The Broadmoor would get more from the city land swap than a couple of pieces of prime real estate. The resort also would receive a tax benefit of $1.45 million — the difference between the value of its land and that of the city's, according to a resolution to be considered by City Council.
"City Council hereby authorizes the acceptance of a donation of the difference in value between the City Property and the Broadmoor Property, if any, as determined by an appraisal conducted at the behest and expense of the Broadmoor," the resolution states.
The city has refused to release the actual appraisals, but says The Broadmoor's land is worth about $3.6 million compared to the city's $2.2 million.
The same donation arrangement is at work in the Crags, Colorado Land Exchange Act of 2015, being advanced by Sens. Cory Gardner, R-Colo., Michael Bennet, D-Colo., and Rep. Doug Lamborn, R-Colorado Springs.
That deal calls for The Broadmoor to trade 320 acres of forest land near The Crags west of Pikes Peak, purchased by The Broadmoor for $1.3 million in September 2013, for the 82 acres occupied by the resort's Ranch at Emerald Valley. (The resort currently operates the ranch under a 20-year lease with the Forest Service.)
The bill says appraisals are to be conducted. "If the value of the Federal land exceeds the value of the non-Federal land," the Committee on Energy and Natural Resources report says, "Broadmoor Hotel, Inc., must make a cash equalization payment... Any cash equalization payments received by the Secretary are to be used to acquire land or interests in land in Region 2 of the USFS. If the value of the non-Federal land exceeds the value of the Federal land, the surplus value of the non-Federal land will be considered a donation by Broadmoor Hotel, Inc., to the U.S. Government."
The Congressional Budget Office didn't return a phone call regarding the appraisals.