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HomeMy WebLinkAbout11125Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 ORDINANCE NO. 11125 AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO AND ESTABLISHING CRITERIA, STANDARDS, RULES AND REGULATIONS FOR THE APPROPRIATION AND EXPENDITURE OF FUNDS IN THE 1992-2026 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND WHEREAS, the people of the City of Pueblo have repeatedly extended the one-half percent sales and use tax rate for job -creating projects within the City and the Pueblo Memorial Airport Industrial Park; and WHEREAS, the people of Pueblo by Ordinance Numbers 5668, 5978 and 8197 have authorized and directed the City Council to establish by ordinance the criteria, standards, rules and regulations for the appropriation and expenditure of revenues contained within the 1992- 2031 Sales and Use Tax Capital Improvement Fund (the "Fund"); and WHEREAS, primary job creation is spurred by investment in infrastructure that will encourage development; and WHEREAS, primary job creation is spurred by encouraging projects of economic significance that will act as economic catalysts and further expand the City of Pueblo's sales tax base; and WHEREAS, the long-term management and maintenance of the community is crucial for economic development by ensuring a vibrant, attractive, and sustainable environment that will attract and retain residents, businesses, and investment; NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF PUEBLO, that: (brackets indicate matter being deleted, underscoring indicates new matter being added) SECTION 1. Chapter 4 of Title XIV of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 14-4-85.1. Sales and Use Tax Capital Improvement Project Fund; definitions. (2) Capital improvement project or project means a project or improvement of a permanent or fixed nature and includes the acquisition of property (both real property and tangible personal property, except inventory or property held for sale to customers in the ordinary course of business), the construction, extension, remodeling or rehabilitation of buildings or structures within which individuals are customarily employed or which are customarily used to house machinery or equipment, and the installation or extension of streets, sanitary sewer, water or other utilities required to serve a project or Economic Catalyst Project, promote Place Making, or prevent Economic Leakage. Capital improvement project or project also means a regional tourism project, approved by the Colorado Economic Development Commission, which qualifies for state sales tax increment revenue pursuant to the Colorado Regional Tourism Act, C.R.S. 24-46-301 et seq. Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 L2 Economic Catalyst Project means a project that has a substantial impact on the economic well-being of the City, community, or region by substantially stimulating economic growth and development, creating new jobs, increasing consumer spending, expanding the tax base, or attracting further investment in the City, community, or region. (3.2) Economic Leakage means the reduction of economic activity within the City caused by the outflow of resources, such as money and tax revenues from the local economy, hindering growth and expansion of the community. L2 Place Making means the process and act of creating high -quality public spaces and amenities that encourage people to want to live, work, play, and learn in the City, community, or region. (7) Primaryjob means: u a full-time position in private sector employment by manufacturing, business, commercial or service industries producing, assembling or distributing products or providing services primarily or ultimately for sale, consumption, or use outside of the City and County of Pueblo, Coloradoll u Primaryjob also means] employment resulting from a regional tourism project, approved by the Colorado Economic Development Commission, which qualifies for state sales tax increment revenue pursuant to the Colorado Regional Tourism Act, C.R.S. 24-46-301 et seq.; and (c) employment resulting from an Economic Catalyst Project. SECTION 2. Chapter 4 of Title XIV of the Pueblo Municipal Code, as amended, is hereby amended to read as follows: Sec. 14-4-85.3. — Sales and Use Tax Capital Improvement Projects Fund; approval, criteria and standards. (b) Each of the following criteria and standards must be met before City Council may by resolution approve an application for funds: Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 u The total amount expended on one or more Economic Catalyst, Economic Leakage, or Place Making Projects in any given year shall not exceed, in aggregate, fifteen percent (15%) of the total uncommitted fund balance in the Sales and Use Tax Capital Improvement Fund as of January 1 of that year. SECTION 3. Sec. 14-4-85.5. Sales and Use Tax Capital Improvement Project Fund; special categories. (1) Acquisition of land and construction of so-called shell buildings or the acquisition, remodeling and renovation of existing buildings for the purpose of preventing Economic Leakage, or making such buildings available for Place Making, or applicants or potential applicants who meet the standards and criteria of this Chapter. (3) Land acquisition, infrastructure development and professional services associated therewith to prevent Economic Leakage and to establish and facilitate Place Making or the creation of primaryjobswithin the City and enhance the City's tax base, including but not limited to establishment and development of one (1) or more industrial parks or development sites. SECTION 4. The officers and staff of the City are authorized to perform any and all acts consistent with this Ordinance and the attached Agreement which are necessary or appropriate to implement the transactions described therein. SECTION 5_ This Ordinance shall become effective on the date of final action by the Mayor and City Council. Introduced and initial adoption of Ordinance by City Council on February 09, 2026. Final adoption of Ordinance by City Council on February 23, 2026. LDocuSigned by: a( President of City Council Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 Action by the Mayor: ❑ Approved on 02/24/2026 ❑ Disapproved on based on the following objections: FSigned by: Mayor Action by City Council After Disapproval by the Mayor: ❑ Council did not act to override the Mayor's veto. ❑ Ordinance re -adopted on a vote of , on ❑ Council action on ATTEST si,.Qd,, Deputy City erk failed to override the Mayor's veto. President of City Council Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 City Clerk's Office Item # S6 COUNCIL MEETING DATE: February 23, 2026 TO: President Mark Aliff and Members of City Council CC: Mayor Heather Graham VIA: Marisa Stoller, City Clerk FROM: Carla Sikes, City Attorney SUBJECT: AN ORDINANCE AMENDING CHAPTER 4 OF TITLE XIV OF THE PUEBLO MUNICIPAL CODE RELATING TO AND ESTABLISHING CRITERIA, STANDARDS, RULES AND REGULATIONS FOR THE APPROPRIATION AND EXPENDITURE OF FUNDS IN THE 1992-2026 SALES AND USE TAX CAPITAL IMPROVEMENT PROJECTS FUND SUMMARY: Attached is a proposed Ordinance which expands the definition of "primary job" and "capital improvement project" and "project" to include projects of economic significance which act as economic catalysts. PREVIOUS COUNCIL ACTION: The Half -Cent Sales Tax Criteria Ordinance was amended by City Council by Ordinance No. 8509, dated August 27, 2012, Ordinance No. 8801 dated November 24, 2014, and Ordinance No. 9698 dated April 13, 2020. BACKGROUND: The 1992-2026 Sales and Use Tax Capital Improvement Projects Fund, commonly referred to as the "half -cent sales tax fund," was established by voters years ago and has been extended multiple times for the purpose of funding job -creating capital improvement projects within the City. By voter -approved Ordinance 8197 dated November 2, 2010, City voters delegated to City Council the authority and responsibility to initially establish and then amend, by ordinance, appropriate criteria, standards, rules and regulations for the appropriation and expenditure of monies in the Fund. FINANCIAL IMPLICATIONS: The Fund currently contains more than $60 million dollars in unobligated funds. The proposed Ordinance would authorize City Council to spend half -cent sales tax funds, Docusign Envelope ID: 034F045F-3065-427A-9960-974B096D1909 either through a loan or a direct investment, to prevent economic leading, to promote place making projects, or to complete economic catalyst projects. BOARD/COMMISSION RECOMMENDATION: Not applicable to this Ordinance. STAKEHOLDER PROCESS: Not applicable to this Ordinance. ALTERNATIVES: A no -action alternative will maintain the status quo. RECOMMENDATION: None. ATTACHMENTS: 1. Ordinance