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Huerfano County approves $517,000 CDBG application to extend utilities to Che Organics in Walsenburg
Summary
At its Feb. 11 meeting the Huerfano County Board of County Commissioners voted to apply for $517,000 in Community Development Block Grant funds to extend water and three-phase electric service to Che Organics in Walsenburg, a project county staff and economic development consultants said would support 25 new jobs.
Huerfano County commissioners on Feb. 11 voted to approve submitting a Community Development Block Grant (CDBG) application for $517,000 to extend water and three-phase electric service to Che Organics’ planned manufacturing site near Walsenburg.
The CDBG application, presented by a consultant for local economic development, seeks $357,000 for water design and construction (including environmental review, easements and a water-rights attorney) and $160,000 for electrical work to be performed by San Isabel Electric. “The total project cost is $517,000,” the consultant said during the meeting.
Why it matters: County staff and the consultant said the project would enable Che Organics to expand local manufacturing and create 25 jobs, 10 of them within the first year. The consultant said the project qualifies for CDBG because the area of benefit—City of Walsenburg—has an estimated 71% low- to moderate-income population, above the 51% threshold used to qualify economic-development projects for CDBG funding.
Project details and constraints - Water: The scope described to the board is a 4-inch waterline extension and related design work, environmental assessment, easements/right-of-way, permitting and construction observation. The consultant said a water-rights attorney was included in cost estimates because some water north of the ridge requires augmentation and consumptive-use accounting. - Wastewater: The consultant said Che Organics plans on-site septic and that on-site disposal is allowable if flows remain under 2,000 gallons per day. - Electric: San Isabel Electric provided the cited estimate for three-phase service, including transformers and pads. - Timeline: The applicant plans to submit the CDBG application the week after the presentation. The consultant said typical state CDBG funding commitments arrive in June, although timing can vary and environmental review is often the longest step before a contract and construction.
County action and next steps The board approved a motion to authorize the county to submit the CDBG application for $517,000. County staff said if the application is successful the award would be followed by the federal/state environmental review, contract execution and then advertising for construction bids.
Votes at a glance (items approved during the Feb. 11 meeting) - Motion to authorize submission of CDBG application for utilities to Che Organics, $517,000 — approved (motion made and seconded; vote called and recorded as affirmative). - Consent agenda (minutes, vendor items listed in packet) — approved. - Appointment/reappointment: Mary Norman reappointed to Huerfano County Board of Planning through 12/31/2029 — approved (resolution 25-09). - Liquor license renewals (multiple renewals listed in packet) — approved. - Contract for emergency management consultant (Tribal Emergency Management & Consultation LLC) — approved not-to-exceed $9,000. - Temporary overtime payout for county jail staff extended until 04/10/2025 with conditions (training documentation, punch-in requirements, schedule submissions) — approved. - Multiple purchase orders and capital project approvals including asbestos/lead testing at the Fox Theater and capital project line items — approved. (For each of the above items, the meeting record shows motions, seconds and roll-call affirmatives; details are contained in the official minutes and contracts.)
Who spoke The grant presentation was given by a consultant representing local economic development (identified in the record as a GMS representative). County staff (identified in the record as “Carl” and other county commissioners) participated in the discussion and voted on the motion.
What remains uncertain The consultant said the CDBG environmental review could require additional studies (for example archaeology) and that a funding commitment and construction schedule depend on state-level processing. The consultant indicated the state typically issues funding commitments in June but cautioned that times can vary.
The county will post formal application materials and contract documents if and when the CDBG award is made. The board’s approval on Feb. 11 authorized the county to proceed with the application process only.
