Castle Rock gives initial approval to 200-acre retail deal

The Centennial City Council has voted July 9 to settle a year-old lawsuit with BNP Paribas, the French back that backed nearly one-quarter of the redevelopment costs for The Streets at SouthGlenn. The agreement will reset the sales tax base for the property and subsequently free up $162,000 to be directed for repayment of the bonds used to finance improvements. Photo by Deborah Grigsby
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Not everyone is sure they're happy about a proposed 200-acre Castle Rock retail project that would be located next to the Outlets at Castle Rock. At up to 900,000 square feet, it would be twice as large as the outlet mall.

Alison Towe, the Outlets' general manager, told Castle Rock Town Council July 2 that while the mall generally applauds and supports more development, “We do have some concerns.

“It would not be prudent to place two regional outlet centers side by side,” she said.

A legal representative for the outlets' owner, California-based Craig Realty Group, told the council that it's rare for outlet malls to be within 50 miles of each other. “We're very concerned,” the representative said.

The town council later voted 7-0 to give initial approval to a proposed private/public partnership with the developer of the proposed project, Greenwood Village-based Alberta Development Partners LLC, which is the creator of various projects in Denver and elsewhere including The Streets at Southglenn in Centennial.

Don Provost, Alberta's founder, said in an interview he isn't planning at this time for the development to be an outlet center, but doesn't rule it out.

“I'm not restricting my property,” he said. As an example, he said that just because someone builds a grocery store somewhere, it doesn't mean someone else can't build another grocery store nearby. “It's a baseless argument.”

He said he thinks Craig's founder, president and CEO, Steven Craig, has done a “great job” with the outlets and wants him to be successful.

“I think this is a tremendous opportunity,” Castle Rock Mayor Paul Donahue said before the vote about the proposed project, called “Promenade at Castle Rock.”

In addition to the retail space, 350 for-rent apartments are also planned.

Donahue said he has high regard for Don Provost, Alberta's founder, and what Provost's company has done in other communities.

The council's July 2 vote approved the conceptual financial structure and preparation of financial agreements that the council will consider for final approval at a special meeting Aug. 27.

If approved in August, Alberta is expected to close on the 200 acres, located just north and west of the current outlet center, and now owned by Jack Vickers, developer of Castle Pines.

The town's staff report states that Alberta “would be responsible for all private costs and financial risk and would be responsible for implementing the project.”

The town, in this conceptual deal, would share 27.5 percent of its sales tax revenues with Alberta for up to 25 years. It's proposed that this revenue, as well as fees imposed on retail customers would be used to pay off a bond issue to be levied on the property's metropolitan district to fund the project's infrastructure costs.