Council approves plan‑development zoning and full fee waiver for Wellspring's Unity on Wolfensberger housing for adults with disabilities

The Castle Rock Town Council on Tuesday approved a plan‑development (PD) zoning and a requested fee waiver that will let the Wellspring Community convert the former Quality Inn at 200 Wolfensberger Road into a mixed residential and program facility called Unity on Wolfensberger.

Tara (town staff) and Nicole DeVries, executive director of Wellspring Community, described the proposal. Wellspring plans to convert the 70‑room hotel into 24 condominium units and program space. Of the 24 units, 14 are to be set aside for adults with intellectual and developmental disabilities (IDD). Wellspring said four units would be reserved for staff and six would be for neurotypical adults. The first floor is proposed for Wellspring offices, classrooms and day‑program space; the second floor would contain the residential units. Wellspring said staff will be on site 24 hours a day to provide assistance.

Staff presented a PD that customizes allowed uses and parking ratios for the site; because the hotel and the adjacent church parcels are in different zoning districts, staff said a PD is the simplest way to align zoning to permit a lot‑line adjustment and shared site improvements. The PD includes two planning areas: one for IDD residential and related Wellspring uses, and one for the Castle Oaks Covenant Church expansion (place of worship up to 6,000 sq. ft. or 250 seats).

Recognizing the needs of residents, staff proposed modified parking requirements: 0 parking spaces per IDD unit, 1 guest space per 4 IDD units, and the standard 2 spaces per traditional multifamily unit. Staff and the applicant said the IDD population served typically does not drive and Wellspring provides transportation; staff reviewed the ratios and recommended approval.

Wellspring requested a full waiver of town permitting and impact fees. Staff estimated permitting and related town fees at $538,640.27, with an estimated total project cost of $11,250,000. Town code allows council to waive up to 100% of certain fees for qualifying attainable housing projects; staff recommended a full waiver conditioned on the applicant pulling a building permit by Dec. 30, 2026. Council approved the fee waiver and an associated resolution allowing early issuance of a building permit by an affirmative vote of 6‑0.

Councilmember Ryan Dietz moved to approve the PD ordinance; Council approved the zoning 6‑0. After a second motion, council approved the fee waiver and early permit authorization 6‑0. Public comment included testimony from Randy Rygo, who described the importance of housing for his adult son with developmental disabilities, and from a resident of Unity on Park who said additional classroom and residential spaces would be welcome.

Staff noted that any building permit issued early would be "at the applicant's own risk" and that no certificate of occupancy or temporary certificate of occupancy would be issued before the final site development plan is approved. The PD and waiver will allow Wellspring to renovate the interior and expand program capacity; Wellspring said the new space would allow the nonprofit to double the number of people it serves and reduce a waitlist of about 135 people for program services.

Speakers quoted in this article are drawn from the public presentation and the hearing record.