Title
A Resolution Authorizing The Use Of A Possession And Use Agreement And Eminent Domain To Acquire Permanent Easements On Real Properties Owned By The Lockwood Limited Liability Company Needed For The Kelker To South Plant Transmission Project
Presenter:
Jessica K. Davis, Land Resource Manager, Colorado Springs Utilities
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Body
Summary:
Colorado Springs Utilities (“Utilities”) and the City of Colorado Springs’ Real Estate Services Office (“RES”) request that City Council approve a resolution that will allow Utilities to use a possession and use agreement and/or eminent domain to obtain permanent easements on the real properties owned by Lockwood Limited Liability Company (“Owner”) located at Astrozon Boulevard, Colorado Springs, Colorado, and identified by El Paso County Tax Schedule Numbers 6434100032 and 643410035 (“Properties”) for the Kelker to South Plant Transmission Project.
Background:
On June 26, 2020, the Utilities Board approved the new Electric and Gas Integrated Resource Plans (IRPs). The IRPs commit Utilities to a new energy future that is cost-effective, resilient and environmentally sustainable. The IRPs call for grid modernization, integration of more cost-effective renewable energy and incorporation of new technologies like energy storage.
The Kelker to South Plant Transmission Project (“Project”) will provide a new overhead single circuit 115kV transmission line from Kelker Substation to South Plant Substation. This added transmission infrastructure is needed to support the decommissioning of South Plant Aeroderivative Gas Generators. The Project is approximately 5 miles long and staff has been working with 19 private property owners, including Colorado Department of Transportation, Union Pacific and BNSF Railroads, and City departments to acquire the property rights needed for the Project.
Utilities and their acquisition consultant have been in good faith negotiations with the Owner of the Properties to acquire the easements (“Easements”) needed for the Project. If the Easements cannot be obtained voluntarily, Utilities is seeking authorization to enter into a Possession and Use Agreement with the Owner and/or commence condemnation proceedings to acquire the Easements. Pursuant to Section 4.3(i) and (k) of The City of Colorado Springs Procedure Manual for the Acquisition and Disposition of Real Property Interest, Revised 2021, City Council may authorize the use of a possession and use agreement and/or eminent domain for the acquisition of property interests.
Because Owner has not been willing to negotiate an easement purchase, Utilities and RES seek City Council authorization to use eminent domain and immediate possession to acquire permanent easements to allow Utilities to not delay construction.
Previous Council Action:
City Council has approved several resolutions for the purchase of easements for the Kelker to South Plant Transmission Project.
Financial Implications:
These easement acquisitions are accounted for in Utilities’ 2025 budget.
City Council Appointed Board/Commission/Committee Recommendation:
Utilities Board reviewed and recommended these acquisitions at its regular meeting on November 19, 2025.
Stakeholder Process:
Owner has been notified of the City Council meeting.
Alternatives:
Approve the resolution and authorize the use of eminent domain.
Deny the resolution.
Recommended Action
Proposed Motion:
Motion to approve the proposed Resolution authorizing the use of a Possession and Use Agreement and Eminent Domain to acquire permanent easements on the Properties owned by Lockwood Limited Liability Company needed for the Kelker to South Plant Transmission Project.
Summary of Ordinance Language
N/A.