To: Honorable Mayor and Members of Town Council
From: David L. Corliss, Town Manager
Title
Ordinance Approving the Third Amendment to The View at Castle Rock Redevelopment and Financing Agreement Between the Town of Castle Rock, the Castle Rock Downtown Development Authority and Castle Rock View Investors, LLC (First Reading)
Body
________________________________________________________________________________
Executive Summary
Castle Rock View Investors (formerly Castle Rock Development) is requesting an ___ extension to the date by which The View project must obtain its first residential certificate of occupancy in order to receive previously agreed-to Town financial incentives. The project, at Sixth and Jerry streets, will add over 100 new public parking spaces for Downtown Castle Rock.
Staff recommends approval of the requested extension, to <DATE> - the background and need for which is further explained in this memo. The extension does not increase the Town’s financial obligations under the agreement.
History of Past Town Council, Boards and Commissions, or Other Discussions
September 1, 2020 - Town Council directed staff to prepare a redevelopment agreement for The View project on a 6-0 vote.
March 10, 2021 - The Design Review Board approved the site development plan for the project on a 5-2 vote.
December 15, 2021 - The Design Review Board approved an amendment to the site development plan for the project’s façade on a 6-0 vote.
April 20, 2021 - Town Council approved the redevelopment agreement on a 4-3 vote.
January 4, 2022 - Town Council approved the first amendment to the redevelopment agreement on a 4-3 vote.
August 15, 2023 - Town Council approvers the second amendment to the redevelopment agreement on a 5-2 vote.
Discussion
The View is a 201,000-square-foot mixed-use development - with a 399-space parking structure - at 610 Jerry St. The project will add 221 for-rent units to north Downtown, along with retail, restaurant and office space.
The project is expected to generate new tax revenues - a portion of which the Town has agreed to share back to the developer, as long as the developer meets certain conditions. These incentives are described in greater detail in the Town fact sheet in Attachment B.
One of the conditions in the original agreement was to obtain a building permit by June 30, 2021, and another was to obtain the first residential certificate of occupancy by August 1, 2023.
The first amendment to the redevelopment agreement, which Town Council approved in early 2022, extended these dates to April 30, 2022, for the building permit and May 1, 2024, for the certificate of occupancy. The building permit was issued in January 2022, and construction on the project is now well underway. Still, the investors are requesting an eight-month extension of the certificate of occupancy date due to unforeseen site and supply chain issues, along with insurance issues, as further explained in their extension request (Attachment C).
The Downtown Development Authority has approved the second amendment to grant the extension, and staff recommends that Council approve it also. The project will include a total of 432 parking spaces, 133 of which will be public spaces. There were 21 on-street parking spaces in the project area prior to construction, meaning the project will add 112 new public parking spaces to Downtown, along with providing 78 more private parking spaces than Town regulations required.
Budget Impact
The recommended amendment will not increase the Town’s financial obligations under the agreement.
Staff Recommendation
Staff recommends approval of the ordinance.
Potential Motions
“I move to approve the ordinance as introduced by title.”
“I move to approve the ordinance as introduced by title, with the following conditions: (list conditions).”
“I move to continue this item to the Town Council meeting on (date) to allow additional time to (list information needed).”
Attachments
Attachment A: Ordinance
Exhibit 1: Second Amendment to The View at Castle Rock Redevelopment and Financing Agreement
Attachment B: Project-Incentive Fact Sheet
Attachment C: Extension Request