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Pueblo staff asks council to front $2.593$3 million for permanent traffic signal to open Chipotle; developer to contribute about $250,000
Summary
City staff asked Pueblo City Council to consider using the 0.5—cent sales-tax fund to pay upfront for traffic-signal and median work on Pueblo Boulevard so developer Derek Martinez can obtain a certificate of occupancy for a nearly completed Chipotle; the Urban Renewal Authority99s TIF dollars would reimburse the city over time, staff said.
PUEBLO, Colo. 97 City staff on Monday asked the Pueblo City Council for guidance on using the city99s 0.5—cent sales-tax capital fund to front an estimated $2.593$3 million public-improvement package, including a permanent traffic signal at Mirror and Pueblo Boulevard, so a private developer can finish construction and open a Chipotle tenant.
The request came during a public-works presentation led by Andrew Hayes, the city99s public works director, who said the developer, Derek Martinez of Martinez Property Holdings, would be responsible for a pro rata share estimated at about $250,000 while the city would bid and award the contract if council directed staff to proceed. Hayes said the work also includes raised center medians, curb-and-gutter and right-in/right-out access modifications required by CDOT because Pueblo Boulevard is State Highway 45.
The proposal, Hayes said, would use the 0.5—cent sales-tax 92economic catalyst92 eligibility to have the city pay costs up front and then seek reimbursement from the Urban Renewal Authority (PURA) via TIF revenue generated by the district. 93One of the ways we can help spread that public burden is through PURA and a reimbursement agreement,94 Hayes said.
Developer Derek Martinez told the council he has been operating a temporary signal since Starbucks opened and that the rental of that temporary control is costing him an estimated $20,00093$25,000 a month. Martinez said Chipotle is nearing construction completion and expects to apply for a certificate of occupancy in the next two to three weeks, with a hoped-for opening in roughly 309345 days if the permanent-signal question is resolved. 93I cannot allow them to open just sitting there closed,94 Martinez said.
Some councilors pressed for details about who bears risk and whether the city has a reliable path to reimbursement. Councilor Boston said the city amended the 0.5—cent ballot to allow up to 15% for economic catalyst and place-making projects and supported using the fund to leverage private development that will generate TIF to repay the city. 93This is an investment in the future,94 Boston said.
Councilor Gomez urged caution, questioned repeated uses of the 0.5—cent fund and noted the mayor99s seat on PURA, saying: 93We need to stop doing that. This is not the door to go through.94 Other council members asked staff to return with formal ordinance language, appropriation amounts and a draft reimbursement agreement from PURA before any appropriation.
Hayes said contract drawings and procurement packages are mostly ready and estimated a 6939-month construction timeline for permanent signal components because of long lead times for poles and mast arms; some concrete and median work could be done sooner. He said staff would bring an ordinance to appropriate funds and an item to award a contract if council gave direction to proceed.
No formal vote was taken Monday; the council provided informal guidance and requested additional details, including firm bid prices, the proposed ordinance and the draft PURA reimbursement agreement. The council later moved into an executive session on unrelated economic-development items and adjourned.
