To: Honorable Mayor and Members of Town Council
From: Michael J. Hyman, Town Attorney
Title
Ordinance Approving an Agreement Between Douglas County Development Corporation, Dawson Ridge Metropolitan District No. 1, Dawson Trails LLC and the Town of Castle Rock which provides for the Town’s Acquisition of Necessary Right of Way for Construction of the Crystal Valley Parkway Interchange West Frontage Road in Exchange for the Town’s Divestiture of Certain Property Interests (Second Reading - Approved on First Reading on August 17, 2021 by a vote of 6-0) [Dawson Ridge is located at the southwest portion of Town, along and west of I-25, south of Territorial Road to the Town’s southern boundary just north of Tomah Road]
Body
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Executive Summary
This Ordinance (Attachment A) approves an Agreement with the landowners and metropolitan district within the area annexed and zoned to the Town in 1985 as the Dawson Ridge PUD. Roadways and other infrastructure were constructed in anticipation of development of Dawson Ridge in the late 1980’s, but no residential or commercial structures were constructed. Both the master developer and metropolitan district filed bankruptcy and in 1990 the Town, through a Suspension Agreement, prohibited further development and district activity in Dawson Ridge until a new master development plan and metropolitan district service plan was approved by the Town. Neither of those conditions have occurred although there is presently an application for a new development plan for this area. This Agreement (Exhibit 1) does not change the effect of the Suspension Agreement which remains in place.
The Agreement (Exhibit 1) provides for the exchange of property interests between the Town and the landowners as follows.
Town Receives
The right of way and related easements which will enable the construction of the West Frontage Road component of the Crystal Valley Parkway Interchange through Dawson Ridge will be conveyed to Town without any Town monetary consideration. These property interests have a value of approximately $2.2 million.
Landowner Receives
The landowners will acquire the bulk of the existing roadway right of way in Dawson Ridge which was established with commencement of development in the late 1980’s. The Town will retain right of way that will be utilized with the new Interchange. These roadways have been out of service for decades and the Town and landowners concur that the commencement of development in Dawson Ridge in the future will necessitate a reconfiguration of internal access and construction of a new transportation network. The roadway will be divested by the Town through the companion vacation ordinance which is before Council for action in accordance with statutory requirements. The Town will also convey by deed all of the other real property interests the Town has received in Dawson Ridge by previous subdivision dedications. Similarly to the roadway right of way, these tracts are of no future utility to the Town or landowners and revised dedications for parks, open space and utilities will accompany any new development plan approved by Council. Finally, the Town will transfer to the landowners any of the Town’s interest the infrastructure in place in Dawson Ridge which is not serviceable and was not previously conveyed to or accepted by the Town. All applicable Town departments have completed due diligence on this infrastructure and concur that there is no residual value to the Town.
The Agreement (Exhibit 1) provides that a closing of the property exchange will occur by year end. The closing will be handled by the title company insuring marketable title in the west frontage road property interests.
Staff Recommendation
Staff recommends Town Council approve the Ordinance for the acquisition of necessary right of way for construction of the Crystal Valley Parkway Interchange and the Ordinance to vacate designated roadway right of way located within the Dawson Ridge Planned Unit Development.
Proposed Motion
“I move to approve the Ordinances as introduced by title, on second reading.”
Attachments
Attachment A: Ordinance
Exhibit 1: SWAP Agreement