The Black Hawk City Council approved water agreements and a transaction between Maverick Casino and Proximo Distillery during a regular meeting at 3 p.m. at 211 Church Street in Black Hawk. Bradley Dallam, Water Resource Engineer, introduced an ordinance approving a billing agreement for the Section 401 of the Clean Water Act: State Water Quality Certification between Black Hawk and the State of Colorado, Department of Public Health and Environment.

Dallam told the Council that these are costs from the state for water improvements, including the new reservoir from 1992. The City has to have a permit from the Corps of Engineers indicating that it won’t harm state water. This is an important step in the long process.

The agreement with the State of Colorado, Department of Public Health and Environment (CDPHE), is for their review of a permit application for raw water system improvements including the construction of a reservoir being proposed by the City of Black Hawk. CDPHE is a cooperating agency with review authority for projects that require a Corps of Engineers permit.

The state has decided that each applicant shall bear the expense of the review, resulting in this agreement. Staff has contacted the City Attorney and his opinion is that the agreement is acceptable to the City of Black Hawk.

The Council approved the ordinance.

Dallam introduced an ordinance approving the augmentation station lease agreement between Black Hawk and the City of Northglenn. He said they have a disagreement with Northglenn regarding the return flow on the Church Ditch. Black Hawk has been augmenting $500 a year of the Church Ditch for Northglenn.

For the past ten years, Northglenn has been using the Black Hawk Augmentation Station to utilize their Church Ditch inches to augment their water rights portfolio. The previous agreement has run its course and a similar agreement is being proposed for a continued relationship with Northglenn.

Black Hawk receives $500 per year for their efforts and facilities in assisting Northglenn. Staff have contacted Water Counsel; his opinion is that the changes are acceptable to the City of Black Hawk.

The Council approved the ordinance.

City Manager Stephen Cole introduced an ordinance approving the property exchange agreement between Black Hawk, Maverick Gaming, LLC, and Proximo Distillers, LLC.

In 2016, Gold Mountain Development conveyed its holdings to RSM Partners. In 2020, RSM conveyed multiple properties to Proximo. During a subsequent title review, Proximo determined Maverick Gaming, LLC, has an ownership interest in the Denver Lode, St. Anthony Lode, and Government Lot 144.

Proximo wants full ownership of the parcels as the area is developed. The City offered to convey .08 acres located at 7315 Black Hawk Boulevard to Maverick in exchange for Maverick conveying their interest in the properties listed above to Proximo.

The exchange gives Proximo full ownership of the above properties along Lake Gulch Road, reducing potential access conflicts as Lake Gulch Road is improved. In addition, the conveyance of 7315 Black Hawk Boulevard to Maverick will consolidate all the property in the block, which will help Maverick sell the property and make it easier for any developer to use the entire site for development.

The Council approved the ordinance.

Cindy Linker with Community Development and Planning introduced three resolutions: a resolution approving a temporary construction easement between Black Hawk and the Greiner Family Trust associated with improvements to the property located at 187 Clear Creek Street; a resolution approving a temporary construction easement between the City and the Fellowship Benevolent Corporation associated with improvements to the property located at 187 Clear Creek Street; and a resolution approving a license agreement between the City and the Fellowship Benevolent Corporation associated with improvements to the property located at 187 Clear Creek Street.

The City requested a Temporary Construction Easement from the Greiner Family Trust to complete the improvements to the property located at 187 Clear Creek Street. The temporary construction easement from Fellowship Benevolent Corporation to the City grants the City access to 187 Clear Creek for rehabilitation of that property.

The Fellowship Benevolent Corporation is participating in the Historic Restoration and Community Preservation program. Staff seeks approval of the Historic Preservation Easement Agreement for 187 Clear Creek Street, not to exceed $948,581.

Upon substantial completion of the Historic Preservation Easement project, CP&D will ask the City Clerk to record the approved document with Gilpin County.

Linker said they will be ready for the construction phase. The house is on the property line, so they will begin on the Greiner family property, which will include some destruction of the yard. The construction easement for the Corporation will allow the City on the property.

Regarding the license agreement between the City and the Fellowship Benevolent Corporation, the improvement survey plat identified that a portion of the property encroaches into the Clear Creek Street right-of-way. Fellowship Benevolent Corporation agreed to execute a License Agreement with the City to recognize the encroachment.

Staff seeks approval of the Rehabilitation Grant Program Agreement for 187 Clear Creek Street in an amount not to exceed $616,749, of which $5,354.00 is being paid directly by the Fellowship Benevolent Corporation to White Construction Group.

The City of Black Hawk entered into a contract with White Construction Group on October 26, 2022 to provide pre-construction and construction services necessary to complete the Residential Rehabilitation Program on two Historic residential homes, located at 187 Clear Creek Street and 121 Marchant Street. The City intended to perform the complete rehabilitation of these two residential historic homes concurrently.

Because both properties were methamphetamine-affected, the rehabilitation of the properties together was not possible and instead will be performed separately. White Construction Group performed to the City’s expectations in the design phase, so Staff is returning with a recommendation to approve Amendment No. 1 to the Construction Manager/General Contractor Agreement between the City of Black Hawk and White Construction Group for the Residential Rehabilitation Program Project at 187 Clear Creek in an amount not to exceed $1,565,330, which breaks down to Historic Preservation at $948,581 and Grant Rehabilitation at $616,749.

The Council approved the resolutions.

City Manager Cole announced that the Colorado School of Mines would like to have a bike race on October 7 and 8 at the Hidden Trail and Maryland Mountain Trails. He asked the Council if they should close trails or close the whole trail.

Mayor David Spellman said they can just close down the area for the race. All registration for the race is online. It is a club competition and will have riders from all over.

The next meeting of the City of Black Hawk City Council will be on August 23, 2023, at 3 p.m. at 211 Church Street. For more information, go to https://www.cityofblackhawk.org/.