Castle Rock approves Brickyard urban‑renewal deal and $75.5M financing package for town sports center

Castle Rock officials on June 3 approved multiple steps to support redevelopment of the former Acme Brick site and to finance a town‑owned sports development center on property to be dedicated to the town.

What council and the URA approved

- The Castle Rock Urban Renewal Authority approved a public finance agreement that uses incremental property tax revenues to support public infrastructure at the Brickyard site. The agreement allows incremental property tax captured within the urban renewal area to be remitted to the newly formed Brickyard Metropolitan District to finance eligible public improvements.

- Town Council approved a parameters ordinance authorizing the issuance of tax‑exempt certificates of participation (COPs) to finance the sports development center and related infrastructure. The ordinance sets maximum parameters for the lease‑back financing: up to approximately $75,500,000 aggregate principal for base rentals (the COPs), a maximum annual town payment not to exceed $7,400,000 and a maximum total repayment (principal plus interest) not to exceed $155,000,000. The lease term and site lease were set with maximum end dates to preserve town ownership at the end of the financing term.

- Council approved a public‑private development agreement governing property dedication, construction management and the town’s acceptance of the sports development center. Under the agreement, the developer will construct the building under a guaranteed maximum price and dedicate roughly 10 acres for the project; the town will own, insure and operate the center after completion.

Key points and rationale

Town staff and bond counsel explained the lease‑purchase/COPs structure used for the financing; it is a commonly used municipal financing mechanism that was upheld in Colorado case law and does not require a voter election because the town’s rental payments are subject to annual appropriation. The parameters ordinance includes an option to prepay the lease without penalty starting no later than December 1, 2036. Counsel presented a conservative maximum interest test rate (5.25%) to allow room for market movement while staff and the town’s financial advisor finalize actual pricing.

Douglas County support

Douglas County Commissioner George Teal, who also represents county interests, spoke in favor of the URA arrangement and urged cooperation, noting the county expected long‑term property tax growth but that the arrangement kept public safety, water and other services coordinated with the town.

Votes and next steps

The URA approved the public finance agreement and Council approved the COP parameters ordinance and the development agreement in separate votes. Staff said the financing will move toward a closing once final pricing, credit and underwriting steps are completed and the town expects to track and disclose final financing terms to the council.

Ending

Council and the URA’s approvals set the financing structure and property commitments that will allow the Brickyard redevelopment to proceed and for the town to take ownership of a new sports development center financed with COPs and supported by urban‑renewal tax increment.