City of Pueblo Ends 40-Year PEDCO Economic Development Contract

The City of Pueblo announced it will terminate its contract with the Pueblo Economic Development Corporation (PEDCO) effective December 31, 2025, following a 5-2 City Council vote to seek new economic development partners through a Request for Qualifications (RFQ). Mayor Heather Graham stated that after more than 40 years, it is time to find committed partners to help grow Pueblo and position it as the economic center of Southern Colorado, aiming for a broader economic strategy beyond just primary job creation. PEDCO's CEO Jeff Shaw clarified that the contract termination will not affect PEDCO's nonprofit mission or operations, as the organization is primarily funded by member dues rather than city tax revenues. Some council members, including Dennis Flores, opposed ending the contract, emphasizing PEDCO's local roots and funding structure. The city is currently managing a formal transition to ensure PEDCO fulfills its obligations related to the city's half-cent sales and use tax before year-end. The RFQ process is open to all organizations, including PEDCO, as Pueblo moves to evolve its economic development efforts.