Pueblo City Council gives tax money to hemp company

Pueblo City Council agreed to give nearly $8 million from the half-cent sales tax to a hemp-oil processing company, despite concerns raised that hemp is still considered illegal by the federal government.

In a five to one vote, the city agreed to give CBD Biosciences $4.89 million in incentives, as well as a $3 million loan to rehab the former Boeing Building at 1 McDonnell Douglas Avenue, where it will be locating. The company plans to add 163 jobs, with an average annual salary of $41,590, which doesn’t include benefits.

Councilman Chris Nicoll voted against it, citing several concerns including that hemp is still classified as a Schedule One substance although it is legal in Colorado.

City Attorney Dan Kogovsek told council the city could face penalties in the future for offering economic incentives to a hemp company.

“There’s a risk in giving economic incentives to a company that violates federal law, although I think even the feds would agree that hemp is much less problematic than psychoactive marijuana,” Kogovsek said.

City Council President Steve Nawrocki said he was willing to take some risks.

“If they want to put this old man in prison, you know, so be it,” Nawrocki said. “If that’s the most important, if it is somebody’s mission in life to bust this city council for supporting hemp versus all the other things that are taking place in our city and our state and our country, so be it. I have no control over that.”

Councilwoman Eva Montoya was excused from the meeting.