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Working with Section 106 ACHP Case Digest
Spring 2005 Colorado: Transfer of Ownership
of Redstone Castle, Redstone Update/Closed
Case: Colorado:
Transfer of Ownership of Redstone Castle, Redstone Agency:
Internal Revenue Service
As
reported in the spring 2004 Case Digest, the Internal Revenue Service seized
Colorados century-old Redstone Castle to sell at auction, to collect funds
that the owner owed to investors.The
Redstone Historical Society and local residents were concerned about the future
of the National Register property, which contributes to local tourism. Through
Section 106 consultation, the IRS decided to sell the property with a conservation
easement that would be donated to the Colorado Historic Foundation. |
Redstone
Castle, Redstone, CO (staff photo) | After numerous
discussions and meetings as part of the Section 106 review process, the Internal
Revenue Service (IRS) determined that it would auction off Redstone Castle, its
outbuildings, and its surrounding 150 acres, subject to a conservation easement
that would be donated to the Colorado Historic Foundation. Before the auction,
the projects consulting parties signed a Memorandum of Agreement that requires
IRS to transfer the mansion, and approximately 25 acres of surrounding land with
the most significant public view of the mansion, with the conservation easement.
The easement details the treatment of all significant exterior features
and a number of the significant interior spaces. The agreement provides for the
recordation of some historic buildings associated with the mansion that will
not be subject to the easement. A private party purchased Redstone Castle
for $4 million at the auction, which was held in March 2005. Over the next
few weeks, the IRS will complete the easement with the Colorado Historic Foundation
and transfer the property to the new owner, who may operate the mansion for his
personal use and as a limited bed-and-breakfast operation. In this case,
the IRS needed to ensure that the mansion brought top dollar so that the agency
could return at least a portion of the funds to the former owner's investors.
Many Redstone residents were concerned about the effects of the mansions
sale on their small community, since much of their economy is based on tourism.
The Redstone Historical Society and local residents took a very active role in
all phases of the Section 106 consultation process, with great success. For
background information on this case, see the spring 2004 Case Digest.
Staff contact: Lee Keatinge Posted August 31, 2005 Return to Top |