(PUEBLO, Colo.) — Mayor of Pueblo Heather Graham is hoping to find new ways to incentivize businesses, and said it starts with loosening the rules on how the Steel City spends its half-cent sales tax.

The proposal, which is backed by the Pueblo Economic Development Corporation, would let the city tap up to 10% of the sales and use tax’s uncommitted balance for projects aimed at boosting the economy, creating gathering places, or preventing dollars from leaving town.

The change would apply from October through the end of 2026, and any leftover money from the previous year could go to the 10% cap.

“Incentivize different businesses coming into town with placemaking, economic leakage and economic catalyst. So it’s not going to be primary job-focused,” said Graham. ” The community invests a lot of money in economic development, and I think that this is going to be a way that we can get with the times, in order to bring some new businesses to our community.”

After a lengthy discussion on Monday, Pueblo City Council narrowly voted down the criteria ordinance. It’s not the first time the idea has stumbled–a similar 15% proposal failed in June, and an effort to take the question to voters didn’t make it past council in August. Still, the mayor said Pueblo has a lot to be excited for, like the $16 million Riverwalk Boathouse Project, which is slated to open in November.

“I’m also super thrilled about the Da Vinci Museum that we fought really hard to get at the PBR Sports Performance Center, and that’s going to be hopefully opening early next year,” said Graham. “And I think that those are going to be two of the largest economic drivers into the downtown area.”