To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Jeff Brauer, Director of Parks and Recreation
Michael J. Hyman, Town Attorney
Title
Resolution Approving the Rec Center Agreement By and Between CD-Acme, LLC, and the Town of Castle Rock Regarding the Development and Construction of the Castle Rock Sports Center Project
Body
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Executive Summary
Town staff seeks Town Council approval of a Resolution Approving the Rec Center Agreement between the Town of Castle Rock and CD-Acme, LLC, authorizing a public-private partnership to construct a new 145,177-square-foot recreation center within the Brickyard master-planned community. The agreement outlines key terms related to property dedication, project development, construction management, cost responsibilities, and the transfer of ownership.
Key provisions include:
• Property dedication: CD-Acme will dedicate land adjacent to the Brickyard community to the Town for the construction of the Rec Center. Dedication timing is to be mutually agreed upon and must be conveyed prior to the closing of the Certificates of Participation funding mechanism.
• Project scope and design: The Town’s architect Barker Rinker Seacat has designed the Rec Center. The Rec Center will include utilities, infrastructure, landscaping, and parking, and all final construction plans will be developed by the Town’s architect and must be approved by the Town. Saunders Construction will serve as the general contractor for the facility development, with CD-Acme managing the construction process based on approved plans and a guaranteed maximum price (GMP) contract with Saunders.
• Construction management: All aspects of the project will be subject to review and approval by Town staff and relevant departments. A dedicated Town Project Manager will coordinate efforts across Town divisions-including Development Services-and will work closely with the project architect, Barker Rinker Seacat, and CD-Acme to ensure alignment with Town standards and expectations. CD-Acme will manage day-to-day construction activities, including:
o Hiring and supervising the general contractor Saunders Construction
o Managing subcontractors, consultants, and permitting processes, subject to Town oversight
o Submitting monthly financial and construction progress reports to the Town
o Ensuring construction staging does not interfere with Town operations or public safety
o Publishing formal notice of project completion and delivering final “as-built” plans, manuals, and documentation to the Town for review and acceptance
o All critical decisions and project milestones will require Town approval to maintain transparency, accountability, and consistency with municipal goals
• Town responsibilities and financing: The Town will retain full ownership of the Rec Center and will fund 100% of construction costs, anticipated to be financed via Certificates of Participation. A portion of infrastructure improvements benefiting the Brickyard will be repaid by CD-Acme over time per the financing terms.
• Timeline: Construction is targeted to begin around August 2025, with a maximum duration of 25 months. Delays are permitted only under defined “supervening events,” such as extreme weather or regulatory changes.
• Risk and insurance: CD-Acme is required to carry general liability, workers’ compensation, and builder’s risk insurance during construction. The Town assumes insurance responsibility upon project completion.
• Default and termination: The agreement includes detailed remedies and procedures for default by either party, with options for termination and transfer of all contracts and project data to the Town in such cases.
• Public ownership upon completion: Upon completion, the facility becomes fully owned and operated by the Town, including responsibility for ongoing maintenance, warranty resolution, and community programming.
This agreement ensures the Town of Castle Rock will receive a high-quality recreation facility designed to meet community needs, while minimizing development risk. The public-private structure leverages developer expertise to manage construction while maintaining Town control over funding, design, and final acceptance. Upon completion, the Rec Center will be owned, insured, and operated by the Town.
Notification and Outreach Efforts
To ensure robust community engagement, the Town conducted a comprehensive outreach process beginning in June 2022. This included a public open house and an online questionnaire that remained open for five weeks, generating over 600 responses. Results indicated strong public support for both the proposed facility and its location, with over 80% of respondents in favor. Additionally, project updates and opportunities for input have been shared through Town Council presentations, the Town’s website, and Parks and Recreation communication channels. This transparent and inclusive process has helped shape the facility design and affirmed community alignment with the project’s goals.
Discussion
The Castle Rock community has long supported Town-operated indoor recreation, as demonstrated since the opening of the Recreation Center in 1988. With population growth projected to reach approximately 90,000 residents, the Parks and Recreation Master Plan and Strategic Plan both identify a new indoor recreation facility as critical to maintaining community quality of life. A 2021 feasibility study confirmed a specific need for expanded gymnasium and aquatics space to complement existing facilities.
Given the Town’s limited available land and the desire to avoid placing high-traffic facilities in residential neighborhoods, staff issued a Request for Proposals to identify a suitable site and partnership. Confluence Companies, through CD-Acme, LLC, responded with a proposal to locate the sports development center on the former Acme Brick property along Prairie Hawk Drive-a centrally located, high-visibility site accessible from I-25.
The proposed facility will include a competition gymnasium, competition pool, fitness spaces, child care, an indoor playground, and flexible event spaces. Public input gathered in 2022 demonstrated strong support for both the concept and location, with over 80% of respondents expressing agreement. Subsequent Council approvals have advanced the project through schematic design, construction documentation and development agreement approval.
Approval of this resolution will formalize the Town’s partnership with CD-Acme, LLC, and allow the sports facility portion of The Brickyard development to move forward, addressing key community recreation needs while revitalizing the blighted industrial area.
Budget Impact
The budget and financing details for the proposed sports development center will be presented in a preceding agenda item titled Ordinance Concerning the Financing of the Acquisition and Construction of a Recreation Center with Associated Amenities and Supporting Public Improvements, and in Connection Therewith Authorizing the Execution and Delivery by the Town of a Site Lease Agreement, a Lease Purchase Agreement, and Other Documents Related Thereto; and Providing Other Matters Related Thereto. That item will outline the financial framework for the project, including the proposed funding sources and necessary approvals to support the acquisition, construction, and associated public improvements. The current agenda item, focused on the Rec Center Development Agreement, builds upon that financial foundation by setting the terms for the facility’s development in coordination with CD-Acme, LLC.
The Town will be financing approximately $75 million of costs for the construction of the sports development center and associated public infrastructure. In addition, the Town will be foregoing 2.4% of every taxable sale of goods and services within Brickyard through December 31, 2050. However, the Town will be collecting its remaining 1.8% sales tax on such sales, as well as its 6% lodgers’ tax on sales of lodging at the hotel.
Staff Recommendation
Staff recommend approving the resolution as presented.
Proposed Motion
“I move to approve the resolution as introduced by title.”
Alternate Motions
“I move to approve the resolution, with the following conditions:” (list conditions)
“I move to continue this item to the Town Council meeting on [date], at [time].”
Attachments
Resolution
Rec Center Agreement