Moffat Tunnel Improvement District
Encyclopedia
The Moffat Tunnel Improvement District was an independent entity of the State of Colorado created to build and manage the Moffat Tunnel
, a railroad and water tunnel under James Peak
and Rollins Pass
.
The district had the authority to sell bonds backed by real estate taxes in the counties served by the Denver and Salt Lake Railway
, which was the original railroad tenant of the tunnel.
The district was originally governed by a five-member elected commission and existed from 1922 until 1998.
In 1990, a group of activist commissioners were elected who proceeded to use the resources at their disposal to sue the Winter Park Resort
, the Colorado Arlberg Club and the City and County of Denver in order to represent the public interest against perceived abuses by powerful private interests. In 1991 and 1992 the commission delayed a lease to the Southern Pacific Railroad
for using the railroad tunnel for fiber optic cables. The commission began to agitate to recover money from Winter Park Resort to pay for land leased from the commission, known as the Evans Tract. By 1994, the commission was demanding rents and threatened to evict the ski resort and build a "Taco Bell." Eventually, the resort agreed to purchase the land for $2 million (in 1996).
Because of these challenges, the railroad and the ski area join forces in 1996 to push forward a bill in the state legislature to dissolve the commission. The legislature passed the act in 1997. The bill specified that new commissioners would be named by Governor (Roy Romer) to handle the liquidation of the commission and the transfer of assets to the state. Before this process was set in motion, the existing commissioners defiantly threatened to vote the commission out of existence at their final meeting before the new commission would be seated. However, the motion ultimately failed to pass, perhaps because the commissioners feared being sued over the action.
In January 1998, the newly seated commissioners sold the water tunnel to the Denver Water Board for $7 million and put the railroad tunnel up for sale. There were no offers, though. The railroad had the right of first refusal and to match any offer. Moreover, it had a lease lasting until 2025 that had little monetary value to the owner of the tunnel. The remaining assets of the commission were transferred to the state and the commission ceases to exist in early 1998.
Moffat Tunnel
The Moffat Tunnel is a railroad and water tunnel that cuts through the Continental Divide in north-central Colorado. Named after Colorado railroad pioneer David Moffat, the tunnel's first railroad traffic passed through in February 1928....
, a railroad and water tunnel under James Peak
James Peak
James Peak is a mountain located at the juncture of Clear Creek County, Grand County, and Gilpin County in north central Colorado in the United States. It has an elevation of 13,260 feet ....
and Rollins Pass
Rollins Pass
Rollins Pass is a high mountain pass in the Rocky Mountains of north-central Colorado in the United States. The pass is located on the continental divide at the crest of the Front Range southwest of Boulder, at the boundary of Grand and Boulder counties.-Description:Rollins Pass Rollins Pass (el....
.
The district had the authority to sell bonds backed by real estate taxes in the counties served by the Denver and Salt Lake Railway
Denver and Salt Lake Railway
The Denver, Northwestern and Pacific Railway was a U.S. railroad company incorporated on July 18, 1902, by David H. Moffat, Walter S. Cheesman, William Gray Evans, Charles J. Hughes, Jr., George E. Ross-Lewin, S.M. Perry and Frank P. Gibson...
, which was the original railroad tenant of the tunnel.
The district was originally governed by a five-member elected commission and existed from 1922 until 1998.
Controversy and Dissolution of the Commission
The bonds for the tunnel were retired in December 1983. However, the district continued to collect taxes for another year, resulting in a fund of excess cash of approximately $1 million.In 1990, a group of activist commissioners were elected who proceeded to use the resources at their disposal to sue the Winter Park Resort
Winter Park Resort
Winter Park Resort is an alpine ski resort in Winter Park, Colorado in the Rocky Mountains. Located just off U.S. Highway 40, the resort is about an hour and a half's drive from Denver, Colorado....
, the Colorado Arlberg Club and the City and County of Denver in order to represent the public interest against perceived abuses by powerful private interests. In 1991 and 1992 the commission delayed a lease to the Southern Pacific Railroad
Southern Pacific Railroad
The Southern Pacific Transportation Company , earlier Southern Pacific Railroad and Southern Pacific Company, and usually simply called the Southern Pacific or Espee, was an American railroad....
for using the railroad tunnel for fiber optic cables. The commission began to agitate to recover money from Winter Park Resort to pay for land leased from the commission, known as the Evans Tract. By 1994, the commission was demanding rents and threatened to evict the ski resort and build a "Taco Bell." Eventually, the resort agreed to purchase the land for $2 million (in 1996).
Because of these challenges, the railroad and the ski area join forces in 1996 to push forward a bill in the state legislature to dissolve the commission. The legislature passed the act in 1997. The bill specified that new commissioners would be named by Governor (Roy Romer) to handle the liquidation of the commission and the transfer of assets to the state. Before this process was set in motion, the existing commissioners defiantly threatened to vote the commission out of existence at their final meeting before the new commission would be seated. However, the motion ultimately failed to pass, perhaps because the commissioners feared being sued over the action.
In January 1998, the newly seated commissioners sold the water tunnel to the Denver Water Board for $7 million and put the railroad tunnel up for sale. There were no offers, though. The railroad had the right of first refusal and to match any offer. Moreover, it had a lease lasting until 2025 that had little monetary value to the owner of the tunnel. The remaining assets of the commission were transferred to the state and the commission ceases to exist in early 1998.