To: Honorable Mayor and Members of Town Council
From: David L. Corliss, Town Manager
Title
Resolution Approving a Contract to Buy and Sell Real Estate Between the Town of Castle Rock and Douglas County School District Re-1 (312 Cantril Street)
Body
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Executive Summary
Douglas County School District (“DCSD”) declared their property at 312 Cantril Street, Castle Rock, CO 80104 as “surplus” property on August 23, 2022. This designation allows DCSD to make the property available for sale on the open market. Town staff immediately expressed interest in acquiring this historic property. With Town Council support, staff has been evaluating the property for possible acquisition.
312 Cantril Street opened as Castle Rock Elementary School in 1897 and continues to serve DCSD today. Over the years, uses have included elementary and secondary school functions as well as space for administrative purposes. The original structure was expanded in the 1930s, the 1950s and the 1960s. The rhyolite used on the exterior of the original building and the 1930s addition was mined in the Castle Rock area. The property was added to the National Registry of Historic Places in 1984 but does not hold any local historic designations. The building itself is over 14,000 square feet and sits on two acres located just east of downtown Castle Rock in the historic Craig and Gould area. The site has also been referred to as Schoolhouse Hill.
Given its significance, Town staff believe it is important to preserve this historic structure and to ensure the Cantril site remains a public facility. Staff engaged Kilty and Company to perform an independent appraisal of the property, resulting in a market valuation of $3,525,000 in August 2022. Subsequently, and with Town Council support, staff provided a written offer letter DCSD matching the appraisal amount of $3,525,000 in early October with specific conditions including agreement on a Contract for Purchase, access to due diligence materials and an evaluation period of at least 60 days. Town Council’s ongoing conservative fiscal management approach allows the Town to be nimble and respond to opportunities, like the purchase of this historic property, when they arise.
DCSD responded to the Town’s offer in late October with a draft contract for the purchase of 312 Cantril. Included in Exhibit 1 is the mutually agreed upon Contract to Buy and Sell Real Estate (“Contract”) between the Town and DCSD for the purchase of the property. This contract is also being considered by the DCSD Board for their approval this evening.
Initial planning is for 312 Cantril to be used for increased cultural arts programming, small events and other community activities through the Town’s Parks and Recreation Department. We have engaged a third-party architect to guide a visioning and architectural design process on behalf of the Town. This coordinated effort will comprise internal considerations, public outreach, Town Council engagement, as well as an overall site evaluation. This process will clarify the future public use of the site while also evaluating the maintenance and improvement needs to support that public use. Staff expects improvements to take place over multiple years and plans to seek historic preservation grant opportunities to support the project funding needs.
Budget Impact
The purchase amount stated in the Contract is $3,525,000. Earnest money of $75,000 will be provided within five (5) days of the mutual execution of the contract. The remaining amount of $3,450,000 will be paid to the seller upon closing. Budget appropriation for these funds is requested in the fourth amendment to the 2022 Budget that is also requested at this meeting. Note that an additional $500,000 is also requested in that budget amendment to address initial facility needs at 312 Cantril.
Acquisition costs will be appropriated in the General Fund using unobligated reserves. Town Council’s ongoing conservative fiscal management approach has resulted in sufficient fund balances for the Town to be nimble when opportunities arise, such as acquisition of 312 Cantril Street. Unobligated reserves are currently available to purchase this historic property while maintaining the high level of services that Town residents expect.
Recommendation
Staff recommends approval of the Contract to Buy and Sell Real Estate between the Town and Douglas County School District for the purchase of 312 Cantril Street.
Proposed Motion
“I move to approve the Resolution as introduced by title.”
Alternate Motions
“I move to approve the Resolution 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: Resolution
Exhibit 1: Contract to Buy and Sell Real Estate