Promenade at Castle Rock

The Town of Castle Rock knows it’s important for residents to have access to a variety of shopping, dining and entertainment within Town. You may have heard your friends and neighbors talking about the new master-planned Promenade at Castle Rock.

Alberta Development Partners, LLC
Alberta Development Partners, LLC - a Colorado-based real estate, development and investment firm - has started construction on a commercial and residential development on the north end of Town, between Interstate 25 and U.S. Highway 85.

The Project
At 166 acres, and with the potential to bring 900,000 square-feet of commercial space and 350 multi-family units, this project is the largest ever master-planned commercial development in Castle Rock. The project broke ground in November 2014.

The Promenade will provide new goods and services
In the Town's 2013 community survey, residents were asked to list one thing the Town government could do to improve the quality of life in Castle Rock. A strong theme was to provide more activities, entertainment, restaurants, shops and businesses.

The Promenade will help reach that goal with a:
  • Grocery store on the west side of Interstate 25
  • Fitness center
  • Sporting goods store
  • Variety of restaurants
Sales Tax helps fund core services
When you call 911, you talk to a dispatcher, who sends firefighters, emergency medical personnel, and/or police officers to respond. The community enjoys 19 parks that must be maintained for safety and enjoyment. The average Castle Rock homeowner pays just $40 to the Town on a $300,000 home for these services. As your full-service municipality, the Town depends on sales tax to be able to provide these services.

Zoned for commercial use for 30 years
In 1987, the land where the Promenade is planned was annexed into Castle Rock, along with property that developed into the Outlets at Castle Rock, The Pines at Castle Rock Apartments, and other amenities such as Lowe's.

When the land was annexed, it was zoned for light industrial and commercial use, because of its prime location near U.S. Highway 85, Interstate 25 and Meadows Parkway, allowing for the market-driven development happening today.

Public documents
On Oct. 24, 2014, the Town received the applicant's request to rezone a portion of the property located just north of The Outlets at Castle Rock and Lowe's. The site is currently zoned for 800 multi-family units and approximately 110 acres of commercial development. The proposed PD plan would feature 130 acres of commercial and up to 320 multi-family units on 17 acres. This proposal required public hearings at both Planning Commission and Town Council. 

View the Documents: Public Finance Agreement
This project is complex and requires a financial agreement among the Town, Alberta and the metro district on the property to make it financially feasible. Alberta estimates the total cost of the project is $180 million.

Of that, the Town will contribute up to $24.48 million, or 13.6 percent of the total project, in shared sales tax and development fee reimbursements (see below for details). The financial agreement was approved by Town Council on Jan. 7, 2014.

Key components of the agreement:
  • The Town will share 27.5 percent of new sales tax revenues generated from that property for up to 25 years; and will fund up to $4.45 million in development fee reimbursements and an additional $750,000 fee reimbursement tied to achieving 700,000 square feet in commercial development.
  • The metro district on the development property intends to issue and repay $28.8 million in net bond proceeds for qualifying public improvements.
  • Alberta intends to acquire the land, develop the property and otherwise fund the $180 million project.
  • The financial agreements also include restrictions on Alberta relocating certain existing business in Castle Rock to the new development.
The Town's financial involvement is advantageous, as the Town assumes little risk. The actual amount of sales tax revenue-sharing is a function of the scope and success of the project, and the Town will only share a portion of the new sales tax revenues generated by the proposed project.

The development fee reimbursement means that a developer pays the building fee to the Town and gets a portion of it back when each business opens. As such, Town cash obligations are tied to actual private building activity on the new development site, with the Town reimbursing a portion on new development fees generated and paid by the private development.

Past Agenda Memos
  • Read the Jan. 7, 2014 Town Council agenda memo.
  • Read the updated financial impacts document.
  • Read the updated financial agreement.
  • Read the Nov. 19, 2014 Town Council agenda memo (has been updated for Jan. 7, 2014 meeting).
  • Read the full public finance agreement initial draft (was updated for Jan. 7, 2014 meeting).
  • Read the final public finance agreement ordinance.