COLORADO SPRINGS, Colo.--Feb. 17--The tiny mining town of Victor is losing one of the pillars of any community: its bank.
But it wasn't hard economic times or a corporate merger that led to the demise of the Victor branch of the Community Bank of Colorado.
The branch lost its lease and is being evicted Feb. 21.
Until a new location can be found for the branch, Victor residents will have to travel six miles to the Cripple Creek headquarters to do their banking.
'The bank has been handy for business people, but it wasn't here for years, so we'll deal with it,' said Gus Conley, who owns G & S Sporting Goods and Pawn, next to the bank. 'It will probably hurt the old people, who can't drive, the most.'
A bank closing due to a lost lease is extremely rare.
'Branch closures are fairly infrequent and most are due to acquistions or consolidations,' said Richard Fulkerson, Colorado State Bank Commissioner.
'This was strictly a contractual matter with respect to the lease,' Fulkerson said.
The building that houses the Victor branch was sold last month by owner James Watson to the Cripple Creek & Victor Gold Mining Co. for $231,000. The mining company plans to use the space for offices.
'It's time for us to move our officesfrom the Carlton Mill,' said John Blythe, spokesman for the mining company. 'It's real old and is turning into a liability,'
He said the move will give the mining company more access to town officials and activities. It plans to renovate the building and move in by May.
'We want to try and bring it back to its original state. It will definitely improve the downtown area,' Blythe said.
Surrounding businesses are happy to see the mine company move downtown, even if it cost them the bank.
'I think it's wonderful,' said Steele Eagle Destiny, of The Rooster Crows convenience store. 'Mine employees -- from the people on the bottom to the people at the top -- have always been good customers.'
Mining officials said there was no intent to evict the town's only bank. The bank just happened to be in the wrong place.
'We looked at all the leases in the building,' said James Komadina, the mining company's executive vice president. 'Those (leases) that didn't occupy the space we needed were given the option to stay.'
The bank was especially vulnerable because it was on a month-to-month lease.
'That's how the owner wanted it,' said Chuck Bishop, Community Bank of Colorado vice president. 'It's been that way since the early '90s.'
Former building owner James Watson could not be reached for comment.
Bishop said the bank was given its eviction notice in mid-January, shortly after the deal between Watson and the mining company was closed.
Bishop said the bank is actively working to find another Victor location, but it has been difficult.
'We had one lead, but the building turned out to be too expensive, and of course there has been a lot of introductory talk,' he said.
Victor town officials said they would like to keep Community Bank's presence in town.
'We are encouraged at the bank's action to relocate -- the city certainly needs a bank,' said town administrator Pete LaBarre. 'We want them (the bank) to act expeditiously so that we don't have to look to other banks for service.
'It's unfortunate the bank had to move. But that's the nature of business.'
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(c) 1997, Colorado Springs Gazette Telegraph. Distributed by Knight-Ridder/Tribune Business News.
