Rico Board of Trustees will consider proposed Ordinance 2025-01 "approving the purchase of the community church property at 110 and 116 East Mantz" at its February 19, 2025 regular monthly meeting.

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by Allyn Svoboda - Publisher

Rico Community Church at Rico, Colorado

Ore Cart photo
January 31, 2025

Summary of Ordinance 2025-01 from the Meeting Packet:

. . . The ordinance includes the sales contract as an exhibit, detailing the terms of the agreement. The agreed-upon sale price is $425,000 and the purchase is conditioned upon the sale and donation of the RHS Engel House property.

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Discussion of the church purchase concept began at a special Board of Trustees meeting held January 30, 2025. An excerpt from the January 30 Meeting Packet explained how the church sale and purchase opportunity developed:

At the December Board meeting, Deanna Drew and members of the Rico Historic Society (RHS) presented a conceptual plan to purchase and re-purpose the Rico Community Church as a community center. RHS initially sought town support and a potential partnership for the operation of the community space. Since that meeting the RHS listed the Engle house with the hopes to sell the property and fund the purchase of the church outright. The RHS have entered into a contract with a private party to purchase the Engel house for $360,000. RHS was considering offering $425,000 for the church and Mantz House but faces a potential $100,000 shortfall depending upon the final sale price and closing cost.

Multiple solutions were discussed between staff and the RHS on how to fund this shortfall and acquire theproperty for the purpose of the community center and an employee housing unit for Town staff. The RHS is now proposing that the Town purchase the property with a donation from the RHS and funding from the Town’s general fund. The Board of Trustees is requested to consider this proposal and provide direction to staff.

Summary of January 30, 2025 Trustees meeting

Purpose of the meeting
Provide direction for Town staff to negotiate terms of purchase for possible conversion to community-use building.

Trustees discussion of church property purchase benefits
Historic property preservation. "This is a great opportunity to preserve the historic church. I believe it is a no-brainer. Where else could we get a property like this?" - Mayor Pat Fallon.

Acquisition would include the "manse house," could be used for future Town employee housing, perhaps a water system technician. This housing may be an asset for attracting Town employment applicants.

Impact on Town 2025 budget
Town manager estimated a year-end reserve balance of $714,000.

Process
Town manager briefly described legal matters, contract preparation, contingencies. Contract could be ready in about a week. First reading of an ordinance to authorize purchase could be during the February 2025 regular Board of Trustees meeting, followed by a second reading and a 30 day appeal period.

Future re-sale option
Discussion comments:

1. If Town later wishes to divest later, the church property could be sold.
2. Property is liquid.

Alternative ownership
Trustee Joe Dillsworth was unable to participate in the meeting and submitted written comments suggesting that the Rico Center should be involved in the purchase.

Zoning question
An audience participant asked about existing zoning of the church property. If the church parcels are zoned residential, could the church be used for community center events? Town manager replied that the church building has been used for community events in the past.

Approval to proceed
Trustees approved by a show of hands a motion for Town staff to proceed with negotiations and preparations for consideration of an ordinance to purchase the church property.

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Mayor Pat Fallon requested an approximate cost for a Town of Rico to purchase the church property, after funds provided by the Rico historical society are applied. Town manager estimated $100,000 to $125,000.

Trustee Gerrish Willis recommended town staff exercise "due diligence" and obtain engineering and maintenance reports from the Presbytery.

Trustee Chris Condon requested Town staff prepare an estimate of future operating expenses Town will incur as owner of the property.

Trustee Willis suggestion an amendment of the original motion to allow up to $125,000 Town contribution to the purchase. Mayor Fallon revised the original to include ". . .with generous support from Rico Historical Society." Trustee Cristal Hibbard seconded, and Trustees voted unanimously to approve.

January 30 meeting follow-up details

Ore Cart requested clarification by email January 31, 2025 of some details about the "manse house," revenue generated from "community space" events, and Town of Rico general fund balance forecast for year-end 2025. Town Manager McCarthy replied same day:

The manse is the house between the church and the town hall. The intent is to use it as employee housing. The board is preparing for when Dennis retires and the house could be a good fit for a new public works employee. Details on all of that are still TBD.

The plan would be to keep the church open as a community space. There are still a lot of unknowns at this time on what the final outcome will be but private residence is not on that list.

At a high level the hope would be to generate income to offset utility cost and admin time through some sort of rental income of the community space.

Yes, the general fund is forecasted to close the year out at $714k and change . If the budget is amended to purchase the church we still expect to close out the year with over 600k which would cover the towns expenses for upwards of a year if no tax revenue was generated.

Proposed Ordinance

Board of Trustees (the “Board”) has the power pursuant to C.R.S. §§ 31-15-101(d) to purchase, by ordinance, real property.

Rico Charter Article XIV § 14.1 authorizes the Board to purchase real property by adoption of an ordinance.

Rico Historic Society (RHS) owns property located at 208 East Mantz, Rico, Colorado 81332 (Engle House), which is under contract to be sold for $369,000 at a closing scheduled for March 20, 2025 (the “RHS Sale”).

RHS desires to donate $350,000 of the proceeds of the RHS Sale to the Town.

United Presbyterian Church owns real property:

• Lots 17R-20R, Block 15, Town of Rico, also known as 110 and 116 East Mantz Avenue, Rico, Colorado 81332 (the “Property”),
• commercial building previously used as a community church (the “Church”),
• and a separate single family residence (the “Home”).

The Church may be used as a community center, and the Home may be used to provide housing for individuals that work for, or in, the Town.

Town has negotiated a Contract to Buy and Sell Real Estate for the Property (the “Contract”) with the Seller, United Presbyterian Church, a non-profit organization, dated February 9, 2025.

Upon receipt of the proceeds of the RHS Sale the Town will have the funds necessary to close the sale provided for in the Contract. Proposed contract for sale/purchase provides that closing is contingent upon the closing of the RHS Sale and the Town’s receipt of the net sale proceeds thereof.

MORE INFO
Presbytery of Western CO
- Rico Community Church photo is third in the scroll

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