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A development proposed for the Town’s southwest corner could solidify funding for the Crystal Valley interchange project and bring a Costco that would contribute to the Town’s long-term funding needs.
The proposed development, Dawson Trails, is on a roughly 2,000-acre site west of Interstate 25 and primarily south of Territorial Road. The area was annexed into Town in 1984 and has been zoned for a mix of residential, commercial, office, restaurant, and industrial uses for more than 35 years.
The proposed development plan that Planning Commission and Town Council will consider this month, submitted by Westside Property Investment Co., reduces the amount of allowed residential units for the area by 26%, to 5,850 units.
The plan also helps with the funding needed for a new interchange at I-25 and Crystal Valley Parkway/Territorial Road, which has been the Town’s top transportation priority. Under the proposed agreement, the development would contribute $50 million toward the project. The Town and Douglas County – and possible grants and other sources – would fund the rest of the project, which is currently estimated at $118 million.
Another key element to the proposal is the Town potentially providing up to $10 million in assistance to bring a Costco to Castle Rock as part of the project. A Costco is estimated to generate $4 to $6 million annually in Town sales tax, which would make it the single-largest sales tax generator in Castle Rock.
With the tax revenue projected to be generated by Costco, the Town expects to hire 18 fire and police staff in 2025-2027. Without Costco, the Town does not currently anticipate having the financial resources to add any fire or police staff during those years.
Municipalities typically offer incentives for Costco locating within a jurisdiction. Parker paid $8 million in 2007 for Costco to locate there, and Longmont this year paid $10.9 million in incentives to attract a Costco.
Costco would be located in an area proposed for up to 3.2 million square feet of commercial, office, restaurant and industrial uses. Original zoning for the area allowed for roughly 17.5 million square feet of such uses, along with 7,900 residential units.
Most of the land proposed for development has been under a suspension agreement from the Town since 1992. That agreement assures the Town’s ability to require development plans for the area that conform to the current Town policies.
For example, the proposal includes the dedication of 690 acres of land to the Town, consisting of 462 acres that would remain open space and 228 acres to be used for active parks, future schools and Town facilities, including a future fire station. Another 71 acres of private open space is planned, and 215 additional acres would be dedicated as open space as each neighborhood area site is planned. Overall, that is 748 acres of open space – a 200% increase from the original zoning.
The proposed agreement also requires the development to contribute $4 million toward a future fire station to serve the area.
If the development is approved, the developer would decide, based on market conditions, when residential units are built and which stores and other amenities would be located within the development. Costco would be scheduled to open at the same time as the Crystal Valley interchange, in 2025, pending construction beginning in 2023. In addition to providing access for this development and the Crystal Valley area, the interchange will relieve traffic at the failing Plum Creek Parkway interchange.
The Dawson Trails Planned Development Plan, which includes the interchange funding plan, and a separate Costco infrastructure assistance agreement, will be reviewed at Town Council’s Aug. 16 and Sept. 6 meetings. The proposed development will also be on the agenda for the Aug. 11 Planning Commission meeting. For more information on the meetings, visit CRgov.com/Notices.
Learn more about the project and view the planning documents on CRgov.com/DawsonTrails.
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