To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Ordinance Approving the Public Finance Agreement Between the Town of Castle Rock, CD-ACME LLC, Brickyard Metropolitan District No. 1, and the Castle Rock Urban Renewal Authority (Second Reading - Approved on First Reading on May 20, 2025 by a vote 6-0)
Body
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Executive Summary
The proposed ordinance approves the Public Finance Agreement between the Town of Castle Rock, CD-Acme LLC, Brickyard Metropolitan District No. 1, and the Castle Rock Urban Renewal Authority which agreement addresses funding for the design and construction of public infrastructure associated with the Brickyard project.
History of Past Town Council, Boards & Commissions, or Other Discussions
On February 18, 2025, Town Council voted unanimously to finally adopt Ordinance No. 2025-007 approving the Brickyard Planned Development Plan and Zoning Regulations and Ordinance No. 2025-008 approving the Brickyard Development Agreement.
On March 4, 2025, Town Council voted unanimously to adopt Resolution No. 2025-032 approving the Consolidated Service Plan for Brickyard Metropolitan District Nos. 1-3.
On March 18, 2025, Town Council voted unanimously to adopt Resolution No. 2025-037 approving the letter agreement between CD-Acme, LLC and the Town regarding the early procurement of trade agreements and materials for the Castle Rock Sports Center Project.
On May 6, 2025, Town Council voted unanimously to adopt Resolution No. 2025-059 expressing the intent of the Town to be reimbursed for certain expenses relating to the construction of the Castle Rock Sports Center Project.
On May 20, 2025, Town Council will conduct a public hearing on, and consider the adoption of Resolution No. 2025-019 finding that the Brickyard Urban Renewal Area is a blighted area and approving the Brickyard Urban Renewal Plan.
Discussion
The Town of Castle Rock (the “Town”) has been in negotiations with CD-Acme, LLC (the “Developer”), regarding the redevelopment of the former site of the Acme Brick Company at 401 Prairie Hawk Drive (the “Property”). The Developer is proposing a mixed-use development, with a maximum of 583 multi-family dwelling units consisting of townhomes and apartments, 92,000 square feet of non-residential uses including office, retail, and restaurant, a 99,000-square foot, 125 room hotel with a conference center and an outdoor performance venue (the “Brickyard”). In addition, a 145,000-square foot sports development center is planned to be constructed by the Developer for the Town on public land to be dedicated by the Developer within the boundaries of the Property.
The Public Finance Agreement (the “PFA”) addresses the obligations to be incurred by the Town, the Developer, Brickyard Metropolitan District No. 1 (the “District”), and the Castle Rock Urban Renewal Authority (“CRURA”) with regard to funding the design and construction of the public infrastructure associated with the Brickyard. Important features of the PFA pertaining to the Town include the following:
(i) An agreement by the Developer to contribute 10.36 acres of land to the Town and to construct on such land the Town-owned and operated sports development center, subject to the availability of funding through the issuance of tax-exempt certificates of participation approved by the Town.
(ii) A commitment by the Developer to construct Praxis Street from the Brickyard boundary across adjacent property to Plum Creek Parkway.
(iii) A commitment by the Town to adopt the Sales Tax Credit Ordinance. This Ordinance will authorize a sales tax credit of 2.4% on all sales of goods and services subject to Town sales taxes within the Brickyard, but only to the extent that the Developer imposes a corresponding public improvement fee on such sales. [Please note that this Ordinance will also be considered at tonight’s meeting].
(iv) A commitment by the Developer that a hotel with at least 100 rooms (but up to 125 rooms) and conference/banquet facilities capable of hosting at least 250 guests will be constructed and open for business with the public on or before December 31, 2032.
(v) An agreement by the Town to waive the transportation impact fees and park dedication and park impact fee requirements that would otherwise be imposed with respect to the Brickyard until December 31, 2035.
Budget Impact
The Town will be financing approximately $75 million of costs for the construction of the sports development center and associated public infrastructure. In addition, the Town will be foregoing 2.4% of every taxable sale of goods and services within Brickyard through December 31, 2050. However, the Town will be collecting its remaining 1.8% sales tax on such sales, as well as its 6% lodgers’ tax on sales of lodging at the hotel.
Staff Recommendation
Town staff recommends that the Town Council adopt the ordinance.
Proposed Motion
“I move to approve the Ordinance on first reading as introduced by title.”
Attachments
Attachment A - Ordinance
Attachment B - Agreement