To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Ordinance Amending Sections 14.02.040 and 14.02.050 of the Castle Rock Municipal Code Regarding the Disposition and Lease of Real Property Owned by the Town (First Reading)
Body
________________________________________________________________________________
Executive Summary
The purpose of this memorandum is to present for Town Council consideration an ordinance amending Sections 14.02.040 and 14.02.050 of the Castle Rock Municipal Code related to the disposition and leasing of Town-owned real property. The proposed ordinance updates and clarifies the Town’s procedures for disposing of and leasing real property. The amendments rely on the Town’s home rule authority to provide limited exceptions to state statutory requirements, increase administrative efficiency, and clarify approval authority for certain property transactions, while maintaining appropriate Town Council oversight and protections for the public interest.
Background
Under existing Code provisions, disposition of Town-owned real property generally must comply with Section 31-15-713, C.R.S., including voter approval in certain circumstances. As a home rule municipality, the Town may supersede portions of that statute through ordinance when doing so is in the Town’s best interests.
Additionally, staff has identified a need to clarify approval authority and processes for specific categories of real property leases, easements, rights-of-way, and water rights leases to reflect current operational practices and reduce ambiguity.
Proposed Changes
The ordinance includes the following key amendments:
• Property Disposition
Allows Town Council approval by resolution for property exchanges involving an identified party where the Town acquires other real property.
Allows Town Council approval by resolution for conveyances to nonprofit organizations, subject to findings of public purpose and inclusion of a reversionary interest protecting the Town.
Clarifies administrative versus legislative authority for vacating access easements, utility easements, and unimproved rights-of-way.
• Leasing of Real Property
Clarifies approval authority for short-term leases of Town-owned property.
Updates language in existing sections related to wireless facilities and leasing of water rights to read more clearly.
Fiscal Impact
There is no direct fiscal impact associated with adoption of this ordinance. The amendments may facilitate more efficient real property transactions and leasing arrangements, which could result in indirect operational or financial benefits.
Staff Recommendation
The ordinance is a valid exercise of the Town’s home rule authority under Article XX of the Colorado Constitution. The amendments provide narrowly tailored exceptions to state law where appropriate, while preserving Town Council authority over significant property decisions and ensuring continued compliance with public purpose and reversionary protections.
Staff recommends approval of the proposed ordinance amending Sections 14.02.040 and 14.02.050 of the Castle Rock Municipal Code to clarify and modernize the procedures governing the disposition and leasing of Town-owned real property, consistent with the Town’s home rule authority and in the best interests of the Town.
Proposed Motions
Approval
“I move to approve the Ordinance, as introduced by title.”
Alternative Motions
Approval with Conditions
“I move to approve the Ordinance, as introduced by title, with the following conditions.” (list conditions)
Continue item to next hearing (need more information)
“I move to continue this item to the Town Council meeting on [date], 2026, at [time].”
Attachments:
Attachment A: Ordinance
Attachment B: Presentation