A long-debated development on the outskirts of Castle Rock is one step closer to becoming reality. The Castle Rock Planning Commission has formally recommended the annexation of a 530-acre parcel known as the Pine Canyon development, setting the stage for a final decision by the town council later this month.
The Pine Canyon project, located on both sides of Interstate 25 just west of Founders Parkway, proposes a mix of residential, commercial, and industrial uses. It would bring approximately 1,800 homes, a resort hotel and spa, and designated commercial spaces to the area if approved. The project also sets aside one-third of the land for parks and open spaces.
Currently used for cattle ranching, the property has been the subject of development efforts for more than two decades. However, controversy intensified in 2024 when developers sought approval through Douglas County, proposing to rely solely on nonrenewable groundwater. That plan was met with significant opposition from Castle Rock officials and residents concerned about long-term sustainability.
According to town officials, the initial proposal would have allowed homes to be built using just 0.273 acre-feet of nonrenewable groundwater per household. Castle Rock Water, the town’s utility provider, requires new developments to secure at least 1.1 acre-feet per home and connect to a renewable water supply.
“Reducing the amount of groundwater required to one-fifth of what larger water providers in Douglas County require should not be considered,” the town said in a statement at the time. Following public outcry, Douglas County urged the developers to engage with Castle Rock about a more sustainable path forward.
Now, developers have shifted course, requesting annexation into Castle Rock and agreeing to meet the town’s more stringent water standards. Under the revised proposal, Pine Canyon would connect to Castle Rock’s renewable water system and comply with its groundwater requirements, with developers expected to pay the town’s standard Water Resources Fee.
Castle Rock officials noted, “Pine Canyon would develop under Castle Rock Water’s requirements if it proceeds with annexation and development in the Town of Castle Rock. This means development would occur based on 1.1 acre-feet of nonrenewable groundwater per single-family home, connected to renewable water resources.”
While the new water agreement has addressed some concerns, others remain, particularly regarding traffic and the scale of the development. Former Castle Rock Mayor Randy Reed, a nearly 40-year resident, attended the planning commission hearing and raised questions about the project’s transportation study.
“It was the traffic study that the town is accepting from the developer; it was done in 2021,” Reed said. “It’s four years later now. We need an updated study before this goes to the town council.”
Reed expressed cautious support for the development but emphasized the need for responsible growth. “I believe that that’s a higher density than should be allowed for this property,” he said. “I think the development should be scaled back to meet the water they can bring to the town.”
According to project planners, Pine Canyon is designed to alleviate some of the traffic concerns by introducing regional east-west and north-south road connections. These additions, they argue, will help disperse traffic loads and ease congestion in the surrounding area.
Still, many community members remain divided. Some see the development as a logical expansion of Castle Rock’s footprint, while others worry about the strain it may place on infrastructure, natural resources, and overall quality of life.
“It’s going to be a much more positive effect for this to be developed in the town and not in the county,” Reed noted. “But the people in the community should have a say in how their town develops out.”
He continued, “The landowner has the right to do what they can legally do to develop their property. They have property rights. But I also feel like I have property rights. So whatever they develop on their property—if it hurts my property—must be recognized and dealt with properly.”
The Castle Rock Town Council is scheduled to decide on the annexation during a public meeting on May 20. Residents will have the opportunity to provide public comment before the council casts its vote. The topic had previously been listed on a May 6 agenda but was later postponed.
If approved, the Pine Canyon project would become one of the largest recent developments in Castle Rock and could signal a new chapter in the town’s approach to growth, sustainability, and long-term planning.
As Castle Rock continues to expand, town leaders will face increasing pressure to balance housing demand, environmental stewardship, and the needs of longtime residents. The outcome of the Pine Canyon annexation may set a precedent for how Castle Rock navigates these complex challenges in the years ahead.
