Kevin Ortiz, general manager of the Pueblo Convention Center, told the Pueblo City Council at a Dec. 22 work session that the city’s vendor-fee program is budgeted at about $2.9 million for the coming year and will be split between debt service and operations.

Ortiz said roughly $888,000 of that estimate is allocated for debt service for Memorial Hall and the Convention Center, and about $2.0 million is set aside for operation and maintenance. "The total vendor fee estimate for next year is 2,900,000.0," Ortiz said, and the operating allocation covers asset management, repair and maintenance, and a modest maintenance line for Memorial Hall.

The presentation, led by Charis Stieg (interim executive deck director) and Ortiz, framed the convention center as a municipal “loss leader” that produces outsized economic activity for downtown Pueblo. Ortiz noted the Exhibit Hall’s 2019 opening and post-COVID recovery: the center recorded about $1.6 million in gross revenue in 2019, saw a COVID-related dip, then posted record results in 2022–2024, including roughly $3.3 million in 2024. Ortiz said 2025 projections were expected to be near $2.8 million and that staff forecast 2026 may level off compared with the unusually strong recent years.

Councilors asked how past ARPA funds for audiovisual and virtual-meeting technology were used. Ortiz said AV upgrades have been incorporated into the convention center’s annual capital plan and that the facility continues to invest in remote-technology capabilities to host hybrid events. He agreed to follow up with exact award figures.

Council members also pressed staff about a small projected shortfall in the proposed FY2026 operating budget and a separate $80,000 line tied to the DaVinci lease. Stieg and Ortiz said the DaVinci space has a partial rent abatement for its first year (rent starts July 1), so initial utilities and maintenance could temporarily exceed early-year rent receipts; the lease revenue is expected to offset some expenses once the full rental term begins.

Councilors emphasized the broader economic logic for subsidizing convention centers. "A lot of these facilities across the country do lose money," Ortiz said, adding that the vendor fee is an established local funding mechanism and the center functions as a downtown marketing engine that generates hotel room nights, restaurant spending and sales tax revenue.

Next steps: the presentation served as an informational briefing ahead of the council’s regular meeting; councilors asked for follow-up materials on ARPA/AV spending and project-level details for the DaVinci lease to inform budget deliberations.