At its regular meeting held on Thursday, April 18, the Pagosa Springs Town Council voted to approve the second reading of Ordinance 1004, which authorizes the acquisition of the 11.85 acre property located at 229 U.S. 84 #A.
Town Planning Director James Dickhoff briefed the council on the ordinance and explained that council approved the first reading on April 2 with a 4-2 vote.
Dickhoff explained that, at the last meeting, there was discussion of another property along U.S. 160 that could potentially be used for parking.
“I really do not believe there’s really enough to make that work … I think the terrain there is just unsuitable for trying to figure out a legitimate and workable, safe parking area, so I just want to bring that to your attention,” Dickhoff stated, adding, “I certainly think the main property is available for parking … certainly during the main street reconstruction project.”
He added that the property could also be used for parking for events such as the county fair.
Council member Matt DeGuise questioned if it would be possible for pedestrian access to be constructed on the lot to connect with downtown.
“I think there is a way that we could probably get a rustic path down that hillside, down that drainage mainly,” Dickhoff stated.
Before voting on the matter, the council held discussion in which council member Brooks Lindner spoke in favor of purchasing the property.
“I see the purchase of this property as benefiting our locals, and that’s why I’m in favor of it for a variety of reasons, and also its not halting or delaying any of our capital improvement projects that we have going … So, I just wanted to make that clear as we move forward with this,” he stated.
Mayor Shari Pierce also voiced her stance on the matter, saying, “I know I’m outnumbered, but I’m just going to say this again, I have been the one who has spoken against this purchase along with council member [Leonard] Martinez.”
Pierce went on to point out the town’s current financial situation and upcoming projects that the town will need to allocate funds for.
She noted that the current balance in the capital fund capital reserve account is $2,486,060 and of that balance, an estimated $231,000 is to be spent on upgrades at the Harman Hill and Piedra intersection with U.S. 160. Then another $2.1 million of that has been allocated for the main street project, she explained.
“That is not going to happen this year, but it will happen next year,” she said, indicating that costs might increase as well.
“We heard the other night that the cost on the bids was 35 percent higher, so I’m thinking this might go 35 percent higher, at least,” she said.
However, without factoring in those potential cost increases, that would leave a balance in the capital fund capital reserve account of $155,008, “and that’s right in our budget,” Pierce added.
She explained that the money being used to purchase the Goodman property would come from the town’s general fund capital reserve account, which has a current balance of $3,562,265.
Pierce noted that the town has already set aside $420,000 for a new dump truck.
She also noted that the cost of the main street project could increase by $735,000, and the Harman Hill and Piedra intersection project could increase by $42,000.
“So, that would leave us with $2,365,265. If we spend the $850,000 tonight that we’re talking about, that would leave a balance of $1,515,265,” Pierce said. “We also targeted this account to possibly pay for sanitation line repairs and replacements, geothermal line repair and replacements, and any grant matches for those.”
Pierce also mentioned the town may be working on the 1st Street pedestrian bridge project, which would connect sidewalks from 1st Street over the San Juan River to the Malt Shoppe (see related article).
The town has received a $1 million grant for that project, but any costs exceeding that the town will have to pay for, Pierce explained.
“So, that has to come out of that $1.5 million,” she added.
Pierce also explained that the Pagosa Springs Community Development Corporation (PSCDC) is asking the town to secure $430,000 for housing projects, which would also be coming from the $1.5 million.
“Hopefully it won’t be used, but we have to assume that it might,” she said.
Pierce also mentioned that she asked Town Manager David Harris to revisit a plan from a couple years ago that addresses safety concerns in Town Hall along with additional layout options.
“We don’t know what that’s going to cost, but that has to come out of that $1.5 million,” Pierce said. “You say people over projects; I’m going to say our people’s safety over buying this land.”
Pierce also indicated that the town may incur future costs depending on the need for upgrades to the Pagosa Area Water and Sanitation District’s Vista wastewater treatment plant.
“So, I’m very concerned about the amount of money that we’re taking out of our reserves and what we have coming up … So, that’s my math. I’m asking you to please deny this tonight,” Pierce added.
Council member Mat deGraaf commented on the matter in response to Pierce, saying, “I appreciate that, thank you, and we know your concerns. Some of those, I think, are hypotheticals.”
He mentioned that he feels some of those concerns are multiyear projects.
“I don’t think that it’s apples and apples, necessarily,” he added.
Pierce expressed concern about how the town will be able to refill its accounts moving forward.
“I just don’t want to leave a future council without money to do projects that come up that we’re not thinking about today,” Pierce said.
Council member Gary Williams also acknowledged the concerns, but still spoke in favor of the land purchase.
“I, too, appreciate your comments and your concern about the budget and I’ve always said that it’s the job of the town manager to run the town day to day, for this next 12 months, so to speak, and I view the council’s role as kind of looking out into the future. What can we do today that’s going to make the quality of life better for town residents 10, 20 years down the road?” he said. “So, this is a unique opportunity, I think both because it’s next to Reservoir Hill, or adjacent, and the price is very attractive.”
Williams mentioned that town staff indicated the town could spend up to $500,000 on land purchases.
“So, I think what we should seriously consider is asking staff to look at land holdings that we have, that we bought for affordable housing that we may not need now, and that we consider selling some of that to make up the difference,” he said.
Pierce questioned as to why the town would no longer need those other land holdings.
Williams explained that he believes the land the town purchased behind Walmart has a high capacity for concentrated development and that some of the smaller lots may not be practical for development.
DeGuise also spoke in favor of the matter, saying, “I’m still in favor of the sale. I think it’s one of those properties that comes along, it’s strategic, that once it goes into public hands we’re not going to see it come around again.”
He mentioned that based on two months of sales tax this year, he is “optimistic that our economy’s still robust.”
Williams moved to approve the second reading of the ordinance, which was seconded by deGraaf.
The council took a roll call vote on the ordinance, with Pierce voting against the purchase and council members DeGuise, deGraaf, Lindner and Williams all voting in favor of the purchase.
