To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Tara Vargish, Development Services Director
BrieAnna Simon, Senior Planner
Title
Resolution Approving a Development Impact Fee Reduction and Land Use Fee Waiver for the Unity on Wolfensberger Attainable Housing Development (Wellspring Community, 200 Wolfensberger Road)
Body
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Executive Summary
Town staff received a fee waiver request from Wellspring Community in a letter dated April 7, 2025 (Attachment A) associated with the planned Unity on Wolfensberger project. Wellspring Community is requesting a $538,640.27 waiver for the renovation of the old Quality Inn in Castle Rock. The renovation will result in a 24-unit condominium complex with half of the units set aside for households with disabilities, especially those with intellectual and developmental disabilities (I/DD), and the remaining units offered as neurotypical/traditional multi-family units. The project is considered a “qualifying attainable housing project” as defined in Town code. The project is to be financed with estimated $3,200,000.00 in project costs through mix of the Colorado Medicaid Home and Community-Based Supported Living Services Waiver (HCBS-SLS) and the Home and Community-Based Services Waiver for Persons with Developmental Disabilities (HCBS-DD), and a fundraising campaign.
Town code allows up to 100 percent of applicable fees to be waived for attainable housing projects. Fees that can be waived include application and permitting fees, development impact fees and system development fees. Total Town fees for this project, as shown in the request, are estimated to be $538,640.27. Unity on Wolfensberger is requesting that the Town waive 100 percent of these fees. Town Council has approved fee waivers in the past for Wellspring Community’s Unity on Park apartment facility, Auburn Ridge senior housing in 2013, senior housing at Oakwood Apartments in 2020 and Meadowmark senior housing in 2023. Each of these projects were a qualified attainable housing project, with some to all of the fees waived.
Unity on Wolfensberger is located at 200 Wolfensberger Road in Castle Rock, situated within Councilmember Davis District. The vicinity map is provided here for reference.
Staff recommends approval of the Resolution (Attachment B) waiving permit and impact fees associated with the Unity on Wolfensberger project.
Budget Impact
Approval of the requested fee waiver would result in $538,640.27 less revenue for Town funds and affected funds will not be made whole for lost revenue. Note that there are no new Castle Rock Water fees since this is a renovation of an existing facility and additional water services are not required. Waived fees would reduce permit and impact fees as shown in the following table:
*Based on 2024 Development Fee Schedule
Recommendation
Staff recommends approval of Wellspring Community’s fee waiver request totaling $538,640.27. It is further recommended that this fee waiver be contingent on Unity on Wolfensberger being issued a building permit no later than December 31, 2026.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternate Motions
“I move to approve the Resolution, with the following conditions: (list conditions).”
“I move to continue this item to the Town Council meeting on ___date to allow additional time to (list information needed).”
Attachments
Attachment A: Unity on Wolfensberger Fee Waiver Request
Attachment B: Resolution
Attachment C: Agreement