Colorado Springs City Council Work Session: May 27, 2025
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Colorado Springs City Council Work Session – May 27, 2025
The Colorado Springs City Council held a work session on Tuesday, May 27, 2025, at 9:06 AM (agenda start time 9:00 AM) in City Hall Council Chambers. The meeting focused on an airport utility infrastructure update for Peak Innovation Park, introduction of an economic development agreement (Project Short Circuit), and councilmember reports. The meeting adjourned at 10:02 AM.
Consent Calendar
- Approval of Previous Meeting Minutes: The minutes of the May 12, 2025 work session were approved by consensus of City Council.
Discussion Items
7.B Airport Utility Infrastructure Update (Peak Innovation Park)
Councilmember Brian Risley introduced the update, emphasizing the need for utility infrastructure at Peak Innovation Park. Jamie Fabos, Chief of Staff, stated that staff has been instructed to provide additional information on energy requirements to Colorado Springs Utilities (CSU) by June 4, 2025. Mike Franklin, CSU Chief Customer Officer, explained that an executive agreement between CSU and the Colorado Springs Airport would make the site shovel-ready for data centers and light/heavy duty manufacturing. He noted that a $168 million CSU investment plus a $58 million airport substation are needed, with an initial deposit of $2.8 million from the city. Councilmember Williams asked about building infrastructure as needed; Franklin replied that companies prefer existing infrastructure and will not wait four to five years. Councilmember Rainey asked about the number of businesses in the queue; Fabos stated five are currently considering the site. Johnna Reeder Kleymeyer, President and CEO of the Colorado Springs Chamber and Economic Development Corporation (EDC), provided additional context: in 2024, the city lost 10 of 13 projects due to utility uncertainty; in 2025, nine requests for proposals have been received, with seven in aerospace/defense. She stressed that without utility certainty, prospects will not move forward, and that the city has no other large greenfield sites. Councilmember Henjum requested background on the park's creation (2009) and the financial risk; Fabos confirmed the airport would finance the $58 million substation. President Pro Tem Risley called for the administration to sign the executive agreement as soon as possible, noting the potential for billions in capital investment and thousands of jobs.
8.A Resolution Approving Economic Development Agreement with Project Short Circuit
Jessie Kimber, Economic Development Officer, presented the proposed four-year Economic Development Agreement (EDA) with Project Short Circuit, a technology company planning to expand in Colorado Springs. The agreement includes a 50% sales and use tax rebate on machinery and equipment (1% of the city's 2% general fund rate). The company is expected to create 40 new direct jobs over four years (70 over ten years), with a total of 189 permanent jobs including indirect and induced. The fiscal impact shows $179,000 in gross city revenue over four years and $1.1 million over ten years, with net city revenue of $173,000 and $1.1 million respectively after incentives. Financial safeguards ensure no rebate is paid if job/investment targets are not met. No council questions were asked.
Councilmember Reports and Open Discussion
- Councilmember Dave Donelson called for an investigation into Mayor Yemi’s alleged involvement in the 2023 hate crime hoax, citing accusations from the recent trial and FBI testimony about false statements and phone changes.
- Councilmember David Leinweber praised the city's stormwater infrastructure performance during recent heavy rains, and updated on his homelessness task force’s efforts to improve data collection through the HMIS system. He also noted the ribbon cutting for The Launchpad, a youth homeless shelter expanding from 18 to 50 beds.
- Councilmember Nancy Henjum highlighted the work of Hey Neighbor! (formerly CONO) and residents along the Rock Island Trail for cleanup efforts. She also attended Mayor Yemi’s Report Out to the Community at the Citadel Mall on May 23, 2025.
- Councilmember Roland Rainey Jr. reminded the council to honor the sacrifices of military personnel on Memorial Day.
Key Outcomes
- Consensus approval of the May 12, 2025 work session minutes.
- No formal action on the Airport Utility Infrastructure Update; Councilmember Risley urged the administration to sign the executive agreement with CSU promptly.
- No vote on the Project Short Circuit EDA; the item was introduced for a future formal vote.
- Councilmember Donelson's call for an investigation into Mayor Yemi was noted but no action taken.
Meeting Transcript
We will begin shortly. We're having some technological problems. Are we done? Okay. I just still see the meeting will begin momentarily. So we're getting we're okay. We're gonna get started. So good morning. We're gonna start with City Council Car Springs work session meeting agenda for Tuesday, May 27th. Will the uh clerk please call the role Councilmember Bailey? Here Councilmember Crow Iverson? Here. Councilmember Donaldson? Here. Councilmember Gold. Present. Councilman Member Hingem? Present. Councilmember Lineweber? Here. Councilmember Rainey? Here. Councilmember Risley? Here. Councilmember Williams. Here. Are there any changes today's agenda? Um I have five people up on my screen. So if there are, just raise your hand. Regular meeting comments. Are there any changes to the regular meeting? If there are, just raise your hand because I have no seeing none. Review of previous minutes. Will the clerk please read item four A into the record? Item 4A, City Council Work Session Meeting Minutes, May 12, 25. Are there any changes to these minutes? I see none of the colours. Okay. I wonder if utilities could sort of respond to that in terms of whether that works or not. And as I understand it, um, what's hanging in the balance are not only a number of economic development deals, but about a hundred and sixty eight million dollar investment from utilities that would be earmarked for some other purpose if this doesn't go through. Is that an accurate statement? That's correct, Councilman Risley, Mike Franklin, Colorado Springs Utilities Chief Customer Officer. So essentially, like you know, Chief of Staff had indicated, uh, peak innovation park is a is a huge opportunity for the city, specifically um when you look at industrial light duty use and even heavy duty use manufacturing. We had some uh data center requests and so forth, but the really what this allows the site to do through this executive agreement between um and what's what's been proposed is an executive agreement between the utilities and obviously the the airport, which is an enterprise of the city, and essentially what it does is it it allows the site to be shovel ready, and I see uh our chamber there in the audience. And essentially what it does is it it allows the site to be shovel ready. And I see uh our chamber there in the audience. So um, you know, what we have is a lot of requests that come in, businesses that come in through our chamber uh could actually come through the utilities itself. Really, there's a myriad of ways that these prospects come in. And so we utilities has um has essentially proposed is a 168 million dollar investment to uh provide transmission and allow that site to be shovel ready, and then obviously the the uh the airport would pay for the substation in terms of making that that site ready as well, which is about 58 million. So that that investment allows that area to really um be available for, like I said, light duty, heavy-duty manufacturing.
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