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Town enters into contract to purchase riverfront property

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On Nov. 21, the Pagosa Springs Town Council approved the second reading of an ordinance authorizing the purchase of riverfront property located at 1040 E. U.S. 160. 

The four-acre parcel formerly housed Bob’s LP and is currently being leased by Basin Coop. The main goal for the town in purchasing the property is to expand boater access to the San Juan River, states an agenda document on the matter. 

Development Director James Dickhoff stated at the council’s Sept. 3 meeting that the main boater access in the area is on private property and is currently up for sale, meaning that public boater access to the river in this area could be in jeopardy in the future.

He said, “Currently, we don’t have any formal public access on this side of town. It’s all private property.”

In the past, the town has contemplated installing boater access on the town-owned parcel behind the River Center, “but it would have required paving over one of the ponds to provide parking and access for trailers … and we received strong public feedback that they did not want to see this pond paved over,” Dickhoff said.

The Bob’s LP property being considered is a more ideal location for a river park focused on boater access, Dickhoff explained.  

An executive summary plan, titled “East River Park Project,” explains that the first phase of development would include “an environmental site assessment, property cleanup, site improvement final design, boat ramp installation, and parking improvements.” 

The plan adds, “Future project phases contemplate constructing additional amenities, such as restrooms, a handicap-accessible fishing pier, shade structures, paved parking, and a riverwalk trailhead.”

The river park project would fulfill a “community vision to create public river boat access facilities at the eastern gateway into Pagosa Springs, where no formal public boat access currently exists,” the plan states.

At the meeting, Dickhoff explained that funding for the purchase of the property and construction of the park is anticipated to mostly come from two grants — a state-level Great Outdoors Colorado (GOCO) grant in the amount of $420,000 and a federal-level Land, Water, Conservation Fund (LWCF) grant in the amount of $462,098. 

The town has applications out for both grants and will find out if it’s awarded the funding by March 2025, Dickhoff added. 

Additional funding for the project, with a total budget of $947,315 for purchasing the property and phase one improvements, would come from the Conservation Trust funds of both the town ($50,000) and county ($80,000).

A closing date “is proposed on or before April 21, 2025,” providing enough time “after the grant award notifications to coordinate property closing and/or Town Council’s discussions if funding is not granted,” the agenda document states. 

A Yellow Book Appraisal identifies the parcel to be valued at $740,000, according to agenda documentation. 

Dickhoff explained that, since the first reading of the ordinance to purchase the property was approved by the council on Nov. 5, the draft contract has seen “only a couple very minor edits,” such as the date for the town putting up its $15,000 in earnest money. 

He said, “The seller is still very supportive of the draft contract,” explaining that if the council approved the second reading of the ordinance, he could then gather all of the required signatures and be able to present the contract as part of the town’s GOCO application.

He said that the town should know if it’s awarded the GOCO grant by mid-December and that success with the GOCO grant would increase its chances for the LWCF grant. 

When opened to questions, council member Leonard Martinez asked Dickhoff why there was not a period of time designated for Basin Coop to continue to lease the property after the town closed on the land. 

Dickhoff explained that “based on the work that we’d need to do after we purchase it, it’s likely to not be ready for next season, but we do need to do our due diligence to finalize what exactly we need to do to gain access to the river sooner than later.”   

He added that he met with representatives of Basin Coop, and that if Basin Coop is not ready to move to another location by next year, “there may be an opportunity for them to still operate their small portion,” giving “us some room for river access.” 

“In essence, what I have talked to them about,” Dickhoff said, is for the Basin Coop to move locations by “the beginning of 2026.”

He added, “They are supportive of not staying at that location. They are actively looking for a new location now.” 

But Martinez suggested that it may be in the town’s best interest to have Basin Coop stay for a longer period of time. 

“It’s a pragmatic thing, that the longer they stay, it reduces what we have to pay,” Martinez said, adding that “as long as they stay there, we could actually be profiting” by collecting rental fees. 

Council member Mat deGraaf asked Martinez, “Are you suggesting that you would be in favor of Basin Coop remaining on that location as long as it’s feasible for us to do what we need to do and they could run their business?” 

Martinez affirmed that he saw it “as a way to actually pay our portion of what it’s gonna cost us to get into this,” adding that “as long as they stay there it costs us nothing to buy that land, so that, to me, is just a feature to keep in mind.” 

When a motion was made to approve the second reading of the ordinance, it was seconded and passed unanimously by the council. 

At the Nov. 5 meeting, Dickhoff explained that one of the buildings currently standing on the property has a restroom and is also hooked up to water and sewer, suggesting that the building could be utilized by the town at some point. 

He also stated, at previous meetings that public sentiment has shown a strong “community desire to see more public river access,” pointing to the River Corridor Master Plan (2012) and the East End Multimodal Plan (2022), which both identified this particular property as “the last missing link” for expanding public river access.

derek@pagosasun.com