Developer says Starbucks nearly finished but CDOT access and last-minute infrastructure demands threaten openings

A developer who bought about six acres on Pueblo’s south side told the City Council his project is mostly built but that last-minute permitting and CDOT access requirements threaten tenant openings.

"It took us probably, I'm gonna say, about a year and a half to get through the permitting process," Derek Martinez said, describing repeated hurdles and costly traffic studies. Martinez said Starbucks is ‘‘probably 95% built’’ but a CDOT-required streetlight and intersection work could cost hundreds of thousands or even more than $1 million, and that those costs are being pushed onto the developer.

Randy Thurston, who introduced Martinez to council, said the city should consider urban renewal as a vehicle to advance infrastructure costs up front so developers are not saddled with large, uncertain bills that can derail projects. Thurston described a recent Murphy's gas station project that almost terminated a contract because of permitting delays, arguing that ‘‘bureaucratic mud’’ discourages investment.

Councilors and Mayor Graham said staff, urban renewal and PEDCO have discussed options and are working with CDOT and the city to identify funding sources, including earlier conversations about using half-cent sales-tax dollars for corridor infrastructure. Mayor Graham and department staff said the access-permit challenge is regional and involves CDOT rather than the city alone, and urban renewal staff have been engaged to look for funding options.

Martinez said he had just finalized a lease with Chipotle next to the Starbucks but warned tenants cannot wait a year for permits. He also raised concern about being asked to sign a performance bond with an unspecified amount tied to receiving a certificate of occupancy. Councilors asked staff to provide more detail about the bond practice, funding options (including TIF/PURA accounts and reallocation of Petco funds), and whether a temporary CO or other short-term measures could allow tenants to open while infrastructure funding is secured.

No vote was taken; councilors said they would follow up with staff and work with the developer to identify short-term steps to get businesses open.