Council to Reconsider $600,000 Incentive for Circle K–led Redevelopment of blighted northern site

Melissa Cook, director of the Department of Housing and Citizen Services, told the Pueblo City Council on Oct. 20 that the city is negotiating a public‑private agreement with Circle K to redevelop a blighted commercial parcel near Northern Avenue and to create 45–50 workforce housing units on the rear of the site.

The presentation described a purchase agreement in which the city would provide $600,000 to make the project financially feasible; those funds would come from accounts originally budgeted for demolition. “This is not intended to be a 1 for 1 transaction and purchasing this at market value,” Cook said, explaining the money is an incentive to close the deal and remove blight rather than a straightforward market purchase.

The nut graf: city staff argued the combined project would remove commercial blight, serve as a tax‑increment financing (TIF) catalyst for the Urban Renewal district, create workforce housing and add about 1,200 square feet of grocery‑oriented retail to a Circle K store to help a nearby food‑desert area.

Cook and Andrew Hayes, public works director, told council the property’s current tax assessment on file was roughly $702,000 for the building and $121,000 for the land. Staff said lowering the TIF baseline after demolition and building the Circle K project could change the baseline and create a tax increment the Urban Renewal Authority could use; staff cited an illustrative change that would lower the baseline by about $580,000 and increase taxable value from new construction by roughly $615,000 annually.

Cook said the likely financing for the housing portion would be low‑income housing tax credit equity, possibly with Colorado Housing and Finance Authority participation and use of the city’s HOME dollars. She also said staff are exploring a CDBG loan program that could provide around $7.5 million over time for spot demolition or blight removal citywide.

The project team described program details that staff said are part of the negotiation: Circle K’s base store model is about 3,600 square feet and the company has indicated willingness to add an extra 1,200 square feet dedicated to grocery items if market demand is present. Cook said the city is not presenting an appraisal; she said the $600,000 figure represents the developer’s demolition/feasibility gap rather than an arms‑length market purchase price.

Council members asked about building condition, insurance and schedule. Staff said Concentrix (the property owner formerly associated with the Convergys site) had hired a contractor to secure collapsed roof areas and remove hazardous materials; asbestos abatement remains a required step. Staff said Circle K and Concentrix have a separate contract; Circle K’s contract gives the owner 90 days from execution to demolish the structure, but state permitting remains a gating item. Cook said she would verify whether Concentrix filed an insurance claim and whether a deductible exceeded the value of any claim.

During public discussion, Councilor Sarah Martinez said she was concerned about community priorities and about how the city balances residential blight work versus commercial blight removal; Cook responded that staff are pursuing both and said there is a separate plan for residential demolition using federal CDBG resources over time.

Separately, Council took a procedural vote to reconsider a resolution tied to the same project accounts. Roger Gomez moved (motion text not recorded on the public transcript) to reconsider the Oct. 14 action that established project account CI12521 (Greyhound Park blight removal) and transferred $500,000 from CI12113 (American Rescue Plan Act funds). The motion to bring the item back for reconsideration on the Oct. 27 agenda passed 5–2. The council recorded no further final action on the purchase agreement or ordinance that would authorize the $600,000 purchase at the Oct. 20 meeting; staff said the purchase agreement and related ordinances/resolutions are scheduled for later consideration.

Ending: Staff said they will return with more documentation, including confirmation of insurance and details on permits and funding structure, when the item appears on the Oct. 27 agenda.