The state Economic Development Commission on Thursday unanimously approved Pueblo's request to move ahead with the state-funded improvements to the Historic Arkansas Riverwalk of Pueblo.

The 11-member commission, meeting in Denver, noted the success of recent talks between Pueblo leaders and state Office of Economic Development staff to clarify and finalize plans for a project that over the past five years has periodically caused friction between Pueblo and the state agency. On Wednesday, Stephanie Copeland, the new director of the state Office of Economic Development, issued a letter saying the talks led her to "strongly recommend" approval.

Elsewhere, EDC members also praised the goals of the project, a public-private partnership set to bring tens of millions of dollars of tourism, convention, club sports and Home of Heroes attractions and other improvements to the Riverwalk area. The state has pledged $37.5 million in current and future state sales tax revenue support.

"I'm .?.?. very delighted to be voting in favor of it. I think it's a wonderful thing for Pueblo and a wonderful thing for the southern part of the state," said board member Chuck Murphy, a longtime Colorado Springs businessman and civic leader.

EDC chair Carrie Schiff, a business attorney in Boulder, commended Pueblo for "how strong a community you have and how you come together to make things happen." She said she could not recall hearing an applicant use the word "community" so much in regards to a state economic development project.

The next step for Pueblo is to resume its work of issuing the tax revenue bonds for the project which, in connection with a $14.4 million loan approved by Pueblo City Council, will be used as initial financing. The city also is set to interview finalists for the design-build contract. All of that work had been put on hold as of last month at the request of state officials.

The city hopes to begin construction by the fall.

The first phase of work would include the construction of an exhibit hall and Professional Bull Riders-anchored sports performance center onto the Pueblo Convention Center and a nearby parking garage. Later phases include an aquatics center/water park and visitors center/boathouse.

Don Banner, chair of the Pueblo Urban Renewal Authority, and Jerry Pacheco, director of the agency, were among the group of Pueblo representatives to attend the meeting despite snowy conditions that hampered travel to Denver.

Steve Nawrocki, president of Pueblo City Council, and Jim Munch, director of the Riverwalk Authority, were among the local officials who participated in the meeting via teleconference due to the adverse travel conditions. The city, Urban Renewal and Riverwalk Authority are the lead local agencies on the project.

"On behalf of the citizens of Pueblo .?.?. I can't tell you how much it's an honor to be a part of this and how blessed we are to have the support from all of you and your predecessors," Nawrocki told EDC members after the vote. Nawrocki also extended the community's thanks to Gov. John Hickenlooper's aides and other state leaders for assisting in the final talks.

Prior to the vote, Banner praised Copeland and Jeff Kraft, a top executive with the state agency, and other state staff for their recent push to work with Pueblo to finalize plans. The planning effort began five years ago with Pueblo and Aurora's selection as the first recipients of a state tourism grant. Other cities have received grants since.

"This has been a struggle to get to the point where we are. I want to acknowledge that Stephanie and Jeff have done an outstanding job of working with Pueblo," Banner said. He also noted the state agency and EDC's longtime support for Pueblo on other economic development projects.

Away from the meeting, Rod Slyhoff, president of the Greater Pueblo Chamber of Commerce, said he sees "a big light at the end of the tunnel" following the panel's approval.

"It's just so positive that we're finally going to move forward .?.?. The whole thing was to bring more people to Pueblo and the state of Colorado to visit. And this is going to be a key ingredient to that. I can't wait," Slyhoff said.

The panel's vote also will give a boost to Pueblo businesses, including those that have invested millions of dollars in the Riverwalk area in recent years, he said.

"I'm sure all were aware of the project and I'm sure that entered into their thinking as they invested. And now this is going to become a reality that they, as well as the entire community, should benefit from," Slyhoff said.

ddarrow@chieftain.com