Rail park annexation checkpoint: utilities and developers present regional industrial project, security and jobs case

Developers and Colorado Springs Utilities presented Jan. 14 a policy-checkpoint briefing on the proposed Southern Colorado Rail Park annexation — a roughly 3,100-acre, rail-served project east of Fort Carson that proponents say would provide a second, more secure rail access for the post while creating regional industrial capacity and thousands of jobs.

Brian English, development projects manager for Colorado Springs Utilities, summarized utility considerations and the city’s water-extension ordinance standard: an extension outside city limits can proceed if it meets certain tests, including that the city’s available water supply can meet existing usage plus projected demand or that unique circumstances justify service. Utilities estimated the project’s projected water demand under the applicant’s land-use plan at about 1,281 acre-feet per year and said the aggregate projected demand of all petitioned annexations is about 3,192 acre-feet per year. English said utilities are evaluating multiple alternatives to serve the site, including potential connection options, and are coordinating on wastewater, gas and electric service scenarios.

Project representatives (Andrea Barlow of NES and attorney Steve Mullican for the landowner, Edward C. Lehi Company) described the site as a long-planned regional industrial opportunity that has been studied since 2018 and has support from county and city economic- development partners. The project team said it has a trackage agreement in place to use an existing rail corridor and plans a rail spur that would serve Fort Carson and provide industrial rail service in multiple phases. Mullican emphasized public-safety and security benefits: the current rail access to Fort Carson runs through exposed lines and residential areas at the post’s north entrance; the proposed spur would provide a redundant, more secure routing for military shipments.

The applicants also described anticipated economic outcomes: a buildout scenario with a mix of commercial and industrial space that could produce roughly 5.6 million square feet of nonresidential floor area and an estimated 7,700 jobs on site. The project team described support among regional partners and said a Title 32 metropolitan district has been approved by the county to help finance infrastructure; district elections are anticipated in May.

Council members asked about contiguity (statutory provisions allow contiguity around federal land), 3-mile planning limits (the site lies in an enterprise zone and statute permits an extension beyond three miles in that case), utilities planning and phasing of road access to I-25. Utilities staff and consultants said engineering, wastewater and gas solutions are under study, and that the utilities board and planning review steps will follow the council checkpoint. Council indicated general support to move the annexation process forward; staff will continue negotiating an annexation agreement, proceed with technical reviews, and return the matter for formal hearings if the applicant completes the required submittals.