HomeMy WebLinkAbout20000024.tiff TIMOTHY R. BUCHANAN, P.C.
ATTORNEYS AT LAW r ^7
1. 1
14700 WEST 66th PLACE, SUITE 6
ARVADA, COLORADO 80004 j-- -
TELEPHONE(303)431-9141
FACSIMILE(303)423-7266
TIMOTHY R.BUCHANAN PETER D.MOHR
Direct live(303)432-9414
December 23, 1999
Mr. Greg Walcher
Executive Director
Department of Natural Resources
1313 Sherman Street, Room 718
Denver, Colorado 80203
Re: Jackson Lake Reservoir Recreation Lease
Dear Mr. Walcher:
I am writing to confirm our telephone conversation of December 22, 1999. At the beginning
of the telephone conversation, you indicated to me that you were concerned that the negotiations
regarding the recreational lease associated with Jackson Lake Reservoir was falling apart and that this
matter had been dropped into your lap at the last minute. You also indicated that you did not have
much confidence in your personnel because they were not appointed by you or Governor Owens.
I did not mention it during our telephone conversation, but I wanted to remind you of a March 10,
1999 letter that was sent directly to you from the Jackson Lake Reservoir and Irrigation Company.
As you will note from the letter,the Board of Directors of the Jackson Lake Reservoir and Irrigation
Company indicated that "[wie have notified the Parks Department that unless they are willing to
propose different terms and conditions, we will not be renegotiating the lease."
You asked me a question regarding whether the Jackson Lake Reservoir and Irrigation
Company would be willing to enter into a new lease agreement. I indicated that the Jackson Lake
Reservoir and Irrigation Company was willing to enter into a new recreational lease agreement on
terms and conditions that were fair to the Company, and that the Jackson Lake Reservoir and
Irrigation Company had been negotiating for several years regarding a new lease agreement.
You asked me whether the Jackson Lake Reservoir and Irrigation Company would be willing
to enter into a perpetual lease agreement. I indicated that the present position of the Board of
Directors of Jackson Lake Reservoir and Irrigation Company was that they would not enter into a
C.PI , CA
2000-0024
i-3-a000
Mr. Greg Walcher
December 23, 1999
Page 2
perpetual lease agreement. I further indicated that the Board of Directors of the Jackson Lake
Reservoir and Irrigation Company would reconsider this issue if there was appropriate compensation.
In response,you indicated that you understood that there was an appraisal that specified a perpetual
lease payment. I indicated that the Company disagreed with the appraisal amount, and you inquired
as to whether we disagreed with the selection of the appraiser or if we disagreed with the
methodology. I indicated that we had no particular objection to the appraiser, but that we did not
believe the methodology that was utilized fairly represented the value of the recreational lease. I
indicated to you the Jackson Lake Reservoir and Irrigation Company felt that annual payments were
fairer, but that we had been discussing a lump sum payment in the past few months. I also indicated
that I felt that it was more appropriate for us to agree on a lump sum payment amount and the term
of the agreement. Each party could then evaluate the compensation to determine if the agreement
was acceptable to them.
You also indicated to me that there was a matter of a$300,000 loan that needed to be repaid
and problems with the State Dam Inspector. I indicated that I did not know what loan you were
describing. You indicated to me that there was a loan with the Colorado Water Conservation Board
and that needed to be resolved. I indicated that the loan through the Colorado Water Conservation
Board had been approved and you indicated that you had placed the loan on the January 2000 agenda
of the Colorado Water Conservation Board for reconsideration. I said that I understood the threat
was that if the Jackson Lake Reservoir and Irrigation Company did not agree to the recreational lease
on your terms,you would prevent the loan from being approved by the Colorado Water Conservation
Board and cause problems with the Dam Inspector. Your response was that the Parks Department,
the State Engineer's Office and the Water Conservation Board were all under your department and
that in order to get the loan and avoid issues with the Dam Inspector, the recreational lease would
need to be completed. It is entirely inappropriate for you to threaten regulatory action or withholding
of public funding programs in order to obtain an agreement to use the property owned by the Jackson
Lake Reservoir and Irrigation Company.
You inquired as to whether the Jackson Lake Reservoir and Irrigation Company would be
willing to enter into a lease extension. I responded that at this time, the Board of Directors had
determined that the Jackson Lake Reservoir and Irrigation Company would not enter into an
extension agreement unless the payment amount and the term of the agreement was agreed to by the
parties. Your response was that we were negotiating with the wrong parties and that you did not
have time to discuss this matter before the end of the year. I indicated that we had been
corresponding with and meeting with the Parks Department for several years and it was not the
Jackson Lake Reservoir and Irrigation Company's fault that you have now determined that the
negotiations were with the wrong personnel at the Parks Department.
Mr. Greg Watcher
December 23, 1999
Page 2
You then indicated that you wanted to talk directly to the Board of Directors of the Jackson
Lake Reservoir and Irrigation Company, and I responded that the Board of Directors had requested
that I be the contact person for the negotiations. You indicated that you did not want to talk to me
and that it was a mistake not to have a meeting to discuss these issues. I offered to meet with you
this week or next week and you told me that you did not want to meet with me. You also indicated
that I was giving the Jackson Lake Reservoir and Irrigation Company bad advise, and that you would
only meet with the Board of Directors so that you could tell them they were getting bad advise. I
again offered to meet with you and you refused my offer. I indicated that I would discuss our
telephone conversation with the Board of Directors and advise you of their response.
Sincerely,
TIMOTHY R BUCHANAN, P.C.
Timothy R. Buchanan
TRB/ddc
cc: Board of Directors,Jackson Lake Reservoir and
Irrigation Company
Hon. Bill Owens, Governor
Hon. Kenneth Salazar, Attorney General
Mr. Peter H. Evans, Director
Colorado Water Conservation Board
Ms. Laurie Matthews,Director
Colorado Division of Parks and Outdoor
Recreation
Mr.John Mumma,Director
Colorado Division of Wildlife
Mr. Hal Simpson, State Engineer
Board of County Commissioners,Morgan County
Board of County Commissioners, Weld County
Hello