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STERLING RANCH - Douglas County

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From: dariadenver@comcast.net<br />

To: Steve Koster;<br />

Subject: Sterling Ranch concerns<br />

Date: Monday, June 22, 2009 6:59:17 AM<br />

Mr. Koster,<br />

We live in the Arrowhead Shores development, 9815 Falcon Lane,<br />

Littleton. We have numerous concerns re: the proposed Sterling<br />

Ranch (SR) Development.<br />

First, water. From what we have read, there is no indication of<br />

adequate water to support this community.<br />

Second, density. We moved to this area because of the open space,<br />

and relatively low population. SR proposes, for lack of a better term,<br />

to pack them in like sardines.<br />

Third, transportation. After packing them in like sardines, SR will not<br />

be making improvements to roads - at least not until the "Level of<br />

Service " is so bad that they have to.<br />

Fourth, schools. SR will provide only so much land for schools, even<br />

if population & density dictate more land/schools are needed. What a<br />

way for SR to save on their budget.<br />

Fifth, retail/soccer. There doesn't seem to be a lot of info about plans<br />

for the soccer complex as far a impact on traffic, lights, etc. Also, they<br />

will densely populate this area & have no retail support for it.<br />

Sixth, impact on the State Parks. I know this is a complicated issue,<br />

but it doesn't take a rocket scientist to know that adding more<br />

population to this area will impact Chatfield and Roxborough State<br />

Parks.<br />

We are not so naive to think the proposed area will never be<br />

developed. However, we don't think SR is the right development, for<br />

many reasons. SR wants to spend as little money and resources as<br />

possible to take, take, take and there is no giving back to the


community.<br />

Thank you for the opportunity to comment.<br />

Sincerely,<br />

Daria and Adam Sanks<br />

9815 Falcon Lane, Littleton


From: Kathy<br />

To: Steve Koster;<br />

Subject: Sterling Ranch<br />

Date: Wednesday, July 22, 2009 4:06:01 PM<br />

Hello, I live in Roxborough Park. After reading the July 16th article<br />

in the YourHub newspaper, I was about to form a negative impression of<br />

the proposed development for Sterling Ranch. Then, by total<br />

coincidence, I was talking with someone at Agriburbia, from the TSR<br />

Group owned by Quint Redmond, and mentioned that instead of the high<br />

density development portrayed in the paper, wouldn't it be nice if a<br />

concept like Agriburbia was used. To my surprise, the person at the<br />

TRS Group said they were involved in the concept for Sterling Ranch.<br />

I had to change my thinking completely. I love the carbon triangle<br />

model that Mr.Redmond uses to explain how a community can develop with<br />

transportation, food, and shelter as vital aspects of a sustainable<br />

community. I can't understand why the newspaper only represented the<br />

viewpoint of the Chatfield Community Association. Also, I don't<br />

understand how the CCA could be so against the development, if the<br />

Agriburbia concepts of Mr. Redmond are faithfully incorporated into<br />

the development. I think <strong>Douglas</strong> <strong>County</strong> has a unique opportunity,<br />

and quite frankly a responsibility, to encourage development that<br />

moves us into a carbon neutral, sustainable future. <strong>Douglas</strong> county<br />

could become the "green" county of Colorado, we could have incentives<br />

to retrofit existing neighborhoods, and definitely require new<br />

neighborhoods to to be built in a way that brings food, shelter,<br />

energy, water, and transportation needs together. I hope there will<br />

be better communication of the concept of Agriburbia, to me it is a<br />

great concept, and in the right direction for <strong>Douglas</strong> <strong>County</strong>. Thank<br />

you. Kathy Vandamme 7468 Hawks Nest Trail


January 17, 2010<br />

Mr. Steven Koster<br />

<strong>Douglas</strong> <strong>County</strong> CPSD<br />

100 Third St.<br />

Castle Rock, CO 80104<br />

Re: Sterling Ranch Request for Extension, ZR2009-004<br />

Dear Steve,<br />

Per the attached letter, the Sterling Ranch (SR) applicants have requested an extension on<br />

the rezoning application, which is due to expire on January 21, 2010. CCA understands<br />

that an applicant can be granted an extension, but the criteria for such is not well defined<br />

in the DCZR. It is our belief that the applicant has had adequate time to respond to<br />

referral letters, and has not done so.<br />

Based on the comments of Mr. Jack Hoagland, SR principal, at the January 14, 2010<br />

Roxborough One meeting, the applicant should have all referral comments addressed and<br />

completed by Spring, that being March 21, 2010. As such, should the <strong>County</strong> opt to<br />

grant an extension, which we would prefer not be granted, we recommend that the<br />

applicant live by their commitment, and the extension be no more than 2 months.<br />

Since the SR applicants Water Appeal referral period ends on January 23, 2010, we hope<br />

that the CPSD will have scheduled, and possibly completed the Planning Commission<br />

and Board of <strong>County</strong> Commissioners Hearings by March 21, 2010.<br />

Sincerely,<br />

Chatfield Community Association<br />

Dennis Larratt, Vice President<br />

10990 N. Sunshine Dr.<br />

Littleton, CO 80125<br />

phone 303-470-5770<br />

cell 720-530-9974<br />

fax 303-683-1790<br />

email larratt@mho.com


From: Dan Dertz<br />

To: Steve Koster; Joe Fowler<br />

Subject: FW: Sterling Ranch<br />

Date: Wednesday, February 17, 2010 1:21:29 PM<br />

FYI - Emails from residents in Roxborough opposed to Sterling Ranch.<br />

From: judymalexander@comcast.net [mailto:judymalexander@comcast.net]<br />

Sent: Wednesday, February 17, 2010 1:20 PM<br />

To: Dan Dertz<br />

Subject: Fwd: Sterling Ranch<br />

----- Forwarded Message -----<br />

From: judymalexander@comcast.net<br />

To: ddertz@douglasco.us, "Lynne Devlin" <br />

Sent: Tuesday, February 16, 2010 7:22:51 PM GMT -07:00 US/Canada Mountain<br />

Subject: Fwd: Sterling Ranch<br />

Dear Mr Dertz,<br />

Please add my name to this letter. I am in total agreement with Lynne Devlin. Our<br />

concerns are the traffic, the water, the additional burden on the infrastructures in<br />

place- ie the roads, the schools, fire and police protection. All of these issues need to<br />

be addressed to the satisfaction of the residents of <strong>Douglas</strong> <strong>County</strong>.<br />

Judy Alexander<br />

Roxborouigh Park<br />

Subject: Sterling Ranch<br />

Dear Mr. Dertz,<br />

Please add my name to the list of those who are opposed to the current plans for the<br />

development of Sterling Ranch.<br />

My concerns and objections are as follows:<br />

While a development of some sort is inevitable, the current plans will result in a City,<br />

twice the density of Highlands Ranch, on fewer than three thousand acres.<br />

Despite the assurances of the developers to the contrary, I am convinced that a<br />

City of this size will have a negative impact on our natural resources, specifically<br />

the water.


Because the land is essentially flat, there will be no visual relief from the the multistory<br />

apartment buildings and the housing tracts all crammed together on 1100 acres.<br />

The light generated by the houses and apartments, the sports center and the<br />

shopping mall, will destroy our night sky.<br />

In order to accommodate approximately 40 thousand new residents, most of whom<br />

will commute to their jobs, Titan Road, Santa Fe and the bridge connecting them will<br />

all have to be re-built at the expense of the taxpayers.<br />

The walking trails, the riding trails and the open space promised by the developers<br />

already exist in our own neighborhoods and at Chatfield Lake and SharpTail<br />

Ridge and we do not have to stand in line with 40,000 new residents to enjoy them.<br />

This project will take 20 years to build. So for the next 20 years there will be<br />

continuous construction resulting in noise, mud, dust, and traffic delays in order to<br />

build something that many of us do not need or want.<br />

What I love about this area is the open space, the small ranches and horse corrals,<br />

and the care that has been taken to preserve the character of my neighborhood.<br />

When I turn off Santa Fe on my way home I marvel at the change. Suddenly the<br />

traffic is gone, the mountains are clearly visible and in a few minutes I will be home. I<br />

am nestled in among the red rocks with the deer, the bear and the mountain lions. I<br />

can stand outside in the evening and view the entire sky filled with stars. I do not<br />

want to give this up.<br />

Sincerely yours,<br />

Lynne Devlin<br />

Roxborough Park


From: Terence T. Quinn<br />

To: Steve Koster<br />

Subject: Fw: FW: Sterling Ranch<br />

Date: Monday, March 22, 2010 9:00:57 AM<br />

Attachments: 1a.pdf<br />

please<br />

----- Original Message -----<br />

From: Steven Boand<br />

To: Terence T. Quinn<br />

Cc: Doug Debord; Jill Repella; Jack Hilbert<br />

Sent: Mon Mar 22 08:59:24 2010<br />

Subject: FW: FW: Sterling Ranch<br />

Please add this to the public record for this project.<br />

-----Original Message-----<br />

From: Don Moore [mailto:dmconifer@gmail.com]<br />

Sent: Saturday, March 20, 2010 8:34 AM<br />

To: Mark Weston; Jackie Sanderson; Toby Sprunk; Steven Boand; Ann Bonnell; Terence T. Quinn<br />

Subject: Fwd: FW: Sterling Ranch<br />

---------- Forwarded message ----------<br />

From: ROISIN MC EWEN <br />

Date: Fri, Mar 19, 2010 at 8:39 PM<br />

Subject: FW: Sterling Ranch<br />

To: Ann Bonnell , Barbara Chase Burke ,<br />

bchase@organizationinabox.com, Betty Bliss , Bill Muller ,<br />

Bo Inman , Celia Reed , Charissa Afshar<br />

, Christie VanBibber , Dan Dertz<br />

, Dave and Kris Vikse , Dave Villalovas<br />

, Debbie Shriver , Debbie Prysby<br />

, Deb Schovaneveldt , Dennis Page<br />

, Dennis Larratt , Don Moore ,<br />

Doug Chestnutt , Ed Fox , Ed Yeats<br />

, Jan Dixon , Jeff and Donna Fleischer<br />

, Jeff Barnett , Jennifer Riefenberg ,<br />

Jerry Stabrava , Joe and Whitney Rivera , Joe Rottman<br />

, John Afshar , Karen Carter<br />

, Kathy Hollifield , Kay McGuire<br />

, Kelly Boyle , Kelly Patton<br />

, Larry Kramer , Leslie Lilly , Lisa<br />

DeLong , Lisa McGee , Lynlee<br />

, Lynne Devlin , Mary Alice McManus<br />

, Martha and Jim Elder , Mary Kay Mansfield<br />

, Mary Denehy , Mike DellOrfano<br />

, Mike Spee , Pat Jenkins<br />

, Rick Stevenson , Ron Jaques ,<br />

Sally Perisho , Sean Burke , Sue Golesh<br />

, Suzanne and Bill Muller , Teresa Hamilton<br />

, Terrence Quinn , Terry and Jeff Zelenak<br />

, Theresa Shark , Tina Heidel ,<br />

Tom Pharo , Tracy Stabrava , Ward Rummel<br />

<br />

As you can see from this attachment, Littleton City Council is having a work session to review the


feasibility of annexing Sterling Ranch, which Sterling Ranch has been lobbying for while simultaneously<br />

working with <strong>Douglas</strong> <strong>County</strong> for the approval of both their planned development and water appeal. The<br />

Chatfield Community Association urges you to attend that meeting on March 23rd at 7pm in the Littleton<br />

Municipal Building to get a glimpse of how that possibility would impact you personally and <strong>Douglas</strong><br />

<strong>County</strong> at large. At this stage there is no opportunity to comment, just observe. Thank you, Roisin<br />

McEwen, CCA President


To: James C. Woods, City Manager<br />

CC: Littleton City Council<br />

From: Christian Gibbons, Director Business/Industry Affairs<br />

Date: March 23, 2010<br />

Re: Sterling Ranch Fiscal Impact Review<br />

J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

Jim, at your request I reviewed the fiscal impact study provided by Sterling Ranch. Following are<br />

my comments.<br />

Background<br />

I initially met with Jim Yates and Patty Silverstein on January 29th to review the first draft of a<br />

fiscal impact study. At that meeting I expressed my approach to reviewing this study. In particular,<br />

I was interested in:<br />

• The big ticket items<br />

• The assumptions used in the multipliers<br />

• Threshold costs i.e. costs that occur suddenly when a threshold is crossed<br />

• Major capital items<br />

At that initial meeting I spent approximately two hours going through the results, asking questions<br />

and laying out an outline for additional information that I thought would be important to city<br />

council. I asked Mr. Yates and Ms. Silverstein to respond to those questions and comments.<br />

Mr. Yates followed up with a formal memo on February 8th. I reviewed that memo noting<br />

significant questions about multipliers and assumptions. I also met with members of the<br />

Development Review Committee to discuss capital items. I also assembled responses from other<br />

affected departments (library and police).<br />

I met again with Mr. Yates and Ms. Silverstein on March 9th to go over these responses as well as<br />

some remaining concerns that our staff expressed. Mr. Yates then resubmitted a final fiscal impact<br />

memo on March 19th addressing those concerns and making changes where suggested.<br />

Commentary<br />

Following are my observations and comments about the fiscal impact report:<br />

1. Both parties agreed that the fiscal impact analysis is a broad brush analysis at this point. Should<br />

the project proceed, we will need a second study at much finer granularity.<br />

2. The current analysis in my opinion fairly reflects the potential revenues and expenses associated<br />

with the proposed project. It uses standard data sources commonly accepted in the profession to<br />

generate estimates of revenues. In areas where multipliers were uncertain, both parties agreed that<br />

Highlands Ranch was a fair model to use.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

3. The proposed project is larger than that approved by <strong>Douglas</strong> <strong>County</strong>. The square footage for<br />

retail, industrial and lodging are all more than the project submitted to <strong>Douglas</strong> <strong>County</strong>. According<br />

to Mr. Yates, this is due to additional acreage added to the original project and a re-calculation of<br />

supportable retail.<br />

4. Sewer tap revenue is not included in the analysis as these revenues will flow into the sewer<br />

enterprise fund, not the general fund. At the current rate of $5,000 per tap, the 12,050 dwelling<br />

units would produce approximately $67 million in revenue, not counting commercial and industrial<br />

taps.<br />

5. The major capital implications for the City of Littleton are a Police sub-station, a Public<br />

Services mini-service center and expansion of the main city hall building for support staff. Sterling<br />

Ranch is proposing to build a “civic center” space in their project which would include a police substation.<br />

Sterling Ranch is also proposing to provide the required number of acres (up to a maximum<br />

of 11 acres) and two existing buildings to serve as a Public Services mini-service center. Sterling<br />

Ranch is not proposing to provide an expansion of the existing city hall.<br />

6. The current city hall (not counting courts, museum, library, service center but counting police<br />

and fire) has 134 employees on site or about 1 employee per 310 residents. Adding another 31,700<br />

residents at this ratio would indicate another 102 employees. Assuming each employee needs 300<br />

gross s.f. of office space, city hall would have to be expanded 30,600 s.f. At a cost of $300/s.f., this<br />

would amount to $9,180,000.<br />

7. Sterling Ranch has indicated that it will provide the following through its own funding<br />

mechanisms: library service, fire protection, streets, water and sewer pipes, parks and recreation,<br />

schools.<br />

8. It is assumed there will be no Community Development functions moved to Sterling Ranch and<br />

that all plan review, building permits, inspectors, etc. will remain in the main city hall.<br />

9. Revenues are broadly classified as:<br />

• Property Tax $3 million (11%)<br />

• Other Revenue $5 million (18%)<br />

• Sales Tax $7 million (25%)<br />

• Special Mill Levy $13 million (46%)<br />

It should be noted that “normal” revenues of $15 million per year at build out are not enough to<br />

cover the estimated $22 million estimated operating expenses. It is the additional $13 million that<br />

comes from the special mill levy that covers this shortfall and provides a $6 million surplus.<br />

These are operating numbers and do not include capital costs. The mini-service center and police<br />

substation are proposed to be built by the developer. The expansion of city hall would be borne by<br />

the citizens of Littleton.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

10. Staff is of the opinion that should council proceed with an annexation the City of Littleton will<br />

need consultants in the area of annexation agreements, land use engineering, a more detailed, and<br />

fiscal impact study as well as plan reviewers and building inspectors. Staff is suggesting Sterling<br />

Ranch pay for this.<br />

Risk Factors<br />

The unknown factors and risks that Council will assume in this project are:<br />

• The project could go under during an economic downturn. Sterling Ranch has indicated that<br />

all infrastructure costs are incremental and paid through impact fees.<br />

• The 800,000 square feet of retail space might not be totally built, thus reducing the estimated<br />

$7 million in annual revenue.<br />

• The expenses of the project in any given year could exceed the revenues and thus be a<br />

negative drag on the city’s budget.<br />

• Sewer rates might increase over the current $5,000 single family tap and slow down or stop<br />

the build out of the project.<br />

While not fiscal impacts, council will have to evaluate these additional considerations:<br />

• The 30,000 residents of the built out project will have approximately 3/7ths of the council<br />

seats. A significant portion of the political decision making will shift south of Chatfield<br />

Lake.<br />

• Statewide ballot initiatives could eliminate one or more current sources of revenue.<br />

A separate memo from the Police Department is attached.<br />

Sterling Ranch's fiscal impact memo is under separate cover.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

Littleton Police Department<br />

Sterling Ranch Proposal<br />

Discussion Points<br />

MEMORANDUM<br />

The Littleton Police Department is vetting the questions and issues regarding the annexation of<br />

the Sterling Ranch Property on public safety and our ability to deliver services. The below items<br />

are the main topics for discussion but is not meant to be a comprehensive list. We will have a<br />

complete analysis for the Study Session.<br />

• The number of years and rate, at which the build out would occur both for commercial and<br />

residential.<br />

• How the build out would impact the demands for service and the type of services required.<br />

• Compare the build out to our experience with Trail mark; both by distance and types of calls<br />

for service.<br />

• Cost analysis of calls against equipment and personnel.<br />

• Driving times and distance: at what point would we need or use a substation.<br />

• Processing arrests in the subdivision and whether the arrestee will need to be processed there<br />

or at LPD, depending on ultimate trip to Castle Rock and <strong>Douglas</strong> <strong>County</strong> jail<br />

• 911 confusion regarding county and city services. If the residents live in Littleton, then their<br />

police services should be Littleton.<br />

• PSAP costs and reimbursement from the 911 authority.<br />

• Traffic issues and impact in the future; 2030. This should be addressed as the build out<br />

occurs and would not impact us for at least the next five years in our opinion.<br />

• The Sante Fe corridor would not be our responsibility as it won’t be in Littleton and we<br />

would not respond to traffic accidents. The impact would exist years later when the build out<br />

impacts the vehicles on the road per day using the Sante Fe corridor.<br />

• Sports Arena- we will need more information about the type, size, and purpose of the facility<br />

as well as the expectations for events and security needs.<br />

• Criminal Filings- both jurisdictions are in <strong>Douglas</strong> <strong>County</strong> so there would be no change in<br />

filing cases in the 18 th Judicial District, albeit may require the paperwork going to <strong>Douglas</strong><br />

<strong>County</strong> office instead of the Potomac office. But this would not be a problem because we<br />

would be closer to the <strong>Douglas</strong> <strong>County</strong> office if called to a crime in Sterling Ranch.<br />

• Municipal Charges would remain in Littleton Courts.<br />

• When a substation is built, it could be a dual purpose building for police and fire.<br />

• Our current ratio is 1.6 officers per thousand. We did not increase our staff with the addition<br />

of Trail mark, Aspen Grove, Home Depot, Lowe’s, the build out completion of South Park or<br />

the addition of two light rail stations.


Date: March 18, 2010<br />

MEMORANDUM<br />

To: Christian Gibbons, Business Industry Affairs Director, City of Littleton<br />

From: James Yates, CFO, Sterling Ranch LLC<br />

Patty Silverstein, Development Research Partners<br />

Subject: Revised Economic Assumptions Summary<br />

GENERAL PROJECT INFORMATION<br />

Acreage<br />

Residential 1,200<br />

Non-R esidential 506<br />

Open Space 1,236<br />

Infrastructure 464<br />

Total 3,406<br />

RESIDENTIAL PROJECT INFORMATION<br />

Residential Acres<br />

Low Density SFD 550<br />

Medium Density SFA 450<br />

Medium Density MF 150<br />

High Density MF 50<br />

Total<br />

Residential Units<br />

1,200<br />

Low Density SFD 5,700<br />

Medium Density SFA 2,150<br />

Medium Density MF 2,300<br />

High Density MF 1,900<br />

Total 12,050<br />

The purpose of this is to provide a brief summary of the<br />

economic impacts of the projected buildout of the Sterling<br />

Ranch Project (“Project”) to the City of Littleton under an<br />

annexation scenario. Sterling Ranch has submitted a PD<br />

zoning application to <strong>Douglas</strong> <strong>County</strong> that provides for<br />

approximately 3,406 acres of residential neighborhoods,<br />

offsite infrastructure, parks, trails and open space. The<br />

mixed use, commercial and retail space includes a 227-acre<br />

town center, 150 acres of educational uses and a 100-acre<br />

sports village.<br />

The total maximum housing units are limited to 12,050<br />

which equates to approximately 3.5 units per acre across the<br />

entire site. The homes will be a mix of high density multifamily,<br />

medium density attached and low density detached<br />

products. Based on maximum build-out and proposed<br />

product mix, the total residents within Sterling Ranch is<br />

31,700.<br />

Financial Summary<br />

The Sterling Ranch Financial Model at build-out (“SR Model”) is based on conservative assumptions for starting,<br />

developing and building out the project. Substantially all material assumptions are tied to the timing of home sales<br />

and related construction. This allows the cost of City service to be directly tied to the number of residents as they<br />

are actually moved into homes within<br />

Sterling Ranch and does not require upfront<br />

costs based on artificial thresholds. During<br />

the 20 year build-out, the revenue from<br />

one-time construction permit fees,<br />

property taxes and other revenues<br />

exceed the projected costs to service the<br />

residents in each individual year without<br />

a single deficit year. Additionally, the SR<br />

Model as presented relies on a balance of<br />

property tax revenue plus retail tax revenue<br />

that provides a more stable source of<br />

revenue which is tied directly to home<br />

values and not solely on resident spending<br />

habits. Although retail taxes are a very<br />

important component of the SR Model, the<br />

Littleton:<br />

Amount over<br />

20 Year<br />

Buildout<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com<br />

Annual<br />

Amount at<br />

Buildout<br />

Revenue sources to Littleton:<br />

Sales / Use Taxes 113,725,357 7,234,787<br />

Littleton Property Tax 27,196,587 2,983,872<br />

Other: taxes, fees, fines, permits, charges for services, intergo 45,685,169 4,888,064<br />

Mills Dedicated to Littleton from SR District 81,747,113 13,188,660<br />

Total 268,354,226 28,295,384<br />

Cost of Services - Total Littleton Budget:<br />

Determined by number of SR residents times 5 year avg 205,428,879 21,979,772<br />

Total 205,428,879 21,979,772<br />

Net Surplus (Deficit) $62,925,347 $6,315,612<br />

Per existing Littleton Resident (population of 40,000) $1,573 $158


higher combined mill levy allows conservative assumptions for retail spending patterns in both timing and quantity.<br />

The estimated total annual revenues exceed the estimated total annual costs by almost 29% of the estimated<br />

cost, allowing for deviances in the estimates and in timing of expenditures.<br />

Retail Revenue Assumptions<br />

During the months of February and March 2010, Patty Silverstein and Sterling Ranch met with Chris Gibbons to<br />

review the underlying assumptions related to the revenue generated by the Project during and subsequent to buildout<br />

as well as the cost of providing service to the new residents. Numerous retail sales tax assumptions within the<br />

Sterling Ranch Financial Model were discussed and generally agreed upon to be either conservative or reasonable.<br />

The following is a list of general assumptions, sources of data and discussion with Mr. Gibbons on key areas:<br />

� Retail space within the SR Model is calculated at<br />

25.2 square feet per capita, based on 800,000 total<br />

feet of retail space for approximately 31,700<br />

residents. The SR Model calculation was based on<br />

CoStar data from 2007 that shows Littleton with 65<br />

square feet per capita, the Denver Metro Average<br />

with 52 square feet per capita and Highlands Ranch<br />

with 27 square feet per capita. Based on the<br />

surrounding municipalities, the average of 25 square<br />

feet per capita is conservative and consistent with<br />

neighboring Highlands Ranch.<br />

� Retail leakage methodologies varied between the<br />

approach used by Development Research Partners<br />

and the typical methodology used by the City of<br />

Littleton. In comparing the two approaches, Sterling<br />

Ranch determined the total square footage by using<br />

the 25.2 square feet per capita average times the<br />

projected residents to arrive at a conservative<br />

800,000 square feet of retail required. SR then<br />

calculated the retail sales by multiplying the total<br />

square feet times the taxable sales and occupancy<br />

rates. This retail sales tax per square foot approach<br />

is a “top down” approach utilized prior to a detailed<br />

analysis of the commercial mix within a project.<br />

Retail Sales per Square Foot Methodology<br />

Total square footage 800,000<br />

Taxable sales 70.0%<br />

Occupancy Rate 96.0%<br />

Retail Sales per Square Foot $340<br />

Total Annual Retail Sales at build-out $182,784,000<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $5,483,520<br />

Retail Sales Capture Methodology<br />

Total Number of Households 12,050<br />

Average Household Income $75,695<br />

Percent Taxable Sales 39.7%<br />

Capture (total less leakage) 50.0%<br />

Total Annual Retail Sales at build-out $181,055,612<br />

Additional Retail Sales from Visitors $12,758,440<br />

Additional Retail Sales from Businesses $10,000,000<br />

Total Taxable Retail Sales $203,814,052<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $6,114,422<br />

The City of Littleton requested that Sterling Ranch also calculate the retail sales based on household income,<br />

taxable sales and local capture rates, a “bottom up” approach. Based on these factors, the SR Model<br />

utilized an average household income of $75,695, which is comparable to Littleton and lower than the<br />

<strong>Douglas</strong> <strong>County</strong> average of over $98,871. The percent of household income spent on taxable sales of<br />

39.7% is considered reasonable and consistent with Littleton. The SR Model used 50% as a conservative<br />

capture rate to show the likely outcome. Highlands Ranch currently has a very low capture rate of 43.6%<br />

through 2008, whereas <strong>Douglas</strong> <strong>County</strong> has a higher capture rate of 71.6%, with Littleton somewhere in<br />

between the two. Although Sterling Ranch is similar to Highlands Ranch in many ways, a 50% capture rate<br />

was used because the design of the Project will have pockets of higher density around open space that will<br />

be conducive to internal buying and the physical location is less convenient to local regional malls.<br />

If the Highlands Ranch capture rate of 43.6% is utilized in the calculation above, the projected sales tax in the<br />

Littleton model would decrease to $5.4 million or approximately $700,000, approximately equal to the SR<br />

Model. However, if the household income and capture rates are equal to the <strong>Douglas</strong> <strong>County</strong> Averages, the<br />

sales tax revenue increases to almost $8.5 million, approximately $3 million higher than the SR Model.<br />

� Hotels within the SR Model total 335,000 square feet, creating 500 rooms, supported by visitor traffic from<br />

the sports village, local residents at build-out and the potential business travelers from nearby employment<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 2


sites. The assumptions related to the occupancy rates and hotel rates, including non hotel related spending<br />

was very conservative in the SR Model as the net sales tax revenue was less than $330,000 annually after<br />

build-out. This was determined to be a low risk variable as the total annual amount was not material to the<br />

Project as a whole.<br />

� The retail sales per square foot within the SR Model is $340 per foot and the floor to area ratio (FAR) is<br />

.245.<br />

� Current Office, Hospital, Sports Complex and<br />

Educational uses have not changed from the <strong>Douglas</strong><br />

<strong>County</strong> model. Additional flex/light industrial<br />

space was added to the financial model due to the<br />

addition of 160 acres adjacent to Moore road. The<br />

retail/lodging was increased to reflect the increase<br />

in sports village acreage and the addition of the<br />

Village Center South and Village Center West,<br />

neighborhood retail centers within the Project.<br />

The change in retail square feet brought the square<br />

feet per capita to a level slightly below neighboring<br />

Highlands Ranch.<br />

Littleton DC Zoning<br />

Non-Residential SF Model Application<br />

Office 800,000 800,000<br />

Hospital 150,000 150,000<br />

Flex/Light Industrial 800,000 248,000<br />

Retail 800,000 400,000<br />

Lodging 335,000 200,000<br />

Sports Complex 230,000 230,000<br />

Educational Use 653,400 653,400<br />

Total 3,768,400 2,681,400<br />

Littleton Project Cost:<br />

Project costs were only discussed and evaluated at a very high level, identifying those costs that would be triggered<br />

by thresholds and would be material to the Project or the City of Littleton as a whole. Significant additional work<br />

will need to be completed in this area. Capital costs specific to the Project and the related source of revenue is<br />

discussed below.<br />

� Fire Services will be provided by the fire district that the Project is currently located in at the request of the<br />

City of Littleton for financial modeling purposes. Sterling Ranch had allocated approximately 10 mills<br />

for fire protection within the SR Model and will apply those funds to the appropriate fire district upon final<br />

decision.<br />

� Police Services will be provided by the City of Littleton. Upon preliminary assessment, a substation type<br />

facility with secure access will be required. The size and specifications to be determined. Sterling Ranch<br />

will provide sufficient space within the town center civic building.<br />

� Public Service has requested sufficient land dedication and appropriate zoning for outdoor storage of road<br />

surface materials, vehicle storage and potential maintenance facilities.<br />

� Water Service will be negotiated with Denver Water or other provider as may be required and will be a net<br />

zero economic impact to the City of Littleton for modeling purposes.<br />

� Wastewater Service will be provided by the Littleton/Englewood Wastewater Treatment Plant at the<br />

current market rate for both taps and ongoing treatment at the time of use.<br />

Additional Financial Model Assumptions<br />

The SR Model assumes a combination of revenue sources compared to an average cost of service per capita based<br />

on the City of Littleton 2010 Budget General Fund. Adjustments were made to exclude library services and fire<br />

protection from both the revenue side (included in the additional mill dedication from Sterling Ranch to Littleton)<br />

and the cost side (removed the library and fire protection costs from the general budget).<br />

� Mill Levy will be dedicated to the City of Littleton in two increments: the first is the base mill levy that is<br />

currently paid by the residents of Littleton of 6.662 mills; and the second is an incremental mill levy that<br />

will be paid to the City of Littleton. 10 mills during the construction phase of the internal infrastructure of<br />

the Project (the first 10,000 residential units) and then increased to 25 mills thereafter.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 3


� Other taxes, fees, permits, charges for services and intergovernmental revenue is included in the<br />

preliminary analysis since the full cost of providing all general fund services (less fire and library) is<br />

included in the cost per capita calculation. Once a more detailed analysis of the actual cost is determined,<br />

the revenue will be adjusted accordingly. Sufficient surplus is provided within the budget to allow for<br />

adjustments.<br />

� Sewer tap fees were calculated on a single family equivalent (“SFE”) unit basis to provide for commercial<br />

units as well as residential. A total of 13,451 SFE’s was utilized in the SR Model and equates to $67.255<br />

million. This amount will change based on the cost of tap at the time of sale, the actual number of<br />

residential units, mix of units and commercial activity.<br />

� Retail development is projected to start the first 99,000 square feet after the first 2,250 homes are sold and<br />

built. The first 2,250 homes would add approximately 4,000 residents, assuming approximately 25 square<br />

feet per capita. It is anticipated that the initial phases will include convenience and sports related retail.<br />

� The commercial, flex space and light industrial opportunities will allow Littleton to grow its existing<br />

businesses within Sterling Ranch due to the available land while maintaining control of the land use, taxes<br />

generated and employment opportunities.<br />

� Emergency care services built in Sterling Ranch will provide much needed support to the Chatfield Valley<br />

area.<br />

� A school impact fee will be collected by the <strong>Douglas</strong> <strong>County</strong> School District on each lot which will be used<br />

to help pay for the cost to construct new schools within Sterling Ranch. The number of schools will be<br />

determined by the <strong>Douglas</strong> <strong>County</strong> School District.<br />

SR Capital Improvements – Project Cost<br />

The capital cost of offsite improvements for internal and external roads,<br />

water and wastewater distribution systems, wastewater connection to the<br />

Englewood / Littleton wastewater treatment plant, civic buildings and<br />

<strong>Douglas</strong> <strong>County</strong> school facilities totals approximately $195 million over<br />

the twenty year build-out.<br />

Based on an assumed market value of $25,000 to $30,000 per unit for<br />

fees to be paid by developers / builders, the Sterling Ranch Metro<br />

District will be at the lower end of the market at slightly over $24,000<br />

per unit. The impact fees provide a significant portion of the<br />

infrastructure cost and are a very reliable, stable source of revenue that is<br />

actually collected before the homes are built and services are needed for<br />

the respective residents.<br />

A total of 35 mills will be collected by the Sterling Ranch Metro District.<br />

Of the 35 mills, 10 will go to the City of Littleton for the first 10,000<br />

residential units and then will be increased to 25 mills thereafter. The SR<br />

Metro District will keep 25 mills for the first 10,000 units and then<br />

reduced to 10 mills thereafter. The combined total sources of revenue<br />

allocated to capital projects is approximately $234 million or 20%<br />

($39 million) greater than the projected cost noted above, allowing<br />

for cost overruns, interest on interim bonding and unforeseen capital<br />

requirements.<br />

SR Capital Improvements- Cost<br />

Estimated Cost:<br />

Sewer Connection 28,000,000<br />

Water distribution 47,820,000<br />

Wastewater distribution 11,462,000<br />

Traffic - Internal 36,293,108<br />

Traffic - External 39,000,000<br />

Civic 5,000,000<br />

School 27,264,600<br />

Total Estimated Cost: 194,839,708<br />

SR Capital Improvements - Revenue<br />

Estimated Revenue:<br />

Impact fees 161,904,000<br />

SR District - base mills (10) 39 ,23 1,94 2<br />

SR District - 15 mills 15 years 33,183,428<br />

Total Estimated Revenue: 234,319,370<br />

Traffic:<br />

� The internal roads and related roadway systems will be paid for by SR through builder fees and minimal<br />

metro district bonding as may be required for timing.<br />

� The direct impact to the external county roads that connect the SR property to the state highway systems<br />

(Wadsworth 121 and Santa Fe 85) caused by the addition of SR residents will be paid for by the SR metro<br />

district.<br />

� Sterling Ranch has established a discussion with <strong>Douglas</strong> <strong>County</strong> to define traffic impact fees as quantified<br />

above. The cost of road improvement to the “external” roads outside of the Project boundaries includes<br />

the impact from both Sterling Ranch residents and projected background traffic from the growth of other<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 4


nearby areas based on the current DRCOG models. Sterling Ranch will continue to work with <strong>Douglas</strong><br />

<strong>County</strong> to finalize an agreement to provide for the cost of impact on county roads caused by the growth of<br />

Sterling Ranch residents.<br />

� Sterling Ranch is also working with CDOT in conjunction with <strong>Douglas</strong> <strong>County</strong> to identify mechanisms<br />

that can support CDOT in the roadway improvements that may be required to the state highway systems as<br />

a result of future growth.<br />

� Sterling Ranch supports transit solutions between significant retail and business centers in Littleton and<br />

the Project, providing a greater capture of the Sterling Ranch resident leakage by Littleton businesses.<br />

Sports Village:<br />

Sterling Ranch is designing a regional destination sports venue for local teams, leagues and tournaments. The<br />

sports village is currently anchored by the Colorado Rush soccer organization and a local baseball organization,<br />

both in existence for over ten years. The Village will provide recreation and entertainment services for all ages.<br />

These recreation facilities will work in unison with the planned retail and lodging components in the adjacent Town<br />

Center as well as an integral component to the neighboring planned high school / middle school campus.<br />

Annual visitors were estimated by Norris Design to be approximately 550,000 for all sports programming. The<br />

existing soccer and baseball organizations alone are currently drawing 229,000 visitors.<br />

Impact of Sterling Ranch Growth on Littleton:<br />

Based on the current estimated population of the City of Littleton plus the projected growth of Sterling Ranch<br />

through maximum build-out, the total population will increase 75.6% over an assumed 20 year build-out, leaving<br />

the Sterling Ranch Population at 43% of the<br />

total estimated 73,737 combined residents at<br />

build-out. This represents an average 3%<br />

growth per year with the highest growth year<br />

being projected at 4.5%.<br />

The projected growth from Sterling Ranch in the<br />

first 5 years is only 9% of the existing Littleton<br />

population and increases to 32% of the current<br />

population over the next 10 years. The full 20<br />

year maximum growth projection shows an<br />

increase of over 75%, however when spread over<br />

time, the annual growth rate of 3% to 4% will<br />

allow the City of Littleton to manage the<br />

foreseeable impacts, provide much needed<br />

financial security with one-time fees collected in excess of $125 million from construction permits and sewer tap<br />

fees, and be able to integrate necessary governmental services, endow cultural resources within Littleton and<br />

strengthen common business interests.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 5


From: Jennifer Riefenberg<br />

To: Steve Koster<br />

Cc: BOCC; Terence T. Quinn; Doug Debord; "ROISIN MC EWEN"; "Dennis Larratt"; "Mary Mansfield"<br />

Subject: Littleton City Council Meeting<br />

Date: Sunday, March 21, 2010 9:19:32 AM<br />

Attachments: 1a.pdf<br />

Steve,<br />

CCA requests that the attached document be added to the Sterling Ranch application file. Information<br />

contained within this document is highly relevant to the application as it contains financial estimations<br />

of the project and costs that help clarify:<br />

1) the applicant is committing NO money of their own to the project;<br />

2) at least $13 million in a special mill levy would be required to meet basic operation costs (see item 7<br />

below), without infrastructure.<br />

3) the Metro District (or districts) would require additional funding (mill levys and/or bonds and/or ??) in<br />

order to fully finance any costs of infrastructure (to the tune of over $234M).<br />

4) internal roads to be paid for via "builder fees" and metro district bonding. The applicant is admittedly,<br />

not a builder, thus there will be additional financial burden on the business undertaking work on the<br />

project.<br />

5) external roads (estimated cost $39 million) are to be borne by the metro district/bonding.<br />

6) The capital improvement costs (aka infrastructure) alone are estimated (by Sterling) to be $194<br />

million with a planned revenue from impact fees (interesting as no one else mentions impact fees), and<br />

mill levys of $234+ million.<br />

7) Sales tax revenues plus property tax revenues ($10M) do not cover even one-half the estimated<br />

($22M) operating costs. "Other" revenue ($5M is presumably from the sewer tap fees collected less<br />

costs of service). Even with this additional revenue source, the development is not close to selffunding.<br />

If the actual Highlands Ranch numbers for sales tax revenue numbers are used ($5.33M<br />

verses modeled $7M) then the cost to taxpayers is worse.<br />

8) And none of this mentions the costs of actual water, only water distribution portion - aka internal<br />

pipes (obviously, they are hoping to get Denver Water via Littleton; however, this water is not free even<br />

if it is available).<br />

Who will be left holding the roughly $250M in financial obligation (bonds/mill levys) to see the<br />

development through?<br />

As you can see from the start, this development is completely reliant on risky financing of mill levys and<br />

special districts funding -- having shown themselves to be disastrous to the <strong>County</strong> in our bond ratings<br />

being dropped due to underfinanced developments.<br />

Additionally, similar to the PD application, there are incorrect and mis-calculated numbers in this report<br />

as well; again, bringing into question the intentions of the information being presented as fact. For an<br />

obvious example, the applicant states in the attached memo that "Sterling Ranch has submitted a PD<br />

zoning application to <strong>Douglas</strong> <strong>County</strong> that provides for approximately 3,406 acres..." when we all know<br />

that the application is for less than 3000 acres (2984). The applicant does state that they have added<br />

160 acres to the PD, which would still only total to 3144 acres. There are other numbers that do not<br />

appear correct nor supportable with the information presented. It is difficult to trust any numbers<br />

presented when simple arithmetic errors are prevalent in all documents provided by the applicant.<br />

Thank you,<br />

Jennifer Riefenberg<br />

From: ROISIN MC EWEN [mailto:roisin@q.com]<br />

Sent: Saturday, March 20, 2010 12:53 PM


Subject: FW: Sterling Ranch<br />

Here is a link that explains annexation by Littleton for your information:<br />

http://www.littletongov.org/comdev/annexation.asp RoisinMcEwen CCA President<br />

From: roisin@q.com<br />

To: Subject: FW: Sterling Ranch<br />

Date: Sat, 20 Mar 2010 02:39:54 +0000<br />

As you can see from this attachment, Littleton City Council is having a work session to<br />

review the feasibility of annexing Sterling Ranch, which Sterling Ranch has been lobbying<br />

for while simultaneously working with <strong>Douglas</strong> <strong>County</strong> for the approval of both their<br />

planned development and water appeal. The Chatfield Community Association urges you<br />

to attend that meeting on March 23rd at 7pm in the Littleton Municipal Building to get a<br />

glimpse of how that possibility would impact you personally and <strong>Douglas</strong> <strong>County</strong> at large.<br />

At this stage there is no opportunity to comment, just observe. Thank you, Roisin<br />

McEwen, CCA President


To: James C. Woods, City Manager<br />

CC: Littleton City Council<br />

From: Christian Gibbons, Director Business/Industry Affairs<br />

Date: March 23, 2010<br />

Re: Sterling Ranch Fiscal Impact Review<br />

J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

Jim, at your request I reviewed the fiscal impact study provided by Sterling Ranch. Following are<br />

my comments.<br />

Background<br />

I initially met with Jim Yates and Patty Silverstein on January 29th to review the first draft of a<br />

fiscal impact study. At that meeting I expressed my approach to reviewing this study. In particular,<br />

I was interested in:<br />

• The big ticket items<br />

• The assumptions used in the multipliers<br />

• Threshold costs i.e. costs that occur suddenly when a threshold is crossed<br />

• Major capital items<br />

At that initial meeting I spent approximately two hours going through the results, asking questions<br />

and laying out an outline for additional information that I thought would be important to city<br />

council. I asked Mr. Yates and Ms. Silverstein to respond to those questions and comments.<br />

Mr. Yates followed up with a formal memo on February 8th. I reviewed that memo noting<br />

significant questions about multipliers and assumptions. I also met with members of the<br />

Development Review Committee to discuss capital items. I also assembled responses from other<br />

affected departments (library and police).<br />

I met again with Mr. Yates and Ms. Silverstein on March 9th to go over these responses as well as<br />

some remaining concerns that our staff expressed. Mr. Yates then resubmitted a final fiscal impact<br />

memo on March 19th addressing those concerns and making changes where suggested.<br />

Commentary<br />

Following are my observations and comments about the fiscal impact report:<br />

1. Both parties agreed that the fiscal impact analysis is a broad brush analysis at this point. Should<br />

the project proceed, we will need a second study at much finer granularity.<br />

2. The current analysis in my opinion fairly reflects the potential revenues and expenses associated<br />

with the proposed project. It uses standard data sources commonly accepted in the profession to<br />

generate estimates of revenues. In areas where multipliers were uncertain, both parties agreed that<br />

Highlands Ranch was a fair model to use.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

3. The proposed project is larger than that approved by <strong>Douglas</strong> <strong>County</strong>. The square footage for<br />

retail, industrial and lodging are all more than the project submitted to <strong>Douglas</strong> <strong>County</strong>. According<br />

to Mr. Yates, this is due to additional acreage added to the original project and a re-calculation of<br />

supportable retail.<br />

4. Sewer tap revenue is not included in the analysis as these revenues will flow into the sewer<br />

enterprise fund, not the general fund. At the current rate of $5,000 per tap, the 12,050 dwelling<br />

units would produce approximately $67 million in revenue, not counting commercial and industrial<br />

taps.<br />

5. The major capital implications for the City of Littleton are a Police sub-station, a Public<br />

Services mini-service center and expansion of the main city hall building for support staff. Sterling<br />

Ranch is proposing to build a “civic center” space in their project which would include a police substation.<br />

Sterling Ranch is also proposing to provide the required number of acres (up to a maximum<br />

of 11 acres) and two existing buildings to serve as a Public Services mini-service center. Sterling<br />

Ranch is not proposing to provide an expansion of the existing city hall.<br />

6. The current city hall (not counting courts, museum, library, service center but counting police<br />

and fire) has 134 employees on site or about 1 employee per 310 residents. Adding another 31,700<br />

residents at this ratio would indicate another 102 employees. Assuming each employee needs 300<br />

gross s.f. of office space, city hall would have to be expanded 30,600 s.f. At a cost of $300/s.f., this<br />

would amount to $9,180,000.<br />

7. Sterling Ranch has indicated that it will provide the following through its own funding<br />

mechanisms: library service, fire protection, streets, water and sewer pipes, parks and recreation,<br />

schools.<br />

8. It is assumed there will be no Community Development functions moved to Sterling Ranch and<br />

that all plan review, building permits, inspectors, etc. will remain in the main city hall.<br />

9. Revenues are broadly classified as:<br />

• Property Tax $3 million (11%)<br />

• Other Revenue $5 million (18%)<br />

• Sales Tax $7 million (25%)<br />

• Special Mill Levy $13 million (46%)<br />

It should be noted that “normal” revenues of $15 million per year at build out are not enough to<br />

cover the estimated $22 million estimated operating expenses. It is the additional $13 million that<br />

comes from the special mill levy that covers this shortfall and provides a $6 million surplus.<br />

These are operating numbers and do not include capital costs. The mini-service center and police<br />

substation are proposed to be built by the developer. The expansion of city hall would be borne by<br />

the citizens of Littleton.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

10. Staff is of the opinion that should council proceed with an annexation the City of Littleton will<br />

need consultants in the area of annexation agreements, land use engineering, a more detailed, and<br />

fiscal impact study as well as plan reviewers and building inspectors. Staff is suggesting Sterling<br />

Ranch pay for this.<br />

Risk Factors<br />

The unknown factors and risks that Council will assume in this project are:<br />

• The project could go under during an economic downturn. Sterling Ranch has indicated that<br />

all infrastructure costs are incremental and paid through impact fees.<br />

• The 800,000 square feet of retail space might not be totally built, thus reducing the estimated<br />

$7 million in annual revenue.<br />

• The expenses of the project in any given year could exceed the revenues and thus be a<br />

negative drag on the city’s budget.<br />

• Sewer rates might increase over the current $5,000 single family tap and slow down or stop<br />

the build out of the project.<br />

While not fiscal impacts, council will have to evaluate these additional considerations:<br />

• The 30,000 residents of the built out project will have approximately 3/7ths of the council<br />

seats. A significant portion of the political decision making will shift south of Chatfield<br />

Lake.<br />

• Statewide ballot initiatives could eliminate one or more current sources of revenue.<br />

A separate memo from the Police Department is attached.<br />

Sterling Ranch's fiscal impact memo is under separate cover.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

Littleton Police Department<br />

Sterling Ranch Proposal<br />

Discussion Points<br />

MEMORANDUM<br />

The Littleton Police Department is vetting the questions and issues regarding the annexation of<br />

the Sterling Ranch Property on public safety and our ability to deliver services. The below items<br />

are the main topics for discussion but is not meant to be a comprehensive list. We will have a<br />

complete analysis for the Study Session.<br />

• The number of years and rate, at which the build out would occur both for commercial and<br />

residential.<br />

• How the build out would impact the demands for service and the type of services required.<br />

• Compare the build out to our experience with Trail mark; both by distance and types of calls<br />

for service.<br />

• Cost analysis of calls against equipment and personnel.<br />

• Driving times and distance: at what point would we need or use a substation.<br />

• Processing arrests in the subdivision and whether the arrestee will need to be processed there<br />

or at LPD, depending on ultimate trip to Castle Rock and <strong>Douglas</strong> <strong>County</strong> jail<br />

• 911 confusion regarding county and city services. If the residents live in Littleton, then their<br />

police services should be Littleton.<br />

• PSAP costs and reimbursement from the 911 authority.<br />

• Traffic issues and impact in the future; 2030. This should be addressed as the build out<br />

occurs and would not impact us for at least the next five years in our opinion.<br />

• The Sante Fe corridor would not be our responsibility as it won’t be in Littleton and we<br />

would not respond to traffic accidents. The impact would exist years later when the build out<br />

impacts the vehicles on the road per day using the Sante Fe corridor.<br />

• Sports Arena- we will need more information about the type, size, and purpose of the facility<br />

as well as the expectations for events and security needs.<br />

• Criminal Filings- both jurisdictions are in <strong>Douglas</strong> <strong>County</strong> so there would be no change in<br />

filing cases in the 18 th Judicial District, albeit may require the paperwork going to <strong>Douglas</strong><br />

<strong>County</strong> office instead of the Potomac office. But this would not be a problem because we<br />

would be closer to the <strong>Douglas</strong> <strong>County</strong> office if called to a crime in Sterling Ranch.<br />

• Municipal Charges would remain in Littleton Courts.<br />

• When a substation is built, it could be a dual purpose building for police and fire.<br />

• Our current ratio is 1.6 officers per thousand. We did not increase our staff with the addition<br />

of Trail mark, Aspen Grove, Home Depot, Lowe’s, the build out completion of South Park or<br />

the addition of two light rail stations.


Date: March 18, 2010<br />

MEMORANDUM<br />

To: Christian Gibbons, Business Industry Affairs Director, City of Littleton<br />

From: James Yates, CFO, Sterling Ranch LLC<br />

Patty Silverstein, Development Research Partners<br />

Subject: Revised Economic Assumptions Summary<br />

GENERAL PROJECT INFORMATION<br />

Acreage<br />

Residential 1,200<br />

Non-R esidential 506<br />

Open Space 1,236<br />

Infrastructure 464<br />

Total 3,406<br />

RESIDENTIAL PROJECT INFORMATION<br />

Residential Acres<br />

Low Density SFD 550<br />

Medium Density SFA 450<br />

Medium Density MF 150<br />

High Density MF 50<br />

Total<br />

Residential Units<br />

1,200<br />

Low Density SFD 5,700<br />

Medium Density SFA 2,150<br />

Medium Density MF 2,300<br />

High Density MF 1,900<br />

Total 12,050<br />

The purpose of this is to provide a brief summary of the<br />

economic impacts of the projected buildout of the Sterling<br />

Ranch Project (“Project”) to the City of Littleton under an<br />

annexation scenario. Sterling Ranch has submitted a PD<br />

zoning application to <strong>Douglas</strong> <strong>County</strong> that provides for<br />

approximately 3,406 acres of residential neighborhoods,<br />

offsite infrastructure, parks, trails and open space. The<br />

mixed use, commercial and retail space includes a 227-acre<br />

town center, 150 acres of educational uses and a 100-acre<br />

sports village.<br />

The total maximum housing units are limited to 12,050<br />

which equates to approximately 3.5 units per acre across the<br />

entire site. The homes will be a mix of high density multifamily,<br />

medium density attached and low density detached<br />

products. Based on maximum build-out and proposed<br />

product mix, the total residents within Sterling Ranch is<br />

31,700.<br />

Financial Summary<br />

The Sterling Ranch Financial Model at build-out (“SR Model”) is based on conservative assumptions for starting,<br />

developing and building out the project. Substantially all material assumptions are tied to the timing of home sales<br />

and related construction. This allows the cost of City service to be directly tied to the number of residents as they<br />

are actually moved into homes within<br />

Sterling Ranch and does not require upfront<br />

costs based on artificial thresholds. During<br />

the 20 year build-out, the revenue from<br />

one-time construction permit fees,<br />

property taxes and other revenues<br />

exceed the projected costs to service the<br />

residents in each individual year without<br />

a single deficit year. Additionally, the SR<br />

Model as presented relies on a balance of<br />

property tax revenue plus retail tax revenue<br />

that provides a more stable source of<br />

revenue which is tied directly to home<br />

values and not solely on resident spending<br />

habits. Although retail taxes are a very<br />

important component of the SR Model, the<br />

Littleton:<br />

Amount over<br />

20 Year<br />

Buildout<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com<br />

Annual<br />

Amount at<br />

Buildout<br />

Revenue sources to Littleton:<br />

Sales / Use Taxes 113,725,357 7,234,787<br />

Littleton Property Tax 27,196,587 2,983,872<br />

Other: taxes, fees, fines, permits, charges for services, intergo 45,685,169 4,888,064<br />

Mills Dedicated to Littleton from SR District 81,747,113 13,188,660<br />

Total 268,354,226 28,295,384<br />

Cost of Services - Total Littleton Budget:<br />

Determined by number of SR residents times 5 year avg 205,428,879 21,979,772<br />

Total 205,428,879 21,979,772<br />

Net Surplus (Deficit) $62,925,347 $6,315,612<br />

Per existing Littleton Resident (population of 40,000) $1,573 $158


higher combined mill levy allows conservative assumptions for retail spending patterns in both timing and quantity.<br />

The estimated total annual revenues exceed the estimated total annual costs by almost 29% of the estimated<br />

cost, allowing for deviances in the estimates and in timing of expenditures.<br />

Retail Revenue Assumptions<br />

During the months of February and March 2010, Patty Silverstein and Sterling Ranch met with Chris Gibbons to<br />

review the underlying assumptions related to the revenue generated by the Project during and subsequent to buildout<br />

as well as the cost of providing service to the new residents. Numerous retail sales tax assumptions within the<br />

Sterling Ranch Financial Model were discussed and generally agreed upon to be either conservative or reasonable.<br />

The following is a list of general assumptions, sources of data and discussion with Mr. Gibbons on key areas:<br />

� Retail space within the SR Model is calculated at<br />

25.2 square feet per capita, based on 800,000 total<br />

feet of retail space for approximately 31,700<br />

residents. The SR Model calculation was based on<br />

CoStar data from 2007 that shows Littleton with 65<br />

square feet per capita, the Denver Metro Average<br />

with 52 square feet per capita and Highlands Ranch<br />

with 27 square feet per capita. Based on the<br />

surrounding municipalities, the average of 25 square<br />

feet per capita is conservative and consistent with<br />

neighboring Highlands Ranch.<br />

� Retail leakage methodologies varied between the<br />

approach used by Development Research Partners<br />

and the typical methodology used by the City of<br />

Littleton. In comparing the two approaches, Sterling<br />

Ranch determined the total square footage by using<br />

the 25.2 square feet per capita average times the<br />

projected residents to arrive at a conservative<br />

800,000 square feet of retail required. SR then<br />

calculated the retail sales by multiplying the total<br />

square feet times the taxable sales and occupancy<br />

rates. This retail sales tax per square foot approach<br />

is a “top down” approach utilized prior to a detailed<br />

analysis of the commercial mix within a project.<br />

Retail Sales per Square Foot Methodology<br />

Total square footage 800,000<br />

Taxable sales 70.0%<br />

Occupancy Rate 96.0%<br />

Retail Sales per Square Foot $340<br />

Total Annual Retail Sales at build-out $182,784,000<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $5,483,520<br />

Retail Sales Capture Methodology<br />

Total Number of Households 12,050<br />

Average Household Income $75,695<br />

Percent Taxable Sales 39.7%<br />

Capture (total less leakage) 50.0%<br />

Total Annual Retail Sales at build-out $181,055,612<br />

Additional Retail Sales from Visitors $12,758,440<br />

Additional Retail Sales from Businesses $10,000,000<br />

Total Taxable Retail Sales $203,814,052<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $6,114,422<br />

The City of Littleton requested that Sterling Ranch also calculate the retail sales based on household income,<br />

taxable sales and local capture rates, a “bottom up” approach. Based on these factors, the SR Model<br />

utilized an average household income of $75,695, which is comparable to Littleton and lower than the<br />

<strong>Douglas</strong> <strong>County</strong> average of over $98,871. The percent of household income spent on taxable sales of<br />

39.7% is considered reasonable and consistent with Littleton. The SR Model used 50% as a conservative<br />

capture rate to show the likely outcome. Highlands Ranch currently has a very low capture rate of 43.6%<br />

through 2008, whereas <strong>Douglas</strong> <strong>County</strong> has a higher capture rate of 71.6%, with Littleton somewhere in<br />

between the two. Although Sterling Ranch is similar to Highlands Ranch in many ways, a 50% capture rate<br />

was used because the design of the Project will have pockets of higher density around open space that will<br />

be conducive to internal buying and the physical location is less convenient to local regional malls.<br />

If the Highlands Ranch capture rate of 43.6% is utilized in the calculation above, the projected sales tax in the<br />

Littleton model would decrease to $5.4 million or approximately $700,000, approximately equal to the SR<br />

Model. However, if the household income and capture rates are equal to the <strong>Douglas</strong> <strong>County</strong> Averages, the<br />

sales tax revenue increases to almost $8.5 million, approximately $3 million higher than the SR Model.<br />

� Hotels within the SR Model total 335,000 square feet, creating 500 rooms, supported by visitor traffic from<br />

the sports village, local residents at build-out and the potential business travelers from nearby employment<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 2


sites. The assumptions related to the occupancy rates and hotel rates, including non hotel related spending<br />

was very conservative in the SR Model as the net sales tax revenue was less than $330,000 annually after<br />

build-out. This was determined to be a low risk variable as the total annual amount was not material to the<br />

Project as a whole.<br />

� The retail sales per square foot within the SR Model is $340 per foot and the floor to area ratio (FAR) is<br />

.245.<br />

� Current Office, Hospital, Sports Complex and<br />

Educational uses have not changed from the <strong>Douglas</strong><br />

<strong>County</strong> model. Additional flex/light industrial<br />

space was added to the financial model due to the<br />

addition of 160 acres adjacent to Moore road. The<br />

retail/lodging was increased to reflect the increase<br />

in sports village acreage and the addition of the<br />

Village Center South and Village Center West,<br />

neighborhood retail centers within the Project.<br />

The change in retail square feet brought the square<br />

feet per capita to a level slightly below neighboring<br />

Highlands Ranch.<br />

Littleton DC Zoning<br />

Non-Residential SF Model Application<br />

Office 800,000 800,000<br />

Hospital 150,000 150,000<br />

Flex/Light Industrial 800,000 248,000<br />

Retail 800,000 400,000<br />

Lodging 335,000 200,000<br />

Sports Complex 230,000 230,000<br />

Educational Use 653,400 653,400<br />

Total 3,768,400 2,681,400<br />

Littleton Project Cost:<br />

Project costs were only discussed and evaluated at a very high level, identifying those costs that would be triggered<br />

by thresholds and would be material to the Project or the City of Littleton as a whole. Significant additional work<br />

will need to be completed in this area. Capital costs specific to the Project and the related source of revenue is<br />

discussed below.<br />

� Fire Services will be provided by the fire district that the Project is currently located in at the request of the<br />

City of Littleton for financial modeling purposes. Sterling Ranch had allocated approximately 10 mills<br />

for fire protection within the SR Model and will apply those funds to the appropriate fire district upon final<br />

decision.<br />

� Police Services will be provided by the City of Littleton. Upon preliminary assessment, a substation type<br />

facility with secure access will be required. The size and specifications to be determined. Sterling Ranch<br />

will provide sufficient space within the town center civic building.<br />

� Public Service has requested sufficient land dedication and appropriate zoning for outdoor storage of road<br />

surface materials, vehicle storage and potential maintenance facilities.<br />

� Water Service will be negotiated with Denver Water or other provider as may be required and will be a net<br />

zero economic impact to the City of Littleton for modeling purposes.<br />

� Wastewater Service will be provided by the Littleton/Englewood Wastewater Treatment Plant at the<br />

current market rate for both taps and ongoing treatment at the time of use.<br />

Additional Financial Model Assumptions<br />

The SR Model assumes a combination of revenue sources compared to an average cost of service per capita based<br />

on the City of Littleton 2010 Budget General Fund. Adjustments were made to exclude library services and fire<br />

protection from both the revenue side (included in the additional mill dedication from Sterling Ranch to Littleton)<br />

and the cost side (removed the library and fire protection costs from the general budget).<br />

� Mill Levy will be dedicated to the City of Littleton in two increments: the first is the base mill levy that is<br />

currently paid by the residents of Littleton of 6.662 mills; and the second is an incremental mill levy that<br />

will be paid to the City of Littleton. 10 mills during the construction phase of the internal infrastructure of<br />

the Project (the first 10,000 residential units) and then increased to 25 mills thereafter.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 3


� Other taxes, fees, permits, charges for services and intergovernmental revenue is included in the<br />

preliminary analysis since the full cost of providing all general fund services (less fire and library) is<br />

included in the cost per capita calculation. Once a more detailed analysis of the actual cost is determined,<br />

the revenue will be adjusted accordingly. Sufficient surplus is provided within the budget to allow for<br />

adjustments.<br />

� Sewer tap fees were calculated on a single family equivalent (“SFE”) unit basis to provide for commercial<br />

units as well as residential. A total of 13,451 SFE’s was utilized in the SR Model and equates to $67.255<br />

million. This amount will change based on the cost of tap at the time of sale, the actual number of<br />

residential units, mix of units and commercial activity.<br />

� Retail development is projected to start the first 99,000 square feet after the first 2,250 homes are sold and<br />

built. The first 2,250 homes would add approximately 4,000 residents, assuming approximately 25 square<br />

feet per capita. It is anticipated that the initial phases will include convenience and sports related retail.<br />

� The commercial, flex space and light industrial opportunities will allow Littleton to grow its existing<br />

businesses within Sterling Ranch due to the available land while maintaining control of the land use, taxes<br />

generated and employment opportunities.<br />

� Emergency care services built in Sterling Ranch will provide much needed support to the Chatfield Valley<br />

area.<br />

� A school impact fee will be collected by the <strong>Douglas</strong> <strong>County</strong> School District on each lot which will be used<br />

to help pay for the cost to construct new schools within Sterling Ranch. The number of schools will be<br />

determined by the <strong>Douglas</strong> <strong>County</strong> School District.<br />

SR Capital Improvements – Project Cost<br />

The capital cost of offsite improvements for internal and external roads,<br />

water and wastewater distribution systems, wastewater connection to the<br />

Englewood / Littleton wastewater treatment plant, civic buildings and<br />

<strong>Douglas</strong> <strong>County</strong> school facilities totals approximately $195 million over<br />

the twenty year build-out.<br />

Based on an assumed market value of $25,000 to $30,000 per unit for<br />

fees to be paid by developers / builders, the Sterling Ranch Metro<br />

District will be at the lower end of the market at slightly over $24,000<br />

per unit. The impact fees provide a significant portion of the<br />

infrastructure cost and are a very reliable, stable source of revenue that is<br />

actually collected before the homes are built and services are needed for<br />

the respective residents.<br />

A total of 35 mills will be collected by the Sterling Ranch Metro District.<br />

Of the 35 mills, 10 will go to the City of Littleton for the first 10,000<br />

residential units and then will be increased to 25 mills thereafter. The SR<br />

Metro District will keep 25 mills for the first 10,000 units and then<br />

reduced to 10 mills thereafter. The combined total sources of revenue<br />

allocated to capital projects is approximately $234 million or 20%<br />

($39 million) greater than the projected cost noted above, allowing<br />

for cost overruns, interest on interim bonding and unforeseen capital<br />

requirements.<br />

SR Capital Improvements- Cost<br />

Estimated Cost:<br />

Sewer Connection 28,000,000<br />

Water distribution 47,820,000<br />

Wastewater distribution 11,462,000<br />

Traffic - Internal 36,293,108<br />

Traffic - External 39,000,000<br />

Civic 5,000,000<br />

School 27,264,600<br />

Total Estimated Cost: 194,839,708<br />

SR Capital Improvements - Revenue<br />

Estimated Revenue:<br />

Impact fees 161,904,000<br />

SR District - base mills (10) 39 ,23 1,94 2<br />

SR District - 15 mills 15 years 33,183,428<br />

Total Estimated Revenue: 234,319,370<br />

Traffic:<br />

� The internal roads and related roadway systems will be paid for by SR through builder fees and minimal<br />

metro district bonding as may be required for timing.<br />

� The direct impact to the external county roads that connect the SR property to the state highway systems<br />

(Wadsworth 121 and Santa Fe 85) caused by the addition of SR residents will be paid for by the SR metro<br />

district.<br />

� Sterling Ranch has established a discussion with <strong>Douglas</strong> <strong>County</strong> to define traffic impact fees as quantified<br />

above. The cost of road improvement to the “external” roads outside of the Project boundaries includes<br />

the impact from both Sterling Ranch residents and projected background traffic from the growth of other<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 4


nearby areas based on the current DRCOG models. Sterling Ranch will continue to work with <strong>Douglas</strong><br />

<strong>County</strong> to finalize an agreement to provide for the cost of impact on county roads caused by the growth of<br />

Sterling Ranch residents.<br />

� Sterling Ranch is also working with CDOT in conjunction with <strong>Douglas</strong> <strong>County</strong> to identify mechanisms<br />

that can support CDOT in the roadway improvements that may be required to the state highway systems as<br />

a result of future growth.<br />

� Sterling Ranch supports transit solutions between significant retail and business centers in Littleton and<br />

the Project, providing a greater capture of the Sterling Ranch resident leakage by Littleton businesses.<br />

Sports Village:<br />

Sterling Ranch is designing a regional destination sports venue for local teams, leagues and tournaments. The<br />

sports village is currently anchored by the Colorado Rush soccer organization and a local baseball organization,<br />

both in existence for over ten years. The Village will provide recreation and entertainment services for all ages.<br />

These recreation facilities will work in unison with the planned retail and lodging components in the adjacent Town<br />

Center as well as an integral component to the neighboring planned high school / middle school campus.<br />

Annual visitors were estimated by Norris Design to be approximately 550,000 for all sports programming. The<br />

existing soccer and baseball organizations alone are currently drawing 229,000 visitors.<br />

Impact of Sterling Ranch Growth on Littleton:<br />

Based on the current estimated population of the City of Littleton plus the projected growth of Sterling Ranch<br />

through maximum build-out, the total population will increase 75.6% over an assumed 20 year build-out, leaving<br />

the Sterling Ranch Population at 43% of the<br />

total estimated 73,737 combined residents at<br />

build-out. This represents an average 3%<br />

growth per year with the highest growth year<br />

being projected at 4.5%.<br />

The projected growth from Sterling Ranch in the<br />

first 5 years is only 9% of the existing Littleton<br />

population and increases to 32% of the current<br />

population over the next 10 years. The full 20<br />

year maximum growth projection shows an<br />

increase of over 75%, however when spread over<br />

time, the annual growth rate of 3% to 4% will<br />

allow the City of Littleton to manage the<br />

foreseeable impacts, provide much needed<br />

financial security with one-time fees collected in excess of $125 million from construction permits and sewer tap<br />

fees, and be able to integrate necessary governmental services, endow cultural resources within Littleton and<br />

strengthen common business interests.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 5


From: Jennifer Riefenberg<br />

To: Steve Koster<br />

Subject: One tiny bit more info...<br />

Date: Sunday, March 21, 2010 9:31:50 AM<br />

On other "minor" note: the sales tax figures presented in the Littleton City Council document assume a<br />

3% sales tax rate (City of Littleton) which is higher than the county sales tax rate of (I believe) 1%.<br />

The $5.33M and/or $7M number from sales tax drops further to $1.6M and $2.33M, respectively.<br />

Thanks,<br />

Jennifer Riefenberg


From: Doug Debord<br />

To: Steve Koster<br />

Subject: FW: 1 of 2 Sterling Ranch information<br />

Date: Monday, March 22, 2010 6:03:16 PM<br />

Attachments: 0A7A7A95D9664C369CC42F901A970D63.jpeg<br />

From: Mark Baisley [mailto:mark@baisley.org]<br />

Sent: Sunday, March 21, 2010 1:03 PM<br />

To: Doug Debord<br />

Subject: 1 of 2 Sterling Ranch information<br />

<strong>County</strong> Manager DeBord,<br />

Please include the following public email from the City of Littleton into the land use<br />

application related to Sterling Ranch, to be conveyed to the Commissioners and included in<br />

public hearings.<br />

Thank you,<br />

Mark Baisley<br />

Roxborough Park resident<br />

Begin forwarded message:<br />

From: "Mulvey F. J." <br />

Date: March 20, 2010 3:53:07 PM MDT<br />

To: "Matthews L) Steve" <br />

Subject: Fwd: Annexation of Sterling Ranch into the City of Littleton<br />

Everyone,<br />

Herewith please find materials given to Littleton City Council for their discussion with<br />

Sterling Ranch developers regarding annexation of Sterling Ranch into Littleton. If<br />

you don't have time to review all 4 memos may I suggest reading Chris Gibbons'<br />

memo on the financial impact as the most important to read. (The other three memos<br />

are from LPD, Sterling Ranch and City Manager Jim Woods)<br />

This meeting will be held next Tuesday, March 23 in Council Chambers. I urge you to<br />

attend to learn more.


From: Doug Debord<br />

To: Steve Koster<br />

Subject: FW: 2 of 2 Sterling Ranch information<br />

Date: Monday, March 22, 2010 6:03:09 PM<br />

Attachments: A4D2E910A836496F971F7D01C2EB3D73.jpeg<br />

39280CDF83534056BE18E73FA2E84F7D.jpeg<br />

B7B11277488743A3853F38E88EA62E7C.jpeg<br />

From: Mark Baisley [mailto:mark@baisley.org]<br />

Sent: Sunday, March 21, 2010 1:03 PM<br />

To: Doug Debord<br />

Subject: 2 of 2 Sterling Ranch information<br />

<strong>County</strong> Manager DeBord,<br />

Please also include the following public email from the City of Littleton into the land use application related to Sterling Ranch, to<br />

be conveyed to the Commissioners and included in public hearings.<br />

Thank you,<br />

Mark Baisley<br />

Roxborough Park resident<br />

Begin forwarded message:<br />

From: "Mulvey F. J." <br />

Date: March 20, 2010 5:48:01 PM MDT<br />

To: "McElhaney L) Terry Terry L)" <br />

Subject: Fwd: Gibbons Memo on Annexation to City of Littleton


From: Tracy Stabrava<br />

To: Steve Koster<br />

Subject: Sterling Ranch Littleton Annexation Study<br />

Date: Sunday, March 21, 2010 5:22:53 PM<br />

Attachments: 1a.pdf<br />

Can you comment on how the county process and the city process work and what this means. Sterling<br />

has a different proposal with different # in front of Littleton. Who takes precedence and who has to be<br />

approved first. also what has happened on the water appeal as I can't find updated information on the<br />

website. Thanks Steve.


To: James C. Woods, City Manager<br />

CC: Littleton City Council<br />

From: Christian Gibbons, Director Business/Industry Affairs<br />

Date: March 23, 2010<br />

Re: Sterling Ranch Fiscal Impact Review<br />

J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

Jim, at your request I reviewed the fiscal impact study provided by Sterling Ranch. Following are<br />

my comments.<br />

Background<br />

I initially met with Jim Yates and Patty Silverstein on January 29th to review the first draft of a<br />

fiscal impact study. At that meeting I expressed my approach to reviewing this study. In particular,<br />

I was interested in:<br />

• The big ticket items<br />

• The assumptions used in the multipliers<br />

• Threshold costs i.e. costs that occur suddenly when a threshold is crossed<br />

• Major capital items<br />

At that initial meeting I spent approximately two hours going through the results, asking questions<br />

and laying out an outline for additional information that I thought would be important to city<br />

council. I asked Mr. Yates and Ms. Silverstein to respond to those questions and comments.<br />

Mr. Yates followed up with a formal memo on February 8th. I reviewed that memo noting<br />

significant questions about multipliers and assumptions. I also met with members of the<br />

Development Review Committee to discuss capital items. I also assembled responses from other<br />

affected departments (library and police).<br />

I met again with Mr. Yates and Ms. Silverstein on March 9th to go over these responses as well as<br />

some remaining concerns that our staff expressed. Mr. Yates then resubmitted a final fiscal impact<br />

memo on March 19th addressing those concerns and making changes where suggested.<br />

Commentary<br />

Following are my observations and comments about the fiscal impact report:<br />

1. Both parties agreed that the fiscal impact analysis is a broad brush analysis at this point. Should<br />

the project proceed, we will need a second study at much finer granularity.<br />

2. The current analysis in my opinion fairly reflects the potential revenues and expenses associated<br />

with the proposed project. It uses standard data sources commonly accepted in the profession to<br />

generate estimates of revenues. In areas where multipliers were uncertain, both parties agreed that<br />

Highlands Ranch was a fair model to use.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

3. The proposed project is larger than that approved by <strong>Douglas</strong> <strong>County</strong>. The square footage for<br />

retail, industrial and lodging are all more than the project submitted to <strong>Douglas</strong> <strong>County</strong>. According<br />

to Mr. Yates, this is due to additional acreage added to the original project and a re-calculation of<br />

supportable retail.<br />

4. Sewer tap revenue is not included in the analysis as these revenues will flow into the sewer<br />

enterprise fund, not the general fund. At the current rate of $5,000 per tap, the 12,050 dwelling<br />

units would produce approximately $67 million in revenue, not counting commercial and industrial<br />

taps.<br />

5. The major capital implications for the City of Littleton are a Police sub-station, a Public<br />

Services mini-service center and expansion of the main city hall building for support staff. Sterling<br />

Ranch is proposing to build a “civic center” space in their project which would include a police substation.<br />

Sterling Ranch is also proposing to provide the required number of acres (up to a maximum<br />

of 11 acres) and two existing buildings to serve as a Public Services mini-service center. Sterling<br />

Ranch is not proposing to provide an expansion of the existing city hall.<br />

6. The current city hall (not counting courts, museum, library, service center but counting police<br />

and fire) has 134 employees on site or about 1 employee per 310 residents. Adding another 31,700<br />

residents at this ratio would indicate another 102 employees. Assuming each employee needs 300<br />

gross s.f. of office space, city hall would have to be expanded 30,600 s.f. At a cost of $300/s.f., this<br />

would amount to $9,180,000.<br />

7. Sterling Ranch has indicated that it will provide the following through its own funding<br />

mechanisms: library service, fire protection, streets, water and sewer pipes, parks and recreation,<br />

schools.<br />

8. It is assumed there will be no Community Development functions moved to Sterling Ranch and<br />

that all plan review, building permits, inspectors, etc. will remain in the main city hall.<br />

9. Revenues are broadly classified as:<br />

• Property Tax $3 million (11%)<br />

• Other Revenue $5 million (18%)<br />

• Sales Tax $7 million (25%)<br />

• Special Mill Levy $13 million (46%)<br />

It should be noted that “normal” revenues of $15 million per year at build out are not enough to<br />

cover the estimated $22 million estimated operating expenses. It is the additional $13 million that<br />

comes from the special mill levy that covers this shortfall and provides a $6 million surplus.<br />

These are operating numbers and do not include capital costs. The mini-service center and police<br />

substation are proposed to be built by the developer. The expansion of city hall would be borne by<br />

the citizens of Littleton.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

MEMORANDUM<br />

10. Staff is of the opinion that should council proceed with an annexation the City of Littleton will<br />

need consultants in the area of annexation agreements, land use engineering, a more detailed, and<br />

fiscal impact study as well as plan reviewers and building inspectors. Staff is suggesting Sterling<br />

Ranch pay for this.<br />

Risk Factors<br />

The unknown factors and risks that Council will assume in this project are:<br />

• The project could go under during an economic downturn. Sterling Ranch has indicated that<br />

all infrastructure costs are incremental and paid through impact fees.<br />

• The 800,000 square feet of retail space might not be totally built, thus reducing the estimated<br />

$7 million in annual revenue.<br />

• The expenses of the project in any given year could exceed the revenues and thus be a<br />

negative drag on the city’s budget.<br />

• Sewer rates might increase over the current $5,000 single family tap and slow down or stop<br />

the build out of the project.<br />

While not fiscal impacts, council will have to evaluate these additional considerations:<br />

• The 30,000 residents of the built out project will have approximately 3/7ths of the council<br />

seats. A significant portion of the political decision making will shift south of Chatfield<br />

Lake.<br />

• Statewide ballot initiatives could eliminate one or more current sources of revenue.<br />

A separate memo from the Police Department is attached.<br />

Sterling Ranch's fiscal impact memo is under separate cover.


J:\Clerk\Agenda Packets\2010\03-23-10\1a att 1.docx<br />

Littleton Police Department<br />

Sterling Ranch Proposal<br />

Discussion Points<br />

MEMORANDUM<br />

The Littleton Police Department is vetting the questions and issues regarding the annexation of<br />

the Sterling Ranch Property on public safety and our ability to deliver services. The below items<br />

are the main topics for discussion but is not meant to be a comprehensive list. We will have a<br />

complete analysis for the Study Session.<br />

• The number of years and rate, at which the build out would occur both for commercial and<br />

residential.<br />

• How the build out would impact the demands for service and the type of services required.<br />

• Compare the build out to our experience with Trail mark; both by distance and types of calls<br />

for service.<br />

• Cost analysis of calls against equipment and personnel.<br />

• Driving times and distance: at what point would we need or use a substation.<br />

• Processing arrests in the subdivision and whether the arrestee will need to be processed there<br />

or at LPD, depending on ultimate trip to Castle Rock and <strong>Douglas</strong> <strong>County</strong> jail<br />

• 911 confusion regarding county and city services. If the residents live in Littleton, then their<br />

police services should be Littleton.<br />

• PSAP costs and reimbursement from the 911 authority.<br />

• Traffic issues and impact in the future; 2030. This should be addressed as the build out<br />

occurs and would not impact us for at least the next five years in our opinion.<br />

• The Sante Fe corridor would not be our responsibility as it won’t be in Littleton and we<br />

would not respond to traffic accidents. The impact would exist years later when the build out<br />

impacts the vehicles on the road per day using the Sante Fe corridor.<br />

• Sports Arena- we will need more information about the type, size, and purpose of the facility<br />

as well as the expectations for events and security needs.<br />

• Criminal Filings- both jurisdictions are in <strong>Douglas</strong> <strong>County</strong> so there would be no change in<br />

filing cases in the 18 th Judicial District, albeit may require the paperwork going to <strong>Douglas</strong><br />

<strong>County</strong> office instead of the Potomac office. But this would not be a problem because we<br />

would be closer to the <strong>Douglas</strong> <strong>County</strong> office if called to a crime in Sterling Ranch.<br />

• Municipal Charges would remain in Littleton Courts.<br />

• When a substation is built, it could be a dual purpose building for police and fire.<br />

• Our current ratio is 1.6 officers per thousand. We did not increase our staff with the addition<br />

of Trail mark, Aspen Grove, Home Depot, Lowe’s, the build out completion of South Park or<br />

the addition of two light rail stations.


Date: March 18, 2010<br />

MEMORANDUM<br />

To: Christian Gibbons, Business Industry Affairs Director, City of Littleton<br />

From: James Yates, CFO, Sterling Ranch LLC<br />

Patty Silverstein, Development Research Partners<br />

Subject: Revised Economic Assumptions Summary<br />

GENERAL PROJECT INFORMATION<br />

Acreage<br />

Residential 1,200<br />

Non-R esidential 506<br />

Open Space 1,236<br />

Infrastructure 464<br />

Total 3,406<br />

RESIDENTIAL PROJECT INFORMATION<br />

Residential Acres<br />

Low Density SFD 550<br />

Medium Density SFA 450<br />

Medium Density MF 150<br />

High Density MF 50<br />

Total<br />

Residential Units<br />

1,200<br />

Low Density SFD 5,700<br />

Medium Density SFA 2,150<br />

Medium Density MF 2,300<br />

High Density MF 1,900<br />

Total 12,050<br />

The purpose of this is to provide a brief summary of the<br />

economic impacts of the projected buildout of the Sterling<br />

Ranch Project (“Project”) to the City of Littleton under an<br />

annexation scenario. Sterling Ranch has submitted a PD<br />

zoning application to <strong>Douglas</strong> <strong>County</strong> that provides for<br />

approximately 3,406 acres of residential neighborhoods,<br />

offsite infrastructure, parks, trails and open space. The<br />

mixed use, commercial and retail space includes a 227-acre<br />

town center, 150 acres of educational uses and a 100-acre<br />

sports village.<br />

The total maximum housing units are limited to 12,050<br />

which equates to approximately 3.5 units per acre across the<br />

entire site. The homes will be a mix of high density multifamily,<br />

medium density attached and low density detached<br />

products. Based on maximum build-out and proposed<br />

product mix, the total residents within Sterling Ranch is<br />

31,700.<br />

Financial Summary<br />

The Sterling Ranch Financial Model at build-out (“SR Model”) is based on conservative assumptions for starting,<br />

developing and building out the project. Substantially all material assumptions are tied to the timing of home sales<br />

and related construction. This allows the cost of City service to be directly tied to the number of residents as they<br />

are actually moved into homes within<br />

Sterling Ranch and does not require upfront<br />

costs based on artificial thresholds. During<br />

the 20 year build-out, the revenue from<br />

one-time construction permit fees,<br />

property taxes and other revenues<br />

exceed the projected costs to service the<br />

residents in each individual year without<br />

a single deficit year. Additionally, the SR<br />

Model as presented relies on a balance of<br />

property tax revenue plus retail tax revenue<br />

that provides a more stable source of<br />

revenue which is tied directly to home<br />

values and not solely on resident spending<br />

habits. Although retail taxes are a very<br />

important component of the SR Model, the<br />

Littleton:<br />

Amount over<br />

20 Year<br />

Buildout<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com<br />

Annual<br />

Amount at<br />

Buildout<br />

Revenue sources to Littleton:<br />

Sales / Use Taxes 113,725,357 7,234,787<br />

Littleton Property Tax 27,196,587 2,983,872<br />

Other: taxes, fees, fines, permits, charges for services, intergo 45,685,169 4,888,064<br />

Mills Dedicated to Littleton from SR District 81,747,113 13,188,660<br />

Total 268,354,226 28,295,384<br />

Cost of Services - Total Littleton Budget:<br />

Determined by number of SR residents times 5 year avg 205,428,879 21,979,772<br />

Total 205,428,879 21,979,772<br />

Net Surplus (Deficit) $62,925,347 $6,315,612<br />

Per existing Littleton Resident (population of 40,000) $1,573 $158


higher combined mill levy allows conservative assumptions for retail spending patterns in both timing and quantity.<br />

The estimated total annual revenues exceed the estimated total annual costs by almost 29% of the estimated<br />

cost, allowing for deviances in the estimates and in timing of expenditures.<br />

Retail Revenue Assumptions<br />

During the months of February and March 2010, Patty Silverstein and Sterling Ranch met with Chris Gibbons to<br />

review the underlying assumptions related to the revenue generated by the Project during and subsequent to buildout<br />

as well as the cost of providing service to the new residents. Numerous retail sales tax assumptions within the<br />

Sterling Ranch Financial Model were discussed and generally agreed upon to be either conservative or reasonable.<br />

The following is a list of general assumptions, sources of data and discussion with Mr. Gibbons on key areas:<br />

� Retail space within the SR Model is calculated at<br />

25.2 square feet per capita, based on 800,000 total<br />

feet of retail space for approximately 31,700<br />

residents. The SR Model calculation was based on<br />

CoStar data from 2007 that shows Littleton with 65<br />

square feet per capita, the Denver Metro Average<br />

with 52 square feet per capita and Highlands Ranch<br />

with 27 square feet per capita. Based on the<br />

surrounding municipalities, the average of 25 square<br />

feet per capita is conservative and consistent with<br />

neighboring Highlands Ranch.<br />

� Retail leakage methodologies varied between the<br />

approach used by Development Research Partners<br />

and the typical methodology used by the City of<br />

Littleton. In comparing the two approaches, Sterling<br />

Ranch determined the total square footage by using<br />

the 25.2 square feet per capita average times the<br />

projected residents to arrive at a conservative<br />

800,000 square feet of retail required. SR then<br />

calculated the retail sales by multiplying the total<br />

square feet times the taxable sales and occupancy<br />

rates. This retail sales tax per square foot approach<br />

is a “top down” approach utilized prior to a detailed<br />

analysis of the commercial mix within a project.<br />

Retail Sales per Square Foot Methodology<br />

Total square footage 800,000<br />

Taxable sales 70.0%<br />

Occupancy Rate 96.0%<br />

Retail Sales per Square Foot $340<br />

Total Annual Retail Sales at build-out $182,784,000<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $5,483,520<br />

Retail Sales Capture Methodology<br />

Total Number of Households 12,050<br />

Average Household Income $75,695<br />

Percent Taxable Sales 39.7%<br />

Capture (total less leakage) 50.0%<br />

Total Annual Retail Sales at build-out $181,055,612<br />

Additional Retail Sales from Visitors $12,758,440<br />

Additional Retail Sales from Businesses $10,000,000<br />

Total Taxable Retail Sales $203,814,052<br />

City of Littleton Tax Rate 3.0%<br />

Projected Sales Tax - Littleton $6,114,422<br />

The City of Littleton requested that Sterling Ranch also calculate the retail sales based on household income,<br />

taxable sales and local capture rates, a “bottom up” approach. Based on these factors, the SR Model<br />

utilized an average household income of $75,695, which is comparable to Littleton and lower than the<br />

<strong>Douglas</strong> <strong>County</strong> average of over $98,871. The percent of household income spent on taxable sales of<br />

39.7% is considered reasonable and consistent with Littleton. The SR Model used 50% as a conservative<br />

capture rate to show the likely outcome. Highlands Ranch currently has a very low capture rate of 43.6%<br />

through 2008, whereas <strong>Douglas</strong> <strong>County</strong> has a higher capture rate of 71.6%, with Littleton somewhere in<br />

between the two. Although Sterling Ranch is similar to Highlands Ranch in many ways, a 50% capture rate<br />

was used because the design of the Project will have pockets of higher density around open space that will<br />

be conducive to internal buying and the physical location is less convenient to local regional malls.<br />

If the Highlands Ranch capture rate of 43.6% is utilized in the calculation above, the projected sales tax in the<br />

Littleton model would decrease to $5.4 million or approximately $700,000, approximately equal to the SR<br />

Model. However, if the household income and capture rates are equal to the <strong>Douglas</strong> <strong>County</strong> Averages, the<br />

sales tax revenue increases to almost $8.5 million, approximately $3 million higher than the SR Model.<br />

� Hotels within the SR Model total 335,000 square feet, creating 500 rooms, supported by visitor traffic from<br />

the sports village, local residents at build-out and the potential business travelers from nearby employment<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 2


sites. The assumptions related to the occupancy rates and hotel rates, including non hotel related spending<br />

was very conservative in the SR Model as the net sales tax revenue was less than $330,000 annually after<br />

build-out. This was determined to be a low risk variable as the total annual amount was not material to the<br />

Project as a whole.<br />

� The retail sales per square foot within the SR Model is $340 per foot and the floor to area ratio (FAR) is<br />

.245.<br />

� Current Office, Hospital, Sports Complex and<br />

Educational uses have not changed from the <strong>Douglas</strong><br />

<strong>County</strong> model. Additional flex/light industrial<br />

space was added to the financial model due to the<br />

addition of 160 acres adjacent to Moore road. The<br />

retail/lodging was increased to reflect the increase<br />

in sports village acreage and the addition of the<br />

Village Center South and Village Center West,<br />

neighborhood retail centers within the Project.<br />

The change in retail square feet brought the square<br />

feet per capita to a level slightly below neighboring<br />

Highlands Ranch.<br />

Littleton DC Zoning<br />

Non-Residential SF Model Application<br />

Office 800,000 800,000<br />

Hospital 150,000 150,000<br />

Flex/Light Industrial 800,000 248,000<br />

Retail 800,000 400,000<br />

Lodging 335,000 200,000<br />

Sports Complex 230,000 230,000<br />

Educational Use 653,400 653,400<br />

Total 3,768,400 2,681,400<br />

Littleton Project Cost:<br />

Project costs were only discussed and evaluated at a very high level, identifying those costs that would be triggered<br />

by thresholds and would be material to the Project or the City of Littleton as a whole. Significant additional work<br />

will need to be completed in this area. Capital costs specific to the Project and the related source of revenue is<br />

discussed below.<br />

� Fire Services will be provided by the fire district that the Project is currently located in at the request of the<br />

City of Littleton for financial modeling purposes. Sterling Ranch had allocated approximately 10 mills<br />

for fire protection within the SR Model and will apply those funds to the appropriate fire district upon final<br />

decision.<br />

� Police Services will be provided by the City of Littleton. Upon preliminary assessment, a substation type<br />

facility with secure access will be required. The size and specifications to be determined. Sterling Ranch<br />

will provide sufficient space within the town center civic building.<br />

� Public Service has requested sufficient land dedication and appropriate zoning for outdoor storage of road<br />

surface materials, vehicle storage and potential maintenance facilities.<br />

� Water Service will be negotiated with Denver Water or other provider as may be required and will be a net<br />

zero economic impact to the City of Littleton for modeling purposes.<br />

� Wastewater Service will be provided by the Littleton/Englewood Wastewater Treatment Plant at the<br />

current market rate for both taps and ongoing treatment at the time of use.<br />

Additional Financial Model Assumptions<br />

The SR Model assumes a combination of revenue sources compared to an average cost of service per capita based<br />

on the City of Littleton 2010 Budget General Fund. Adjustments were made to exclude library services and fire<br />

protection from both the revenue side (included in the additional mill dedication from Sterling Ranch to Littleton)<br />

and the cost side (removed the library and fire protection costs from the general budget).<br />

� Mill Levy will be dedicated to the City of Littleton in two increments: the first is the base mill levy that is<br />

currently paid by the residents of Littleton of 6.662 mills; and the second is an incremental mill levy that<br />

will be paid to the City of Littleton. 10 mills during the construction phase of the internal infrastructure of<br />

the Project (the first 10,000 residential units) and then increased to 25 mills thereafter.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 3


� Other taxes, fees, permits, charges for services and intergovernmental revenue is included in the<br />

preliminary analysis since the full cost of providing all general fund services (less fire and library) is<br />

included in the cost per capita calculation. Once a more detailed analysis of the actual cost is determined,<br />

the revenue will be adjusted accordingly. Sufficient surplus is provided within the budget to allow for<br />

adjustments.<br />

� Sewer tap fees were calculated on a single family equivalent (“SFE”) unit basis to provide for commercial<br />

units as well as residential. A total of 13,451 SFE’s was utilized in the SR Model and equates to $67.255<br />

million. This amount will change based on the cost of tap at the time of sale, the actual number of<br />

residential units, mix of units and commercial activity.<br />

� Retail development is projected to start the first 99,000 square feet after the first 2,250 homes are sold and<br />

built. The first 2,250 homes would add approximately 4,000 residents, assuming approximately 25 square<br />

feet per capita. It is anticipated that the initial phases will include convenience and sports related retail.<br />

� The commercial, flex space and light industrial opportunities will allow Littleton to grow its existing<br />

businesses within Sterling Ranch due to the available land while maintaining control of the land use, taxes<br />

generated and employment opportunities.<br />

� Emergency care services built in Sterling Ranch will provide much needed support to the Chatfield Valley<br />

area.<br />

� A school impact fee will be collected by the <strong>Douglas</strong> <strong>County</strong> School District on each lot which will be used<br />

to help pay for the cost to construct new schools within Sterling Ranch. The number of schools will be<br />

determined by the <strong>Douglas</strong> <strong>County</strong> School District.<br />

SR Capital Improvements – Project Cost<br />

The capital cost of offsite improvements for internal and external roads,<br />

water and wastewater distribution systems, wastewater connection to the<br />

Englewood / Littleton wastewater treatment plant, civic buildings and<br />

<strong>Douglas</strong> <strong>County</strong> school facilities totals approximately $195 million over<br />

the twenty year build-out.<br />

Based on an assumed market value of $25,000 to $30,000 per unit for<br />

fees to be paid by developers / builders, the Sterling Ranch Metro<br />

District will be at the lower end of the market at slightly over $24,000<br />

per unit. The impact fees provide a significant portion of the<br />

infrastructure cost and are a very reliable, stable source of revenue that is<br />

actually collected before the homes are built and services are needed for<br />

the respective residents.<br />

A total of 35 mills will be collected by the Sterling Ranch Metro District.<br />

Of the 35 mills, 10 will go to the City of Littleton for the first 10,000<br />

residential units and then will be increased to 25 mills thereafter. The SR<br />

Metro District will keep 25 mills for the first 10,000 units and then<br />

reduced to 10 mills thereafter. The combined total sources of revenue<br />

allocated to capital projects is approximately $234 million or 20%<br />

($39 million) greater than the projected cost noted above, allowing<br />

for cost overruns, interest on interim bonding and unforeseen capital<br />

requirements.<br />

SR Capital Improvements- Cost<br />

Estimated Cost:<br />

Sewer Connection 28,000,000<br />

Water distribution 47,820,000<br />

Wastewater distribution 11,462,000<br />

Traffic - Internal 36,293,108<br />

Traffic - External 39,000,000<br />

Civic 5,000,000<br />

School 27,264,600<br />

Total Estimated Cost: 194,839,708<br />

SR Capital Improvements - Revenue<br />

Estimated Revenue:<br />

Impact fees 161,904,000<br />

SR District - base mills (10) 39 ,23 1,94 2<br />

SR District - 15 mills 15 years 33,183,428<br />

Total Estimated Revenue: 234,319,370<br />

Traffic:<br />

� The internal roads and related roadway systems will be paid for by SR through builder fees and minimal<br />

metro district bonding as may be required for timing.<br />

� The direct impact to the external county roads that connect the SR property to the state highway systems<br />

(Wadsworth 121 and Santa Fe 85) caused by the addition of SR residents will be paid for by the SR metro<br />

district.<br />

� Sterling Ranch has established a discussion with <strong>Douglas</strong> <strong>County</strong> to define traffic impact fees as quantified<br />

above. The cost of road improvement to the “external” roads outside of the Project boundaries includes<br />

the impact from both Sterling Ranch residents and projected background traffic from the growth of other<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 4


nearby areas based on the current DRCOG models. Sterling Ranch will continue to work with <strong>Douglas</strong><br />

<strong>County</strong> to finalize an agreement to provide for the cost of impact on county roads caused by the growth of<br />

Sterling Ranch residents.<br />

� Sterling Ranch is also working with CDOT in conjunction with <strong>Douglas</strong> <strong>County</strong> to identify mechanisms<br />

that can support CDOT in the roadway improvements that may be required to the state highway systems as<br />

a result of future growth.<br />

� Sterling Ranch supports transit solutions between significant retail and business centers in Littleton and<br />

the Project, providing a greater capture of the Sterling Ranch resident leakage by Littleton businesses.<br />

Sports Village:<br />

Sterling Ranch is designing a regional destination sports venue for local teams, leagues and tournaments. The<br />

sports village is currently anchored by the Colorado Rush soccer organization and a local baseball organization,<br />

both in existence for over ten years. The Village will provide recreation and entertainment services for all ages.<br />

These recreation facilities will work in unison with the planned retail and lodging components in the adjacent Town<br />

Center as well as an integral component to the neighboring planned high school / middle school campus.<br />

Annual visitors were estimated by Norris Design to be approximately 550,000 for all sports programming. The<br />

existing soccer and baseball organizations alone are currently drawing 229,000 visitors.<br />

Impact of Sterling Ranch Growth on Littleton:<br />

Based on the current estimated population of the City of Littleton plus the projected growth of Sterling Ranch<br />

through maximum build-out, the total population will increase 75.6% over an assumed 20 year build-out, leaving<br />

the Sterling Ranch Population at 43% of the<br />

total estimated 73,737 combined residents at<br />

build-out. This represents an average 3%<br />

growth per year with the highest growth year<br />

being projected at 4.5%.<br />

The projected growth from Sterling Ranch in the<br />

first 5 years is only 9% of the existing Littleton<br />

population and increases to 32% of the current<br />

population over the next 10 years. The full 20<br />

year maximum growth projection shows an<br />

increase of over 75%, however when spread over<br />

time, the annual growth rate of 3% to 4% will<br />

allow the City of Littleton to manage the<br />

foreseeable impacts, provide much needed<br />

financial security with one-time fees collected in excess of $125 million from construction permits and sewer tap<br />

fees, and be able to integrate necessary governmental services, endow cultural resources within Littleton and<br />

strengthen common business interests.<br />

200 Plaza Drive, Suite 160 Highlands Ranch, Colorado 80129 303.232.6900 www.sterlingranchcolorado.com Page 5


From: Doug Debord<br />

To: Steve Koster<br />

Cc: Terence T. Quinn<br />

Subject: FW: Littleton Annexation of Sterling Ranch<br />

Date: Monday, March 22, 2010 5:54:48 PM<br />

Attachments: 0FBEFBAFA4FB4B049898451C4A5B5F03.jpeg<br />

Please add to the file. Thanks.<br />

From: Mark Baisley [mailto:mark@baisley.org]<br />

Sent: Monday, March 22, 2010 9:59 AM<br />

To: Doug Debord<br />

Subject: Fwd: Littleton Annexation of Sterling Ranch<br />

<strong>County</strong> Manager DeBord,<br />

Please include the following public email from the City of Littleton into the land use application related to Sterling Ranch, to be conveyed to<br />

the <strong>Douglas</strong> <strong>County</strong> Commissioners and included in public hearings.<br />

Thank you,<br />

Mark Baisley<br />

Roxborough Park resident<br />

Begin forwarded message:<br />

From: "Mulvey F. J." <br />

Date: March 21, 2010 10:42:51 PM MDT<br />

To: "McIntosh L) George & Wilma Wilma L) George &" <br />

Subject: Fwd: Littleton Annexation of Sterling Ranch


From: Don Moore<br />

To: Steve Koster; Terence T. Quinn; Doug Debord; e4737; ROISIN MC EWEN; Steven Boand; Jim Woods<br />

Subject: Needed Information Concerning Steerling Ranch<br />

Date: Saturday, March 27, 2010 11:57:21 AM<br />

Steve,<br />

First of all, thank you for the update on the status of the Steering<br />

Ranch. I and some <strong>Douglas</strong> <strong>County</strong> residents were wondering if you may<br />

have answers for a few questions concerning the Sterling Ranch<br />

rezoning proposal, including:<br />

1. We do not see any enforceable commitments by the Steering Ranch<br />

applicants that they will directly contribute to pay for the<br />

construction of any of the developments public infrastructure such as<br />

roads , parks, water distribution lines etc.. In the applicants<br />

application they say that the applicants, a special district or some<br />

other entity will be responsible to pay for these improvements. The<br />

applicants never say that they will pay a specific amount of money to<br />

construct some portion of the development tired to a specific phase of<br />

the development. Is this correct or do you have any enforceable<br />

commitments by the applicants that they will contribute a documented<br />

amount of money to pay for some portion of development's<br />

improvements.? Without any enforceable commitment by the applicants<br />

to pay for improvements we would consider all cost to construct<br />

improvements being the responsibility of special district(s).<br />

2. In order to evaluate the financial risk to the public posed by<br />

this proposed development, we need information on the total cost to<br />

construct the roads, water lines, water storage facilities, parks and<br />

needed off-site improvements. With this information we can then<br />

analysis if the the amount of debt minis any funding the applicants<br />

commit to the development is a reasonable burden upon the public and<br />

if it is even sustainable. Unfortunately <strong>Douglas</strong> <strong>County</strong> has a bad<br />

history of allowing developers (land speculators) to create too much<br />

public debt through special districts only to have the districts fail<br />

and the <strong>County</strong> residents and <strong>Douglas</strong> <strong>County</strong> having to bail out the<br />

districts at a tremendous cost. Does the <strong>County</strong> have any information<br />

concerning the the cost to construct and maintain facilities that will<br />

ultimately be the responsibility of the public either through special<br />

districts or <strong>Douglas</strong> <strong>County</strong>?<br />

3. In order to complete any financial analysis of the proposed<br />

Steerling Ranch application, we need to include all off-site<br />

improvement costs. These improvements include but are not limited to<br />

highway, traffic, regional storm water detention and conveyance<br />

improvements. The City of Littleton staff have also expressed a need<br />

to know these cost. Does the <strong>County</strong> have an estimates of these costs?<br />

4. When considering the tax burden to be levied upon the residents,<br />

how much of a tax burden should be allowed above what is required for<br />

operations and maintenance of facilities? In years past, developers<br />

were generally responsible to construct all needed public<br />

infrastructure such as roads, parks, water and wastewater treatment<br />

plants while special districts were responsible for some selected<br />

operational and maintenance functions such as running water and<br />

wastewater treatment facilities. In more recent years developers have<br />

place an increasingly amount of financial risk and burden to pay for


the construction of infrastructure upon the future residents through<br />

the debt held by special districts Needless to say this is also a<br />

very expensive way to pay for these improvements when the public will<br />

likely be paying for these improvements through bonds issued for<br />

30-years (in some instances we actually see these debts extended<br />

beyond 30-years through the rolling over of these bonds before there<br />

scheduled maturity).<br />

At the Littleton City Council meeting with the Steerling Ranch<br />

applicants held this last Tuesday, the applicants stated that they<br />

thought they would match the highest mill levies currently in use to<br />

in <strong>Douglas</strong> <strong>County</strong>, 130 mills, to pay for development improvements. I<br />

find this a totally unreasonable tax burden upon <strong>County</strong> residents. It<br />

should be noted that the use of these very large mill levies were in<br />

part the result of or in some cases, responsible to creating the<br />

financial problems for a number of <strong>Douglas</strong> <strong>County</strong> developments. these<br />

major problems included either the bankruptcy of a special district,<br />

development or both. Should <strong>Douglas</strong> <strong>County</strong> or the City of Littleton<br />

consider approving the Steerling Ranch development, a decision will<br />

need to be made concerning what is a fair an equitable amount of tax.<br />

My own opinion is that a full service municipality such as Littleton<br />

should not create special districts and statutory counties should<br />

generally limit a mill Levy to funding operations and maintenance<br />

needs. When there is a true market for development, a developer will<br />

be able find the financing to pay for development improvements with<br />

out creating huge amounts of risky public debt. In the mean time the<br />

<strong>County</strong> should see the build out of areas already approved for<br />

development and retirement of existing debt.<br />

5. I do not know if the 130 mills that the applicant's discussed<br />

included the their totally developer controlled Dominion Water and<br />

Sanitation District or would this be a separate mill levey?<br />

6. What impact would additional special district debt have upon the<br />

Jefferson <strong>County</strong> or City of Littleton school districts. In the early<br />

1990's Moodys followed by the other major bond rating companies<br />

significantly lowered the <strong>Douglas</strong> <strong>County</strong> bond rating. This action by<br />

the bond rating agencies was directly the result of the tremendous<br />

amount of debt <strong>Douglas</strong> <strong>County</strong> special districts held collectively.<br />

This action resulted in the <strong>Douglas</strong> <strong>County</strong> school district to have to<br />

pay millions of dollars in additional cost to finance the construction<br />

of new schools. I am not aware that the <strong>Douglas</strong> <strong>County</strong> school<br />

district has ever been able to receive a higher rating with out the<br />

buying of additional insurance for the bonds.<br />

This issue may be more important now to the Littleton School District<br />

since they are a much small school district and the Steerling Ranch<br />

development would add approximately 75 percent more residents to their<br />

city with a current a population of 41,000.<br />

7. One of the biggest unknowns concerning the Steerling Ranch<br />

development proposal is the lack of water. In years past, an<br />

application was not considered complete and would not be considered<br />

without proof of deliverable wet water (not paper water rights) per<br />

the <strong>Douglas</strong> <strong>County</strong> Zoning Resolution so we would not be having this<br />

discussion today. The applicant said to the Littleton City Council on<br />

that they have some water rights to develop a first phase of the<br />

development. It is my understanding that the applicant does not<br />

actually own this limited amount of water but only has a lease for the<br />

water. Is this the case? Leased water has been a big problem for the


Roxborough development's whose water lease with the City Aurora is<br />

soon to expire and the Roxborough Water and Sanitation District has<br />

been unsuccessful to replace this water after a 10 year or more<br />

effort. Additional were experienced when it was discovered that some<br />

of the Castle Pines water rights that were thought to be owned by some<br />

of the developers of Castle Pines were in fact only leased water<br />

rights.<br />

8. Has the <strong>County</strong> determined what water would cost to serve the<br />

Sterling Ranch. I believe this task would be next to impossible to<br />

determine but if such numbers exist we would plug this information<br />

into the overall financial analysis to determine the financial<br />

feasibility of the development. I suspect someone could determine the<br />

cost of some very non-senior conditional water rights, secondary<br />

treated effluent return flows and the cost to construct water storage<br />

facilities to store off peek water flows to come up with some idea of<br />

what water would cost if the applicants could purchase it.


From: Connie Tucker<br />

To: Steve Koster;<br />

Subject: Braley Acres Extended Lot 12 8510 W Mountain View Lane<br />

Date: Thursday, June 03, 2010 11:06:07 AM<br />

Attachments: Survey 8510 Mountain View Lot 12.pdf<br />

Thank you for the notification of application in process dated 6/1/10 and making your email<br />

address available to us.<br />

I am very much concerned about what Sterling Ranch has planned for NW <strong>Douglas</strong> <strong>County</strong> and<br />

more concerned for the area directly next to the proposed addition (ARS/Snow 255.76 Acres).<br />

Our home is surrounded by ARS but is in the “Braley Acres Subdivision Extended”.<br />

Our history is our family was forced to move from Riverside Acres (Chatfield area) in 1968 to<br />

make room for the picnic and marina area in Chatfield Dam. The complete subdivision of<br />

Riverside Acres was condemned and every resident forced to move to make way for the “flood<br />

control of Chatfield Dam”. This lot was purchased and has been our family home since that<br />

time. This place has great meaning for me and our whole family as it was built by my<br />

parents. It is all we have of them and this property is very near and dear to us. It is our<br />

home and our heirs to come. I am the current caretaker and owner of record at until it is time<br />

to hand it off the next heir. Our entire family’s wish is to be able to live here in peace.<br />

Our family’s concerns are small in comparison to the complete project but they are kind of<br />

overwhelming to me now and are valid. They are:<br />

1. My biggest concern is will the new zoning and subsequent development at some<br />

point force our family out of this small parcel of land (our home) if it is more revenue<br />

producing as say a Walmart or King Soopers or perhaps a school. Can one or all of the<br />

Braley Acres subdivision homeowners be forced to leave and is it in the planning to<br />

force us to give this home up for “The betterment of Sterling Ranch” and the interests of<br />

the current owners of ARS? The owner of ARS has approached me many times<br />

including my mother’s funeral to buy this home that is why my RED FLAG is up.<br />

Because of past history I am very concerned about this. What is planned for this 255<br />

acre area?? Don’t know where to find it in the maze.<br />

Can you enlighten me on this concern?<br />

Also there has been quite a bit of animosity regarding this project and seemingly secretive way<br />

of the current owners (ARS) and the current residents in this area. I don’t have much reason to<br />

trust ARS owners at this point and would like to hear from you.<br />

2. My original survey dated December 19, 1968 indicated Mountain View Lane would<br />

be on the West side of my residence. This road on the west of our lot never happened.<br />

Mountain View Lane comes directly to the North and stops at one of the ARS gates. Is<br />

Mountain View Lane to the West of my property at some time going to become a road<br />

and if not who does it belong to? I am attaching a copy of my Survey.


3. Water is a huge concern. How do you conserve something that isn’t there. I have<br />

not deciphered what the long range plans are for water availability.<br />

I would like to see more open space and less development. It leaves a sick feeling every time<br />

I think about what little open space we have left on this planet and how it is being gobbled up<br />

at a rapid pace by developers. <strong>Douglas</strong> <strong>County</strong> is losing the “Country Atmosphere” the long<br />

time residents enjoyed and are losing at break neck speed. Please use your stewardship and<br />

influence for the betterment for ALL residents not just a few developers. Greed knows no<br />

boundaries and like a cancer is hard to control. As a long time <strong>Douglas</strong> <strong>County</strong> resident, I am<br />

loathe to see a way of life here forever gone because of another’s desire to get rich. I know<br />

change is going to happen, growth is inevitable, but it could be managed for the good of all.<br />

Think about it and please let me know about the above questions one and two or feel free<br />

pass this email to someone that could answer these questions and concerns.<br />

Because of time constraints I cannot always search the website to see every detail and<br />

change. I got lost for two hours trying to figure out what is planned for our direct area.<br />

Thank you for your time.<br />

Connie Tucker aka<br />

Constance L. Tucker<br />

8510 W. Mountain View Lane<br />

Littleton, CO 80125<br />

Work Phone 720-880-5014<br />

Home Phone 303-791-3629<br />

Email ctucker@redstonebankco.com<br />

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From: Rocky Mountain Custom Design, Rick Stevenson<br />

To: Steve Koster;<br />

Subject: Sterling Ranch Planned Development<br />

Date: Tuesday, June 08, 2010 9:29:52 AM<br />

Dear Steve,<br />

Thank you for your correspondence of June 1, 2010 concerning the application<br />

from Sterling Ranch to add additional land to their proposed project. I refer<br />

specifically to your file # ZR2009-004 / Sterling Ranch Planned Development<br />

"Addendum."<br />

I would like you to add my name to the growing list of citizens who have lived in<br />

this area for many, many years and are very displeased with the direction of the<br />

planning process for our area. As you know, this issue has been ongoing for<br />

many years. We, in the neighborhoods and with the Chatfield Community<br />

Association have never been opposed to development; just that we believe any<br />

development in our area should reflect the lifestyles and the very ground you<br />

see in this area. Sterling Ranch continues on their march to increase their size in<br />

order to completely change the topography and lifestyles we've come to enjoy<br />

over the years we've raised our families here. Now, it's proposed that they<br />

acquire the land currently owned by ARS. Part of that land is directly behind and<br />

is adjacent to our property in Braley Acres. I refer to the approximate sixty-six<br />

acres just to the south of Braley Acres.<br />

As a long-time citizen of <strong>Douglas</strong> <strong>County</strong> who has always responsibly followed<br />

the rules, paid my taxes and been involved helping my community I must tell<br />

you I strongly object to the overly zealous efforts that seem to be going on by<br />

Sterling Ranch. Their efforts to drastically change our neighborhood is in direct<br />

opposition to every reason we (and others like us) moved to this area so long<br />

ago. I appeal to you to disallow the efforts of Sterling Ranch to acquire more<br />

land in order to overtake our communities with the kind of development no one<br />

that lives here wants. If it's all about money, they may win. If it has anything<br />

to do with doing the right thing for the community, we hope that you will give<br />

our thoughts and suggestions (re. Chatfield Community Association) every<br />

consideration and stand up for our wants and desires. We're the citizens here.<br />

We only ask that you represent us as such.<br />

Thank you very much for your time.<br />

Sincerely,<br />

Rick & Cody Stevenson<br />

rkymtn@q.com<br />

303-683-8152


From: Lisa Christofferson<br />

To: Steve Koster;<br />

Subject: Sterling Ranch<br />

Date: Monday, June 14, 2010 10:02:11 AM<br />

Attachments: Letter to Steve Koster - 6-14-2010 - Sterling Ranch.docx<br />

Dear Mr. Koster,<br />

Attached please find a letter regarding our thoughts and concerns for<br />

the Sterling Ranch development. Please enter it into public record.<br />

Thanks for your time.<br />

Regards,<br />

Greg & Lisa Christofferson


06/14/2010<br />

TO: Steve Koster, Long Range Planning & Zoning Compliance Manager<br />

<strong>Douglas</strong> <strong>County</strong> Planning Services Division<br />

100 Third St<br />

Castle Rock, CO 80104<br />

FROM: Greg & Lisa Christofferson<br />

7964 W. Trail North Drive<br />

Littleton, CO 80125<br />

RE: File # 2R2009‐004/ Sterling Ranch Planned Development<br />

Mr. Koster,<br />

My name is Greg Christofferson, my wife and 2 sons are 19 year residents of Plum Valley Heights. A<br />

neighbor of Sterling Ranch with adjoining fence lines. As I have stated in previous communications with<br />

<strong>Douglas</strong> <strong>County</strong> we are opposed to any development in the Sterling Ranch area. My family has grown up<br />

exploring, hiking, walking and riding all the open space that has been available to us.<br />

I am a Littleton native and have seen all the growth in the Platte River Valley. Some good, some bad. I<br />

have seen the effects that Highlands Ranch has had on the area and the traffic snarls along with the<br />

water issues. Our concern with the proposed development of Sterling Ranch is of course the water<br />

issues. I feel any and all water supplies should be established before any development is approved. The<br />

other big issue to be resolved is the traffic, not only through Waterton Canyon but along the Santa Fe<br />

corridor and through Littleton. If you were to drive Santa Fe and 470 roads now you would ask yourself –<br />

How can the roads handle any additional traffic; let alone what Sterling Ranch is planning on adding?<br />

I also feel there needs to be provisions for the wildlife corridor to be protected which runs the east<br />

boundary of Sterling Ranch and the west boundary of Plum Valley Heights.<br />

Thanks for your consideration to our requests to preserve some of the natural access and beauty of<br />

northwestern <strong>Douglas</strong> <strong>County</strong>. Please don’t let every bit of this county be developed.<br />

Regards,<br />

Greg & Lisa Christofferson


From: Joe Rottman<br />

To: Steve Koster;<br />

Subject: ZR2009-004 / Sterling Ranch Planned Development "Addendum."<br />

Date: Wednesday, June 16, 2010 4:31:48 PM<br />

<strong>Douglas</strong> <strong>County</strong> Planning,<br />

All three voting residence in this household do not want this additional land added<br />

to the Sterling Ranch development.<br />

We believe that the type of development planned is not in the best interest of the<br />

county or our neighborhood.<br />

Sterling Ranch is not a responsible development and their planned high density<br />

would lower our property values and over tax the area.<br />

Please do not allow this Addendum.<br />

Thanks You,<br />

Joseph Rottman, Andy Rottman and Torey de Rozario


From: JAN EDINGER<br />

To: Steve Koster;<br />

Subject: development<br />

Date: Friday, June 25, 2010 1:34:53 PM<br />

Steve:<br />

Let me add my voice to our concern about the Sterling Ranch<br />

development west of Louviers. I know you have thought about wildlife<br />

corridors, water, roads and traffic patterns. I understand the county<br />

needs income which this will bring. The Master Plan states keeping the<br />

rural nature of our area. So there is conflict and no good solution. You<br />

are very aware of the historical setting of our village. Please give every<br />

consideration to what we will lose with the number of houses that could<br />

be built so close by. I'm alarmed by the proposals of three different<br />

roads, any of which that could destroy the peaceful atmosphere of our<br />

town.<br />

I appreciate the respect you will give this matter.<br />

Thank you, Jan Edinger<br />

Louviers resident for 26 years.


June 18, 2009<br />

<strong>Douglas</strong> <strong>County</strong> Planning Commission<br />

c/o Steve Koster<br />

Long Range Planning Manager, <strong>Douglas</strong> <strong>County</strong><br />

100 Third Street, Suite 220<br />

Castle Rock, CO 80104<br />

Re: Sterling Ranch Water Conservation Practices<br />

Western Resource Advocates supports the <strong>Douglas</strong> <strong>County</strong> Planning Commission in granting a<br />

waiver to the Section 18A water supply zoning standards as requested by Sterling Ranch, LLC.<br />

The Sterling Ranch development incorporates water conservation practices into all aspects of the<br />

planning process, utilizes existing technologies to maximize water use efficiency, and has the<br />

potential to become a model of water-smart development in Colorado.<br />

Western Resource Advocates is a nonprofit conservation organization dedicated to protecting the<br />

Interior West’s land, air, and water. We promote river restoration and water conservation,<br />

advocate for a clean and sustainable energy future, and protect public lands for future<br />

generations. We meet our goals in collaboration with other environmental and community<br />

groups, and by developing solutions appropriate to the environmental, economic and cultural<br />

framework of this region. Our intent in this letter is to support the water conservation aspects of<br />

Sterling Ranch and should not be construed otherwise.<br />

Land-use policies in <strong>Douglas</strong> <strong>County</strong> have a direct and substantial impact on the ability of the<br />

<strong>County</strong> to meet its future water needs. The Sterling Ranch development will comply with many<br />

of the goals and policies established in Section 8 of the <strong>Douglas</strong> <strong>County</strong> 2030 Comprehensive<br />

Master Plan, such as: prolonging the life of groundwater resources by limiting the size of<br />

irrigated landscapes (Policy 8.1A-2); and maximizing the efficient use of water by using a<br />

conjunctive use system (Policy 8.1B-2).<br />

The Sterling Ranch annual single family residential water use target of 0.22 acre-feet per unit can<br />

be achieved with current technology and will not require future residents to change their<br />

behavior. This target is significantly lower than <strong>Douglas</strong> <strong>County</strong>’s current planning standard of<br />

0.75 acre-feet/year/residence. Sterling Ranch estimates that utilizing high efficiency fixtures and<br />

appliances can reduce per capita indoor consumption to 42 gallons per day, which is parallel to<br />

estimates performed by other water conservation specialists and has been achieved in other<br />

water-conserving developments. 1 Outdoor water use will be limited by the small landscaped<br />

1 Al Nichols Engineering. 2009. Energy and Water Use in Tucson January 2008 – December 2008.<br />

Vickers, A. 2001. Handbook of Water Use and Conservation. WaterPlow Press.<br />

DeOreo et al. 2001. Retrofit Realities. Journal of the American Water Works Association. March.


areas of each parcel, use of efficient irrigation systems, and a separate irrigation meter for each<br />

residence.<br />

Additional water conservation practices are described in the Sterling Ranch Water Plan, and<br />

notably include a water budget-based rate structure and ongoing monitoring and reporting. Water<br />

budgets coupled to an inclining block rate structure are one of the most effective water<br />

conservation practices available to any water supplier, and provide a built-in enforcement<br />

mechanism. These budgets make a clear and direct connection to a customer that using excessive<br />

amounts of water will cost an excessive amount of money. Water budgets are also an equitable<br />

way to distribute water supply costs and lend easily to drought response measures. The ongoing<br />

monitoring and reporting described in the Water Plan will enable Sterling Ranch to document<br />

and track water conservation savings and adjust management as new technologies become<br />

available.<br />

Sterling Ranch’s residential water use target is achievable and will likely be exceeded due to<br />

rapidly improving technology and the conservative approach in which it was determined. We<br />

hope that future development in <strong>Douglas</strong> <strong>County</strong> will use the water conservation practices<br />

employed by Sterling Ranch as a norm, rather than the exception.<br />

Sincerely,<br />

Drew Beckwith<br />

Water Policy Analyst<br />

Western Resource Advocates<br />

dbeckwith@westernresources.org


Craig R. Miller<br />

Water Conservation Specialist<br />

Parker Water & Sanitation District<br />

QUALIFICATIONS<br />

International Society of Arboriculture Certified Arborist<br />

Colorado Department of Agriculture Licensed Pesticide Applicator – Qualified Supervisor.<br />

Certified in Industrial and Right-of-Way Weed Control, Turf and Ornamental Pest Control.<br />

Over 40 years experience in the Green Industry.<br />

Established Urban Forestry and Horticulture programs for the Town of Parker, Colorado including<br />

the creation of an Arboretum; created a noxious weed management program for town wide<br />

implementation.<br />

Author and presenter of educational programs pertaining to xeriscape, horticulture and<br />

arboriculture.<br />

Over 7 years experience reviewing commercial and residential land development proposals on a<br />

horticultural and arboricultural level.<br />

EXPERIENCE<br />

Parker Water & Sanitation District, Parker, CO. 4/07 to present<br />

Water Conservation Specialist<br />

Town of Parker, Parker, CO. 4/02 to 4/07<br />

Urban Forester/Town Horticulturist<br />

Swingle Tree Company, Denver, CO. 9/85 to 4/02<br />

Sales Representative, 1988 to 4/02<br />

Landscape and Irrigation Division Manager, 1985 to 1988.<br />

B. D. Wilhelm Company, Denver, CO 4/84 to 8/85<br />

Commercial Grounds Maintenance Division Manager<br />

Oakland University, Rochester, MI 9/80 to 3/84<br />

Supervisor, Oakland University athletic fields and the Detroit Lions training camp.<br />

EDUCATION<br />

Michigan State University, July 1977<br />

BS with Honors in Horticulture.<br />

Advanced course work in Forestry, Physics, Chemistry and Mathematics.


Parker Water & Sanitation District<br />

19801 E. Mainstreet<br />

Parker, CO 80138<br />

Sterling Ranch Water Plan Comments – Water Conservation Sections<br />

1. Agriburbia is noted as a landscaping option on page 1 and referred to as “an alternative lowwater<br />

use landscape option”. The Agriburbia website notes that there are “approximately<br />

3000+ acres being designed or developed”, but it appears there is no research data available<br />

supporting the claim of low water use. In truth, orchards, vineyards and vegetables can use as<br />

much water as traditional bluegrass landscapes.<br />

2. Page 5 notes that most of the water for the Sterling Ranch development will be renewable and<br />

therefore the use of high production wells will be limited. But the sentence after that seems to<br />

contradict that statement as it points out that “Dominion’s wells will be high capacity as that is<br />

the only way that water can be efficiently provided to its customers, both on the Sterling Ranch<br />

development and to its neighbors”.<br />

3. On page 7, why use the lower number of dwelling units in the Water Plan? (10,723 vs. 12,050).<br />

1327 dwelling units unaccounted for at 0.28 ac-ft/yr = 371.56 ac-ft/yr or 12.37% additional<br />

water required.<br />

4. The water conservation examples used starting on page 10 do not approach the proposed water<br />

use for this development (0.28 ac-ft/yr/unit). Throwing out the apples to oranges comparisons<br />

(hand watering of lawns in Brighton and the Civano neighborhood in Arizona, which uses an<br />

entirely different plant palette than we have here), even the best of these examples falls well<br />

short of the proposed water use. Colorado Springs, with the lowest water use of 0.30 acft/yr/unit,<br />

works out to 107.12 gpcd (based on census data of 2.5 persons per household),<br />

Centennial Water & Sanitation District, 103.7 gpcd and Castle Rock 117.9 gpcd, according to the<br />

figures provided in this document. Based on 0.28 ac-ft/unit/yr and 2.92 persons/household in<br />

<strong>Douglas</strong> <strong>County</strong> (2006 census data), Sterling Ranch is targeting 85.6 gpcd, 17.45% less than the<br />

lowest use community (Centennial).<br />

5. Sterling Ranch notes on page 12 that “…supporting calculations rely on published water use data<br />

associated with using proven efficient technology and well planned and maintained landscaping<br />

to generate water use savings”. This rarely if ever happens in the real world. In over 40 years in<br />

the Green Industry, it has been my observation that no matter how well the design and<br />

installation of a landscape, it all begins to fall apart on the maintenance side of things, as<br />

consumers are not willing to pay what is required to properly maintain a landscape. Then at the<br />

first sign of plant distress or browning in a lawn, the water is turned up.<br />

6. “Dual metering or another approach that allows comparable data collection (to measure indoor<br />

vs. outdoor use)…” (page 12). What other approach?


7. “Fescue” turf is being proposed in the Landscape Plan Samples on page 17, but it is not made<br />

clear what type of fescue. Per Colorado State University, tall fescue can have lower water<br />

requirements than bluegrass, but water use can be the same or higher depending on how it is<br />

cultured. During periods of extreme drought, where landscape water use must be curtailed, tall<br />

fescue will thin out extensively, and will not recover as quickly as bluegrass, resulting in a poor<br />

appearance and infestation with undesirable weeds. Tall fescue also has poor to fair<br />

recuperative potential, which is problematic in high use areas (recreation). Fine fescue lawns<br />

can use less water, but are not for high traffic areas. They also will go dormant under conditions<br />

of extended heat (1 to 2 weeks of 90 degrees +). Why not consider the use of buffalo grass or a<br />

Texas hybrid bluegrass instead? In addition, subsurface irrigation (such as Netafim) for<br />

bluegrass and fescue is often less than ideal due to the water hungry nature of these<br />

turfgrasses. Subsurface irrigation works extremely well for native grasses (buffalo grass and<br />

blue grama as an example), shrubs and perennials.<br />

8. Section 2.4 notes that if an inspection of a home is not completed by the Sterling Ranch District,<br />

the Builder will be required to sign an affidavit that outdoor specifications and approved<br />

irrigation system plans were followed for both front and back yards. Why not inspect every<br />

single home, period? Signing an affidavit leaves too much opportunity for things to fall through<br />

the cracks.<br />

9. Section 2.4, page 27 notes that one of the potential responses to a significant percentage of<br />

homes exceeding their water budgets is to develop more appropriate water budgets if<br />

customers are using water reasonably. This will certainly push the SFR Water Use Target above<br />

0.22 ac-ft/yr/unit<br />

10. Section 3.1.2.2, page 32 notes that Sterling Ranch will coordinate with a landscape maintenance<br />

contractor to apply the water conservation principals identified in section 2 and Appendix A. It<br />

has been my experience that there are very few maintenance contractors that are fully up to<br />

speed on how to maintain water-wise landscapes and irrigation systems, let alone install them.<br />

What will be the criteria for selecting contractors? What certifications and qualifications will be<br />

required?<br />

It appears that there is inadequate water to support this project to begin with, and the 0.28 ac-ft/yr/unit<br />

was chosen as the amount of water to develop the community around, as that is all the water they have<br />

available. When a serious drought hits the region, recreational and household turf areas will perform<br />

poorly, and residents will demand more water to keep things green. Where will the extra water come<br />

from and who will Sterling Ranch be turning to for a “bail-out”?<br />

Craig R. Miller<br />

Water Conservation Specialist<br />

303.841.2058 ext. 370<br />

cmiller@pwsd.org


June 28, 2009<br />

Mr. Steve Koster<br />

<strong>Douglas</strong> <strong>County</strong><br />

Community Development and Planning Division<br />

100 Third Street<br />

Castle Rock, CO 80104<br />

RE: Sterling Ranch Planned Development #ZR09-004<br />

Dear Mr. Koster:<br />

The Chamber of Commerce of Highlands Ranch focuses on the development, growth<br />

and sustainability of businesses in the Highlands Ranch area including the surrounding<br />

areas of Roxburough, Littleton, Lone Tree and Centennial.<br />

The Highlands Ranch Chamber strongly supports the proposed rezoning of the Sterling<br />

Ranch property located just west of Highlands Ranch. Rezoning and development of<br />

Sterling Ranch will provide quality housing, improved infrastructure and commercial<br />

development in <strong>Douglas</strong> <strong>County</strong>.<br />

The Sterling Ranch development plan will utilize state of the art designing of land use,<br />

open space and traffic flow as well as water usage and landscaping. A tremendous<br />

amount of research has been done to insure wildlife preservation and conservative<br />

water usage.<br />

Please feel free to contact me if you have any questions at 303-791-3500.<br />

Sincerely,<br />

Steve Dyer<br />

President<br />

Chamber of Commerce of Highlands Ranch


From: Jennifer Riefenberg<br />

To: Steve Koster;<br />

cc: "Dennis Larratt"; "ROISIN MC EWEN";<br />

"Tmkmans";<br />

Subject: Littleton DVD left at office,etc.<br />

Date: Wednesday, July 07, 2010 9:48:08 AM<br />

Hi Steve,<br />

I wanted to touch base on a couple of items.<br />

1. I left a DVD of the Littleton City Council meeting with Sterling Ranch and<br />

request that this be added to the public comments on the Sterling Ranch<br />

application and water appeal. There are at least three topics of great concern<br />

that this public meeting brought up and is highly relevant to the current<br />

application with <strong>Douglas</strong> <strong>County</strong>: water, wastewater, and financial impacts.<br />

2. What is the timeline for the Sterling Ranch rezoning application/water appeal<br />

hearing? Is the hearing to be scheduled 30-days after the referral period?<br />

Thanks and hope you are having a nice summer!<br />

Jennifer Riefenberg


From: BOCC<br />

To: Steven Boand; Jack Hilbert; Jill Repella; Doug Debord; Terence T. Quinn; Steve Koster<br />

Subject: FW: Sterling Ranch<br />

Date: Monday, October 11, 2010 10:19:58 AM<br />

FYI<br />

From: Jim Miller [mailto:jim@jimmiller.us]<br />

Sent: Tuesday, October 05, 2010 9:07 PM<br />

To: BOCC<br />

Cc: 'Marilyn Williams-Miller'<br />

Subject: Sterling Ranch<br />

As a resident of Roxborough Park, I fully support the Sterling Ranch Project. I would welcome the<br />

additional shopping and other amenities that this project would offer.<br />

Jim Miller<br />

303-521-5337


From: Kati Rider<br />

To: Kati Rider;<br />

Subject: FW: Sterling Ranch - positive impact<br />

Date: Wednesday, October 13, 2010 1:18:06 PM<br />

From: Ken Turnbull [mailto:ken@kenturnbull.com]<br />

Sent: Tuesday, October 12, 2010 5:31 PM<br />

To: BOCC<br />

Subject: Sterling Ranch - positive impact<br />

Dear Commissioners;<br />

I wish to express my support for having more trees and more wildlife in<br />

<strong>Douglas</strong> <strong>County</strong>.<br />

Currently the proposed Sterling Ranch site is “high and dry prairie”. It is<br />

essentially non-productive land, even for cattle ranching. Perhaps “marginal”<br />

would be the best description. Currently it only supports a few prairie dogs,<br />

meadowlarks and voles. No doubt it also has grasshoppers and a few snakes.<br />

What a waste.<br />

With responsible development, people will be planting trees, scrubs, and<br />

xero-scapes. Some will put up fences that protect wildlife from severe winter<br />

blizzards. These plants and structures provide protection and nesting<br />

materials for many birds and mammals. I am a lover of wildlife. I would like<br />

to see this barren ground turned into an “oasis” for the support of wildlife.<br />

Therefore, I strongly support on-going development in <strong>Douglas</strong> <strong>County</strong> for<br />

projects like Sterling Ranch.<br />

Most respectfully.<br />

Ken Turnbull


7651 Carolyn Drive<br />

Castle Rock, CO 80108<br />

303-790-7070


From: ROISIN MC EWEN<br />

To: Steve Koster<br />

Subject: Sterling Ranch Hearing Public Comment Procell<br />

Date: Wednesday, October 13, 2010 5:46:34 PM<br />

Steve, Please send this request on to the Planning Commissioners<br />

It is our understanding that the public and referral organizations will be limited to 3 minutes ans 6<br />

minutes respectively. CCA believes that this does not provide due process for the public or referral<br />

organizations, especially in the case of two major issues being considered together. We request that 1)<br />

the public be allowed 6 minutes in order to address both issues and 2) CCA be alloted at least 30<br />

minutes with the condition that 4 members of the public will relinquish their 6 minutes. We also request<br />

and volunteer to speak very early on the first evening with a powerpoint with the intent of helping<br />

to prevent too much repetition in the presentations. We have tried to communicate to our membership<br />

to please keep comments short, relevant, and distinct. Of course we cannot control public speakers, but<br />

we are working to try to keep the testimony relevant for the Planning Commissioners. Thank you for<br />

considering our request, and we look forward to hearing from you soon.<br />

Thank you,<br />

Roisin McEwen<br />

President of Chatfield Community Association


From: BOCC<br />

To: Kati Rider;<br />

Subject: FW: Sterling Ranch<br />

Date: Thursday, October 14, 2010 12:51:21 PM<br />

From: BETSY HAYES [mailto:betsyhayes@msn.com]<br />

Sent: Wednesday, October 13, 2010 11:05 PM<br />

To: BOCC; Betsy Hayes<br />

Subject: Sterling Ranch<br />

Dear Commissioners<br />

I understand there are hearings before the <strong>Douglas</strong> <strong>County</strong> Planning Commission<br />

at 7 p.m. Oct. 25 and 26 regarding the Sterling Ranch development. While there<br />

are always positive and negatives about any change we feel the negative changes<br />

to the Acequia area are too overwhelming to support the development. We would<br />

like <strong>Douglas</strong> county to delay the Sterling Ranch development until the below issues<br />

are resolved.<br />

Water Conservation: Water Conservation is essentially anywhere in the west but<br />

planning a new community and not following the state/county guidelines for the<br />

amount of water required per household is irresponsible. The guidelines were<br />

established and determined by engineers who have studied the needs of<br />

households, especially those in tract house developments. The current water<br />

agreements only cover the 1st phase of the Sterling Ranch development. Sterling<br />

Ranch has stated that their water conservation plan will reduce the traditional .75<br />

acre feet of water per home to .22 (plus a .06 buffer) acre feet of water per home -<br />

over 60% savings! During the 2006 drought Denver Water used emergency<br />

conservation methods was was only able to reduce consumption by 22%. The<br />

average household uses 211 gallons of water a day, Sterling Ranch is planning for<br />

12,050 homes - does Sterling Ranch have plans to supply 2,542,550 gallons of<br />

water a day or 928,030,750 gallons of water annually. A conservation plan of 22%<br />

requires 816,667,060 gallons annually and Denver Water found 22% to be<br />

unsustainable. 60% conservation is unrealistic, even if the ground is left the barren<br />

and full of weeds the household use alone would surpass their estimates.<br />

Open Space: The establishment of the infrastructure and construction of Sterling<br />

Ranch will destroy


100% of<br />

the natural wildlife and beauty on 3400 acres. 63% will be residential, municipal<br />

or commercial and the remaining 37% will be "turned into" open space parks and<br />

trails. Having lived in the area we know that the current native rangeland grasses<br />

will not grow back quickly or without water. The Open space areas will need to be<br />

watered to become established and weeds will be a problem for years. What is<br />

the view of the <strong>Douglas</strong> <strong>County</strong> Extension Office? How much of the area has<br />

native grasses? What would it take to reestablish those native grasses in the open<br />

spaces - time, cost and water?<br />

Traffic/Transportation: Even with all of the road improvements over the past 10<br />

years the traffic on Santa Fe is already congested and carries many Commercial<br />

vehicles. Adding more residential drivers will exacerbate the current challenges.<br />

Sterling Ranch claims they will disperse traffic, by taking a quick look at a map it is<br />

clear that Wadsworth and Santa Fe are the only 2 roads leading north towards<br />

Denver. Unless roads and bridges are constructed through Chatfield State Park<br />

there is no other way to "disperse traffic.<br />

Water: Our well was replaced about 6 years ago and the new well is now drawing<br />

from the Arapahoe aquifer. Although that aquifer is thought to be sustainable<br />

once Sterling Ranch starts pumping from the deepest part of the Denver basin our<br />

wells will be impacted. Even with "City Water" from Sterling Ranch many of us will<br />

continue to use our Domestic wells for Horses. We would absolutely like to have<br />

our house hooked up to a sustainable water supply but the current Sterling Ranch<br />

water plan is not a realistic sustainable water supply.<br />

Regards,<br />

Betsy Hayes<br />

6913 W. Lakeside Drive<br />

Littleton, CO 80125<br />

303-988-2901


From: Heather Seashore<br />

To: BOCC<br />

Cc: Steve Koster<br />

Subject: No Sterling Ranch!!<br />

Date: Thursday, October 14, 2010 10:41:24 AM<br />

Dear Sir,<br />

I am a resident of Roxborough Park and feel compelled to write to you in hopes that you are an<br />

advocate for the people, rather than someone who may be blinded by the falsehoods of Sterling<br />

Ranch. I don't know where you reside, but I'm sure if were faced with the potential for a Sterling<br />

Ranch in your backyard you would have some apprehension along with anger at the thought of it!<br />

Its 12,050 new residential units will be twice the density of the City of Littleton, nearly 3 times the<br />

density of Highlands Ranch, 4 times the density of Parker, and 5 times the density of Castle Rock.<br />

The developers have not obtained any water supply!!!!!!!!!!!!!!!!!!!!!!! and are attempting to bypass<br />

<strong>Douglas</strong> <strong>County</strong> requirements on providing safe, dependable water.<br />

It will lead to heavily congested local roads with no financial commitment to road improvements.<br />

Its residents will have a 5 times higher tax rate than the current City of Littleton; it will require at least<br />

$9 million to expand Littleton City Hall.<br />

School district costs will be substantially increased.<br />

Santa Fe Drive will have to be expanded to 6 lanes, for which no funds are available.<br />

Air quality in Roxborough Park and <strong>Douglas</strong> and Jefferson Counties will be reduced.<br />

Most of the open space and scenic resources between Roxborough Park and Santa Fe Drive will be<br />

destroyed.<br />

Its light pollution, construction noise and dust will seriously affect Roxborough Park.<br />

According to Colorado Division of Wildlife, the new city will significantly degrade local wildlife<br />

habitats, destroy wildlife travel corridors and impact sensitive wetlands.<br />

The developers plan to pass many of its costs on to taxpayers in the form of bonds, mill levies,<br />

special taxing districts, wastewater treatment and road construction.<br />

It will generate sewage 20 times the capacity of local treatment plants.<br />

I implore you to think about the impact this project has on the surrounding community and<br />

environment. I understand more people in <strong>Douglas</strong> <strong>County</strong> means more tax dollars... but if there is<br />

NO WATER to support these people, how can this project even be under consideration??!!!! Please<br />

put yourself in the shoes of a resident of Roxborough. People have moved there because they want to<br />

enjoy the scenery, the unique lifestyle and the quietness. If you haven't visited, I will be your personal<br />

tour guide to point out the quality of life and the overall greatness that our area exemplifies. Don't let<br />

the lure of Sterling Ranch and its developers put a cloak over your eyes to what they really want...<br />

money, money,money. What do they care, they'll be long gone before the impact of what they are<br />

going to do really comes to fruition.<br />

I appreciate your time.<br />

Sincerely,<br />

Heather Seashore


From: Jennifer Riefenberg<br />

To: Steve Koster<br />

Subject: Please send to planning commissioners<br />

Date: Sunday, October 17, 2010 9:26:02 PM<br />

Attachments: QuestionsToCommissioners_JR.doc<br />

Hi Steve,<br />

<br />

Please forward this document to the Planning Commissioners regarding a number of questions that I<br />

have for them.<br />

Thanks,<br />

Jennifer Riefenberg


Planning Commissioners:<br />

I am enclosing a number of questions that will be asked at the upcoming hearings on the<br />

Sterling Ranch PD rezoning application/Sterling Ranch Water Appeal. I would<br />

appreciate your review of these questions so that you have adequate time to consider the<br />

information and fully understand the questions – prior to the barrage of questions that<br />

may come before you the night of the hearings. Each question is bolded for easier review<br />

and the narrative/background/references related to each question are included for further<br />

explanation on the origin of the questions. Thank you for your time and attention.<br />

If the documentation for evidence of water is delayed from the current<br />

<strong>County</strong> Regulation that requires such at the rezoning, as is requested by<br />

the applicant; at what SINGLE point in time would the <strong>County</strong> then<br />

make the assessment that the PD has an Adequate Water Supply<br />

through BUILDOUT of the Development per recently passed Colorado<br />

Law, HB2008-1141? The county is required to assess any new land use applications<br />

for evidence of an adequate water supply through BUILDOUT [not in phases, as<br />

requested] and the <strong>County</strong> has only a single opportunity to do so. The request for<br />

"phased" water documentation certainly violates HB1141 and the Counties current<br />

zoning regulations require that evidence of water be provided at these rezoning hearings.<br />

I believe that HB1141 should be required reading for anyone involved with land use<br />

planning. Does the <strong>County</strong> have a legal opinion that they are, in fact, in<br />

compliance with State Law if this application is approved, with or<br />

without conditions?<br />

Section 15 DCZR requires "Evidence of the physical and legal capability to provide<br />

sanitation." The appeal does not apply to the elimination of requirements in Section 15<br />

but only to those in Section 18A. The applicant and/or Dominion has claimed that there<br />

is an existing agreement to purchase the Roxborough Waste Water Treatment Plant<br />

(RWWTP) for its use. The RWWTP was decommissioned nearly 15 years ago and<br />

phosphorus credits for permitting sold. Additionally, Tri-<strong>County</strong> Health cited that the<br />

site does not encompass enough land in order to expand to the necessary capacity to serve<br />

the entire development, and questioned the ability to re-permit, especially without<br />

phosphorus allocations. As an aside, the public is becoming more and more aware of the<br />

presence of pharmaceuticals in our water supplies, especially downstream of waste-water<br />

treatment facilities. Current laws do not require treatment of water for such; however, in<br />

the next 20- to 30-years, I suggest that these laws will change. The potential costs of this<br />

treatment facility could be much greater than speculated.<br />

As required in Section 15 DCZR 1507.08, has the applicant provided a<br />

legal agreement between itself and a provider of sanitation services?<br />

Has the applicant provided evidence that permits can be obtained for<br />

such facilities? Has the applicant provided evidence that the potential<br />

site (RWWTP) is large enough for needed expansion to meet the<br />

Page 1 of 5


capacity needs of the development? Has the applicant provided evidence<br />

of the legal and physical capability to provide sanitation?<br />

The CMP (Goal 2-11, Policy 2-11A.5) specifies a central water and sanitation provision<br />

for the entire development. The applicant states (Dev Plan/Commitments (5-2.4)<br />

"Central water and wastewater facilities shall be provided by one or more new special<br />

districts to be created for the property." In Section DP/C 5-7.1.B are listed 5 or 6<br />

potential types of water supply districts, serving various new, retail water districts within<br />

the plan. This listing demonstrates that the application has no definitive plan for "central<br />

water and sanitation" and it cannot be assumed that there will not be multiple suppliers<br />

working, separately, with each new retail water district. This is in violation of CMP<br />

Goals and Policies.<br />

Per CMP Goals and Policy, will the ENTIRE development be served by<br />

one, single central water and sanitation district? If so, who exactly is<br />

that district, and has a legal agreement between the applicant and this<br />

district been provided?<br />

Which single water supplier type is the provider and who is it?<br />

Is there a signed agreement between the any water supplier and the<br />

applicant?<br />

The existing Roxborough Water Treatment Plant was built in 1958 [Rox Water & San<br />

District website FAQ]. Old technology …. and possibly not using the current<br />

technologies, is already serving at full capacity.<br />

What is the capacity of the Roxborough Water Treatment Plant?<br />

Has a legal, written agreement (will serve) letter been submitted that<br />

allows either SR or Dominion use of this plant?<br />

What is the expansion capacity of the WTP?<br />

This PD application cites significant open space, however, this application provides on a<br />

percentage basis roughly ½ of the open space provided by Highlands Ranch, which is<br />

within the PRIMARY urban area of <strong>Douglas</strong> <strong>County</strong>. The Primary urban areas are<br />

supposed to be those urban-type developments with the greatest intensity per the CMP.<br />

Further, we, the public at large, refute the applicants assertion that this project protects<br />

the unique characteristics of the Chatfield Basin. Was the intention of the<br />

Commission to create urban areas of greater intensity than primary<br />

urban areas?<br />

The application, Development Plan and Statement of Commitments are fraught with<br />

vague and non-committal language. Per zoning 1509.01.1 the "wording shall be<br />

verbatim" yet the applicant continues to add language such as "unless otherwise stated<br />

herein" and the like. This added language nullifies the required language of DCZR. Is<br />

not the <strong>County</strong> required to enforce the DCZR regarding section 15,<br />

Page 2 of 5


among others, and to not accept altered language in cases such as<br />

1509.01.1?<br />

In light of the average household cost in SR being stated at between $400K and $1M at<br />

the public Littleton City Council meeting, we question the true affordability of any<br />

housing where the mill levy's, without a water mil levy, were also stated to be upwards of<br />

150 Mills and only included internal roadways. With the addition of off-site<br />

infrastructure costs and water, the mill levy's could exceed 200 Mils – an unprecedented<br />

tax levy for development in <strong>Douglas</strong> <strong>County</strong>. The applicant has not committed any<br />

funding of their own to this project. As a matter of fact, the applicant testified at Littleton<br />

that they would never be more than $10M in debt – rather, all financing would come from<br />

bonds. Can the <strong>County</strong> afford to risk another Dawson Buttes: Overbonded, Failed PD<br />

that currently collects not even tax revenue on the land (formerly worth $10's of<br />

thousands of dollars per year) as it now has no "value."<br />

What would the impact be on the <strong>County</strong>'s bond ratings if this<br />

development were to fail with $500M - $1B in potential bonding put<br />

upon it?<br />

What is the risk to the citizens and taxpayers of the <strong>County</strong> and of the<br />

State of Colorado if this project fails?<br />

The State Land Board would be party to the indebtedness of the entire project—<br />

especially since the entire project is planning on funding via bonds and; for internal<br />

transportation alone, around $200 Million (cited at Littleton), and likely double that for<br />

the external transportation; plus water which itself could easily run into the $4-$500M<br />

range. An article earlier in the year in the Denver Post discussed the State Land Board<br />

revisiting their strategy of chasing "bright and shiny objects" aka agreements with<br />

development projects. A similar project between the State Land Board and a proposed<br />

development at Lowry cost the taxpayers $4M – this project could by 100X that amount.<br />

Were the risks disclosed to the state taxpayers?<br />

With the suggested change in zoning regulation to the additional use by right of allowing<br />

a second occupied house ("accessory unit") (SR Commitments Sheet 5) on any singlefamily<br />

residential lot, in theory, this development could DOUBLE in density. The<br />

property could contain nothing but multi-family housing and duplexes. Since each<br />

residential unit, though actually having two homes, would count as a single residential<br />

unit, Would this leave each house on the residential unit sharing the 0.28<br />

acre-ft of water (or whatever amount is allowed) – cutting in half the<br />

water supply? I feel that this puts the citizens at severe risk with respect to adequate<br />

water, especially as the water supplies proposed are only "initial" amounts and can<br />

decline as time progresses. How, exactly, will these water use constraints will<br />

be disclosed to future buyers/renters?<br />

Page 3 of 5


There appears to be a credit for affordable housing units (AHU) whether or not actual<br />

"affordable" units are actually created. The development appears to be guaranteed a total<br />

of 360 credits for AHU's (see Dev Plan, Sheet 17 [5-7.13]). Further, the applicant then<br />

subjects the <strong>County</strong> to a "right of first refusal," allowing the applicant to apply for grants<br />

associated with AHU's? This seems inappropriate. Can independent, expert<br />

counsel be brought in to assess the AHU conditions presented in this<br />

application to ensure fairness for the taxpayers and to ensure<br />

compliance with Federal, State, and <strong>County</strong> policy and regulations?<br />

The applicant provides for their "own" lighting standards. These proposed standards<br />

(among many other policy/regulation/etc. change proposals) have not been subject to<br />

public process.<br />

Does including new policy/regulation/etc. at the developers choosing,<br />

without public process, violate <strong>County</strong> policy?<br />

The supposed difficulty of meeting zoning requirements, especially documentation<br />

standards, at the time of re-zoning application for this development is this applicants' own<br />

self-created hardship. It does not give just cause for changing the zoning regulations as<br />

the applicant has requested. The applicant knew and had every opportunity to understand<br />

the <strong>County</strong> Zoning Regulations when they started their development path and certainly<br />

before they applied for their re-zoning. Now, it seems that they don't want to play by the<br />

rules. Case law in Colorado concerning applicants request to change zoning to meet their<br />

needs has been struck down,<br />

" Landowner cannot create his own hardship and then require that zoning regulations be<br />

changed to meet that hardship. C.F. Lytle Co. v. Clark, 491 F.2d 834 (10th Cir. 1974)."<br />

Staff comments, in the letter from planning, are direct quotes from the application and do<br />

not necessarily represent the opinions of the <strong>County</strong>. Especially, the use of incorrect<br />

terms, errors that Staff would not have made, referring to a waiver of 18A, rather than an<br />

Appeal to 18A. There is a distinctive difference between the final staff letter and letters<br />

from staff regarding the original application and amendments. Apparently, this is a policy<br />

that has been utilized by planning for re-zoning applications. Since the impression that<br />

the comments are, in fact, those of the <strong>County</strong>; and the lack of disclosure of such an<br />

approach, creates a biased view of all applications. We question this policy, especially<br />

when the planning department has been provided documentation from both the pro- and<br />

con- side of the application that could have been included presenting a balanced,<br />

unbiased approach. Have the Planning Commissioners understood that this<br />

policy to use application language in place of actual staff comments, was<br />

in place? Can the Planning Commissioners be expected to utilize these<br />

biased quotes as anything but hearsay and marketing dialogue?<br />

The proposed conditions of approval for the Water Appeal only cite a commitment from<br />

Dominion to form an agreement with the "surrounding communities" and not with the<br />

applicant themselves. Why has Dominion provided no signed evidence that<br />

Page 4 of 5


they will or do actually have an agreement with the SR Applicants to<br />

provide the water supply for the development? Mssr's Hoagland and<br />

Smethills, principles in both SR and Dominion are (presumed) here at this meeting. Can<br />

not the applicants come into agreement with themselves; or, is there undisclosed intent?<br />

An undisclosed intent could explain the lack of documented legal and physical capacity<br />

to provide sanitation; could explain the lack of documented water supply or to not have to<br />

provide definitive provisions for a water supply; or could demonstrate that the applicant<br />

does not know for certain where they will get their water.<br />

The <strong>County</strong> is chartered to makes its decisions based on the evidence provided. State<br />

Law C.R.S. 30 includes a definition for what constitutes evidence:<br />

"Evidence" means any map, table, chart, contract, or other document or testimony,<br />

prepared or certified by a qualified person to attest to a specific claim or condition, which<br />

evidence shall be relevant and competent and shall support the position maintained by the<br />

subdivider." The position maintained by the applicant alone, does not constitute<br />

evidence.<br />

There are many, many more questions regarding the adequacy and non-adherence to<br />

<strong>County</strong> policy, however, I didn't want to completely inundate you. These seemed the<br />

most critical regarding the most significant aspects of zoning regulation and <strong>County</strong><br />

policy and State Law.<br />

Thank you,<br />

Jennifer Riefenberg<br />

Page 5 of 5

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