Castle Rock Town Council Meeting - September 6, 2022

The Castle Rock Town Council met on September 6, 2022, at 6:00 PM in Town Hall Council Chambers. The meeting included a public hearing on a proposed homeless shelter and workforce housing at The Rock Church, approval of a $10 million incentive for a Costco warehouse, adoption of a truck route ordinance, and introduction of the 2023 proposed budget. The council also approved several consent agenda items, a demolition request, a property conveyance to the school district, and water conservation amendments for new development.

Consent Calendar

• Approved the following items unanimously (7-0):
  • Ordinance 2022-017: Dawson Trails Planned Development Plan and Zoning Regulations (Second Reading).
  • Ordinance 2022-018: Dawson Trails Development Agreement (Second Reading).
  • Resolution 2022-095: Construction contract with TechCon Infrastructure, LLC for Downtown Railway Crossing Improvement Project.
  • Resolution 2022-096: Sole source waiver for Pall Corporation services.
  • Resolution 2022-097: 2022 Spot Water Lease Agreement with Chatfield East Property Owners Association.
  • Resolution 2022-098: First Amendment to Water Rights Lease with Turnpike, LLC.
  • Proclamation 2022-008: Honoring Pam Ridler, President/CEO of Castle Rock Chamber of Commerce.
  • Appointment 2022-006: Roy Gallea as Alternate Board Member for Plum Creek Water Reclamation Authority.
  • Minutes of August 16, 2022.

Public Comments & Testimony

• Unscheduled Public Appearances (30 minutes): Many residents spoke against a proposed development at The Rock Church that included 200 units of workforce housing, 10 transitional units, and 10 emergency housing units. Speakers expressed concerns about location, property values, lack of transportation, public safety, and inadequate mental health resources. Several residents noted the church's website mentioned 5% for a halfway house and 5% for a homeless shelter. Pastor Andrew Nemeth clarified that the church is testing feasibility for workforce housing and that the transitional housing initiative involves churches each taking one family, not a large shelter. The Town Manager confirmed no application has been submitted; any rezoning would require neighborhood meetings, Planning Commission, and Council approval.
• Public Comments on Agenda Items:
  • On the Costco incentive, Wendy Bowman (realtor) and Marcus Nothizen (Economic Development Council) spoke in support. Clint Hoak (resident) also supported.
  • On the Truck Route ordinance, one resident on Gilbert Street expressed concern about cement trucks speeding.
  • On the Water Code Amendments, Todd (Water Commission) spoke in favor, and Justin Gould (David Weekly Homes) questioned the incentive structure.

Discussion Items

• American Legion Recognition: Mike McNairy and representatives recognized Bob Maloney and John Jorgensen for installing new flag poles on Wilcox and Perry streets.
• Town Manager's Report:
  • Update on School District property at 312 Cantril Street declared surplus; town is considering acquisition.
  • Appointment of Councilmember Dietz to the Library Trustee Board Selection Committee (approved 7-0).
  • Development Services updates: Castle Rock Senior Apartments (200-unit, 55+), The Rock Church proposal (200 units, 10 transitional, 10 emergency), Quasi-Judicial projects (Brickyard, Eternal Rock Church, Keystone Hotel patio, Scileppi's expansion), and pre-application projects (auto complex, Centura Primary Care, Core Electric transmission line, four-plex, Promenade landscaping).
• Resolution 2022-099 - Dawson Trails Retail Infrastructure Assistance Agreement (Costco): Town Manager David Corliss presented the $10 million incentive (not exceeding $10M) for infrastructure, funded by $3.5M from the economic development fund and sales tax sharing (up to one-third of sales tax, expected to be paid off in 2-3 years). Costco would generate an estimated $4-6M annually in sales tax revenue. Councilmember Cavey opposed, citing distaste for incentivizing a large company. Mayor Gray and others supported, noting the incentive goes to the metro district, not Costco, and that 35,000 Castle Rock residents already have Costco memberships. Approved 6-1 (Cavey opposed).
• Resolution 2022-100 - Amended and Restated Service Plan for Dawson Ridge and Westfield Metro Districts: Town Attorney Mike Hyman presented the plan, which allows the districts to issue up to $1.06 billion in debt (138% of estimated costs), with a debt service mill levy of up to 64 mills and aggregate mill levy of 74 mills, and a 50-year term. The districts will pay a 5-mill regional mill levy to the town. Westfield District No. 2 is conditionally excluded from debt issuance until certain properties are excluded. The plan includes provisions for website disclosure, annual reports, and no eminent domain against town property. Approved 6-0 (LaFleur not present).
• Introduction of 2023 Proposed Budget: Town Manager David Corliss presented the $315 million budget, with $272 million in revenue. Key priorities: public safety, roads, water, parks, economic development. The budget adds 4 firefighter positions, 4 police positions, and shifts sales tax allocation to support general fund growth. Public safety spending is projected to increase by $19M over five years, with no personnel added after 2024 without additional revenue. The balanced budget includes $18.5 million for pavement maintenance, $50 million for the Crystal Valley Interchange (not yet budgeted), and water rate adjustments to be discussed later. No vote taken.
• Quasi-Judicial Hearing - Resolution 2022-101 - Demolition at 414 North Perry Street: The building, constructed prior to 1945, has been significantly altered and lacks historical significance. The Historic Preservation Board recommended approval 6-0. The applicant plans to redevelop the site into an entertainment district that pays homage to the original grist mill. Approved 7-0.
• Ordinance 2022-019 - Truck Routes (First Reading): The ordinance establishes designated truck routes on major arterial roads to restrict trucks (over 10,000 lbs) from cutting through neighborhoods. Exceptions for emergency vehicles and deliveries. Public Works Commission recommended approval. Councilmember Johnson expressed concern that the statement "eliminate cut through traffic" is misleading, as residents along Plum Creek Parkway will still be impacted. She also noted increased gravel in bike lanes. Approved 6-1 (Johnson opposed).
• Ordinance 2022-020 - Conveyance to Douglas County School District (First Reading): Conveys 10.24 acres for Clear Sky Elementary School, dedicated to the town in 2004. No budget impact. Approved 7-0.
• Discussion/Direction - Proposed Amendments to Water Code (Sections 4.04, 13.12, 15.48.020): For new development only, no turf in front yards, maximum 500 sq ft of turf in backyards, and incentivizing Coloradoscape. Builders who install Coloradoscape in both front and backyards would pay lower system development fees (0.6 SFE). Non-residential: no non-functional turf. Approved unanimously 7-0, directing staff to bring an ordinance for first reading on September 20, 2022.

Key Outcomes

• Approved: Consent Calendar, Library Trustee Selection Committee appointment, Costco incentive (6-1), Metro District Service Plan (6-0), Demolition at 414 N Perry Street (7-0), Truck Routes ordinance (6-1), School property conveyance (7-0), and Water Code amendments (7-0).
• Vote Tallies: All votes were 7-0 except where noted.
• Next Steps: The 2023 Proposed Budget will have first reading on September 20, 2022. The Truck Routes ordinance will return for second reading with a resolution designating specific routes. The Water Code amendments will be brought back as an ordinance on September 20. The School District property at 312 Cantril Street will be discussed in an executive session.
• Public Engagement: Residents were encouraged to attend the Douglas County Homeless Initiative meeting on September 8 and the Housing Partnership charrette at The Rock Church on October 5-7.