An electric transmission framework that can support up to 600 megawatts of capacity is among new utilities infrastructure planned at Peak Innovation Park, part of an agreement local officials said will support long-term development and sustainable economic growth in Colorado Springs and across the Pikes Peak region.

Colorado Springs Utilities and the city on Friday inked an executive agreement with the Colorado Springs Airport to fund and build crucial electric, natural gas, water and wastewater infrastructure that will support the municipal airport and its 1,600-acre business park.

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“This is a long-term generational investment into commercial development for the community,” said Troy Stover, Peak Innovation Park’s development director.

The master-planned business park located at the airport’s entrance includes industrial, office and retail space, as well as other uses. Sites are available for sale, lease or build-to-suit.

As part of the agreement, Utilities will design, construct, own and operate a new high-voltage switching substation on airport property, spokeswoman Amy Trinidad said. The infrastructure plan includes investments in substation equipment and large-scale transformers to support up to 600 megawatts of electric capacity.

The utility will also be solely responsible for all 115 kilovolt and 230 kilovolt high-voltage transmission lines that will be reviewed by the Southwest Power Pool beginning next April, Trinidad said. The Southwest Power Pool manages the bulk electric grid and a wholesale electric market.

Friday’s agreement applies only to the electric infrastructure; generation capacity will be addressed separately and as needed, Trinidad said.

The new substation will allow Colorado Springs to meet market demands for power from companies in aerospace, defense, manufacturing and other industries who are considering doing business or expanding their operations in the city, the business park’s Stover added.

Often considered “high power users,” these types of companies have indicated their sites need to be fully operational within 24 to 30 months.

“In order to do that, we have to have the infrastructure more readily available … so we can get companies who are large power users to market quicker, and thus be successful in gaining these companies in our community,” Stover said. “It’s the reality of success: if you don’t have the ability to provide these services in 24 to 30 months, you’re just not competing very well.”

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Colorado Springs Utilities will also lead development and operation of water and wastewater treatment facilities at the site, Trinidad said. Colorado Springs Airport will fund and construct supporting infrastructure like transmission mains, lift stations and natural gas main extensions.

The airport’s estimated investment under Friday’s agreement is about $58 million, costs that will be bankrolled by future development within the business park, Stover said. Utilities expects to invest $165 million into the project, funding for which was included in the agency’s five-year financial plan, according to Trinidad.

Peak Innovation Park is about 18% developed and is home to businesses including Amazon, which operates fulfillment, sorting and distribution centers there; Northrop Grumman; The Aerospace Corporation; and Frito-Lay. The site could grow by more than 560 acres in the coming years, after Colorado Springs Airport agreed in 2023 to purchase the additional land for more than $38 million.

“The adage that says ‘if you build it, they will come’ totally fits Peak Innovation Park,” said Johnna Reeder Kleymeyer, president and CEO of the Colorado Springs Chamber & EDC. “We can’t support new jobs or business, or expanding businesses, in our region unless they have assurance the utilities they need are available. … The way we grow our city smartly is by having commercial, industrial and residential development that supports our families with good-paying jobs. This is how we build a tax base without having to raise taxes on those of us who live here. We need to add to that pie.”

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Colorado Springs Economic Development Director Jessie Kimber declined to share details about specific companies who are looking to set up shop at Peak Innovation Park, but noted plenty are interested.

“Once the site selector and development world understands the amount of power and services that we’re bringing to Peak, that project pipeline will just get longer,” Kimber said. “As you bring power generation you will bring the industry-specific pillars that we’ve been looking to recruit into the region. That means a lot of high-paying jobs for Colorado Springs (residents), and adding retail, parks, trails and other hospitality services adds to the quality of life for residents in the southeast Springs.”

Trinidad said specific project timelines and opportunities for public feedback are still being finalized. Utilities will share more details in the future.