To: Honorable Mayor and Members of Town Council
Through: David L. Corliss, Town Manager
From: Michael J. Hyman, Town Attorney
Title
Resolution Approving the Service Plan for the Alexander Way Metropolitan District; Authorizing the Execution of an Intergovernmental Agreement By and Between the Town of Castle Rock and the District
Body
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Executive Summary
Alexander Investors, LLC, is seeking approval from the Town Council for the service plan (the “Service Plan”) for the proposed Alexander Way Metropolitan District (the “District”) 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 District consists of property totaling approximately 77.96 acres in size that is located within the boundaries of the Town of Castle Rock (the “Town”) east of the Silver Heights subdivision, north of Alexander Place, and west of the Diamond Ridge Estates subdivision (the “Property”).
Notification and Outreach Efforts
On August 19, 2025, pursuant to § 32-1-204(1.5), C.R.S., notice of the public hearing on the 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. On August 21, 2025, such notice was also published in the Douglas County News-Press.
History of Past Town Council, Boards & Commissions, or Other Discussions
On November 21, 2023, the Town Council for the Town of Castle Rock (the “Town”) adopted the following:
(i) Ordinance No. 2023-033 annexing to the Town of Castle Rock, Colorado, 73.76 acres of land located in North Half of Section 26, Township 7 South, Range 67 West of the 6th Principal Meridian, Douglas County, Colorado, pursuant to an annexation petition submitted by 455 Alexander, LLC, and Tierra Investors, LLC (Alexander Way Annexation);
(ii) Ordinance No. 2023-034, approving the initial zoning for 73.76 acres of land located in the North Half of Section 26, Township 7 South, Range 67 West of the 7th Principal Meridian, Douglas County, Colorado, pursuant to a zoning application submitted by 455 Alexander, LLC, and Tierra Investors, LLC; and approving the rezoning of a 4.20-acre parcel of land adjacent thereto (Alexander Way Planned Development); and
(iii) Resolution No. 2023-141 approving the Alexander Way development agreement.
Section 3.01 of the Development Agreement acknowledges the property owner’s intent to form one or more metropolitan districts, and to submit a request to the Town for the review and approval of a service plan for such districts. The Property is wholly located within Town boundaries, thereby giving the Town Council the requisite jurisdiction under Section 32-1-204.5, C.R.S., to review any service plan submitted for the Property.
Discussion
Special District Control Act
Prior to the organization of a special district, a service plan must be submitted 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 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 service plan must be memorialized in a resolution.
Model Service Plan
In preparing Service Plan, the District has agreed to substantially adhere to the Town’s Model Service Plan, as approved by the Town Manager. Key features of the model service plan include the following:
- A district must enter into an intergovernmental agreement with the Town relating to the limitations imposed on a District’s activities by the plan.
- A district is subject to maximum debt service mill levy of 50 mills and overall property tax mill levy of 60 mills.
- A district is subject to a 35-year maximum debt service mill levy imposition term on any single property.
- A district cannot issue or refinance debt without first submitting the proposed financing for Town review and comment.
- A district is required to impose a Regional Mill Levy of five mills on all of the property located within its boundaries, the revenues from which shall be remitted to the Town.
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 service plan for the District satisfies each of the evidentiary requirements set forth in the Special District Control Act and the Town Code.
Proposed Motion
I move to approve Resolution No. 2025-___ as introduced by title.
Alternative Motion
I move to approve Resolution No. 2025-___ as introduced by title, with the following conditions: __________________.
I move to continue this item to the Town Council meeting on __________.
Attachments
Attachment A: Resolution
Attachment B: Submittal Letter
Attachment C: Service Plan
Attachment D: Certificate concerning Notices of Public Hearing On Service Plan