When the story of the appraised value of La Jara Reservoir was published, the question readers came back with was ‘So what happens to the $43.5 million?’ which is the revenue the State Land Board would take in from the transfer of land to the U.S. Forest Service and Bureau of Land Management. For that answer we reached out to Kristen Kemp, communications officer for the State Land Board.
“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 of the policy set by the Colorado Legislature.
The State Land Board’s $4-plus billion Trust comprises more than land, she explained. It 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. In FY 22-23, the Permanent Fund generated $40.2 million in interest income, according to the State Land Board annual report.
Kemp earlier explained that the State Land Board “rarely dispose of trust land properties but revenue from ag and recreation leases had not been optimal at the La Jara property.” There are no water rights that transfer with the sale of the La Jara Reservoir to the two federal agencies. Colorado Parks and Recreation is also part of the land exchange.
Here’s the original story. La Jara Reservoir transfer price: $43.5 million.