To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Jeff Brauer, Director of Parks and Recreation
Title
Ordinance Approving the Second Amendment to the Zip Line and Aerial Trekking Course Lease Agreement within the Philip S. Miller Park and Providing for its Emergency Adoption on First and Final Reading
Body
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Executive Summary
In 2014, the Town of Castle Rock Town Council approved a Zip Line and Aerial Trekking Course Lease Agreement with Castle Rock Zip Line Tours, Inc. The purpose of the agreement was to permit the construction and allow the business activity of a zip line and aerial trekking course on Town-owned property at Philip S. Miller Park.
The agreement defined the operational scope, lease terms, performance standards and financial commitments between the Town and Castle Rock Zip Line Tours (CRZLT). All financial risks and liabilities were assumed by CRZLT, while the Town has benefited from the operations of the business and received 5% percent of gross revenue as lease payments. Annual revenue generated for the Town has averaged over $65,000 since 2014. The revenue is reinvested towards maintenance and improvements at Philip S. Miller Park.
The original agreement required a 10-year commitment with an option to renew. The CRZLT has submitted a lease extension request (Attachment A) to continue operations for any additional 10-year term, with an option to extend for five additional years at the conclusion of the second term. The general terms of the renewed agreement will stay consistent with the previous lease, but the second amendment will update the rates in the operations plan, change the rent schedule from quarterly to monthly and update the insurance requirements.
Since the current lease term ends on Sept. 4, 2024, staff now recommend the approval of the Second Amendment to the Zip Line and Aerial Trekking Course Lease Agreement within Philip S. Miller Park, and provide for its emergency adoption on first and final reading.
History of Past Town Council, Boards & Commissions, or Other Discussions
On July 22, 2014, Town Council unanimously approved Ordinance 2014-22 Approving a Zip Line and Aerial Trekking Course Lease Agreement within the Philip S. Miller Park; and Providing for Its Emergency Adoption on Second and Final Reading.
On March 15, 2016, Town Council unanimously approved the First Amendment to the Zip Line and Aerial Trekking Course Agreement within Philip S. Miller Park through Ordinance No. 2016-006. While the initial lease agreement included the terms of the lease and the operation plan for both facilities, a leased premises expansion was required for the construction of the trekking tower.
Discussion
Outdoor recreational experiences offer significant local value by attracting visitors and increasing visitation to local restaurants and shops, providing local job opportunities and enhancing quality of life for residents.
Since CRZLT began operations and opened to the public in fall 2014, the company has experienced growing success. Its Zip Line Tour features ten lines covering two miles traversing the beautiful terrain of Philip S. Miller Park. The Adventure Tower is a climbing and free-falling tower where participants experience 13 elements, including a 50-foot climbing wall, rappelling stations and a 45-degree zipline. The Epic Sky Trek is a four-story trekking course that incorporates 110 unique elements with three difficulty levels. The newest addition, the Ninja Course, was constructed in 2019 and features six challenging tests of speed, endurance and agility, including the largest warped wall in Colorado.
In 2019, Castle Rock Zip Line Tours, Inc., rebranded and now uses the tradename The Edge Ziplines and Adventures to reach a larger and growing audience; although Castle Rock Zip Line Tours, Inc., remains their business name registered with the State of Colorado. While CRZLT has increased its pricing since beginning operations, they have only increased their rates by $10 two times and now use variable pricing to meet patron demand. They also offer a discounted resident rate to members of the Castle Rock community, and continue to experience success year-over-year as demonstrated by the revenue rates paid to the Town. In 2023 alone, over 22,000 people enjoyed the amenities at their facilities, including nearly 600 local residents.
Year Town revenue received from CRZLT sales
|
2015 |
$34,258.70 |
|
2016 |
$51,017.73 |
|
2017 |
$ 60,933.74 |
|
2018 |
$72,064.66 |
|
2019 |
$69,570.87 |
|
2020 |
$76,965.99 |
|
2021 |
$93,216.19 |
|
2022 |
$70,440.27 |
|
2023 |
$62,543.76 |
Revenue generated through this public-private partnership is reinvested to improvement projects at Philip S. Miller Park, which helps to reduce the burden on the Town’s other funding sources and allows for increased financial stability and flexibility. Projects have included the placement of a new aerial trekking sidewalk path in 2016, new millhouse and amphitheater furniture for concerts and events, the installation of an accessible sidewalk connection from the southwestern parking area to the aerial trekking course and adventure playground, and new play features including a bamboo jungle, cyclo-spinner climber and 30-foot-long slide. In addition, the funds were used to replace the poured-in-place playground surfacing with synthetic turf under the slide at the adventure tower that had deteriorated.
Budget Impact
The Town will continue to receive 5% of gross revenue generated from the business activities of CRZLT, including participation fees, merchandise sales and concessions. Revenues are deposited in to account code 110-0000-222.26-00 and designated for maintenance and enhancements at Philip S. Miller Park. There are some costs in providing and maintaining shared facilities such as restroom and parking utilization and the overall maintenance of the park property due to increased use, but the costs are offset through the revenue generation. Estimated revenue to the Town is approximately $65,000 annually based on historical data.
Staff Recommendation
Staff recommend the approval of the Ordinance as introduced by title.
Proposed Motion
“I move to approve the Ordinance as introduced by title.”
Alterative motions:
“I move to approve the resolution as introduced by title, with the following conditions: (list conditions).
“I move to continue this item to the Town Council meeting on _____ date to allow additional time to (list information needed).”
Attachments
Ordinance
Second Amendment
Attachment A - Extension Request from CRZLT