The U.S. Forest Service and U.S. Bureau of Land Management would take control of the 45,950 acres that surround La Jara Reservoir through a direct transfer of ownership that the Colorado State Land Board Commission is expected to approve at its upcoming June meeting.
Colorado Parks and Wildlife would also come into the picture by taking ownership of the nearly 2,500 acres that are proximate to the reservoir itself. The total appraised value of the land is $49.6 million, set by Chandler Consulting, Inc. The smaller amount of acreage next to the reservoir has an assessed valuation of $6 million.
The state land board currently has 12 grazing leases and two private recreation leases tied to the lands that would be terminated under the transfer of ownership. Cattle operations would have to apply for a federal permit to continue grazing operations on the property.
If the transfer of ownership is adopted, then staff of the state land board would put in motion a public comment period, with final transfer of ownership expected in 2026.
An appraisal of the property was completed in 2023 and has been on the radar of the state land board for disposal ever since. The U.S. Forest Service would acquire the western half of the holdings and incorporate it into the Rio Grande National Forest. BLM would take ownership of the eastern portion and add it to the management portfolio of the BLM SLV office.
“A key finding of that plan was that the interests of the School Trust beneficiaries will be best served if the Board disposes of the property and reinvests the proceeds into either alternate real property assets or the Permanent Fund,” according to the recommendation to the state land board commissioners.
Kristen Kemp, communications officer for the State Land Board, told Alamosa Citizen back in 2023, that proceeds of the trust land disposal can only be used in one of two ways: reinvested into the acquisition of another property or deposited into the Trust’s Permanent Fund.
“Specifically, we have up to two years to use the money to reinvest into the acquisition of another property; at the two-year mark the money must go into the Permanent Fund,” she said.
The State Land Board maintains a $4 billion trust that has four main components: land, mineral estate, commercial real estate, and a $1.4 billion endowment called the Permanent Fund. The interest revenue the state earns from its Permanent Fund is used to support K-12 public education.
Here’s the original story: La Jara Reservoir transfer price: $43.5 million