To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the First Amendment to the Service Plan for Castle Meadows Metropolitan District Nos. 1-3; Authorizing the Execution of the First Amendment to the Intergovernmental Agreement by and between the Town of Castle Rock and the Districts [136.2-acres located at the southwest corner of Interstate 25 and Plum Creek Parkway]
Body
________________________________________________________________________________
Executive Summary
Castle Meadows Metropolitan District Nos. 1-3 (the “Districts”), are seeking approval from the Town Council for the first amendment to the service plan (the “First Amendment”) 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. The Districts serve the approximately 136.2-acre Castle Meadows development located within Town of Castle Rock (the “Town”) at the southwest corner of Interstate 25 and Plum Creek Parkway.
Notification and Outreach Efforts
Pursuant to § 32-1-204(1.5), C.R.S., notice of the public hearing on the First Amendment was mailed to: (i) the governing body of each municipality and/or special district that has levied an ad valorem tax within the next preceding tax year and that has boundaries within a radius of three miles of the Districts’ boundaries; (ii) the owner(s) of property within the Districts as listed on the records of the County Assessor: and (iii) the Colorado Division of Local Government. Such notice was also published in the Douglas County News-Press.
History of Past Town Council, Boards & Commissions, or Other Discussions
On January 5, 2016, the Town Council adopted Ordinance No. 2015-058 approving the Castle Meadows Interchange Overlay Planned Development Plan and Zoning Regulations to govern the future development of the Castle Meadows development.
On July 16, 2024, the Town Council adopted Resolution No. 2024-081 approving the service plan for Castle Meadows Metropolitan District Nos. 1-3 and authorizing the execution of an intergovernmental agreement between the Town and the Districts.
The Canyons Far South development is wholly located within Town boundaries, thereby giving the Town Council the requisite jurisdiction under Section 32-1-207(2), C.R.S., to review any material modification to the service plan.
Discussion
Special District Control Act
Prior to undertaking any material modification of an existing special district service plan, the district must submit such modification 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. A public hearing on the service plan, as modified, 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 material modification must be memorialized in a resolution.
Proposed Modifications
The Districts are seeking approval from the Town Council for the First Amendment to their service plan. which amendment makes the following material modifications:
• Increases the authorized aggregate cost of the Public Improvements to $73,911,416.45;
• Increases the Total Debt Issuance Limitation to $86,202,820.63;
• Replaces Exhibit E (Capital Plan) with an updated five (5) year Capital Plan;
• Replaces Exhibit F (Financial Plan) with an updated Financial Plan;
• Increases the Maximum Debt Service Mill Levy from 50.000 mills to 64.044 mills; and
• Increases the Maximum Aggregate Mill Levy from 60.000 mills to 74.044 mills.
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 its 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 First Amendment satisfies each of the evidentiary requirements set forth in the Special District Control Act and the Town Code. Town staff supports the modifications that the Districts have proposed in the First Amendment and recommends its approval.
Proposed Motion
I move to approve Resolution No. 2026-094 as introduced by title.
Alternative Motions
I move to approve Resolution No. 2026-094 as introduced by title, with the following conditions: __________________.
I move to continue Resolution No. 2026-094 to the Town Council meeting on __________.
Attachments
Attachment A: Resolution
Attachment B: Castle Meadows Metropolitan District Nos. 1-3 Submittal Letter
Attachment C: First Amendment to Service Plan
Attachment D: First Amendment to Intergovernmental Agreement
Attachment E: Certificate Concerning Notices of Public Hearing on Service Plan