TITLE: CONCERNING THE ACQUISITION BY THE DIVISION OF PARKS AND OUTDOOR RECREATION OF LAND IN MONTROSE COUNTY FOR PUBLIC PURPOSES.

Fiscal Impact Summary	FY 1999/2000	FY 2000/2001
State Revenues General Fund
State Expenditures General Fund Cash Fund	Please refer to State Expenditures on page 2
FTE Position Change	0.0 FTE	0.0 FTE
Other State Impact: TABOR
Effective Date: 90 days after adjournment unless a referendum petition is filed.
Appropriation Summary for FY 1999-2000: Please refer to State Appropriations on page 4 of this fiscal note
Local Government Impact: If the state acquires this property, local governments will no longer receive property tax revenues from this property.

This bill authorizes the Division of Parks and Recreation in the Department of Natural Resources to purchase a specified parcel of land consisting of approximately 168.89 acres in Montrose County, Colorado. The bill provides a legal description of the property.

This property, if acquired by the Division of Parks and Recreation, may be a candidate for the Colorado State Park System. If the property were to become a state park, the property would generate fee revenue to the Parks and Outdoor Recreation Cash Fund. Previous park site developments have occurred over a period of three to four years. Therefore, if this site were acquired during FY 1999-2000, the park may not generate new cash fund revenue until FY 2002-03. The amount of annual fee revenue is dependent upon the number of visitors to the park which is further dependent upon public accessibility, and the recreational activities and facilities provided at the park. The amount of potential annual cash fund revenue has not been estimated.

This bill authorizes the Division of Parks and Recreation to purchase approximately 168.89 acres of property owned by Umetco Minerals Corp. located near the town of Uravan, Colorado. Access to the property from State Highway 141 is provided by a one-lane bridge. Other public access is provided by a one-lane road through the property. The ownership of adjacent properties is unknown.

This property was formerly a uranium mining site. Six vacated mining buildings, numerous abandoned car bodies, concrete foundations, and partially exposed underground pipes currently remain on the property. Two of the buildings have been recognized as candidates for historical preservation. The property and buildings have been contaminated with uranium mill tailings and have been undergoing environmental remediation.

Department of Public Health and Environment. According to the Department of Public Health and Environment, this property is adjacent to, or part of, a Superfund Site which is also controlled by a radioactive materials license. If any portion of the property is part of the licensed site, the department would be required to certify the licensed portion of the property as "clean" prior to removing the site from licensed status. The licensee is required to show the site meets "free release" requirements. The department's Radioactive Materials Program is cash funded, meaning the licensee would be required to pay the department's costs incurred in certifying the site.

However, the department does not currently have sufficient resources to certify any non-licensed portion of the property. The department is verifying the property and site boundaries to determine if any portion of the property is licensed or under the Superfund. The department believes the state should ensure the property is clean prior to taking possession. The department indicates any of the property that may be under the Superfund would require delisting by the federal EPA as well as state certification. The department has not estimated the costs to certify this property, if necessary.

Department of Natural Resources. The unappraised purchase price of the property has been estimated to be approximately $100,000. If the Division of Parks and Recreation were to elect to acquire this property, the division may incur site development costs in addition to the cost of the purchase price, including:

The division would also incur annual operating expenses during site development. Previous park site developments have occurred over a period of three to four years. The division would be required to provide maintenance, sanitation, and security services at this site during development. After development, the division would incur annual operating costs to maintain and service the park.

This bill does not specify the funding source to acquire and develop the property. Historically, park acquisition and development costs are funded by monies from the State Lottery, Great Outdoors Colorado grants, and the state General Fund. This fiscal note assumes annual operating costs would be borne by the Parks and Outdoor Recreation Cash Fund, subject to the availability of sufficient park fee revenue. Any revenue deficiencies would be offset by the state General Fund.

In addition to the development requirements identified above, the division's decision whether to purchase this property would be based on the degree of remaining contamination and the level of environmental remediation, if any, that would be required to develop the property as a state park. This fiscal note cannot assess when the division may make that determination, or what the results of that determination may be. This fiscal note assumes the Division of Parks and Outdoor Recreation will request an appropriate amount of funding from an appropriate funding source if the division elects to purchase and develop the property specified in this bill.

Department of Law. In the event the Department of Natural Resources elects to acquire the property, the Department of Law will be required to perform a variety of legal transactions including a prospective purchaser agreement with the EPA and other federal agencies, indemnity agreements with the property owner, and memoranda of understanding with local agencies. The department also assumes the environmental history of the site will generate at least one case against the State. The cost of these legal services to the Department of Natural Resources is estimated to be $16,073 and 0.2 FTE, based upon 305 attorney hours @ $51.40/hour and 10 legal assistant hours @ $39.55/hour.

The Department of Law will be required to negotiate and draft a memorandum of understanding with the Colorado Historical Society. This cost is estimated to be $771, based upon 15 attorney hours @ $51.40/hour. The department will also assist the Department of Public Health and Environment in certifying the property. This cost is estimated to be $514, based upon 10 attorney hours @ $51.40/hour.

This fiscal note cannot assess whether the costs of these legal services can be absorbed within existing resources by the Department of Natural Resources, the Colorado Historical Society, or the Department of Public Health and Environment.

This fiscal note assumes this property owned by Umetco Minerals Corp. is subject to property taxes in Montrose County. If the state acquires this property, local governments will no longer receive property tax revenues from this property.

In the event the Department of Natural Resources elects to acquire and develop this property as a state park, the department will require an appropriation and/or spending authority from the state General Fund, and/or capital construction fund, and/or Parks and Outdoor Recreation Cash Fund. The department will identify an appropriate amount of funding and an appropriate funding source when that determination has been made.

Additionally, the Department of Public Health and Environment may be required to incur additional costs to assess and certify this property. This fiscal note assumes those costs will be borne by the state General Fund.

The Department of Law will require an appropriate level of spending authority of the appropriations provided to the Department of Natural Resources and the Department of Public Health and Environment.