Grand Mesa Resort Company

(Compiled by J. Triebwasser, August 2006)

The Samuel L .Cockreham Legacy Prior to 1912

In 1892, Samuel Cockreham secured a loan from two parties presumably to develop the land he acquired on Grand Mesa. On December 5, 1893 he either sold his land or acquired 15 partners. We assume this from aQuit Claim Deed from Mr. Cockreham to Messrs. Wright, Gheen, Gale, Wolbert, Simpson, Wetzell, Conklin, Bear, Standish, Curtis, Kelso, Fogg, Johnson, McMurry and Duke. The price of the transaction was $600. There is some evidence that Mr. Cockreham remained a silent' partner and helped finance the original Grand Mesa Resort Company.

Although GMRC has the original land patent dated July 17, 1894, there is recorded in the Delta County abstract files onApril 19, 1907 a land Patent of 165.15 acres from the United States of America to Samuel Cockreham.

Between 1893 and1911, several of the original partners sold their interests in the property to other individuals. Sometime in 1908, the partners formed the Grand Mesa Resort Company. Its Articles ofIncorporation stated that the 'object of the Corporation were, "...acquiring, developing and improving lands and resorts, including fish and fishing privileges, boat and boating privileges, construction of reservoirs and ditches and stocking lakes and reservoirs with fish and the propagation offish, both for pleasure and sale, and particularly acquire and improve that certain property known as the Grand Mesa Summer Resort Company property…”

These original Articles of Incorporation are in the Company's files. The stockholders listed were Messers. Walker, Curtis, Welch, Conklin and Gale.

In the Delta County Book of Abstracts there is recorded on March 19, 1911 Articles of Incorporation for the Grand Mesa Resort Company. The latter's purpose is similar to that recorded in 1908. On that date, all of the partners filed a Quit Claim Deed to the GMRC relinquishing their rights to the property. It is conceivable that Messrs. Walker, Curtis, Welch, Conklin and Gale provided the capital for the organization.

The William Alexander Legacy Prior to 1912

Although there is a recorded Patent granting 161.99 acres to William Alexander in 1891, there are recordings of this Patent in the Delta County Abstracts dated November 21, 1892 and December 19, 1889.

On May 18, 1892, William Alexander and Richard Forrest formed a partnership. The latter brought to the partnership a farm that was located on "Surface Creek Mesa". The farm included livestock and water rights.

On July 5, 1892, Mr. Alexanderborrowed $2,500 from Mr. Forrest and secured the loan with a warranty deed that included his half interest in the Grand Mesa Property. On August 7, 1894, Mr. Forrest sued Mr. Alexander to obtain foreclosure on t h e mortgage. This led to a Sheriff's Sale in which Mr. Forrest being the highest bidder, obtained all of the property involved in the partnership for $3,000.

Initially Alexander andForrest developed a business in propagating and selling fish. They became stockholders in the Surface Creek Ditch and Reservoir Company and helped them construct dams on several lakes. Forrest later traded his irrigation rights for exclusive fishing rights and boating privileges on all the lakes in the Ditch Company's group. However, stockholders of the Ditch and Reservoir Company were allowed to fish on the property without applying for a permit. Originally, Forrest controlled one entire lake and portions of the shoreline of three others. In the December 19, 1889 Patent recording there is a comment regarding an "Alexander Lodge Tract."

In 1895, WilliamAlexander disappeared on his way back from Delta where he shipped a load of fish. (One account states that he disappeared in 1892 and another 1893) Richard Forrest stuck with the enterprise for another year and in June 1896 he sold the operations and 160 some acres of land including all ditches and water rights to William Radcliffe.

In 1906, a body was found near Tongue Creek north of Cedaredge that was thought to be William Alexander. The body was found in a crude grave of boulders. The body was allegedly identified by the "set of double teeth" found on the skull. There was evidence that he died from a gunshot wound to the head. It was learned that Mr.Alexander bought a new saddle and withdrew a considerable amount of money from the bank just prior to leaving Deltaform The Mountain. The conclusion of the local authorities was that he was way laid for his money and saddle.

A few months after the discovery of the body, an individual living in New Mexico wrote Delta's Mayor Springer that he had evidence that Mr.Alexander was in Farmington, New Mexico at the time that he disappeared from Delta County.

William Radcliffe further developed the property and built roads, an elaborate lodge (originally named the Forrest Hotel) and cabins for his employees.(One source indicates that Forrest built the lodge.) His chief investment was a fish hatchery. Part of the hatchery's production was sold to the U.S. Bureau of Fisheries. The latter needed to stock the lakes because natural reproduction could not keep up with the demand by fishermen. By agreement, the Bureau stocked the lakes and gave Radcliffe One-fourth of the harvest. Radcliffe's enterprise was shipping most of his production live in tanks to eastern cities via the railroad out of Delta.

Radcliffe was not a very popular man with the locals. His lifestyle reflected his wealthy English sportsman status. He traded more additional water rights for exclusive fishing rights on all of the lakes which touched the borders of his land. This did not settle well with the ditch company stockholders. Radcliffe hired watchmen to enforce his "exclusive" fishing rights.

Radcliffe expanded his influence by establishing friendships with Judge King of Delta and D. C. Beaman, a prominent sportsman and attorney from Denver. In 1899 with the influence of these two individuals, a law was passed that created a Class A fishing license. This allowed exclusive fishing privileges o n lakes bordered in whole or in part by private parks. Shortly thereafter, Radcliffe acquired a Class A fishing license for a period of 10 years on all of the lakes that touched his property. There were 13 lakes involved: Alexander, Eggleston, Upper Eggleston, Barren, Upper Hotel, Hotel, Ward, Deep Slough, Sheep Slough, Carp, Island, Beaver and Beaver Dam.

A number of people were arrested for trespassing on his lakesincludingOtto Petersen, a prominent Cedaredge citizen. His trial ended in a not-guilty verdict. Interestingly, one of the jurors was a prominent rancher in the Surface Creek Valley named W. A. Womack. (Some sources state the n a m e was W.O. Womack) On Sunday afternoon, July 14, 1901 when Radcliff was out of the area, Mr. Womack was shot and killed by one of Radcliffe's "hinchman" named Frank Mehaney (One source spells the name as Mahoney). Mehaney surrendered himself to the Delta County sheriff the next day. The sheriff took his prisoner to a remote ranch in the area to protect him from the angry locals. They did take justice into their own hands and burned the lodge and several other buildings to the ground. The hatchery buildings were left standing because mob was under the belief that the hatchery was federal property.

Radcliffe was met on a train by Judge King who warned him not to return to the area. Radcliffe went to Denver where he asked the governor to send troops to Grand Mesa to restore order. The governor refused to comply with this request and used as an excuse that Radcliffe's "ranch" was within the boundaries of the Battlement Mesa Forest Reserve and therefore was under Federal jurisdiction. The governor did agree to ask theDelta County Sheriff to protect what remained of Radcliff's property.

Several days after the original fires, the locals learned that the hatchery was not Federal property. One night about 30 masked rider arrived on the scene and burned down the hatchery

Mehaney was later tried in Gunnison and served 8 years in a penitentiary for manslaughter.

On January 11, 1902, Articles of Incorporation were recorded in the Delta County Abstracts indicating the formation of the Grand Mesa Lake and Park Company. There were several stockholders who invested in the Company. The capital stock amounted to.$25,000 divided into 250 shares of$100 each. The objectives of the Corporation included " . purchase, lease, construct, maintain and operate hotels, lodges, pleasure resorts, boats and vehicles for use and accommodation of its stockholders and others, to acquire and propagate game and fish, to acquire by purchase or lease such real estate and personal property; as may be necessary or convenient for its operations." The Corporation was to be managed by three directors: MessersBowen, Herrington and Gile. From that time on, the Company opened the lakes for fishing to non-stockholders.

On April 16, 1903, Radcliffe produced a Quit Claim Deed to the Grand Mesa Lake and Park Company for a payment of $1,000. But he remained behind the scenes as one of several financiers of the Company.

Radcliffe returned to England sometime later and sought compensation from the Federal Government. In 1904, Congress voted to grant him $25,000 for his losses. Sometime between 1901 and 1911, the Grand Mesa Lake and Park Company had reorganized to include other stockholders including D.C. Beaman.

On February 11, 1911, the stockholders of the Grand Mesa Lake and Park Company authorized its president (Mr. Beaman) to sell the Company. On March 13, 1911, the Grand Mesa Resort Company received a Certificate of Incorporation from the State of Colorado. The Grand Mesa Resort Company purchased the Grand Mesa Lake and Park Company on November 17, 1911 for $10,000. To finance this purchase and pay-off previous loans, the Resort Company secured 7 'prom' notes in the amount of $6,500 from investors in the Grand Mesa Lake and Park Company and an additional 13 'prom' notes for a total of $8,000 from the Gunnison Tunnel Investment Company. William Radcliffe was an investor in the latter. He also one of the three individuals who loaned the Grand Mesa Resort Company the$6,500. On October 15, 1915, there is recorded a Release of Deed of Trust regarding this loan signed by Messrs.Beaman, King and Radcliffe. There is also a document indicating the Mr. Radcliffe was finally reimbursed for his other investments in the Grand Mesa Resort Company via the Gunnison Tunnel Investment Company.

The Grand Mesa Resort Company obtained all of the rights including ditches and water and the Class A Fishing License granted to the Grand Mesa Lake and Park Company.

The Grand Mesa Resort Company, 1912 to 2000

There are no Board of Directorsor stockholder meeting minutes available from the beginning of the Corporation to 1949. All of the history prior to 1949 is from other Company documents in storage and the Delta County Abstracts.

In 1913 the stockholders amended the Company's Articles of Incorporation to indicate that the Company's capital stock shall be$25,000 consisting of 500 shares at a par value of $50.

The Company began building a road from the Surface Creek Valley to the Resort Company properties sometime around 1914. In a December 6, 1915 letter, the Company requested an easement from the U.S. Forestry Service for the "Black Mesa" road. It had spent $8,000 to date and expected to have the road completed in 1917. The Forestry service granted the easement and apologized for not having the funds to participate in the project. In 1916, Delta County and the State of Colorado assumed responsibility for completion and maintenance of the road. In subsequent correspondence, the Resort Company indicated that it had spent $10,000 on the road.

In 1915, the Fish and Game Commission was paying the Resort Company 25 cents per thousand rainbow and native trout spawn removed from the lakes. There is some evidence that the State was operating a fish hatchery in the area. The extraction of spawn was discontinued in 1918 due to rising costs and lack of personnel due to the war effort. In 1919, the Colorado Fish and Game Commission renewed the Resort Company's License No. 106 which granted the right to " ... keep and propagate therein and dispose of...fish of any and all kinds, and in any quantity..." The License was good for 10 years. The Resort Company was required to give the State Free access and the right to build a cabin for use of its personnel on Company property.

In 1929 when the Class A license was to expire, there was so much public opposition to the Resort Company's Exclusive fishing rights that the Forrest Service asserted public ownership of 10 lakes and some of the three others that were originally listed in the agreement with the Grand Mesa Lake and Park Company.

Between 1919 and 1929, the State did pay the Grand Mesa ResortCompany for extraction of spawn from the lakes and agreed to stock the lakes. The amount paid began at $550 per year end rose to $1000 by 1929. Initially the State wanted to extract spawn for free but the Resort Company successfully argued that it needed the funds to meet its financial obligations.

In the meantime, specifically September 11, 1921 theResort Company signed a Memorandum of Agreement with the U.S. Forest Service that the former would not deny the public the privilege of fishing and boating in its waters (12 lakes listed). Furthermore, the Resort Company would either provide and maintain boats or would grant concessions to operators who would provide boats to the public. The Resort Company also agreed to provide right-of-way to the public access to public lands. The Resort Company also agreed to help suppress forest fires when asked to do so.

In 1920, the Board of Directors elected to wild a hotel because there was "..an urgent need for buildings large enough to take care of the increased number of people..." To finance this project that led to the creation of the Alexander Lake Hotel, the Resort Company borrowed $200 from 53 individuals. In the documents regarding these loans it was stated that the Company had on hand $800 cash and a long-term bond of $8,000 on the property which was estimated to be worth $20,000. There is a Statement of Assets document dated May 31, 1921 that indicates the Company's total liabilities as $18,455.52. This included $8,000 in bonds to First Mortgage and $8,800 in notes to stockholders (44@$200 each). Assets were listed as $399.95 in cash, $24,000 worth of land (320.9 acres), $10,932.40 in the hotel and cabins, $885.56 in furnishings, $961.79 for 12 on-hand boats, $171.68 in tents, $2,800 in notes receivable and $57.50 for unexpired insurance premiums.

Between 1922 and 1926 there are lease agreements on file indicating the hotel was leased during the summers to various operators. There are no other documents available to indicate how the hotel and the cabins were operated until it was sold in 1944.

The Resort Company borrowed $175 in 1926 to purchase a piano, two showcases and flags. $50 was given as a down payment and the balance was to be paid off at a rate of $25 a year.

In 1925 he Internal Revenue Service sent a letter to the Grand Mesa Resort Company stating that the latter did have a tax liability on its capital stock. In that correspondence there are some interesting statements and figures: stockholders are entitled 50 x 10 0 foot building sites, yearly rental is $4, there is a 51x69 foot hotel that is leased during the summer to a party who has the hotel concession, the State of Colorado Pays the Company $1,000 a year for spawn and the capital stock of the Company is worth $25,000 (500 shares at $50 each). There is no evidence available as to how the Resort Company responded to this correspondence.

In 1934, the Resort Company secured 18 "gold" bonds for the sum of $500 each and 60 bonds for the sum of$100 each from the First National Bank of Delta and the Colorado Bank and Trust Company. The total amount was $15,000 payable over a 10 year period at an interest rate of 7% per annum. There is no information available as to why this loan was secured. This loan was paid in full in 1942 when the Resort Company sold the Alexander Lake Lodge and approximately 20 surrounding acres to a Dr. Ted Wilcox. There are no records available as to why the Company decided to sell the lodge. One could easily make a case for indebtedness of the Company during the depression.

In 1939, theCompany granted an easement to the State of Colorado to the Eggleston, Barren, Alexander and Twin lakes for a payment of $5,000.

1940's

On June 11, 1949, the stockholders approved Amendments to the Articles of Incorporation. It was stated that the GMRC was not-for-profit via Article 13, Chapter 41, Colorado Statutes and that it existed for the use and enjoyment of the stockholders and that it would construct a club house and other buildings, roads, beautify said property, setout and plat lots in desirable locations and promote and conduct entertainment and recreational facilities. The number of shares shall be 500 at a par value of $50 each.

The By-Laws were amended as follows: No real estate or vested rights "...shall be sold without approval of the stockholders”, the Boardwill set out and plat lots 50I 100 feet with a yearly rental of$5, the cabin sites are for the exclusive use of stockholders and can not be rented or used for business or commercial purposes, the Board is authorized and directed to cancel leases for violating rules and regulations, and the Board may provide a club house and other facilities and establish rules for their use and operation. These amendments to the Articles and By-Laws were done to qualify as a not-for-profit organization.

In 1949, a committee was formed to clean up and beautify theResort Company property.

1950’s

In 1952 the stockholders approved By-Law changes regarding the definition of a quorum necessary to conduct business in the annual meetings. 25% of the outstanding stock, represented either in person or by proxy is considered a quorum for transaction of business…

In March 1953, the stockholders gave the board permission to go after the stockholders whose annual assessments were in arrears for 3 or more consecutive years and if their cabins needed repair. TheBoard could use "all means" necessary including paying reasonable prices for the cabins.

Also in 1953, the Resort Company purchased 1⁄2 share of the Surface Creek Ditch andReservoir Company to cover its water usage.

In September 1953, the Board moved to request stockholders appear in front of the Board to argue why their stock should not be cancelled because of their renting out cabins and obstructing roads.

In 1955 it was decided to have the Company manager chair the Beautification and Sanitation Committee.

In 1957, the stockholders voted to allow the Board to make decisions regarding oil and gas leases. On July 15, 1957, the Company granted a lease to the Nebraska Drillers That would allow them to conduct explorations. The Company was paid $307. There is no information regarding the duration of the lease or if any explorations were conducted.

Around 1959, the Frost Family purchased all of the AlexanderLake Lodge properties except for a couple of acres owned by Dorris Wilcox Showalter. Prior to the sale, the Resort Company and Dorris Showalter exchanged Quit Claim Deeds to accomplish clarification to the property lines.

1960’s

In 1960, the Board moved to prohibit trailer houses on Company property except during the construction of a cabin. The Board also voted to give the Rocky Mountain Natural Gas Company an easement for a gas line through the Resort Company property.

On January 16, 1961 the Resort Company received a letter from the U.S. Treasury stating that the Company was tax exempt. The Revenue Service Ruled that the Resort Company was exempt under section 501(c)(7) of the 1954 Code. Two years later the IRS informed the Resort Company that it needed to file for an Employers Identification Number.

On May 25, 1961 the Resort Company entered into a formal agreement with the Lake Fork Ditch Company regarding water usage by the Cold Stream Domestic Pipeline and the Alexander lake Pipeline Companies. The Resort Company would deliver to the Lake Fork Ditch Company its one half share of Surface Creek Ditch and Reservoir water to cover usage by the stockholders. It was also agreed that the Resort Company would facilitate the installation of water meters on the two above mentioned pipelines to monitor water usage for no less than 3 years. If the usage exceeded the one-half share, the Resort Company would purchase more shares.

In 1963, the Resort Company purchased an additional share of the Surface Creek Ditch and Reservoir Company.

On August 15, 1965 the Board instructed the secretary not to approve a stock transfer of a cabin that does not conform to the building requirements of the Company without prior approval from the Board.

1970’s

In 1972, there was considerable algae growth in the lakes on Grand Mesa. Local newspaper articles were critical of the Company's possible contamination of the lakes. The State health authorities evaluated the problem and did not find any evidence to implicate the Resort Company.

On April 19, 1978, the Resort Company entered into an oil and gas exploration lease agreement with the Northwest Exploration Company. The agreement states that: "..if no well be commenced on said land on or before the 19th day of April, 1979, this lease shall terminate a s to both parties..." There is a document in the 1980 files that indicates this lease was in effect for 10 years but there is no evidence that any exploration was accomplished.

Sometime in the late 70's, the Frost Family sold the Alexander Lake Lodge including 8 more or less acres. The Frosts' retained the 8 more or less acres for their trailer park.

1980’s

In January 1981, it was brought to the attention of the Board that the Corporation Taxes had not been paid the past four years. The Company attorney recommended the Company re-incorporate under a non-profit status.

In 1981/1982, the Colorado Department of Health repeatedly demanded that the Resort Company test the water flowing from the spring at the end of College Drive. Since this was a drinking water system, samples had to be collected quarterly when used.

On March 1982 annual stockholder meeting, the Delta County Health Department's new rules requiring no less than 1/7 acre for septic systems were discussed. It was recommended t h a t " ,..cabin owners requesting a permit try to use two lots for one septic tank".

On March 13, 1982, the Resort Company entered into a formal agreement with the Lake Fork Ditch Company in which the former agreed to allot its 1 1⁄2 shares of Surface Creek Ditch and Reservoir water to the latter. This was done to accommodate the increased water usage due to more cabins, wells, etc. The Resort Company agreed to use meters on the pipelines and" ..other reasonable steps to determine the quantity of water delivered through said pipelines or otherwise diverted by the stockholder...for domestic use.”

The Colorado Secretary of State provided the Resort Company a certificate dated September 14, 1982 indicating that its Articles of Incorporation dated 1908, 1913, 1932, 1951, and 1958 are" ..true and complete…”

The Secretary of State issued a Certificate of Incorporation dated January 31, 1983. This Certificate states that the Corporation shall have perpetual existence. This document contains an Article X which describes the process for amending the Articles Which should serve as a future reference.

In March 1985, the stockholders voted to have the annual meeting the second Saturday in March and to invite stakeholders to attend the August Directors meeting to present and discuss problems and suggestions for the benefit of the Company. A Year later the Stockholders voted to have the annual meeting on the second Saturday in August.

In 1985 the Resort Company entered into a formal agreement involving fire protection on Grand Mesa with the Fire Protection District. The Resort Company would construct a building on the Frost property and the District would furnish the fire truck. TheFrost enterprises would pay the taxes on the structure. The Resort Company agreed to purchase portable pumps and pay the insurance on the building. In the 1986 annual meeting, the Board reported that it had spent $4,000 on the project.

In the 1987 annual stockholders meeting, the stockholders voted to ban future burn sites for tree limbs, etc. The By-Laws were amended to read, "Directors of the Grand Mesa Resort Company shall be elected from the counties of Delta, Montrose, and Mesa."

In May 1987, the Board decided that stockholders having two adjacent 50 foot lots begiven one share with a lot that is 100 feet wide.

In 1988 the Board approved a lease of a parcel of Resort Company's remote land for $50 per year.

1990’s

In 1990, the Resort Company and the U.S.Government (Forest Service) exchanged Easement Deeds for road access along Eggleston Lake. The Resort Company granted a 60 foot wide easement for the road and the ForestService provided access easements from the road into the Resort Company property.

In the 1990 annual Company meeting, the stockholders voted to support changing the name of Carp Lake to Cobbett Lake.

In 1991 the stockholders were polled as to whether boat docks should be allowed. The majority indicated boat docks should not be allowed.

The Delta County Health Department informed the Resort Company of its new requirements for septic systems:

• Individual sewage disposal require ½ acre minimum lot size for new development with septic tank soil absorption and off water supply.

• When there is a well and septic tank soil absorption system, 2 acres are

• required.

• Grey water is to be disposed underground. (This is also required by the water augmentation plan)

• New privies will require a vault.

• Vaults require signaling devices on tanks but this has not been enforced for seasonal usage.

• These regulations include steps to obtain a permit.

In September 1994, the Health Department issued a change in the rule regarding grey water. This could no longer be discharged in the soil absorption systems and most be collected in vaults.

In early 1993 it was realized that the Resort Company was paying taxes off and on since it received a 501(c)(7)status.

In June 1995, the Company purchased two additional shares in the Surface Creek Ditch and Reservoir Company for $17,000. The Board agreed to lease two shares of water since the original 1 1⁄2 shares were adequate to cover the current water usage within the Company. In the Water Augmentation Plan and in the agreements with the Lake Fork Ditch Company, the Resort Company would provide the latter additional shares of water when requested.

In August 1995, the Board agreed to re-review the By-Laws to make sure the "open spaces" remain as currently designated and that the Board can not sell or change the number of lots without shareholder approval. In 1997, the Stockholders agreed to By-Law changes in which the number of active shares are limited to 272 and that "...The Grand Mesa Resort Company shall not issues any new shares of stock as of this record date."

In 1996, the Resort Company established a lease agreement with the owners of Alexander Lake Lodge regarding the latter having a boat dock on Hotel Twin Lake.

In 1998 there was much discussion with the Forest Service and County Commissioners regarding Forest Service's closure of the road to Forrest Lake. This action was taken in response to a request from the Resort Company to remove the Company's roads from the Forest Service's map. The Commissioners requested the stockholders be given the opportunity to vote whether the road should remain closed. The stockholders voted overwhelmingly to keep the road closed.