To: Honorable Mayor and Members of Town Council
From: David L. Corliss, Town Manager
Title
Resolution Approving a Non-Binding Letter of Intent with IceX Foundation and IceX Castle Rock Management, LLC for an Ice Sports and Community Recreation Facility
Body
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Executive Summary
Staff recommends council approval of a non-binding letter of intent with IceX Foundation and IceX Castle Rock Management, LLC to explore a proposed 111,000-square-foot ice sports and community recreation facility in Dawson Trails. The proposed partnership would provide two ice sheets and expand local access to skating, hockey, youth programming and educational opportunities, with discounted access to designated programs for Castle Rock residents.
The resolution would authorize the Mayor to execute the letter of intent and staff to continue negotiations. Approval would express the Town’s intent to explore the project; final agreements and any binding financial or property commitments would require further Council approval.
Discussion
The proposed facility would address the community’s strong interest in an ice-skating rink, as expressed in the 2025 community survey, and is expected to generate economic activity through regional sports tourism and related spending. Planned uses include public skating, introductory recreation, youth and adult leagues, birthday parties, community events, a restaurant, sports medicine and performance training, and an athlete-focused school.
The letter of intent outlines the following proposed Town contributions and resident benefits:
• Land: Transfer approximately 19 acres of Town-owned land in Dawson Trails, valued at about $9 million. The Town would retain a reversionary interest if IceX does not successfully construct or operate the facility, with conditions and remedies defined in final agreements.
• Fees and construction use tax: Reimburse IceX for eligible development, impact and permit fees, and construction use tax, all totaling up to $2.3 million, through the Town’s Economic Development Fund.
• Site improvements: Construct Ike Street west of Dawson Trails Boulevard to provide public access (Town estimated $1 million cost) and reimburse up to $3 million in eligible horizontal construction costs for the project. These would be reimbursed using General Fund reserves.
• Resident services: Provide $500,000 annually from the General Fund for 10 years under a resident services agreement. Proposed benefits include 50% discounts on designated programs, with eligibility, capacity limits, exclusions and other details to be established in that agreement.
• Sales tax share-back: Reimburse 4% of the Town’s 4.2% sales tax on qualifying taxable sales for the first five years after opening and 2% for years six through 10, capped at $3 million total. (The initial 4% excludes the Town’s 0.2% public safety sales tax.)
The proposal also includes special-event overflow parking at the Dawson Trails park-and-ride and a potential 4% public improvement fee on facility sales, subject to legal authorization and a separate agreement. IceX would secure the remaining funding needed for the approximately $40 million project and be responsible for construction, operation, maintenance and programming.
Opening is anticipated by 2029, subject to approvals, utilities and financing. A potential second phase could include additional ice and a hotel. If Council approves the agreement, it would expire Dec. 31, 2030, unless extended, and either party could terminate it at any time.
Following execution, the parties intend to exchange initial drafts of the property transfer, development and incentive, resident services and improvement fee agreements within 90 days. No land transfer would occur until IceX secures adequate funding under criteria established in final agreements.
Exploring this project would not affect Parks and Recreation initiatives already underway. All Town funding would remain subject to annual Council appropriation.
Public Outreach
Initial public outreach on this potential project is planned to include an open house from 4:30 to 6:30 p.m. Monday, Jan. 25, 2027. If Council approves this agreement, related information will be posted by next week at CRgov.com/IceX, where an online feedback form will be available from mid-December through late January.
Public information on the proposal, including the open house, will be shared via a news release, social media and an article in the January Your Town Talk water bill newsletter.
Staff Recommendation
Staff recommends that Council approve the resolution approving the non-binding letter of intent with IceX Foundation and IceX Castle Rock Management, LLC.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Attachments
Attachment A: Resolution (pending)
Exhibit 1: Non-Binding Letter of Intent with IceX Foundation and IceX Castle Rock Management, LLC, including Exhibits A through E