Final funding pieces for Pueblo Riverwalk expansion falling into place

An expansion of the Historic Arkansas Riverwalk of Pueblo and the addition of a multi-functional boathouse has been in the works for years.

The estimated costs have ballooned — nearly doubling since 2018 — but nearly all of the funding sources are now lined up. Pueblo City Council is expected to vote on the final funding pieces at their next meeting on April 22.

The project is being funded by an amalgam of city, county, state and federal sources. Here’s what we know about how it will be funded and what comes next for Pueblo’s riverwalk.

How is the riverwalk expansion being paid for?

Just over half of the $16 million project is coming from Pueblo County 1A funding — $9 million to be exact. City council will need to formally approve accepting that allotment at their next meeting.

Pueblo Mayor Heather Graham has been pushing for funding for the riverwalk expansion since her time as a city councilor. Graham served on the HARP board and disputed with county commissioners last year about how much funding the county could commit. She attempted to block the city’s annexation of county jail property in an attempt to get the county to pitch in more funding.

The city, under former Mayor Nick Gradisar’s leadership, also applied for a $1 million grant from the Colorado Division of Local Affairs. Graham was a part of the team that was interviewed for the grant, which the city received.

“It was top priority when I first came into office to try to see what we could do,” Graham told the Chieftain.

The DOLA grant requires a $1 million match from the city, which is slated to come out of the city’s general fund. This ordinance has passed a first reading of city council and will be on second reading at the April 22 meeting.

Between $200,000 from the Pueblo Urban Renewal Authority and nearly $1.5 million from federal American Rescue Plan Act funds, there was still a funding gap of more than $3 million.

That’s being filled by half-cent sales tax funding set aside for regional tourism projects.

Graham said that several revenue streams were considered for the project, but taking a large chunk out of the general fund didn’t seem appealing. The city’s 2024 budget dips into some reserves, partially from a boom in sales tax collections during the years immediately after the COVID-19 pandemic.

“What better of a way to use the half-cent sales tax dollars than to try to generate more businesses maybe coming to town, or more volume (of people) coming into Pueblo's jewel, the riverwalk,” Graham said.

When will the project start?

Lynn Clark, the executive director of HARP, told the Chieftain Friday that the exact timing of construction on the project is still to be determined.

But after work begins, construction is expected to take 18 to 24 months.

Anna Lynn Winfrey covers politics at the Pueblo Chieftain. She can be reached at awinfrey@gannett.com. Please support local news at subscribe.chieftain.com.

This article originally appeared on The Pueblo Chieftain: How will Pueblo's riverwalk expansion be funded? Here's what we know