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 Castle Meadows Metropolitan District Nos. 1-3; and Authorizing the Execution of an Intergovernmental Agreement by and Among the Town of Castle Rock and Such Districts [136.2 acres located at the southwest corner of Interstate 25 and Plum Creek Parkway]
Body
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Executive Summary
Attorneys representing the proponents of the Castle Meadows Metropolitan District Nos. 1-3 (the “Districts”) are seeking approval from the Town Council for a proposed Service Plan 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.
Notification and Outreach Efforts
Castle Meadows is an approximately 136.2-acre parcel of land that is located at the southwest corner of Interstate 25 and Plum Creek Parkway (the “Property”) entirely within the boundaries of the Town of Castle Rock (the “Town”). On January 5, 2016, the Town Council adopted Ordinance No. 2015-058 approving the Castle Meadows Interchange Overlay Planned Development Plan and Zoning Regulations (the “PDP”) to govern the future development of the Property. On February 5, 2024, the Property owner, Castle Meadows LLC, submitted an application for a pre-application meeting with Town staff to discuss a proposed mixed-use development for the Property, consisting of high-density residential housing mixed with commercial and retail uses and services that is consistent with the PDP. On April 29, 2024, attorneys for the Property owner submitted a letter seeking Town Council approval for a proposed Service Plan for the Districts to facilitate such development.
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. See Section 32-1-204.5, C.R.S. 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
The proposed Service Plan substantially adheres 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 of 35 years 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 Plan is in substantial compliance with the Town’s Comprehensive Master Plan;
• The Service Plan is 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 plan without condition or modification
• To disapprove the service plan
• To conditionally approve the service plan subject to the submission of additional information or the modification of the proposed service plan
Staff Recommendation
Town Staff submits that the Service Plan for the Districts satisfies 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. 2024-___ as introduced by title.”
Alternative Motion
“I move to approve Resolution No. 2024-___ 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: April 29, 2024, Letter from White Bear Ankele Tanaka & Waldron
Attachment C: Castle Meadows Metropolitan District Nos. 1-3 Service Plan and IGA
Attachment D: Certificate of Mailing and Publication Re: Notice of Hearing