PARKS IN CASTLE PINES NORTH -4/18/10

Submitted by Anna Mallinson, CPN Parks Authority President

Since 2000, building new parks in Castle Pines North (“CPN”) has been under the authority of the Castle Pines Parks Authority (“Parks Authority”). Our Parks Authority has uniquely served the needs of the community but with the completion of Elk Ridge Park and new city annexations which have extended CPN’s boundaries beyond those of the Parks Authority, the Parks Authority may no longer be the most effective way to construct future parks in CPN. It is time to take a new look at the best way for our community to fund and build parks.

This collaborative statement is an effort to provide residents and community leaders a historical perspective and an update on current status regarding community parks in CPN. It is our desire that government and community leaders in CPN will be able to utilize this document as a starting point for upcoming discussions about the best way to fund and manage parks in our community in the future.

HISTORY

The Parks Authority was created as a response to changes in CPN following a severe downturn in the Colorado real estate markets which interrupted development in CPN’s early years. The CPN community has been successful in overcoming that disruption, but it is important to understand the effect that this situation had on current funding arrangements and as well as the roles of CPN organizations.

When homebuilding stopped in 1988, CPN had only reached about 10% of its ultimate buildout. Tax revenues were not sufficient to make the CPN Metropolitan District’s (“Metro District”) bond payments, and the Metro District filed for bankruptcy to restructure the debt. As part of the District’s bankruptcy workout plan ordered by Judge Roland Brumbaugh in 1994, the District revised its service plan to remove “building parks” as an element of their service plan to be restored if and when the Metro District decided their financial condition would allow. Prior to this, the Metro District’s service plan included building and maintaining parks using general fund taxes.

CPN’s recovery began in the mid 1990’s, when new developers and builders committed to build the rest of the homes in CPN. Builders and CPN community leaders recognized that more parks would be needed to sell new homes, but that a creative approach would be needed to develop and implement a parks plan within the Metro District’s boundaries. The solution was the Parks Authority, created by an Establishing Contract in 2000.

The Parks Authority is a quasi-governmental entity comprised of two governmental “members,”– initially, these were the Metro District and Douglas County; after incorporation, the City took over the role of governmental “member” from the County. It is governed by a Board of Directors appointed by local entities: Metro District, City of CPN, Douglas County, Master Association, CPN Foundation and a Director at large.

Administration and park construction oversight is accomplished primarily through Metro District staff. Once a park has been constructed it has been maintained by the Metro District. Ownership of the actual park property is by either the Metro District (e.g. Coyote Ridge Park) or by the City of CPN (e.g. Elk Ridge Park).

FUNDING

As envisioned in the Parks Authority Establishing Contract, funding has come primarily from the homeowner dues paid to the CPN Master Association and developer contributions, with the Metro District also playing a role in funding.

The majority of funding for parks has come through the Master Association dues, in accordance with the Participation and Funding Agreement which the Master Association signed with the Parks Authority in 2000 to commit 70% of Master Association dues collected to the Parks Authority. That agreement, still in place, states that the Master Association will collect dues from homeowners and transfer not less than 70% to the Parks Authority, not less than two times per year, and take all reasonable steps to collect at a rate of not less than $100 per homeowner. The Master Association raised dues to $216 in 2002, lowered dues in 2009, and continued to reduce dues for the 2010 budget bringing their dues to the minimum possible of $100 per home, $70 of which goes to the Parks Authority.

Developer contributions come in several forms. Some developers have contributed land and/or construction of parks. Developers also contribute funds, via parks fees required as part of development approval, and/or contracts for additional payments.

Douglas County agreed to dedicate parks fees collected from CPN developers and transfer it to the Parks Authority. This included fees collected from the building of King Soopers, Village Square and Safeway. Now the City is responsible for enforcing developer or builder fees towards parks. During the annexation of land from Lagae Ranch in to the City of CPN, the developers made a park land dedication and agreed to pay a parks fee at the time that development occurs.

In many parts of CPN the County’s requirements for parks commitments had already been satisfied as part of the original development approval, so the County would not be collecting any additional parks fees for these properties. In these areas, the new CPN developers and builders entered into written agreements to pay additional fees to the Metro District for transfer to the Parks Authority. As these contracts with developers come to completion, a traditional funding source for our parks will be lost.

The Metro District continues to fund parks maintenance. They have also funded some construction projects in existing parks, such as the skate park at Coyote Ridge, upgrading equipment at Retreat Park, and installation of new restrooms.

The Metro District has also contributed $1m to the Parks Authority. In the Parks Authority Establishing Contract, the Metro District had agreed that “once development revenues permit, the District will contribute funds on an annual basis according to the terms of its Service Plan.” The Metro District allocated $1m in the 2004 budget, but did not allocate additional funds toward parks in subsequent years due to the need to fund renewable water. The Metro District transferred the $1m to the Parks Authority when plans firmed up for Elk Ridge Park.

PARKS CONSTRUCTED

With the funds from developers’ parks fees and Master Association dues, along with land, time and materials donated by developers, builders and contractors, Coyote Ridge Park and Daniels Gate Park came to fruition.

After Coyote Ridge Park was built, the Parks Authority moved its focus to the next available area for parks development; Castle View Park (located just North and East of the CPN Community Center). A park plan was developed for this 20+ acre property. However, with the annexation of Lagae and the promise of developer contributions towards building a park and the overriding support from the community, the Parks Authority moved forward with building a park at Lagae, now Elk Ridge Park.

THE FUTURE

With the completion of Elk Ridge Park, and with city boundaries that now extend beyond those of the CPN Metro District and Master Association, it is time to revisit the future of funding and building parks. Following are some current thoughts on the role for each of the entities in CPN.

The City

During the Canyons annexation process, the City required civic and municipal land dedication. It is necessary to review that commitment, and discuss what else could be required in future stages of the development approval process both with developers and with individual builders, and for future development approvals.

The City has allocated funds for parks and recreation in its 2010 budget. The City will soon consider its options for parks funding in order to secure the future of parks in CPN. The City should establish a plan for future parks and recreation in CPN before the Parks Authority is “disbanded” so CPN is not left without an entity to acquire, develop and maintain parks for our community. The City plans to survey residents to gain opinion on a variety of issues, one being parks and recreation. Some funding alternatives include a city-wide parks and recreation fee or the implementation of a sales tax.

The Metro District

The Metro District’s future role related to parks will be included in the discussions of integration with the City.

The Master Association

The Master Association is concerned about equitable treatment for its members who have paid money towards parks in CPN that will benefit future homeowners. The Master Association plans to meet with the Parks Authority for the purpose of discussing the release of the Master Association from their responsibilities under the Participation and Funding Agreement.

The Parks Authority

The Parks Authority has recently been awarded a Great Outdoors Colorado grant for $700,000. The City and Parks Authority will continue to pursue all funding opportunities for CPN parks and the Parks Authority looks forward to discussing the future of parks in CPN with all involved.

Castle Pines North Foundation

The CPN Foundation, a 501 (c) (3) entity created to receive tax deductible donations, could be used to receive bequeathed funds, charitable donations or even hold fundraisers for specific projects.

WHERE TO NEXT?

Once Elk Ridge Park is completed in 2011 we will still have many areas available for park acquisition and development. Castle View Park is still a viable opportunity.

The land at Hidden Pointe and Monarch is undeveloped as is the NW corner of Castle Pines Parkway and Monarch (CC-20).

The Canyons and other newly annexed areas should also provide areas for park construction to increase our recreational areas further and, of course, there will be the ongoing maintenance of all parks in Castle Pines North to keep the desirability of living here high.

As the issue of our community parks continues forward, information will be disseminated every step of the way with the hope that residents will help drive many of the decisions to be made through their input, suggestions and participation.

Please e-mail if you have any questions.

Contributors:

Anna Mallinson, CPN Master Association Director & Parks Authority President Mayor Jeff Huff, City of CPN Doug Gilbert, City of CPN, past Master Association Treasurer Kim Hoffman, City of CPN, past Parks Authority Director & Master Association Director Shelley Hamilton-Bruer, City of CPN & Current Parks Authority Director Maureen Shul, City of CPN & Economic Development Council, past Master Association President Steve Brown, Attorney to CPN Parks Authority Bill Santos, CPN Metro District Linda Nuzum, past Director: CPN Metro District, Master Association, & Parks Authority Sandy Colling, past Parks Authority President