When the War Department decided to establish a unit of mountain troops trained in skiing and winter warfare, a search for an appropriate site for the military post began. Various locations in the western states were investigated. The area around Pando, Colorado, a railway stop on the Denver and Rio Grande Railroad, proved to be the ideal location, meeting all the criteria set forth by the War Department. A foremost consideration was snowfall, and the area near Tennessee Pass had consistent and heavy snow throughout the winter as well as topography conducive to ski training. Since much of the surrounding land was national forest, acquisition of land and room for maneuvers and training was not a problem. One advantage the site had over others reviewed was accessibility. The Denver and Rio Grande Railway and Highway 24 provided ready access to the valley. This was important for construction phase on the camp because building crews and materials could be brought to the site with out additional costly construction of transportation. Natural water sources from the Eagle River and Homestake Creek were deemed sufficient for camp use, and regional supplies of coal existed in sufficient quantities to meet fuel demands.

Leadville, Colorado, was the closest town to the base. World War II benefited the small community. Mining was the historic foundation of this mountain town. By WWII, molybdenum, a valuable element used to harden steel, had replaced gold and silver as the major source of extractive wealth. Demand for "molly" grew as wartime production increased. Construction and the presence of troops provided new economic life for the struggling mining town. Yet, the only drawback noted in the investigative report was Leadville. It was thought to be lacking in appropriate social and recreational amenities, and the report presented the town negatively stating, "The morals of Leadville are said to be on a rather low plane." Before the Army would allow soldiers into Leadville, the city council and police had to clean up the town by enforcing gambling and liquor laws as well as finding a solution to end the prostitution problem.