To: Honorable Mayor and Members of Town Council
From: Robert J. Slentz, Town Attorney
Mark Marlowe, Director of Castle Rock Water
Title
Ordinance Amending Titles 17 and 20 of the Castle Rock Municipal Code by the Addition of a New Section 17.02.080 and 20.02.015 Regarding the Required Transfer of Residential Development Rights upon Annexation and Certain Re-zonings (Second Reading)
Body
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The ordinance was approved on First Reading May 1, 2018 by a vote of 5-0.
This ordinance supports a policy and related ordinance requirement (Chapter 4.04) that future residential annexations should not increase the overall demand for Town renewable water resources unless and until renewable water projects are in place to satisfy the increased demand. This ordinance provides one method for an offsetting reduction in pre-existing residential land use entitlements at the time of annexation and zoning. The ordinance is presented for Council and community input and discussion.
As addressed in the recitals to the ordinance, acquisition of sufficient renewable water resources to meet the strategic plan goal of 75% renewable at full buildout of the Town is daunting. Although significant progress has been made in securing such water resources, additional acquisitions will need to be made in future years in an increasingly competitive market for such resources.
Castle Rock Water (“CRW”) must consider the potential for existing zoned properties to reach permitted densities in ascertaining the quantity and timing of water resource acquisitions. Future residential annexations add to that obligation. The proposed ordinance creates a methodology for transferring residential zoning entitlements from a willing landowner/developer with surplus entitlements to a property proposed for annexation.
The ordinance applies to all annexation completed after July 1, 2018 with a residential zoning component referred to in the ordinance as a “New Residential Property.” However, properties which are either (i) subject to a resolution finding substantial compliance of an annexation petition on or before May 1, 2018 (ii) considered “infill” in the CRW strategic plan, or (iii) provide renewable water resources in compliance with the water dedication code are exempt. Finally, any later increase in residential entitlements through a change in zoning classification or residential density of a New Residential Property triggers compliance.
A New Residential Property owner must acquire through negotiation two pre-existing residential zoning units for each residential unit on the property proposed for annexation. This requirement acknowledges that not infrequently zoning entitlements significantly exceed built density. Only residential entitlements on properties that have not been platted qualify for transfer. Post-platting density is generally fixed, and any remaining “surplus” units in reality are phantom units for which water demand need not be considered. The value of transferred residential development entitlements will be determined solely by the market.
Finally, it is important to note that compliance with this ordinance does not create an entitlement to annexation and zoning of the New Residential Property. Annexation is a discretionary, legislative act of the Town Council and even though sufficient transferable development rights might be secured in compliance with this ordinance, or sufficient renewable water is provided, or a reduction in current water demand created, the Council may decline to annex and zone the property based on other factors.
Proposed Motion
“I move to approved Ordinance 2018-016, as introduced by title, on second reading.”
Attachments
Attachment A: Ordinance