DENVER -- The Colorado Limited Gaming Control Commission sent a letter Thursday to top state leaders urging action after a CALL7 investigation uncovered questionable spending by Black Hawk city leaders.

“In early 2008, Channel 7, KMGH, aired an investigative news series on the administration of the historic preservation grant program in Black Hawk which raises serious questions concerning the propriety of some expenditures,” the gaming commission letter says.

The letter continues: “It is our belief that the authority to remedy this situation lies with the Colorado General Assembly and our ability to address these concerns is limited by statute.”

CALL7 investigators called into question hundreds of thousands of dollars that went to Black Hawk officials to remodel their homes.

The commission’s letter, to Gov. Bill Ritter, Attorney General John Suthers and leaders of the state House and Senate, points out $1.6 million that went to the Black Hawk mayor and two council members.

The commission singled out a $492,000 grant to Alderman Kathleen Doles to remodel her home that 7News highlighted. The letter, and CALL7 reports, pointed out that the money went to remodel a 1,285 square foot home that is assessed at less than $160,000.

"(S)ome fo the finding are disturbing and compel the Commission to call for further action," the letter says.

The letter was approved Thursday at a commission meeting, but it is unclear whether it has been sent out.

The letter also points out that in May Black Hawk officials approved an ordinance that would allow historic preservation money to be used for the operations of the city’s public works and fire departments.

The two other gaming towns, Cripple Creek and Central City, do not allow public officials to participate in historic grant programs, the letter says.

The commission references a recent briefing by the Colorado Bureau of Investigation about the use of historic funds in Black Hawk.

The CBI did not find criminal wrongdoing in a previous investigation, but 7News reported that state investigators recently asked for the same documents that CALL7 investigators used to produce their reports.

The commission lists other “questionable expenditures” by Black Hawk of historic funds to include $829,500 to the city’s general fund, $418,485 for underground utilities, $527,080 for a water pipeline and $1.4 million for land acquisition.

Black Hawk leaders have rebuffed repeated attempts by 7News to comment on camera about the spending. The elected officials and the city manager could not be reached for comment Thursday.

The letter references legislation proposed by state Senator-elect Al White, R-Hayden, and urges legislative leaders help approve any legislation.

“It is our earnest hope that the leadership of the Colorado General Assembly will support any efforts made to provide greater clarity on the appropriate use of historic preservation fund in the three gaming towns,” the letter says.