Secret Project Falcon Sparks City Debate

Pueblo is currently experiencing a significant debate between the City Council and Mayor Heather Graham concerning "Project Falcon," a confidential initiative aimed at attracting an international tissue manufacturing company. This project involves a substantial $65 million city investment, primarily funded by the half-cent sales tax for economic development. Mayor Graham has voiced strong opposition, arguing that the city has not independently verified the project's financial projections and that the potential city exposure could reach approximately $100 million when direct incentives and foregone property taxes are combined.

Councilors Ted Hernandez and Selena Ruiz-Gomez, who hosted a town hall on June 3rd, have indicated that Project Falcon would create 293 jobs with an average annual salary of $80,000, alongside an estimated 8,000 construction jobs over a one to three-year build period. The proposed facility is slated for the St. Charles Industrial Park. Despite a non-disclosure agreement, which prevents disclosure of the company's name and specific details due to its publicly traded status, councilors assert the company has a century-long international presence and multiple North American locations.

The incentive package includes approximately $40 million for infrastructure, such as wastewater systems and road improvements. Mayor Graham, however, contests the projected $2 billion economic return, labeling it an inflated sales pitch from a company contracted by the Pueblo Economic Development Corporation (PEDCO). The conflict also highlights a broader cultural debate about Pueblo's 42-year-old economic development strategy, with the mayor advocating for transparency and data-driven approaches over secrecy and large subsidies.

Pueblo City Council is scheduled to vote on a non-binding memorandum of understanding (MOU) for Project Falcon on first reading on June 8th, with a second reading on June 22nd. The Colorado Office of Economic Development and International Trade has already approved a $1.86 million strategic fund incentive, and the project is being considered for the Rural Jump-Start program. Pueblo County has also agreed to participate in Tax Increment Financing (TIF).