To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Tara Vargish, P.E., Director Development Services
Mark Marlowe, P.E. Director Castle Rock Water
Title
Resolution Approving the Pre-Annexation Agreement by and among JRW Family Limited Partnership LLLP and the Town of Castle Rock, Colorado, for the Pine Canyon Planned Development [535-acre site located on both the east and west sides of I-25. The portion of the property east of I-25 is generally north of Scott Boulevard, south of Black Feather Trail, west of Founders Parkway, and east of Front Street. The portion of the property west of I-25 is generally east of Prairie Hawk Drive, south of Highway 85 and bisected by Liggett Road]
Body
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Executive Summary
JRW Family Limited Partnership LLLP (JRW) is requesting to enter into a Pre-Annexation Agreement with the Town for property known as Pine Canyon. The 535-acre site is in central Douglas County surrounded by the Town of Castle Rock. It is located on both the east and west sides of Interstate 25 (I-25). The portion of the property east of I-25 is generally north of Scott Boulevard, south of Black Feather Trail, west of Founders Parkway, and east of Front Street. The portion of the property west of I-25 is generally east of Prairie Hawk Drive, south of Highway 85 and bisected by Liggett Road. (Figure 1).
The property is currently under consideration for a Planned Development (PD) rezoning in Douglas County. During public hearings in front of the Douglas County Planning Commission and with the Board of County Commissioners in August and September of this year, Town Councilmembers, staff, and numerous residents expressed their concern on this urban level development occurring in unincorporated Douglas County. The majority of the concerns center on how this urban development will impact the Town’s water supply, wastewater treatment, transportation system, and parks and trails without, or with unknown, mitigation to the Town’s facilities.
At the September 16, 2024 Board of County Commission meeting, the Commission directed the applicant to work with Town staff to see if progress could be made toward annexation and zoning within the Town. Annexation and zoning in the Town would allow for development to occur to Town standards, including inclusion in the Town’s water and wastewater systems, and ensure that roads, parks and trails are designed to Town standards and integrated into the Town’s systems. It would also allow for the Town collection of use tax, impact fees and system development fees for all building permits within the development, allowing the Town to use those fees for their intended purposes, such as regional transportation, parks, water/renewable water, and wastewater capital projects for the community.
Town staff and JRW’s development team have met several times over the past three months and have developed a Pre-Annexation Agreement for consideration by Town Council. Pre-Annexation Agreements are allowed under the Colorado Municipal Annexation Act of 1965. The Pre-Annexation Agreement is a legal contract between JRW and the Town that outlines the terms and conditions under which the property may be annexed into the Town at a future date, acknowledging the rights and obligations of each party throughout the annexation and zoning processes. Both Town staff and JRW have determined that this agreement’s terms and conditions are reasonable in connection with their respective activities to facilitate the annexation and zoning process within the Town.
If the Pre-Annexation Agreement is approved by Town Council, Town Council retains the legislative discretion to determine whether to approve the annexation and zoning in the future. The Town has no legal obligation arising under this Agreement to approve a future application for Annexation, Development/Annexation Agreement, or PD Zoning for Pine Canyon.
Town staff recommends Town Council enter into this Pre-Annexation Agreement with JRW, which will set in motion JRW moving forward with applications for annexation and zoning of Pine Canyon within the Town’s jurisdiction in early 2025.
Budget Impact
The Pine Canyon Pre-Annexation Agreement includes a credit for application fees that have been previously paid to the Town, as well as the Town covering the costs of mailing notices for the annexation and zoning neighborhood hearings. Town staff finds these costs nominal in comparison to the overall costs JRW will incur to modify their applications to submit to the Town, and the costs they have already incurred on their County application.
If the future annexation and zoning approvals are obtained within the Town, then this development will pay their share of building and impact fees, as all other developments within the Town pay.
Staff Recommendation
Staff recommends approval of the Pine Canyon Pre-Annexation Agreement to Town Council as the best path forward, laying out the rights and obligations of both JRW and the Town.
Proposed Motion
Option 1: Approval
“I move to approve the Pine Canyon Pre-Annexation Agreement, as presented.”
Option 2: Approval with Conditions
“I move to approve the Pine Canyon Pre-Annexation Agreement, with the following conditions:” (list conditions)
Option 3: Continue item to next hearing (need more information to make decision)
“I move to continue this item to the Town Council meeting on [date], 2025, at [time].”
Attachments
Attachment A: Resolution
Attachment B: Pine Canyon Pre-Annexation Agreement