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Manitou Springs approves $3.2 million settlement to end long-running railway dispute
Summary
City Council approved a settlement ending litigation with the Manitou & Pikes Peak Railway that terminates a prior reimbursement agreement and requires a one-time $3.2 million payment to the railway; council and residents praised the agreement as saving the city from a decades-long obligation.
Manitou Springs City Council voted unanimously to approve a settlement with the Manitou & Pikes Peak Railway that ends ongoing litigation and terminates the city's prior reimbursement agreement with the railway.
City legal counsel described the terms: the reimbursement agreement will be terminated, all claims by either side will be dismissed, and the city will make "the city is gonna make a 1 time payment to the COG of $3,200,000 within 14 days of the city's approval of the agreement," according to council legal counsel. Counsel told the council the executed agreement by the railway was included in the council packet and that, after the payment, neither party will have further payment obligations under the prior contract.
Council members marked the vote as a significant milestone. Mayor Pro Tem Judith Chandler called it "I think this is a a truly epic moment," and said the agreement could save the city tens of millions of dollars compared with the original, multi-decade arrangement. Councilor Gloria Latimer echoed gratitude to staff and prior councils for their work to resolve the dispute.
Several public commenters supported the settlement at the meeting. Steve Bremner, a resident who addressed the council during public comment, said, "I think it's a good agreement, and it's gonna save us millions of dollars over the course of the next 50 years." Bremner also urged the city to watch the railway's plans to site facilities outside city limits to avoid local excise taxes and to plan for any traffic impacts if shuttle service increases on narrow local roads.
Procedure and next steps: council members moved and seconded the motion on the record; the motion carried unanimously. The settlement requires a city payment within 14 days of the approval vote and, per counsel's description, will be final once executed by both parties.
