Pueblo City Council approves $1.4 million loan in exchange for more jobs, plant expansion
A manufacturing plant will be expanding and adding more jobs to Pueblo as part of an agreement made between UTC Aerospace Systems and the city.
Pueblo City Council unanimously passed a resolution Monday authorizing a $1.4 million loan from the city’s half-cent sales tax to UTC Aerospace Systems.
Over the next five years, the company plans to add 46 jobs to its plant at the Airport Industrial Park. In 2015, 15 jobs will be added. The average yearly salary for full-time employees will be $46,950, which does not include benefits. Employees in Pueblo produce braking system components for commercial and military jets
The Pueblo Economic Development Corporation (PEDCO) worked with UTC Aerospace Systems to secure the loan. The company has been in Pueblo since 1987, currently employing 198 people. The majority of the loan will be spent on purchasing manufacturing equipment, about $1.38 million. In addition, $36,800 will be spent on training. According to the resolution, the city “will retain a security interest in the production equipment purchased with the incentive proceeds.”
The county is also granting $1.4 million in local tax breaks.
PEDCO president Jack Rink said the news isn’t big in terms of job creation, but he called it significant because the company plans to invest $82 million in Pueblo.
“We got to the point now where we need to expand and with the work of the city and the county and the state, they came together with a package that made us look nowhere else,” said Tony Wurmel, vice president of operations.
The loan comes from the city’s half-cent sales tax, which is earmarked for job recruitment. City manager Sam Azad said the last time money from that account was spent on bringing jobs to Pueblo was in September 2013. City finance records show there was $43.5 million in that account as of November 2014.
“This is a Fortune 100 company. That says a lot and speaks volumes in terms of their investment and continued investment in our community,” said City Council President Steve Nawrocki.
The announcement by UTC Aerospace Systems comes one week after 200 people were temporarily laid off at Evraz because of declining oil costs and reduction of drilling programs. The Receivable Management Services call center will also have 251 people without a job by March.
