To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Title
Resolution Approving the Sale of the Rothe Property with Sublette, Inc. [Weld County, Colorado]
Town Council Agenda Date: November 17, 2026
Body
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Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a Resolution (Attachment A) authorizing the sale of approximately 640 acres of Town-owned land known as the Rothe Property in Weld County, Colorado. The sale is for the land only and expressly excludes the water rights associated with the Town's original acquisition of the property.
The Town acquired the Rothe Property and associated water rights in 2014 in support of the Box Elder Project. The Rothe water rights have since been incorporated into the Town's Box Elder Augmentation Plan (Case No. 19CW3231) and will be retained by the Town for use as part of its northern water supply portfolio. Because the Town no longer needs to retain the underlying land to preserve or use the water rights, continued ownership of the property does not provide an ongoing water supply or operational benefit.
The property must remain dried up and is located a significant distance from Castle Rock, making weed control, inspections, and general property maintenance difficult and inefficient for Town staff. An adjacent landowner has expressed interest in purchasing the property and has the potential to use the land for dryland agricultural purposes. The property was appraised in both 2024 and 2026, with a value of approximately $576,000. However, the proposed sale price has been reduced from the appraised value by approximately $X to account for the purchaser's responsibility to remove the existing irrigation and well equipment from the property and maintain the property in a manner consistent with the dry-up requirements. After negotiations with the buyer, the final sale price is $XXX,XXX.
History of Past Town Council, Boards & Commissions, or Other Discussions
On August 19, 2014, Town Council approved the Purchase Agreement for the Rothe Recharge project. As part of this purchase, 640 acres of land were acquired by the Town.
June 24, 2015, Utilities Commission was updated on the key points regarding the Rothe Surface Use Lease Agreement. Utilities Commission supported entering into a surface use agreement with Sublette, Inc.
On August 4, 2015, Town Council approved the 2015 Surface Use Lease with Sublette.
On January 3, 2023, Town Council approved the 2022 Surface Use Lease with Sublette.
Discussion
The Town originally acquired the Rothe Property to secure the associated Rothe Recharge water rights for the Box Elder Project. Those water rights are now incorporated into the Town's Box Elder decree, 19CW3231, and can be utilized independently of continued Town ownership of the surface property, subject to the terms and conditions of the applicable decrees and sale documents. The proposed transaction therefore separates the land from the water assets. The Town will retain all water rights and related interests necessary for its water-supply purposes while conveying only the surface property and any interests specifically identified in the purchase and sale agreement.
Retaining the land creates an ongoing property-management obligation without a corresponding long-term operational need for CRW. The property is located in southeastern Weld County, a considerable distance from Castle Rock. This distance makes routine inspection, weed management, and maintenance more difficult and costly. Because the water rights have been removed from irrigation use and incorporated into the Box Elder Augmentation Plan, the property must continue to be maintained as dried-up acreage and cannot return to irrigated agricultural production using the Town's retained water rights.
An adjacent landowner has expressed interest in purchasing the property. Ownership by an adjacent agricultural operator provides an opportunity for the land to remain productive through dryland farming or other uses that are compatible with the required dry-up conditions, while eliminating the Town's ongoing responsibility for weed control and general property maintenance.
The Town obtained appraisals of the property in 2024 and 2026. The appraised value is approximately $576,000. In establishing the proposed sale price, the Town has accounted for the cost and responsibility associated with removing existing irrigation and well equipment from the property. Under the proposed transaction, the purchaser will be responsible for removal of this equipment and for future maintenance of the property. Accordingly, the proposed sale price is $XXX,XXX.
Key terms anticipated for the sale include:
• Sale of approximately 640 acres of land in Weld County;
• Sale price of $XXX,XXX;
• Town retains the Rothe water rights and all water interests required for operation of the Box Elder Augmentation Plan (19CW3231);
• Purchaser is responsible for removal of existing irrigation and well equipment as specified in the purchase and sale agreement;
• Property remains subject to applicable dry-up requirements and any easements, reservations, or restrictions identified in the closing documents; and
• Closing will occur following satisfaction of the conditions established in the purchase and sale agreement.
Budget Impact
If Council approves the sale, Castle Rock Water will receive $XXX,XXX in proceeds from the sale of the Rothe Property, less applicable closing costs. The revenue will be deposited into Water Resources Fund Capital Leases account 211-4375-393.70-00.
Sale of the property will also eliminate future Town costs associated with weed management, property inspections, and general maintenance. The Rothe water rights are excluded from the sale and will remain a Town water-supply asset.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Purchase and Sale Agreement (Not Attached)
Attachment B Location Map