Title
A Resolution Authorizing the Disposal of the Property Formally Known as the Meadows Park Community Center, also Known as El Paso County Tax Schedule Number 6429302086, Through the Community Benefit Process
Presenter:
Kim King, Assistant Director - Parks, Recreation and Cultural Services
Kellie Billingsley, Real Estate Services Manager
Body
Summary:
The City of Colorado Springs faced a $31 million budget shortfall, requiring reductions to its operating budget. Many steps were taken to minimize reductions in force and direct service impacts to the community. The difficult decision was made to close Meadows Park Community Center effective October 10, 2025, as part of these reductions.
City leadership established the Meadows Park Solutions Team as a temporary taskforce to provide strategic feedback and recommendations to City leadership on the future vision and operation of the former Meadows Park Community Center. Community engagement conducted following the closure of the facility consistently identified the property as a neighborhood-serving asset that supported access to services, social connection, and community safety. A robust Request For Proposal (RFP) process followed that incorporated this input from the neighborhood while recognizing that the goal of the process was not to recreate another community center but to ensure the continuation of some type of community benefit.
After careful review and vetting by the evaluation committee, CRE Holdings, LLC was selected to move forward. CRE is a Colorado-based private real estate company specializing in the acquisition, redevelopment, and long-term stewardship of commercial properties in the Colorado Springs market. Its principal has been active in the Colorado Springs commercial real estate market for over two decades. One of the most well-known of CRE’s projects is the Lincoln Center in which it acquired and fully redeveloped this former public school facility into a successful community-focused mix of vendors and services. CRE’s proposal provides the strongest and most viable path for long-term sustainability, timely execution, and responsible stewardship of the Meadows Park Community Center property. The evaluation committee believes CRE is best positioned to assume ownership, invest in the facility, and activate the site in a way that can continue serving the surrounding community without requiring ongoing City operation or funding.
Key terms of the proposed sale include a purchase price of $700,000; a deed restriction in place for 25 years that includes a list of acceptable and prohibited uses; and a Right of First Refusal (ROFR).
Background:
HISTORY AND BUILDING CONDITION:
The former Meadows Park Community Center is located at 1943 El Paso Street. Built in 1969, this site was originally a neighborhood strip mall. Over time the City leased spaces and eventually purchased the building. The space was remodeled to connect the individual shops into one continuous space offering a variety of programs, services and room rentals. The building has approximately 11,400 sq ft of usable space including a small gymnasium and a small kitchen as well as multiple multi-purpose rooms, storage rooms, office spaces and five restrooms. Meadows Park, a neighborhood park maintained by the City, is located directly across from the site.
The current condition of the facility would be considered average. A City Facility master plan assessment completed in 2022 indicated the immediate needs of the facility equaled $920,660. A few improvements have been made over the years including a new alarm system in 2016, a new roof in 2019, and new entrance doors in 2024. The most recent ADA inspection report, completed in 2024, documented that 60 of the 148 findings had been addressed. The proposer estimates at least $300,000 in immediate renovations are required to bring the building up to their leasing standards.
Although the building is currently unoccupied, there are still ongoing costs associated with ensuring the building is safe, secure and maintained. Monthly costs are currently averaging between $800 and $1,000 per month. These costs include internet, alarm systems, security cameras, pest control, and routine preventative maintenance such as changing air filters.
CENTER CLOSURE DECISION:
The facility ceased operations on October 10, 2025, due to budget constraints arising from a projected $31 million shortfall in City revenues anticipated for 2026. The Parks, Recreation and Cultural Services Department alone faced a 16% reduction totaling $3.17 million. In addition to reductions within all divisions, the Meadows Park Community Center was closed with an estimated annual savings of $775,000. Factors that contributed to this closure decision were existing position vacancies at this location, a reduced programming schedule, underperforming participation in the services and programs offered at Meadows Park and the availability of equivalent services and programs at the remaining three centers and by other providers. For example, youth and senior programs are offered at the remaining community centers as well as the YMCA of the Pikes Peak Region and the United Way Family Success Center. The food pantry moved to Stratton Meadows Elementary School with additional options provided at the three remaining community centers.
The decision to close the Center was not taken lightly. City leadership explored multiple options and implemented several strategies across departments to address the budget shortfall before determining that closure was necessary.
SOLUTIONS TEAM EFFORT AND REQUEST FOR PROPOSAL:
Following the closure of the facility, the Meadows Park Solutions Team was established. Designed to represent a broad cross-section of the community including Stratton Meadows community leaders, subject matter experts, City staff members, and City Council members, the team engaged in a robust process to find sustainable, responsive alternatives for the facility. During the initial fact-finding phase of the team, they toured other facilities to better understand operating models and facility usage. At the same time, similar non-profit agencies toured Meadows Park to better understand the facility and determine if there were potential opportunities for partnership or acquisition. These proved to be unsuccessful.
Thus, the City continued to explore the full continuum of options for the property with the Solutions Team, encouraging a balance of creativity and financial feasibility that would activate the Stratton Meadows neighborhood and serve the needs of the community. The team reviewed community survey results, neighborhood meeting feedback, and ongoing input from residents. That feedback directly shaped the priorities and evaluation criteria in the Request For Proposal (RFP) issued in February 2026.
The disposition process for property with a value in excess of $20,000 includes having the Controlling Department advertise the property through a request for qualifications which must also include a statement of desired Community Benefit and any restrictions to be placed on the potential transfer. The Controlling Department then reviews responses and selects the individual or organization it believes most capable of achieving the desired Community Benefit with the greatest effect. Due to the desire to ensure the solicitation for the facility was as broad as possible to not limit potential bidders, the solicitation was managed by the City’s Procurement Division.
Additionally, City Council has specific decision points including deeming the property surplus and authorizing the transfer for a Community Benefit. Council may condition the transfer on the adoption of certain terms and conditions and may determine whether the property can be transferred at Fair Market Value (FMV) or Below FMV. The final deed and Purchase and Sale Agreement (PSA) should contain the appropriate terms to restrict use of the property to include the intended Community Benefit for a reasonable term of years, considering circumstances specific to the sale.
The “community benefit” section of the City’s Real Estate Manual was utilized in developing the sales contract. Per the Manual, the definition of community benefit is a traditional governmental function or a charitable endeavor that City Council determines will contribute to the well-being of the State, Region, or City, or any of their institutions or residents.
THE REQUEST FOR PROPOSAL RESULT:
The RFP Review Team received three proposals in late March 2026. Proposals were reviewed and scored using established criteria including qualifications and relevant experience, management approach, and anticipated community impact. The Review Team, a subset of the Solutions Team, recommended CRE Holdings move forward as the preferred proposer for the Meadows Park Community Center property. Their proposal provided the strongest and most viable path for long-term sustainability, timely execution, and responsible stewardship of the property. The team felt CRE Holdings is best positioned to assume ownership, invest in the facility, and activate the site in a way that can continue serving the surrounding community without requiring ongoing City operation or funding.
This recommendation was consistent with the City’s stated goal of identifying a feasible, sustainable future for the facility through a potential purchase or lease by an outside agency or organization. The team further recommended that the City continue working with CRE Holdings to define expectations around community benefit, appropriate uses, neighborhood engagement, and potential partnerships with nonprofit and community-serving organizations.
Previous Council Action:
N/A
Financial Implications:
The appraised value of the building is $1,025,000 which includes a deed restriction for the desired Community Benefit. This deed restriction requires the facility uses contribute to the well-being of the neighborhood and community at large, including opportunities for connection, access to services, and positive impacts on safety and quality of life. The City has negotiated with CRE Holdings for a purchase price of $700,000.
The revenue from the sale is recommended to be put toward existing Parks, Recreation and Cultural Services Department capital needs.
City Council Appointed Board/Commission/Committee Recommendation:
The Parks, Recreation and Cultural Services Advisory Board received a presentation during its October 8, 2026, meeting. Staff will provide any Advisory Board recommendations during the presentation to City Council on October 12, 2026
Stakeholder Process:
The City received extensive community feedback from neighbors through a community survey and a neighborhood meeting, as well as the creation of the Meadows Park Solutions Team to help guide decisions about the future of the facility after it was closed due to budget reductions. The 15-member team included City staff, City Councilmembers, neighborhood residents, and community leaders. The group reviewed community feedback and used that input to help shape recommendations for how the space could best serve the Stratton Meadows neighborhood moving forward.
Alternatives:
City Council could decide to:
1. Approve the resolution as presented.
2. Deny the resolution resulting in the facility continuing to require City funding and minimal operational maintenance while additional options are explored.
Recommended Action
Proposed Motion:
Move approval of the Resolution authorizing the disposal of the property formally known as the Meadows Park Community Center, also known as El Paso County Tax Schedule Number 6429302086, through the community benefit process.
Summary of Ordinance Language
N/A