Pueblo West struggling to keep $9.7 million aquatic center plan afloat

The funding pool is not as deep as anticipated for the Pueblo West Metro District’s proposed $9.7 million aquatic center.

The district's board of directors, including two new members sworn in Monday, are having to brainstorm ideas to buoy the project.

The board welcomed newly elected members Brian Axworthy and Bill Vickers Monday, who shortly after their swearing-in learned that when it comes to the aquatic center, “We just don’t have the funds coming in that we anticipated,” said Carol Cosby, recreation and parks manager.

Among the blows to the project’s funding are the potential loss of $1 million that was expected to come from Pueblo County, as well as a 2022 budgeting error that incorporated figures for both projected and actual excess tax revenues from 2021.

Between the two revelations, what was thought to be a $3.7 million budget for the aquatics center has dwindled to $2.4 million, Cosby told the board Monday.

“The $1 million in 1A funds may not come in from the county,” Cosby said, pointing out that getting other partners to contribute to the project without those funds is "going to be a tough sell."

Cosby was referring to a 2016 ballot measure approved by county voters which was designed to allow the county to retain excess revenue formerly required to be returned to residents under Colorado's Taxpayer Bill of Rights. At the time, county leaders proposed 20 projects that could get funding, including the Pueblo West Aquatics Center.

“We were counting on the $1 million from the county and we may not get that,” said Karen Cordova, director of finance for Pueblo West.

Pueblo West voters made it clear in 2016 they wanted an aquatics center when they approved a measure similar to Pueblo County’s. That measure allows the metro district to retain excess revenues through the end of 2026 for the aquatics center.

In 2019, the metro district board fattened the pool coffers by dedicating 30% of the district's yearly marijuana excise tax funds to the aquatics center.

Since that time, Cosby and an aquatics center committee have been working to find other revenue sources. Cosby said she has approached Pueblo County three times and Pueblo School District 70 officials twice, but both governments have not agreed to help with funding.

Among ideas tossed around during a discussion Monday was the possibility of getting Certificates of Participation to fund the project, but borrowing that much money could lead to a $51,000 annual bill with a 15-year loan period, or $385,000 each year for a 30-year loan period, Cordova said.

The board also discussed the possibility of downsizing the 17,500 square-foot aquatics center to a simpler swimming pool. Cosby said a scaled-down pool could still cost between $5 million and $7 million, and the initial intention was to “make a very unique pool” for the community.

Axworthy, who said he will be seeking out grants and “working hard to get some free money,” for the district, indicated he is ready to roll up his sleeves and help with projects like the pool and water rights acquisitions for the district.

More on aquatics center: Pueblo West Metro Board dives into pool plans

Settlement reached on property sale

In other business at Monday's meeting, the board agreed unanimously to accept a settlement payment on a 6-acre lot it sold in 2019 after the buyer, Folium Biosciences, was unable to meet conditions of the sale.

According to district legal counsel Karl Kumli, Folium Biosciences, a Colorado Springs-based CBD manufacturing company, bought the land in 2019. The lot is located next to the former Andrews Foodservice building where the company had planned to move and expand its operation.

The company bought the lot for $225,000 but paid just $100,000 down and agreed to pay the remainder when it obtained a certificate of occupancy and completed construction. The company has since gone out of business and Kumli said a receiver handling the property has promised to make a $140,000 payment in exchange for a quitclaim deed from the district that will allow the property to be transferred to a new owner.

That new owner’s identity was not disclosed and is redacted in the paperwork submitted to the board. Board Vice President Doug Proal said the board initially agreed to the sale terms in 2019 on the promise the company would bring 150 to 200 good-paying jobs to Pueblo West.

He said he feels the agreement, which would bring in $15,000 more than initially settled upon, would help “make the district whole.”

The board also voted on new officers Monday. Nick Madero was named president, Proal will continue as vice president, Vickers will serve as secretary, Axworthy will serve as treasurer and Joe Mahaney will get a break from the dual secretary/treasurer roll he has held during the past year.

More on Folium Biosciences: CBD oil company expanding in Pueblo West

This article originally appeared on The Pueblo Chieftain: Pueblo West grapples with funding for $9.7 million aquatic center plan