Southern Delivery System: Colorado Springs Utilities rejects opportunity to buy Morley’s Stonewall Springs reservoir site

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From The Colorado Springs Gazette (R. Scott Rappold):

During a meeting of city council – sitting as the Colorado Springs Utilities Board – Utilities officials said the asking price was too steep for a reservoir they don’t need now.

“We don’t have an immediate need right now, and there is plenty of time for us to develop an appropriate solution for our partners,” Utilities CEO Jerry Forte said. “Based on what we know right now, this is expensive, and I think we can do a better job for our customers.”

Utilities has an agreement with several other cities to build a reservoir near the Arkansas River for treated effluent. The Morleys’ site, known as Stonewall Springs, has been identified as a possible site, and in 2005 Utilities was in talks to buy it.

The deal was deemed too expensive – a Utilities appraisal listed it at $3 million, but the sellers wanted $7.25 million – and Utilities stepped away. In June, Utilities was lukewarm to a proposal to buy the site from the Morleys, who had since bought it, for $38 million, an increase in asking price related to the fact the developers had done some work to get land-use approvals for a reservoir.

More Southern Delivery System coverage here and here.

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