To pass this tremendous package of legislation McNichols often alienated members of his own Democratic Party, and to pay for it he lobbied for an unpopular tax hike. Furthermore, McNichols' Fryingpan - Arkansas water diversion project caused friction between the Western Slope and Front Range regions. Another source of contention was McNichols' acceptance of the Executive Residence from the Boettcher Foundation. Many legislators disagreed with this decision and believed that it showed McNichols to be arrogant and power-hungry. Ironically, the same package of legislation that got him elected to the governorship in 1956 brought him defeat in his 1962 reelection campaign.