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<br />. <br /> <br />e <br /> <br />e <br /> <br />. <br /> <br />Town of Minturn <br />243 BoUWER ST <br />POST OFFICE Box 309 <br />MINTURN. CO <br />(970) 827-5645 FAX (970) 827-4049/827-5545 <br />ALAN D. LANNING <br />To\VN MANAGER. <br /> <br /> <br />Town CoondI <br />~ GORDC)N FLAHERTY. \1,\ YOR <br />\1R DAREll WEGERT. MAYOR PRo TEM <br />MR. BRIA.'l' CANEPA. COL'Ncn.1tA.'l' <br />MR. FRED HASLER,. COL"'NCILUAV <br />MR. EARLE BIDEZ, COL"NCILMA..lI;' <br />Ms. STEPHA.'ilE LUCERO. COl..'NClLWOMA,'l' <br />MR. Bn.L Bl")R...""ETI. COl.:"NC1L\iA.'l' <br /> <br />November 1,1999 <br /> <br />Colorado Water Conservation Board <br />Attn: Mr. Bill Green <br />1313 Sherman St. <br />Room 721 <br />Denver, CO 880203 <br /> <br />Dear Mr. Green, <br /> <br />In response to our previous conversation of October 27, regarding the de-authorization of the CWCB <br />Bolts Lake rehabilitation loan, I would like to offer the following information. It is my sincere hope that <br />the CWCB Board will consider this information and not de-authorize the loan. The Minturn Town <br />Council would certainly like to keep those funds available to the Town for the rehabilitation of the Bolts <br />Lake dam. <br /> <br />Immediately after the authorization of the loan, in July 1997, Vail Associates sued Minturn in the Water <br />Court alleging that Mintum's municipal water right and its sole source oflegal water supply should be <br />cut back from 7.0 cfs to less than 1.0 cfs. V A asserted that municipalities were limited to the use of <br />their water rights that was occurring at the time of the initial decree, which in this case occurred in <br />1916. Mintum spent over one year battling this dispute in Water Court against very well heeled <br />opponents, an effort which was quite costly and completely eliminated any reserves held by the Town <br />that could have been used instead to rehab Bolts Lake. <br /> <br />The Town's ability to begin work on the dam is dependent on the permission of the landowner. The <br />ownership of the Bolts Lake property, along with the entire Gilman property, has been the subject of <br />protracted and hard fought legal battles. Battle Mountain Corporation is the nominal owner of the <br />property, but an entity called Mortgage Investments Corp. ("MIC") holds a deed of trust on the Bolts <br />Lake land. Although MIC has the ability to foreclose on the deed of trust, MIC has not actually taken <br />title to the land because of other legal concerns, including, apparently, the possibility of liability because <br />of the proximity of the Eagle Mine Superfund site. Although the Town and MIC have had continuing <br />discussions, MIC has been unwilling, or at least reluctant, to make commitments to the Town until the <br />ownership issues are completely resolved. MIC has repeatedly told the Town that MIC would donate <br />the Bolts Lake property to the Town without requiring compensation. Accordingly, the Town is <br />reluctant to go forward with a condemnation action and incur substantial expense and be required to <br />pay fair market value when the possibility exists that it will obtain the property for free if it is willing to <br />wait until MIC is ready to talk. <br />