Title
A Resolution Authorizing the Use of a Possession and Use Agreement and Eminent Domain to Acquire a Permanent Easement on Real Property Owned by the Lockwood Limited Liability Company Needed for the Kelker to South Plant Transmission Project
Presenter:
Travas Deal, Chief Executive Officer, Colorado Springs Utilities
Jessica K. Davis, Land Resource Manager, 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 property owned by Lockwood Limited Liability Company (“Owner”) located at 3690 Astrozon Boulevard, Colorado Springs, Colorado, and identified by El Paso County Tax Schedule Number 6434112004 (“Property”) 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 Property to acquire the easement (“Easement”) needed for the Project. If the Easement 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 Easement. 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 a permanent easement to allow Utilities to not delay construction.
Previous Council Action:
City Council has previously approved Resolution 196-25 on December 9, 2025 authorizing eminent domain and immediate possession for the purchase of easements from Owner for the Kelker to South Plant Transmission Project.
Financial Implications:
These easement acquisitions are accounted for in Utilities’ 2026 budget.
City Council Appointed Board/Commission/Committee Recommendation:
Utilities Board reviewed and recommended these acquisitions at its regular meeting on March 18, 2026.
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 a permanent easement on the Property owned by Lockwood Limited Liability Company needed for the Kelker to South Plant Transmission Project.
Summary of Ordinance Language
N/A