To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
Daniel Sailer, Public Works Director
From: John LaSala, Public Works Assistant Director
Title
Resolution of the Town Council of the Town of Castle Rock, Colorado, Adopting a Policy for the Recoupment of Costs Incurred by the Town in the Construction of the Crystal Valley Interchange
Body
________________________________________________________________________________
Executive Summary
With the completion of the new Crystal Valley Interchange (CVI) project, it is anticipated that nearby property owners will eventually pursue annexation into the Town and seek Town zoning for their properties. Our best estimation of areas where these requests may come from are shown on (Attachment C). The Town is not requiring or endorsing any future development on these tracts, instead recognizing that development requests will and the Town should be prepared regarding a fair share recoupment for CVI if there is a development request. The recoupment formula discussed in this memo would be utilized as part of the Development Agreement (or revised Development Agreement for already annexed property without a CVI contribution) that accompanies rezoning or similar requests. Several developments have already participated in providing funding for CVI including property on both the west and east sides of I-25. Ensuring that a fair share recoupment for new developments - that have not otherwise contributed toward the project - within this area is an equitable approach.
The Town has invested significant funds in this project. Consistent with the Town’s philosophy that new growth should pay its fair share of off-site improvements that support development, staff had an engineering consultant develop an updated recoupment formula to use when properties request annexation into the Town. This formula builds on the concept the Town first established in the early 2000s. The purpose of this item is to gain approval from Town Council to establish a consistent formula to utilize with new development to recoup Town funds used toward CVI, $35,000,000. This formula would be utilized as part of the Development Agreement process that accompanies zoning requests.
The formula allocates the Town’s reimbursement request based on the number of new daily trips that are projected to utilize CVI from each development property within the identified influence areas. The developed CVI trips are tied to the total trips that a new development is expected to generate. This allows us to easily utilize the development’s Town-approved Master Traffic Impact Analysis (TIA), which is a current submittal requirement for all annexation requests.
The formula will also apply to annexation proposals that are outside the identified influence areas and will be based on the same cost per trip.
This updated formula will enable the Town to more fairly determine the share which each new development in the vicinity of the Crystal Valley Interchange should contribute toward the interchange.
Discussion
The underlying philosophy is that new growth should pay its fair share of off-site improvements which support development. The CVI is a substantial improvement in the southern part of the Town which will have significant benefits for development within its vicinity.
How the Formula Was Developed
When a development proposal is submitted, the applicant must provide a Master TIA prepared by a licensed Professional Engineer. Using national traffic-engineering standards, the TIA estimates the total number of new vehicle trips expected to be generated by the proposed zoning. For example, a new single-family home typically generates about 10 trips per day (where a “trip” is a one-way movement beginning or ending at the house).
Drivers generally choose routes that minimize travel time, so whether a trip uses CVI depends largely on how close the development is to the interchange and on the surrounding roadway network. Not all trips from a development will use CVI. Short local trips (such as to nearby services) are unlikely to do so, while longer trips (such as commuting to and from work) are more likely to use CVI.
To estimate the number of new daily trips that will use CVI, the consultant applied a computerized transportation model. The model follows nationally accepted traffic-engineering principles and is widely used by transportation planners and engineers. The specific model used is a localized Town update of the Denver Regional Council of Governments’ regional transportation model, providing the most reliable means of projecting how new trips distribute across the existing and planned streets, intersections, and interchange system.
Because developments vary in land use and distance from CVI, the share of trips using the interchange also varies by location. Six geographic zones were established in the influence area based on:
• distance to CVI, and
• the major roadway network that exists today and is planned, including the Dawson Trails Development.
Using the model, the consultant estimated the percentage and number of daily trips from each zone that are expected to use CVI, based on land-use types projected in the Town’s Comprehensive Master Plan. While actual land uses may vary, this method provides the best available approximation of land development and expected trip generation through 2050.
The tool also allows staff to estimate CVI trip usage for developments located outside the six identified zones.
How the Formula Works
For each zone, the model forecasts the total daily trips and the number of new daily trips expected to use CVI (See Table 1). From these Daily Trips Using CVI, a recoupment cost is assigned to each zone based on the portion of the total number of trips from each zone. From these totals, when a development is proposed in a zone, the site generated trips for that development is assigned that portion of the zone’s recoupment cost. Trips for new developments are generated by using the ITE Trip Generation Manual. No trip reductions are applied to the new development trips.
Hypothetical Formula Example”
Table 1. Zone Trip Generation and Percent of CVI Use (hypothetical amounts)
|
Zone # |
Total Daily Trips Generated (veh/day) |
Daily Trips Using CVI (veh/day) |
Percent of Trips Using CVI From All Influence |
|
Zone 1 |
6,000 |
3,000 |
30% |
|
Zone 2 |
10,000 |
2,000 |
20% |
|
Zone 3 |
6,000 |
1,500 |
15% |
|
Zone 4 |
5,500 |
1,200 |
12% |
|
Zone 5 |
5,000 |
1,000 |
10% |
|
Zone 6 |
7,500 |
1,300 |
13% |
|
Totals |
40,000 |
10,000 |
100% |
Table 2. Assigns Each Zone Its Share of the $25 Million (hypothetical amounts)
|
Zone # |
Percent of All CVI Trips |
Share of $50M Cost |
|
Zone 1 |
30% |
$10,500,000 |
|
Zone 2 |
20% |
$7,000,000 |
|
Zone 3 |
15% |
$5,250,000 |
|
Zone 4 |
12% |
$4,200,000 |
|
Zone 5 |
10% |
$3,500,000 |
|
Zone 6 |
13% |
$4,550,000 |
|
Totals |
100% |
$35,000,000 |
Staff review example for a development in Zone 2 (Hypothetical):
• A proposed development is located in Zone 2, generates 500 total daily trips
• Zone 2 is forecasted for 10,000 daily trips total
Development’s share of Zone 2 trips:
• 500 / 10,000 = 5.00%
Zone 2’s recoupment obligation is $7,000,000 or 20% of the CVI total cost share (Table 2)
• Development pays recoupment fee: 5.00% × $7,000,000 = $350,000
In summary, the CVI allocation recoupment formula determines the daily trips using CVI in each zone. Therefore, the formula allows for each development’s total trips within a zone to determine a development’s recoupment fee. This formula would be utilized as part of the Development Agreement (or revised Development Agreement for already annexed property without a CVI contribution) that accompanies rezoning or similar requests.
How Town Staff will use the formula
When a development seeks annexation within a zone, staff will review and approve the Master TIA. Staff will then use the TIA estimated total trip generation and formula to determine the recoupment cost for the proposed development. Cost will be based on the portion of trips from the development that is expected to use CVI. The formula has already accounted for how many total trips from each zone are forecasted to use CVI. The formula then automatically calculates the proposed development’s contribution. If a proposed development straddles two or more zones these will have to be evaluated on a case-by-case basis. For example, if a proposed development straddles zones 1 and 2, then the number of trips could be calculated for each zone. The two recoupment fees for zone 1 and 2 would then be determined.
This approach ensures that each new development contributes fairly, based on its expected use of CVI.
Undefined Areas Outside the Identified Influence Areas
The formula will also be used for proposed developments annexing into Town that are outside the identified influence zones, but close enough to CVI that trips from the proposed development will use the interchange. In this case, the formula will utilize the DRCOG Transportation Analysis Zones (TAZ) from the regional travel forecast model to help determine the percent of trips projected to use CVI. It will also determine the development’s recoupment fee using the same formula calculation. For example, if a development is proposed outside the six identified zones, then the TAZ data where that development is located will be used to calculate the recoupment fee.
Supporting Documentation
Attached is a map of the Crystal Valley Interchange influence areas which are described in this memo.
Recommendation
Staff recommends that Town Council approve the resolution as introduced by title.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternative Motions:
“I move to approve the resolution as introduced by title with the following changes ”
“I move to continue this item to a future Town Council meeting date”
Attachments
Attachment A: Resolution
Attachment B: Recoupment Policy
Attachment C: Formula
Attachment D: Maps of CVI Influence Areas