No decision yet on Pine Canyon development in Colorado, as Douglas County commissioners involve Castle Rock

Douglas County Commissioners have chosen to continue discussion on a controversial proposed Colorado development around the town of Castle Rock.

The 530-acre proposed Pine Canyon development would include 1,800 homes and a resort hotel. The land lies both east and west of Interstate 25. While it's surrounded by the town of Castle Rock, it's technically unincorporated Douglas County. It has led to concerns that Castle Rock's infrastructure can't handle it. 

On Monday morning, community members filled a land use hearing, waiting for a final decision on a development that's been 20 years in the making. But they'll have to wait a little longer.

Commissioners Lora Thomas and Abe Laydon weighed a water appeal and rezoning request, while Commissioner George Teal recused himself from the issue. Rather than approving or denying the items, commissioners voted to continue the discussion next month. In the meantime, commissioners asked the applicant and the town of Castle Rock to have their own discussion.

The land has been owned by the Walker family for more than a century. They have now chosen to develop the land after decades of cattle ranching, but have encountered roadblocks. During Monday's hearing, attorneys for the applicant said the Walker family has tried three times in the last 20 years to develop Pine Canyon through the town of Castle Rock. He said it's been a frustrating and expensive process for the family, who has now turned to the county to greenlight the development.

A town spokesperson told CBS Colorado that while there were early-stage discussions "Neither the Castle Rock Planning Commission nor the Castle Rock Town Council have ever considered the Pine Canyon proposal because the property owners never asked for that consideration."

She also added that the Walkers have never sought annexation into the town.

The town of Castle Rock did not comment further on Monday's hearing, but in an August 2024 interview, Castle Rock Water Director Mark Marlowe told CBS Colorado, "My hope is that the Walker family will come back and work with us and we're able to get them annexed into the town, get them connected into a renewable water supply."

Many neighbors in attendance at Monday's hearing were satisfied with the county's decision to involve the town in development discussions.

"They're encouraging the two parties to talk, the question is do both parties want to solve the problem," said Steve Snodgrass.

"They're taking a step back and saying 'Look, go back and talk to the town about this.' I think that was the right decision," said Castle Rock resident Carol Richmond.

For months, neighbors have been speaking out against the development, worried about impacts to traffic, wildlife and infrastructure.

"Our community butts right next to the Pine Canyon development," said Snodgrass, who is on the HOA board for the Woodlands neighborhood. "The HOA's position is that we believe the project should be developed but it should be developed in the town of Castle Rock."

If the development proceeds through the county, Castle Rock would not benefit from Pine Canyon's sales tax revenue, despite the development adding thousands of residents to the community.

"It's a huge tax loss for Castle Rock, but Castle Rock has to provide the infrastructure and the road's all around it," said Woodlands resident Jay Jacobson.

The town itself is also worried about its most precious resource.

"Where is the water coming from? At the end of the day it's coming from ground in this area," said Richmond, who lives on a groundwater basin well east of Founders Parkway.

Castle Rock has vocally opposed Pine Canyon's plans to develop solely off of nonrenewable groundwater.

The applicant Monday offered to provide auditable water reports and commit to eventually acquiring a renewable water resource. They also offered to create a sales tax agreement and to negotiate annexation into Castle Rock following county approval.

Commissioners are asking for more detail about those commitments before they continue discussion on October 22.

"This is in everybody's best interests. This is in future generations' best interests," Richmond said.

Kurt Walker did not respond to requests for comment. But he previously told CBS Colorado the development will have "more than enough" water, as the land comes with its own water rights and would have no impact on Castle Rock's water system. Walker says they will leave more than a third of the water in the ground and will recycle 100% of their wastewater.

His attorney said Monday, "We would absolutely be willing to sit down with the town."