BLACK HAWK, Colo. -- Former and current Black Hawk elected officials have received millions of dollars in historic grants to fix up their own property, according to records obtained by CALL7 Investigators.

Nearly $3 million in state historic money has gone to past or present elected officials or their relatives, records show.

The council member whose property is up for public money leaves council chambers when his or her fellow council members vote on the grant so city officials maintain the grants and their distribution to elected officials obey all laws and regulations.

However, government watchdogs say what Black Hawk officials are doing is ethically -- if not legally -- corrupt.

"This is Alice in Wonderland," said Buie Seawell, chairman of the University of Denver department of business ethics. "I walk out of the room and you take care of my problem. Then it's your turn."

Mayor David Spellman and Alderwoman Kathleen Doles, two of the largest recipients of the state historic money, refused repeated requests to comment on camera and demanded that questions be submitted in writing.

Spellman received 10 different grants over the years totaling more than $600,000, records show. Doles' property received nearly $130,000 in the 1990s and her fellow council members voted to put another $492,000 into her property at 111 Marchant Ave. earlier this year.

Twenty-eight percent of the money generated by limited-stakes gaming goes to the state Historic Fund and then 20 percent of that money goes to Black Hawk, Cripple Creek and Central City to restore historic property. The percentage to each town is based on how much gambling tax revenue each area generates, so Black Hawk receives two-thirds of the money.

The city officials in each municipality then determine where that money goes with no oversight from the state.

Black Hawk, a town where less than 80 homes are eligible for historic grants, has received nearly $40 million since 1993, records show.

The Denver Post wrote about the grants to public officials in 2004, and the Colorado Bureau of Investigation has investigated the grants. CBI did not pursue any criminal charges. Despite the public scrutiny of the program, the grants to city officials continue but they did not want to talk about it.

The most recent example of an elected official receiving a large grant is Doles.

Doles' 1,511-square-foot house is assessed at less than $160,000, according to the Gilpin County Assessor's office. In a council meeting, Aldermen Richard Cottrell said only $64,000 is going to the inside of Doles' house, and the rest of the property was deeded over to the city with a historic easement.

According to city council meeting minutes of the most recent grant, Doles will only be responsible for taxes on the $64,000 and own the outside of the home and the property. However, it is unclear who will receive proceeds from the house if Doles sells it.

Doles, after a council meeting, declined comment, saying "put it in writing" before driving away.

Spellman pushed a KMGH photojournalist and ran down the stairs to city hall instead of answering questions about his property and the state historic grant money he has received.

Colorado Ethics Watch director Chantell Taylor said it is inappropriate for elected officials to refuse to answer questions on camera. Legislators and others should investigate the way Black Hawk aldermen have used the state money, she said.

"I think the whole process of how the aldermen review the funds needs to be reviewed," she added.