Southern Delivery System: Colorado Springs Utilities has spent $26.6 M on land-related expenses

Southern Delivery System route map -- Graphic / Reclamation
Southern Delivery System route map — Graphic / Reclamation

From The Pueblo Chieftain (Chris Woodka):

Colorado Springs has spent $26.6 million to acquire land for its $984 million Southern Delivery System. Most of the money was spent in El Paso County, although properties in Pueblo West and on Walker Ranches were purchased either permanently or for temporary easements.

Pipeline easements totaled $961,681 for 388 acres in Pueblo County, compared with $2.5 million for 486 acres in El Paso County.

Another $1 million was paid to buy homes in Pueblo West.

The big money was paid for other features of the project in El Paso County, a total of about $22 million.

“It would be misleading to simply do the math on the values above and conclude that more was paid for land in El Paso County than Pueblo County,” said Janet Rummel, spokesman for Colorado Springs Utilities, in an e-mail responding to a request from The Pueblo Chieftain.

Permanent easement prices ranged from 50-90 percent of fee value, while temporary easements are valued at 10 percent per year, varying from one to four years.

“The fee value of land depends primarily on location, but also is subject to size, shape, development entitlement and improvements, if any,” Rummel explained.

“Within the raw water pipeline alignments for SDS, fee values for easements and facilities ranged from $1,389 per acre to almost $20,000 per acre,” Rummel said. “Pueblo West properties were generally valued in the range between $10,900 to $13,000 per acre.”

At the high end of that scale were 6 homes on about 10 acres in Pueblo West purchased for $1.044 million.

But even below that scale were 103 acres, two-thirds in permanent easements, on Walker Ranches, which could be purchased for $82,900, or about $804 per acre. Utilities also paid Walker $600,000 to relocate cattle during construction, as required by Pueblo County’s 1041 permit.

Gary Walker will contest the amount of the easement payment in court this November, one of four cases still in dispute.

Walker also has raised complaints, most recently during a county public hearing, about erosion along the pipeline route. The bulk of the money, however, has gone for the treatment plant, pump station and reservoir sites in El Paso County.

Utilities paid $259,519 for 43 acres for the Bradley Pump Station; $2.4 million for 124 acres at the treatment plant and $19.3 million for a future reservoir site on Upper Williams Creek.

At the reservoir site, T-Cross Ranches, owned by the Norris family, received $9,500 per acre for 791 acres ($7.5 million), while the state land board received $10,500 per acre for 1,128 acres ($11.8 million).

SDS is a pipeline project that will deliver up to 96 million gallons of water daily from Lake Pueblo to Colorado Springs, Fountain, Security and Pueblo West.

The figures do not include money Utilities paid to purchase homes in Jimmy Camp Creek at a reservoir site that later was abandoned.

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