To: Honorable Chair and Members of the Castle Rock Urban Renewal Authority Board of Commissioners
Through: Pete Mangers, Executive Director
From: Michael J. Hyman, Authority Counsel
Title
Resolution Approving the Public Finance Agreement between the Castle Rock Urban Renewal Authority, the Town of Castle Rock, CD-Acme LLC, and Brickyard Metropolitan District No. 1
Body
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Executive Summary
The proposed resolution approves the Public Finance Agreement between the Castle Rock Urban Renewal Authority (“CRURA”), the Town of Castle Rock, CD-Acme LLC, and Brickyard Metropolitan District No. 1 (the “Public Finance Agreement”), which agreement addresses funding for the design and construction of public infrastructure associated with the Brickyard project.
History of Past Town Council, Boards & Commissions, or Other Discussions
On February 18, 2025, Town Council voted unanimously to finally adopt Ordinance No. 2025-007 approving the Brickyard Planned Development Plan and Zoning Regulations and Ordinance No. 2025-008 approving the Brickyard Development Agreement.
On March 4, 2025, Town Council voted unanimously to adopt Resolution No. 2025-032 approving the Consolidated Service Plan for Brickyard Metropolitan District Nos. 1-3.
On March 18, 2025, Town Council voted unanimously to adopt Resolution No. 2025-037 approving the letter agreement between CD-Acme, LLC and the Town regarding the early procurement of trade agreements and materials for the Castle Rock Sports Center Project.
On May 6, 2025, Town Council voted unanimously to adopt Resolution No. 2025-059 expressing the intent of the Town to be reimbursed for certain expenses relating to the construction of the Castle Rock Sports Center Project.
On May 20, 2025, the CRURA Board of Commissioners adopted Resolution No. 2025-002 approving the tax increment revenue agreements by and between CRURA and each taxing entity whose incremental property tax revenues will be allocated under the Brickyard Urban Renewal Plan.
On May 20, 2025, Town Council adopted Resolution No. 2025-019 finding that the Brickyard Urban Renewal Area is a blighted area and approving the Brickyard Urban Renewal Plan.
On May 20, 2025, Town Council adopted Ordinance No. 2025-018 Approving the Public Finance Agreement and Ordinance No. 2025-019 Amending Chapter 3.04, Article I of the Castle Rock Code by Providing for a Town Sales Tax Credit Against Certain Public Improvement Fees Paid at Brickyard.
Discussion
The Town of Castle Rock (the “Town”) has been in negotiations with CD-Acme, LLC (the “Developer”), regarding the redevelopment of the former site of the Acme Brick Company at 401 Prairie Hawk Drive (the “Property”). The Developer is proposing a mixed-use development, with a maximum of 583 multi-family dwelling units consisting of townhomes and apartments, 92,000 square feet of non-residential uses including office, retail, and restaurant, a 99,000-square foot, 125 room hotel with a conference center and an outdoor performance venue (the “Brickyard”). In addition, a 145,000-square foot sports development center is planned to be constructed by the Developer for the Town on public land to be dedicated by the Developer within the boundaries of the Property.
The Public Finance Agreement (the “PFA”) addresses the obligations to be incurred by CRURA, the Town, the Developer, Brickyard Metropolitan District No. 1 (the “District”), and the with regard to funding the design and construction of the public infrastructure associated with the Brickyard. Important features of the PFA pertaining to CRURA include the following:
(i) An agreement by CRURA to establish a special fund, into which shall be deposited the property tax increment revenues generated by the taxing bodies that levy property taxes within the tax increment area under the Brickyard Urban Renewal Plan (the “Pledged Property Tax Increment Revenues”).
(ii) An agreement by CRURA to remit all Pledged Property Tax Increment Revenues to the District for the payment of all bonds issued by the District to finance public improvements and associated costs within the Brickyard Urban Renewal Area.
(iii) An agreement to remit any revenue it may receive from the District’s general fund property tax levy and the District’s share of specific ownership taxes to the District.
Budget Impact
The property tax increment revenues that CRURA receives from the tax increment area may only be pledged to public improvement projects authorized by the Brickyard Urban Renewal Plan. All of these revenues are being pledged to bonds issued by the District for this particular purpose.
Staff Recommendation
CRURA staff recommends that the CRURA Board of Commissioners adopt the resolution.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A - Resolution
Attachment B - Public Finance Agreement