is being asked to provide nearly $68 million from the city’s half-cent sales tax fund, infrastructure improvements, and other assistance, while also potentially giving up future property tax revenue through tax increment financing.
She argued that when all forms of public support are considered, the city's total exposure could approach $100 million for the first phase of construction.
That first phase would include upgrades along Lime Road, and the construction of a sewer lift station.
Mayor Graham also questioned economic projections that have been used to promote the project, including claims that it could generate billions of dollars in economic activity.
"We have not independently vetted those numbers," said Mayor Graham, arguing that the economic impact study currently being cited was commissioned by project advocates rather than the city.
The mayor said Pueblo has not yet completed independent reviews of the company's financial needs, workforce impacts, or environmental considerations, including the following:
- water use
- wastewater demands
- emissions
- infrastructure requirements
She also expressed concern that committing a large share of the city's half-cent economic development sales tax fund to a single project could limit the city's ability to pursue other opportunities.
Mayor Graham pointed to more than a dozen projects currently in the city's development pipeline and said Pueblo should carefully evaluate all available options before dedicating significant resources to one proposal.
"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."
Supporters of the project have pushed back on many of those criticisms.
Pueblo County Commissioner Miles Lucero said confidentiality agreements are common in economic development negotiations and rejected suggestions that the public is being excluded from the process.
"The idea that the community will be left out of the conversation until the deal is done, that is a complete mistruth," said Commissioner Lucero.
Commissioner Lucero said any final agreement would require multiple public meetings and votes before approval. He also noted that residents already have access to memorandum of understanding documents being considered by local governments.
While acknowledging that elected officials should carefully scrutinize a project of this size, Commissioner Lucero said available economic analyses indicate the return on investment would far outweigh the public incentives being discussed.
"The math is kind of undeniable," he said. "The economic output of this project over the immediate term and the long term, there's really no incentive package that we could offer that even comes close to what the economic output of this project is."
A presentation given during the June 4 Board of County Commissioners meeting suggested Pueblo County could generate $295 million a year in economic output from the project.
Commissioner Lucero also disputed suggestions that county government has little at stake, a claim made by Mayor Graham, arguing that property tax revenues that could be redirected through tax increment financing represent a significant contribution over the life of the project.
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.
Hernandez said Pueblo City Council has not yet voted on the project and emphasized that residents will have opportunities to provide input before any final decision is made.
"We haven't voted. We haven't decided," said Councilmember Hernandez. "We have constituents, and we need to hear what they have to say."
A major point of disagreement involves approximately $40 million in proposed infrastructure improvements tied to the project.
Mayor Graham characterized those investments as subsidies designed primarily to support a single company. Councilmember Hernandez and Commissioner Lucero argued the improvements would provide broader community benefits.
According to Councilmember Hernandez, planned upgrades to roads, wastewater systems and utility infrastructure in the Saint Charles Mesa Industrial Park would benefit existing businesses, support future development opportunities and address long-standing infrastructure needs in southern Pueblo.
"This infrastructure is not exclusive to Project Falcon," said Councilmember Hernandez.
Supporters also reject concerns that the project could harm existing employers by drawing away workers.
Councilmember Hernandez said workforce training programs are expected to be included as part of the agreement and argued that higher-paying jobs represent an opportunity rather than a threat.
The proposed facility is expected to create approximately 293 jobs, according to project supporters, with salaries ranging from around $50,000 to as much as $180,000 annually.
Environmental impacts remain one of the most common concerns raised by residents. Commissioner Lucero acknowledged that many community members have questions about how a large manufacturing facility could affect Pueblo's air, water and surrounding neighborhoods.
He said those questions are legitimate and should be answered as negotiations continue.
"The people are hungry for information," said Commissioner Lucero. "Those are all questions that we must answer."
The debate over Project Falcon has also evolved into a broader discussion about Pueblo's economic development strategy.
Mayor Graham argued the city should move away from what she described as an older model focused on large subsidies for individual companies and instead pursue a more diversified, data-driven approach.
Supporters counter that major projects are exactly why Pueblo voters approved the half-cent economic development sales tax and argue that opportunities of this scale are rare.
The proposal remains in its preliminary stages. Upcoming City Council meetings are expected to include consideration of a memorandum of understanding, which is scheduled for Monday, June 8, while negotiations over a formal incentive agreement would continue afterward.
Additional public hearings and votes would be required before any final deal could be approved.
Following the memorandum of understanding, a second reading will take place on Monday, June 22.
Councilmember Hernandez says ideally, the readings for an actual agreement would take place on July 13 and 27. A a final vote by Pueblo City Council would happen on July 27. All are open to the public.
For now, both supporters and critics agree on at least one point, residents should remain engaged as more details become public and local leaders weigh what could become one of the largest economic development decisions in Pueblo's recent history.
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