Council approves financial agreement
A new development is proposed near the intersection of Interstate 25 and Plum Creek Parkway. Town Council on April 18 voted 5-2 to approve a finance agreement with the project's developer to help remediate the old landfill on the property and fund necessary public infrastructure.
Fact sheet and study
View a fact sheet about the proposed development and the finance agreement Town Council approved. Additionally, view a study by Economic & Planning Systems Inc., which the Town commissioned to determine the need for the proposed financial agreement.
About the proposed development
Citadel Development LLC proposes a new 65-acre development on an area known as Miller’s Landing – located on the northwest corner of I-25 and Plum Creek Parkway, near Philip S. Miller Park. Citadel’s development plan includes office, retail, a hotel and more.
While zoned for commercial use, the land area has traditionally been undesirable to developers due to the necessary remediation of the old dump. Castle Rock Urban Renewal Authority – an entity that exists to facilitate investment and redevelopment in challenging areas within Town – recently deemed this areas as blighted, which allows for additional tax-sharing to clean up the property and foster economic development.
Town Council approved a financial agreement that includes sharing back 60 percent of the sales and 100 percent of the property tax generated from new amenities on the property. The agreement does not include allocation of any current Town funds. Instead, the Town would be sharing future revenue generated by a new project.
Key aspects of the financial agreement include:
- Issuing bonds: The Miller’s Landing Business Improvement District will be allowed to issue bonds to finance the remediation of the existing landfill, along with construction of necessary public infrastructure on the site
- Bond repayment: Bonds will be repaid with various incremental revenue the project will generate
- Property tax: The Town will share 100 percent of property tax generated on the property for 23 years, which will help repay the bonds
- Sales tax: The Town will share 60 percent of sales tax generated on the property, once developed, for 25 years, which will help repay the bonds. However, sales tax will not be shared on any grocery store larger than 27,000 square feet nor any large retailer currently in business in Town
- Development limits: The agreement will limit the amount of retail development to 100,000 square feet until a minimum 250-room full-service hotel with 10,000 square feet of meeting space opens. The agreement will further limit retail development to a total 250,000 square feet until at least 150,000 square feet of office space is constructed
Benefits for the Town
- No existing Town revenues nor funds are committed to the project – only sales tax earned on the new development. Currently, the Town earns no sales tax on that property, because it is not developed
- Old landfill will get remediated by private investor at an estimated cost of $12 million
- Relocation is discouraged, because the agreement states credits may not be collected on re-locations of large businesses that already exist in Town
Detailed documents and additional information
View the April 18 Town Council agenda item.
View a video of the proposed project, produced by the developer.