f. Tax Increment Revenue Agreement Between Douglas County and the Castle Rock Urban
Renewal Authority regarding the Brickyard Urban Renewal Plan Over a 25-Year URA
Period in the Amount of $11,135,169.00.
Dan Avery, Special Projects Manager — County Administration
The Castle Rock Urban Renewal Authority (URA) proposes an agreement regarding tax increment
financing (TIF) within the Brickyard Urban Renewal Plan area. The agreement would allow the
URA to retain 100% of the property tax increment created by new development over the 25 year life
cycle of the Brickyard Urban Renewal Plan. The property tax increment generated by the
development would be used by the URA to partially fund necessary public improvements. The
agreement is substantively like the financing agreement the County entered into with the City of
Castle Pines two years ago and the City of Lone Tree last year.
The proposed Brickyard development under consideration by the Town of Castle Rock would
redevelop the former Acme Brick plant at 401 Prairie Hawk Drive. The project would include at
least 530 residential units, a 123-unit hotel, 29,387 SF of restaurant/retail space, and 55,521 SF of
office or conference space. With Town participation, the project would also include a new 145,000
SF indoor sports center. As described in Town materials, the project would not be feasible without
public investment in the form of this Tax Increment Financing in support of necessary infrastructure
and other Town financing in support of the proposed recreation facility. Absent this redevelopment
proposal and public support the Town anticipates the site would be used for storage or industrial
purposes.
In support of this Tax Increment Revenue Agreement request and as required by statute, the Town
prepared an Impact Report modeling fiscal impacts to the County from the redevelopment and
proposed use of tax increment financing. The redevelopment is estimated to generate a County
property tax increment that would increase from $154,063 in 2027 to $2,104,006 in 2050, totaling
$11,135,169 over the 25-year life of the URA. Under the proposed TIF agreement, Douglas County
would forego these revenues, and they would instead accrue to the URA for construction of public
improvements. The County would continue to receive its existing property tax base from the area,
estimated at approximately $18,000 annually, totaling $452,000 over the 25-year URA period. The
impact report indicates that the project will also generate new Douglas County sales tax receipts
increasing from $73,839 to $361,080 annually, totaling $6.8 million over 25 years. Douglas County
would retain these future revenues. Updated sales tax estimates received in February based on land
use plan refinements suggest that County sales tax receipts from this area could be closer to $12.9
million over a 25 year URA period. With regard to County infrastructure and services, the impact
report concludes that “Because the entire area will be located within the Town’s municipal
boundaries, minimal impact on County services is anticipated.”
Colorado’s urban renewal statutes were amended in 2015 to give counties, school districts, and other
taxing authorities a larger role in the urban renewal process. Counties are now eligible for
representation on URA boards, and the statute also now provides a negotiation process regarding
how much of the future property tax increment generated by a project will be allocated to the urban
renewal area. This proposed agreement is the mechanism by which the Town and County agree on
allocation of property tax increment generated by the development. Under statute, if an agreement
cannot be reached a mediation process may ensue.
