Cañon City council approves 25-year lease with CMBH to operate Royal Gorge Bridge

The Cañon City Council unanimously approved Resolution 7, Series 2026, authorizing a 25-year lease with two optional 10-year extensions between the city and CMBH Partners LLC to operate the Royal Gorge Park and Bridge.

Ryan Stevens, the city administrator, told the council the lease is “a 25-year contract with two optional 10-year extensions” and described it as “the cornerstone for the Royal Gorge Bridge for the next 25 to 45 years.” He said the agreement is central to city revenue and noted that without the Gorge’s receipts, Cañon City’s mill rate would be substantially higher.

The lease requires the incoming operator to commit $3 million in capital improvements within the first 10 years, with $1 million obligated by March 1, 2029. The contract retains a 25% percentage rent on admissions and 10% on food, beverage and merchandise; special-event admissions are set at 10% and require city pre-approval. The city’s sinking fund for major attractions will increase from $600,000 to $1 million, funded by raising the operator’s annual contribution from $100,000 to $200,000 until the cap is reached.

The agreement includes several community-access and programming commitments: two free community days per year, discounted local season passes, school and educational group pricing, continued support for historic community events (including senior sunrise, rim-to-rim, Easter sunrise and cross-country meets), and an annual operator employee "give back" service day.

The lease also defines intellectual property for the lease premise (for example, URLs and social-media accounts) and states that such property will revert to the city at the end of the lease. According to staff, the owners of the operator group have signed personal guarantees intended to protect the city in the event of default or early termination.

Council members asked about the city’s exposure if a post-signing conditions assessment showed deferred maintenance. Stevens pointed to Exhibit H, which staff said creates a baseline condition through a conditions assessment (work currently under way with Benesch and city staff) and provides a cure period for the operator to submit items for consideration. Stevens described a five-year table in Exhibit H that allocates shares of cost between the operator and the city as specific improvements are completed or required.

Catherine Sellers, the city attorney, gave a brief legal background on the modernization formula discussed in the lease and said the Colorado Supreme Court previously upheld the city’s authority to adopt that formula: “the Colorado Supreme Court found that it wasn’t [required to have voter approval],” she said, referring to the earlier challenge to modernization terms.

Before the vote, council members agreed to allow the city administrator or city attorney to make minor typographical changes to the contract at execution. Council member Sarah moved to approve the resolution; the motion was seconded and carried unanimously by those voting. Council member Tony, who recused himself and left the room for the discussion and vote, had his status changed from “absent” to “abstain” in the record after the meeting.

The council approved the resolution and adjourned the special meeting.