To: Honorable Mayor and Members of Town Council
From: Michael J. Hyman, Town Attorney
Title
Ordinance Approving the First Amendment to the View at Castle Rock Redevelopment and Financing Agreement Between the Town of Castle Rock, the Castle Rock Downtown Development Authority, and Castle Rock Development, LLC (Second Reading - Approved on First Reading on December 21, 2021, by a vote 4-3) [located at 610 Jerry Street]
Body
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Executive Summary
Castle Rock Development, LLC (“CRD”), proposes to redevelop property within Downtown Castle Rock (the “Downtown”) into a mixed-use (for-rent residential and commercial space) project (the “Project”). The project includes a 399-space parking garage that will provide parking for the Project as well as parking for the general use and convenience of the public.
The Project furthers several of the core priorities for Downtown redevelopment outlined in the 2008 Plan of Development for the Castle Rock Downtown Development Authority (“DDA”). Included among these priorities are more intensive physical development at an urban scale encompassing employment, retail, restaurants, entertainment, parking and additional options for Downtown residents. Accordingly, the Town of Castle Rock (“Town”), the DDA, and CRD have entered into the View at Castle Rock Redevelopment and Financing Agreement, dated April 20, 2021, for the purpose of providing financial incentives for the construction of the Project (the “RDA”).
Section 2.12 of the RDA provides that CRD shall obtain from the Town a structural building permit by June 30, 2021, and a certificate of occupancy for the first residential unit by August 1, 2023. At the request of CRD and for good cause, the Town may extend either or both of these benchmarks by up to and including an additional six months upon written notice from the Town Manager.
On June 28, 2021, CRD requested and was granted a six-month extension (until December 30, 2021) to the structural building permit issuance benchmark. This extension was made necessary because of a redesign of significant building structural systems due to volatile construction pricing conditions over the past year caused by unexpected supply chain interruptions.
Recently, CRD has requested an additional extension of four months from the current deadline for the structural building permit benchmark and nine months for the certificate of occupancy benchmark. Again, these extensions are needed because of volatile construction pricing conditions over the past year. CRD is also working through the process for vacating certain right-of-way along Jerry Street, located in the vicinity of the southwest corner of its intersection with 6th Street. Per CRD’s general contractor, the anticipated construction timeline is 24 months, so the date requested for extension of the certificate of occupancy benchmark reflects this timeline.
Each of the parties to the RDA have acknowledged that no more extensions of the respective deadlines for these benchmarks may be granted administratively. As a result, any further extensions beyond the six months contemplated by Section 2.12 will require an amendment to the RDA. The Town has reviewed CRD’s request and recommends that it be granted.
Staff Recommendation
Staff favorably recommends approval on first reading of the ordinance approving the First Amendment to the Redevelopment Agreement.
Proposed Motion
“I move to approve the Ordinance as introduced by title.”
“I move to approve the ordinance as introduced by title, 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: Ordinance
Exhibit 1: First Amendment to the View at Castle Rock Redevelopment and Financing Agreement