To: Parks and Recreation Commission Members and Staff
From: Jeff Brauer, Director of Parks and Recreation
Title
Update on Lost Canyon Ranch Inholding Acquisition, Guardian Angel Trust Property
Body
________________________________________________________________________________
Executive Summary
The purpose of this agenda item is to provide an update to the Parks and Recreation Commission on the Town’s planned acquisition of an approximately 35-acre inholding adjacent to the Lost Canyon Ranch Open Space.
The property is located along the southeastern edge of Lost Canyon Ranch Open Space and represents a strategic inholding within one of the Town’s most significant open space assets. The parcel includes non-tributary groundwater rights and existing well infrastructure, as well as an access easement that crosses Lost Canyon Ranch Open Space.
Acquisition of this property advances the Town’s long-term open space preservation goals by protecting a sensitive edge area that would otherwise be vulnerable to private residential development. Securing the inholding will help preserve the natural character, scenic quality, and tranquility of the Lost Canyon landscape, while also improving long-term access, management efficiency, and resource protection within the broader open space system. Opportunities to acquire inholdings adjacent to major open space holdings are rare and typically become more difficult and costly once development occurs.
During the Town’s 2023 acquisition of the Lost Canyon Ranch Open Space, staff evaluated this same 35-acre parcel but were unable to reach an agreement with the prior owner. The property was subsequently purchased by Guardian Angel Trust, which has now offered to convey it to the Town.
Town Council recently approved a resolution authorizing the purchase and sale agreement for the property. The agreement is currently being finalized by the Town Attorney’s Office. Castle Rock Water has evaluated the associated groundwater rights and will provide a financial contribution toward the acquisition reflecting the estimated value of those rights.
The acquisition cost is not to exceed $1,100,000, plus standard closing and due diligence costs such as title insurance, recording or documentary fees if any, survey work, and inspections as needed. Funding is proposed through the Conservation Trust Fund. Castle Rock Water is anticipated to contribute approximately $69,000 to $87,000 toward the purchase based on the estimated value of the water rights, further reducing the net acquisition cost to the Conservation Trust Fund.
Staff are initiating escrow and due diligence activities. Final closing is anticipated in early 2026, contingent upon satisfaction of all conditions outlined in the purchase and sale agreement. Staff will continue to keep the Parks and Recreation Commission informed as the acquisition progresses.