To: Members of the Castle Rock Water Commission
From: Mark Marlowe, P.E., Director of Castle Rock Water
Lauren Moore, Water Resources Manager
Zuzana Howard, Water Resources Program Analyst
Title
Resolution Approving the 2027 Town of Castle Rock/Rupple Farms, LLC Agricultural Lease Agreement [Box Elder Property, Weld County]
Town Council Agenda Date: November 17, 2026
Body
________________________________________________________________________________
Executive Summary
Castle Rock Water (CRW) is seeking Town Council approval of a resolution (Attachment A) for an Agricultural Lease (Exhibit 1) with Rupple Farms, LLC (Rupples) for the Box Elder property. The Town closed on the Box Elder property on December 30, 2016 and is interested in continuing to work with the lessee who has previously farmed the property. The Town will assess a lease rate of $27 per acre and a grazing fee of $1,976 for up to sixty head of cattle. Both amounts reflect a 4% increase based on the Consumer Price Index (CPI) from September 2025 to September 2026. Under the proposed terms, the Rupples will lease 560 acres of farmland for one year at a cost of $15,120. They will also pay $1,976 for grazing rights. The total annual cost of the lease is $17,096.
History of Past Town Council, Boards & Commissions, or Other Discussions
February 22, 2017, Castle Rock Water Commission recommended the agreement be taken to Town Council for approval.
March 28, 2017, Town Council unanimously approved the Agricultural Lease with Rupple Farms, LLC.
November 5, 2019, Town Council unanimously approved the First Reading for the 2020 Agricultural Lease with Rupple Farms, LLC.
December 3, 2019, Town Council unanimously approved the Second Reading for the 2020 Agricultural Lease with Rupple Farms, LLC.
On December 6, 2022, Town Council approved the three-year Agricultural Lease Agreement with Rupple Farms, LLC.
On December 10, 2025, Castle Rock Water Commission recommended the 2026 Agricultural lease with Rupple Farms, LLC. for approval by Town Council.
On December 16, 2025, Town Council approved the 2026 Agricultural Lease Agreement with Rupple Farms, LLC.
Discussion
As part of the Town's hybrid renewable water solution, the Town purchased Box Elder property and closed on December 30, 2016. This farm is located approximately six miles east of Lochbuie, CO in southern Weld County. The water rights associated with this property have the protentional to serve as a supply and/or augmentation source, along with the Lost Creek Basin wells, for the increased water demands that the Town will face as population growth continues. Should the Town obtain additional water rights in the South Platte River basin, this property is located along a section of Box Elder Creek, which may prove to be a useful diversion point for a northern water supply.
Rupple Farms, LLC held a crop-share lease with the previous property owner, Box Elder Properties, LLC, from January 1, 2011, through December 31, 2016, covering 700 acres. During that period, up to 650 of the available 850 acres were cultivated, while the areas containing structures and the riparian corridor along Box Elder Creek remained uncultivated and/or were used for grazing. After the crop-share lease ended, the Rupples leased 560 acres with grazing rights for three separate three-year terms beginning in 2017, 2020, and 2023. The current lease for the same 560 acres, also with grazing rights, began on January 1, 2026, and is set to expire at the end of this year.
Rupple Farms, LLC utilizes irrigation water from Henrylyn Irrigation District (HID) and Farmers Reservoir and Irrigation Company (FRICO) and it is estimated that approximately 200 acres can be irrigated and 360 acres can be dry farmed. The lease rate will be $27 per acre, up to 560 acres annually. Additionally, a $1,976 grazing right can be leased each year for up to sixty head of cattle. The farmer will reimburse the Town for annual assessments to Henrylyn Irrigation District (HID) and FRICO. The total for this lease, including grazing right, is $17,096 with the tenant paying all annual assessments. The key terms of the agreement are as follows:
• 1-year lease;
• Town will pay all property taxes and assessments against the real estate and personal property on the farm as well as insurance premiums for the structures and liability insurance coverage;
• Town will provide Tenant with limited power of attorney to administer the farm's participation in government programs;
• Tenant's participation in Agricultural Risk Coverage Program (ARC-CO) and other government program participation is the sole responsibility of the tenant (the Town will execute documents as necessary);
• All crops and proceeds from the crops shall be the Tenant's;
• Tenant shall furnish all labor, power, machinery and movable equipment, and all related operation and maintenance expenses to operate the farm;
• Tenant shall cut the weeds along ditches, roads, and property boundaries whenever necessary to prevent reseeding;
• Tenant shall be responsible for reimbursing the Town all paid annual assessments which include but are not limited to FRICO assessments, HID, Chemigation Permit renewals, etc.;
• Tenant will have the right to call on the FRICO and HID water rights.
Budget Impact
If Council approves the agreement, Castle Rock Water would receive $17,096 of additional revenue in 2027. The revenue will be deposited into the Water Resources Fund Capital Leases account<211-4375-393.70-00>.
Staff Recommendation
Staff recommends approval of the resolution as presented.
Proposed Motion
“I move to recommend to Town Council approval of the Resolution as presented”
Attachments
Attachment A: Resolution (Not Attached)
Exhibit 1: Lease Agreement (Not Attached)