SUBJECT:
Title
An Ordinance of the Town Council of the Town of Erie Approving the Purchase of Real Property from Muniba Chughtai and Approving the Associated Purchase and Sale Agreement
Department
DEPARTMENT: Parks & Recreation
Presenter
PRESENTER(S): Luke Bolinger, Director of Parks & Recreation
end
Time
TIME ESTIMATE: 0 minutes
Fiscal
FISCAL SUMMARY:
Cost as Recommended: $473,500
Balance Available: $0
Fund Trails & Natural Areas Fund
Line Item Number: 210-50-110-604500-000000
New Appropriation Required: Yes
Policy
POLICY ISSUES:
• Whether to appropriate funding totaling $473,500 from the Trails & Natural Areas Fund (TNAF) balance. Approval of this appropriation will allow this agreement to move forward and will be captured in the First Supplemental Budget Appropriation in 2026.
• $467,500 is the purchase price and $6,000 is to cover costs associated with the subdivision process.
Recommendation
STAFF RECOMMENDATION:
Approve the ordinance authorizing the purchase, authorize the Acting Town Manager to execute the Purchase and Sale Agreement, and authorize staff to expend funds to acquire the property.
Body
SUMMARY/KEY POINTS
• This item is before Council to consider approval of a Purchase and Sale Agreement for approximately 0.62 acres of the property currently leased to the Town of Erie as a park.
• Coal Miner Park is a Parks & Recreation park maintained through a lease with the current property owner.
• Upon Council approval, staff will initiate a 45-day due diligence period, in which staff will provide technical assistance for an administrative subdivision, funded through TNAF.
BACKGROUND OF SUBJECT MATTER:
First established between the Town of Erie and the Lions Club in 2003, a lease agreement for Coal Miner Park, located at 480 Cheesman Street, outlined the responsibilities between the Lions Club and the Town, giving the Town the responsibility to maintain a portion of the property as a public park. Following execution of the lease, the Town received a Great Outdoors Colorado grant in 2003 for the large shelter at the park. Other amenities include a large playground area and a sand volleyball court. Since the completion of the park amenities in 2005, the Town has been responsible for general maintenance and capital improvements on the park side of the property. The Town does not maintain the existing building or statues on the north end of the property. Due to several critical safety and ADA issues at the playground and the aging infrastructure at the sand volleyball court, Town Council has appropriated $590,000 to improve these amenities for the community in 2026.
In 2023, a private owner purchased the property with the intent of developing the site as a Montessori School. Town staff learned of this purchase after the transaction closed, through an inquiry from the new property owner regarding the existing lease, which stays with the property regardless of the owner.
The current lease agreement expires in February 2028. Given the investment of taxpayer dollars over the years along with the planned substantial investment in 2026, staff began researching the possibility of purchasing the “park side” of the property so that it forever remains a public park and engaged in initial discussions with the new property owner, who indicated a willingness to sell the park side of the property to the Town.
In 2022, voters approved diversifying the use of the Trails, Natural Areas, and Community Character (TNACC) four mil property tax to include “construct, improve, and maintain trails, parks, parkland infrastructure and open space.” After discussions with the Town’s legal counsel, staff determined the Trails and Natural Area Fund (TNAF) would be an appropriate use the fund and to purchase the park so long as the town’s overall plan to improve and maintain the park/parkland infrastructure remains true.
Upon expiration of the lease, there is a possibility that the current or a future owner may not choose to renew the lease, and the public loses access to the park. The park serves as a gathering area and pocket park for Old Town Erie residents, a play space for the Erie Methodist Church patrons, a meal serving area of Erie Uplink, meeting space for Boy Scouts and Girl Scout troops, and is a popular summer shelter rental site.
In October 2025, Staff approached CBRE to conduct an appraisal for the park side of the property as a basis for potential negotiations with the property owner. Staff negotiated a purchase price of $467,500. This strategy was reviewed and supported by Open Space & Trails Advisory Board (OSTAB) members during their executive session discussion on Feb. 9, 2026. Parks & Recreation staff have also consulted with Finance, and the current TNAF balance can support this purchase.
Upon execution of the purchase and sale agreement, staff will coordinate with the owner to initiate an administrative subdivision application, with staff providing technical assistance and funding for the survey required for the application.
priorities
attachments
ATTACHMENTS:
1. Ordinance
2. Purchase and Sale Agreement