To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the Service Plan for Pine Canyon Metropolitan District Nos. 1-4 and Pine Canyon Commercial Metropolitan District
Body
________________________________________________________________________________
Executive Summary
Pine Canyon Metropolitan District Nos. 1-4 and Pine Canyon Commercial Metropolitan District (the “Districts”) are seeking approval from the Town Council for their respective service plans under the provisions of the Special District Control Act, §§ 32-1-101, et seq., C.R.S., and Chapter 11.02 of the Castle Rock Municipal Code. The Districts are located on the recent annexed Pine Canyon property, totaling 533.445 acres in size and located on both the east and west side of Interstate 25, west of Founders Parkway (the “Property”).
Background
On June 3, 2025, the Town Council for the Town of Castle Rock (the “Town”) adopted the following ordinances:
(i) Ordinance No. 2025-016 annexing to the Town of Castle Rock, Colorado, 533.445 acres of land located in parts of Sections 34, 35, and 36, Township 8 South, Range 67 West, and part of Section 1, Township 8 South, Range 67 West of the 6th Principal Meridian, Douglas County, Colorado, pursuant to an Annexation Petition submitted by JRW Family Limited Partnership LLLP (Pine Canyon Annexation);
(ii) Ordinance No. 2025-017, approving the initial zoning for 533.445 acres of land located in parts of Sections 34, 35, and 36, Township 8, South, Range 67 West, and part of Section 1, Township 8 South, Range 67 West of the 6th Principal Meridian, Douglas County, Colorado, pursuant to a zoning application Submitted by JRW Family Limited Partnership LLLP (Pine Canyon Planned Development); and
(iii) Ordinance No. 2025-020 approving the annexation and vested property rights development agreement (Pine Canyon); and vesting site-specific development plans through December 31, 2050. (the “Development Agreement”)
Section 3.01 of the Development Agreement acknowledges the Owner’s intent to form one or more metropolitan districts, and to submit a request to the Town for the review and approval of a service plan for such districts. The Property is wholly located within Town boundaries, thereby giving the Town Council the requisite jurisdiction under Section 32-1-204.5, C.R.S., to review any service plan submitted for the Property.
Discussion
Special District Control Act
Prior to the organization of a special district, a service plan must be submitted to the proper authority for review and approval. For those districts wholly contained within the boundaries of the Town, the approving authority is the Town Council. A public hearing on the service plan must be conducted by the Town Council and a decision made based solely upon the service plan and evidence presented at the hearing. Any decision of the Town Council approving the service plan must be memorialized in a resolution.
Model Service Plan
In preparing their respective service plans, the Districts have agreed to substantially adhere to the Town’s Model Service Plan, as approved by the Town Manager. Key features of the model service plan include the following:
- A district must enter into an intergovernmental agreement with the Town relating to the limitations imposed on a District’s activities by the plan.
- A district is subject to maximum debt service mill levy of 50 mills and overall property tax mill levy of 60 mills.
- A district is subject to a maximum debt service mill levy imposition term on any single property.
- A district cannot issue or refinance debt without first submitting the proposed financing for Town review and comment.
A district is required to impose a Regional Mill Levy of five mills on all of the property located within its boundaries, the revenues from which shall be remitted to the Town.
Legal Standard
Under the Special District Control Act and the Town Code, at the public hearing, evidence satisfactory to the Town must be presented that:
- There is sufficient existing and projected need for organized service in the area to be serviced by the Districts;
- The existing service in the area to be served by the Districts is inadequate for present and projected needs;
- The Districts are capable of providing economical and sufficient service to the area within their proposed boundaries;
- The area to be included in the Districts does have, and will have, the financial ability to discharge the proposed indebtedness on a reasonable basis;
- Adequate service is not, and will not be, available to the area through the Town, Douglas County, or other existing municipal or quasi-municipal corporations, including existing special districts, within a reasonable time and on a comparable basis;
- The facility and service standards of the Districts are compatible with the facility and service standards of the Town;
- The service plans are in substantial compliance with the Town’s Comprehensive Master Plan;
- The service plans are in compliance with any duly adopted Town, regional or state long-range water quality management plan for the area; and
- The creation of the Districts is in the best interests of the area proposed to be served
With respect to the approval of new service plans, a Town Council has the following authority under the Special District Control Act and the Town Code:
- To approve the service plans without condition or modification
- To disapprove the service plans
- To conditionally approve the service plans subject to the submission of additional information or the modification of the proposed service plans
Recommendation
Town Staff submits that the respective service plans for the Districts satisfy each of the evidentiary requirements set forth in the Special District Control Act and the Town Code.
Proposed Motion
“I move to approve Resolution No. 2025-103 as introduced by title.”
Alternative Motion
“I move to approve Resolution No. 2025-103 as introduced by title, with the following conditions: ____________________________.
I move to continue this item to the Town Council meeting on ________________.”
Attachments
Attachment A: Resolution
Attachment B-1 through 5: Pine Canyon Metropolitan District Nos. 1-4 and Pine Canyon Commercial Metropolitan District Service Plan
Attachment C: Waiver Re: Notice of Hearing
Attachment D: Publisher Affidavit