CASTLE PINES NORTH — A project that could net this upstart city 2,500 new homes and $45 million in taxes is causing headaches for Douglas County neighbors who worry that the building boom will increase traffic and decrease planned open space.
They say the annexation and rezoning of The Canyons development, east of Interstate 25 and south of Castle Pines Parkway, was hastily approved by the Castle Pines North City Council last month, without considering the project’s potential negative impacts.
Les Lilly, president of the nearby Happy Canyon Homeowners Association, said the project breaches a binding legal agreement with area neighbors.
Happy Canyon, The Pinery and neighborhoods near The Canyons project had an agreement with the developer that only 1,500 homes would be built on the property.
The original plan also called for about 200,000 square feet of commercial, but now will be 2 million at build-out in 40 years.
The development was to be buffered by a half-mile between it and the interstate; that has been scaled back to a quarter-mile.
A 500-acre working organic farm to be included in the development has been scaled back to 300 acres.
Lilly says he believe The Canyons annexed to Castle Pines North rather than going through Douglas County’s planning process because the county would never have agreed to change the zoning.
The Canyons will pay Castle Pines North, which incorporated as a city two years ago, almost $3 million in annexation fees.
“It’s a simple fact that Castle Pines North is absolutely landlocked,” Lilly said. “They’re in financial trouble and need sales-tax revenue to run their town. It was a slam dunk from the start.”
He said the homeowners associations have talked with an attorney and that they believe they can still enforce the original agreement.
George Merritt, a spokesman for The Canyons, said the company was not trying to circumvent Douglas County. He said Castle Pines North was a better fit.
“Castle Pines North is new,” Merritt said. “This is the sort of community (The Canyons) that makes sense to have in a city rather than in a county.”
And even though the contract with Castle Pines North calls for 2,500 homes, the original agreement with the homeowners associations is the governing agreement, he said.
“Bottom line: It’s 1,500 homes,” Merritt said.
In August, Douglas County planners sent a letter to the city outlining concerns about the project, including traffic impacts, preservation of open space and building heights.
Castle Pines North Mayor Maureen Shul said residents were involved from the start of negotiations with The Canyons more than seven months ago.
Shul said she understands the concerns of surrounding communities. But she said claims that Castle Pines North annexed the land because the city is in financial trouble are untrue.
“This was going to happen anyway,” Shul said. “The positive impact is that we, as a city, can now help how this happens and in what way this happens.”
The 3,300-acre project could include 2,500 homes and 1,700 acres of open space and generate $45 million in taxes, according to the annexation agreement.
It is to include 37 miles of walking and biking paths, a shopping area with restaurants, galleries and office space and a hotel.
Parker Water and Sanitation is providing water for the project, which operates on sustainable principles to conserve water.
“We thought it could be so unique and so tremendously beautiful right in the heart of Douglas County and something the entire region could enjoy,” Shul said.
Carlos Illescas: 303-954-1175 or cillescas@denverpost.com
