PUEBLO (Colo.) — The Pueblo West course’s old water debt of $1.279M may be wiped away as Desert Hawk Golf Course is now turning a profit.
Karl Kumli, a lawyer for Pueblo West Metro District, asked Monday the district board to decide whether it would like to begin collecting the debt.
Anthony Sandstrom, metro district communications strategist and public engagement strategist, stated that the golf course has paid all its water bills since 2011. He said that water bill tabulations for the last five years are not saved so it isn’t clear how long the golf club was unable pay its water bill.
“The district owes the golf course water. So the question is, how can you recoup that? Kumli said that you can either ask for a share of the small profits or let the golf course keep them.
Kumli stated that 2020 and 2021 profits are “in the low six-figures, approximately $100,000 each year” and that 2022 figures will be available soon.
The metro area and Pueblo County own Desert Hawk. The 2000 intergovernmental agreement was signed by the two governments to save Desert Hawk’s failing golf course. It had been owned and operated previously by several private owners. Kumli explained that the agreement provides for the “repayment” of the lease, with a priority to the first and second priority respectively of funds going to operations and maintenance. Water is a necessary necessity.
He stated that the district could request a small amount from zero to $100,000. The debt could be retired in 12 year if the current profit rate is maintained and the board decides to make a $100,000 annual payment.
Doug Proal, vice president of the board, stated that this is the first time the board has been confronted with such a situation because the course has never been financially viable. “I believe it is an asset for this community, and it has always been for years,” said Doug Proal, board vice president.
Proal stated that we should take a part of it back, but split it to ensure the asset continues to move forward.
Kim Swearingen, Board President, stated that she would like them to pay their bills, but in the spirit to try to be a good neighbour and know it is an asset for the community, I would love to see their plans before we make our decision.
Jami Baker Orr, a board member and Proal both expressed interest in more information. The March 22 meeting of the golf course committee is scheduled. At its March 27 meeting, the board will likely discuss the matter further.
Late last year, the water rate for the golf course was increased
The board approved a price hike for Desert Hawk Golf Course water rates, increasing them from $1.15 per 1,000 Gallons to $1.56 each 1,000 Gallons. The rate increase was approved by the board 4-1, with Joe Mahaney, Secretary/Treasurer, casting the only no vote.
Mahaney stated that it was absurd to lease water from the Pueblo Board of Water Works for $2.48 per thousand gallons, and then sell it to the golf course at $1.56.
Jeffrey DeHerrera (deputy director of utilities) said that the golf course uses well water, backwash, and raw water which are cheaper to deliver.
According to the latest district documents that the Chieftain was able to obtain, the golf course is managed, operated, maintained, and promoted by an independent contractor. Zaremba Enterprises Inc. is the president of Michael Zaremba, a golf course professional. This independent contractor has been in place for several years.
Tracy Harmon is a business reporter for the Chieftain. She is part of the USA Today Network. She can be reached by email at [email protected] or via Twitter at twitter.com/tracywumps.
