PURA explains tax‑increment financing, pitched narrow infill housing to revitalize Lower East Side

Jerry Pacheco, executive director of the Pueblo Urban Renewal Authority, told Pueblo County commissioners on Feb. 4 that tax‑increment financing is the primary tool PURA uses to pay for eligible public improvements in redevelopment areas and described several residential demonstration projects aimed at repopulating the city’s older neighborhoods.

Pacheco said TIF captures growth above a base tax levy for a set period “for the 25 year period over and above base taxes,” and stressed that every dollar spent must have “a rational nexus to a public activity, a legitimate public purpose.” He illustrated the allocation with a printed “dollar bill” showing how incremental revenue is split among taxing bodies and said the authority seeks consensus from affected taxing entities before keeping incremental revenue for projects.

Why it matters: the county’s decision to opt into or decline an urban renewal district affects long‑term property tax flows to the county, school district and other taxing bodies and can be used to fund roads, workforce housing incentives and other public improvements.

Pacheco described recent work on the Lower East Side as focused on adding housing density. “We’re never gonna turn these neighborhoods around unless we repopulate these neighborhoods,” he said, describing a demonstration infill project of narrow duplexes built to work within old lot patterns. He said the design produced 15‑foot‑wide units using a stacked duplex model (one unit over another) to make construction economics feasible on narrow lots subdivided in the late 19th century.

Pacheco outlined barriers the authority encountered, including existing zoning and building code minimum lot widths (for example, minimum lot widths set during a 1960 rezoning that created many legal nonconforming parcels) and the cost burden placed on low‑income buyers for landscaping and upkeep. He said PURA has partnered with NeighborWorks of Southern Colorado and Habitat for Humanity on demonstration units and with District 60 to consider reuse of surplus school sites for residential or mixed uses.

Pacheco also discussed larger commercial or industrial transactions that used the full increment—for example, he said the EVRAZ project used the “whole dollar bill” and financed about $91,000,000 in bonds as part of roughly $100 million in incentives. He emphasized that not every renewal area should be used and that PURA aims to be “judicious” in applying urban renewal.

Commissioners and the county manager praised the collaborative approach. County Manager Spina Geneseo said she appreciated the “creativeness” of PURA’s work and noted the authority’s outreach to agencies including PEDCO and the local chamber. Commissioner Paula McPheeters thanked Pacheco for the East Side investments and for the focus on blight remediation.

Pacheco said PURA currently operates about 16 districts and is pursuing additional residential partnerships, including a possible demonstration build with Pikes Peak Park on the West Side and talks with the housing authority and District 60 about repurposing school sites. He noted PURA’s small staff of four and asked for patience on email responses.

The presentation closed with Pacheco noting a future stream of increment tied to projects on Medal of Honor Boulevard that will return a portion of county levy increment to the county over a 25‑year term to help pay for road work.

PACHECO QUOTES: “I took the liberty of printing you a dollar bill,” and “we designed that project so the houses were 15 feet wide.”

Ending: Commissioners asked to be kept informed about specific project proposals and potential opt‑in requests; PURA staff said it will follow up on partnership plans and zoning barriers as projects are refined.