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Castle Rock approves up to $900,000 assistance deal with outlets for restaurant pad infrastructure
Summary
Council unanimously approved an infrastructure assistance agreement with the Outlets at Castle Rock to support construction of restaurant pad sites; town support is performance-based and capped at $900,000 and repaid via shared sales tax for up to five years or until cap reached.
Castle Rock’s Town Council unanimously approved a performance-based infrastructure assistance agreement with the Outlets at Castle Rock that will help fund up to $900,000 in infrastructure for new restaurant pad sites.
Town staff and Economic Development representatives said the outlets generate more than 10% of the town’s retail sales tax and that new restaurants at the site could produce significant additional sales tax revenue. Under the agreement approved by council, the town will not pay construction costs up front; rather, the town will reimburse or share revenues for eligible permit and fee costs (estimated at about $550,000 of permitting/fee value in staff estimates) and then share a portion of sales tax for up to five years or until total town assistance reaches $900,000. Staff explained the agreement is strictly performance-based — the developer must complete permitted work and deliver operational restaurants before the town shares revenues.
Why it matters: Town staff said the outlets attract shoppers statewide and are a major contributor to Castle Rock’s sales tax base. Council members described the agreement as a way to retain and grow a major sales-tax generator and to recoup the town’s investment in a short period if projected store sales materialize.
Outcome and next steps: Council approved the agreement unanimously. Staff said the agreement allows for up to five eligible pad sites and provides a not-to-exceed assistance amount of $900,000. Construction and tenant selection remain private to the property owner; the town’s payments occur only after the developer meets performance requirements set out in the agreement.
