PUEBLO — The city of Pueblo will terminate its contract for economic development services with the Pueblo Economic Development Corporation (PEDCO) at year’s end.

The city has provided PEDCO 90 days’ notice of the contract termination, effective Dec. 31, officials said in a news release Tuesday afternoon.

A formal transition is underway to ensure PEDCO completes its contractual obligations related to Pueblo’s half-cent sales and use tax before the end of the year, the release said.

The contract termination reflects the Pueblo City Council’s recent 5-2 vote to issue a Request for Qualifications seeking new economic development partners, Mayor Heather Graham said in the release. The RFQ will be open to all organizations for economic development services, including PEDCO.

“PEDCO was founded over 40 years ago, and it’s time for the city to seek other committed partners dedicated to growing our city and helping us become the economic center of Southern Colorado,” Graham said in part.

Councilman Dennis Flores, who was opposed, said at the council’s Sept. 8 meeting he was concerned about ending the contract.

“PEDCO is a membership organization. So, the majority of their budget is paid by membership dues, not taxpayer dollars. Most of the people on the board at PEDCO, they want to remain in the position they’re at. They don’t want someone else to come in and think that they understand Pueblo and understand the needs of Pueblo when this was their idea,” he said.

Graham said Pueblo is grateful to PEDCO for its years of service and encouraged the organization’s continued involvement in the city’s general economic development.

“The city is hopeful this move will cause an evolution of its economic strategy — one that encompasses a broader focus than just primary jobs and shows a commitment to the growth of Pueblo overall,” she said.