Council hears PEDCO pitch to upsize sewer and install lift station to open Saint Charles Industrial Park; executive session approved

Jeff Shaw, president and CEO of PEDCO, and board member and engineer Michael (Mike) Cuppy briefed the Pueblo City Council on Aug. 4 on infrastructure work they say is needed to make the Saint Charles Industrial Park and adjoining southern city lands “site ready.” PEDCO asked council to consider using half-cent sales tax funds for design and construction of a wastewater lift station and upsizing of sewer lines that PEDCO says would unlock rail-served industrial acreage and help other southern-city projects.

What was proposed: PEDCO described a project to build a public wastewater lift station near the rail park and to upsize downstream collection lines so flows can reach the Greenhorn trunk and the city wastewater treatment plant. Shaw and Cuppy said the work would allow rail-served industrial parcels (including the city-owned rail park east of the tracks and a 400-acre parcel owned by the Public Development Foundation north of CS Wind) to be developed for large industrial users. "A site needs to be ready to go... utilities available," Shaw said.

Cost and capacity concerns: a PEDCO estimate shared during the meeting put engineering and construction for the lift station and upsizing at roughly $16–17 million. City wastewater staff reported the treatment plant is currently operating at about 60% of capacity on average and that the plant has roughly 4 million gallons of buffer before reaching an 80% threshold at which the state expects a design process to begin. PEDCO representatives said the park buildout could require roughly 2 million gallons per day of additional capacity at full buildout, which would use a substantial share of the plant’s remaining buffer. Council members and staff repeatedly flagged that moving flows above the 80% threshold would trigger design and possibly major expansion of the wastewater plant.

Timeline and permitting: staff and PEDCO estimated permitting and design would take about one to two years, with CDPHE and railroad coordination required for the lift station and for any pipe installed under rail right-of-way. City wastewater staff said permit reviews and resubmissions can each take 60–90 days and that design and associated planning documents would be required before appropriation of construction funds.

Funding questions and council reaction: PEDCO asked council to consider using the city’s half-cent sales tax to pay for the work because the tax’s enabling ordinance allows capital infrastructure for economic development. Council members asked whether the half-cent fund could be used for the lift station but not for general wastewater-plant upgrades, and the city attorney replied the answer depends on the specific nexus to a project; if plant upgrades are required solely because of a specific industrial hookup, there could be an argument to use half-cent funds for that portion. Council members pressed PEDCO and staff for financial details, reimbursement mechanics (developers tying into the improved lines would pay connection and plant-investment fees), and an estimated payback through connection fees and utility revenues.

Next steps and formal action: after extensive questioning and discussion, council members expressed interest in moving the project forward to get design-level numbers and more precise cost and capacity estimates. Councilors asked staff to return with an RFP/engineering estimate so council could consider formal appropriation. Council then approved a motion to move into executive session to “determine positions relative to matters that may be subject to negotiations, developing strategy for negotiations and/or instructing negotiators” under CRS 24-6-402(4)(e)(I), with the subject identified as a potential PEDCO project; council voted in favor and convened the executive session.

Why it matters: the project would unlock rail-served industrial land and potentially bring jobs and economic activity to Pueblo, but it raises significant utility planning and ratepayer questions because added industrial flows could require major capital upgrades at the wastewater treatment plant. Council members stressed the need for firm engineering estimates, a timeline, reimbursement mechanisms and clarity about who bears future plant-expansion costs before committing large public funds.

Ending: council signaled general support for moving to the next design and analysis steps but did not appropriate construction funding; it moved into executive session for negotiations and directed staff to return with more detailed cost, capacity and reimbursement information.