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Sky High generator and bathhouse project over budget; council to explore public‑private options

City of Monte Vista City Council · January 15, 2026
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Summary

City staff told the council that the Sky High generator/RV/bathhouse project came in roughly $450,000 over budget. The city has about $1.2 million committed and will explore public‑private partnership options and other financing; if the project cannot be completed, unused grant funds may be returned.

Monte Vista — City officials told the council that the Sky High generator/RV/bathhouse project is substantially over budget after the winning bidder’s review.

City manager and staff said they met with the winning bidder (Alcon) to identify cost reductions; even after removing nonessential items, bids remain about $450,000 higher than available funds. Staff reported the city has roughly $1.2 million in grants and city funds tied to the project. Because federal and state grant funding is constrained this legislative session, staff are planning to convene potential private partners and stakeholders in February to explore a public‑private partnership to bridge the shortfall.

Staff warned that if the project cannot be completed within available funding, any unspent grant dollars may need to be returned to the grantor. Council directed staff to continue negotiations, review financing options including working with lenders (CoBank was mentioned for construction financing), and report back with options.

What happens next: staff will meet with private sector prospects and the city attorney and development‑resources team to assemble options and return to council with financing recommendations.