To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the Amended and Restated Consolidated Service Plan for Valley View Metropolitan District Nos. 1-3; Authorizing the Execution of an Amended and Restated Intergovernmental Agreement by and Between the Town of Castle Rock and the Districts [location: approximately 409-acre Canyons Far South development, east of Founders Parkway, south of Crowfoot Valley Road, north of Crimson Sky Drive and west of Castle Oaks Drive]
Body
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Executive Summary
Valley View Metropolitan District Nos. 1-3 (the “Districts”), are seeking approval from the Town Council for an amended and restated consolidated service plan (the “Amended Service Plan”) 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 409-acre Canyons Far South development located within Town of Castle Rock (the “Town”) east of Founders Parkway, south of Crowfoot Valley Road and the Macanta neighborhood, north of Crimson Sky Drive and Castle Oaks-Terrain neighborhood and west of Castle Oaks Drive.
Notification and Outreach Efforts
Pursuant to § 32-1-204(1.5), C.R.S., notice of the public hearing on the Amended Service Plan 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 proposed District’s boundaries; (ii) the owner(s) of property within the District 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 March 7, 2023, the Town Council adopted the following ordinances:
(i) Ordinance No. 2023-001 annexing approximately 409.008 acres of land located east of Founders Parkway, north of Crimson Sky Drive, and West of Castle Oaks Drive (the “Property”), pursuant to an annexation petition submitted by Canyons South, LLC (the “Owner”);
(ii) Ordinance No. 2023-002, approving the Owner’s application for the initial zoning of the Property as Planned Development zoning and adopting the Canyons Far South Planned Development Plan and Zoning Regulations (the “Planned Development Plan”) to govern the future development of the Property; and
(iii) Ordinance No. 2023-003, approving the Canyons Far South Development Agreement between the Town and the Owner (the “Development Agreement”), and vesting the Planned Development Plan as a site-specific development plan through December 31, 2037; and
On May 2, 2023, the Town Council adopted Resolution No. 2023-60 approving a consolidated service plan for the Districts (the “Original Service Plan”) 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 Original 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 Amended Service Plan. Several factors, including updated engineering studies, new stormwater regulations, and increased construction costs, have made it necessary for the Districts to modify the Original Service Plan. In addition to minor revisions intended to better align the document with the Town’s current Model Service Plan, the Amended Service Plan makes the following material modifications to the Original Service Plan:
• Align the debt repayment and mill levy imposition terms to create a predictable financing structure and enhance the marketability of the Districts’ debt;
• Adjust the maximum aggregate mill levy and maximum debt mill levy upward to provide additional flexibility to finance public infrastructure; and
• Authorize the Districts to create special improvement districts and levy special assessments to allocate specific infrastructure costs to benefited properties.
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 District;
• The existing service in the area to be served by the District is inadequate for present and projected needs;
• The District is capable of providing economical and sufficient service to the area within its proposed boundaries;
• The area to be included in the District 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 District 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 District 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 Amended Service Plan 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 Amended Service Plan and recommends its approval.
Proposed Motion
I move to approve Resolution No. 2026-047 as introduced by title.
Alternative Motions
I move to approve Resolution No. 2026-047 as introduced by title, with the following conditions: __________________.
I move to continue Resolution No. 2026-047 to the Town Council meeting on __________.
Attachments
Attachment A: Resolution
Attachment B: Valley View Metropolitan District Nos. 1-3 Submittal Letter and Amended and Restated Service Plan and Intergovernmental Agreement
Attachment C: Certificate Concerning Notices of Public Hearing on Service Plan