Title
An informational presentation for the Annexation Policy Checkpoint on the proposed Kettle Creek Addition No. 1 Annexation.
Related Files: ANEX-25-0002, ZONE-25-0028, LUPL-25-0014
Council District: Upon Annexation District 2
Presenter:
Chris Sullivan, Senior Planner, City Planning Department
Kevin Walker, Planning Director, City Planning Department
Body
Summary:
Owner: Waldo S. Pendleton, Rebecca M. Pendleton, Lynn M. George, Mark D. George
Developer: Challenger Homes
Representative: N.E.S. Inc.
Location: 2060 Old Ranch Road, 10455 Kettle Creek Rd, 10515 Kettle Creek Rd, Kettle Creek Right-of-Way
The purpose of this Work Session item is to follow the new annexation procedures, particularly the Annexation Policy Checkpoint, accepted by City Council, which requires the annexor to informally present the proposed annexation, and for the City Council to provide feedback to the annexor and City Staff. It is important to note that no decisions are made at this time, and the project will go through a formal hearing process at a future date.
Background:
The proposed project includes concurrent applications for an annexation of approximately 19.88 acres, establishment of R-Flex-Medium/SS-O/AF-O (Residential Flex Medium with Streamside and Airport Overlays) zone districts, and a Land Use Plan to establish Residential Land Use. The project site is located on the northeast corner of Old Ranch Road and Kettle Creek Road.
The initial petition of annexation was accepted by City Council on June 10, 2025. The City’s authority to annex land is established by Colorado Revised Statute (C.R.S. 31-12-101), which sets requirements and procedures municipalities must follow when considering annexation requests. A property is eligible for annexation if the contiguity requirement is met; not less than one-sixth of the perimeter of the proposed area for annexation is contiguous with the existing boundary of the annexing municipality, and that area of the proposed annexation has more than 50% ownership within a 3-mile radius of the municipality’s exterior boundaries. It was determined that the Kettle Creek Addition No. 1 Annexation meets both requirements.
Although no decision is to be made at this Work Session meeting, for reference, UDC Section 7.5.701.C establishes the following Conditions for Annexation:
Conditions for Annexation
1. To assist the City Council in its decision, each proposal for annexation shall be studied to determine whether:
a. The area proposed to be annexed is a logical extension of the City's boundary;
b. The development of the area proposed to be annexed will be beneficial to the City. Financial considerations, although important, are not the only criteria and shall not be the sole measure of benefit to the City;
c. There is a projected available water surplus at the time of request;
d. The existing and projected water facilities and/or wastewater facilities of the City are expected to be sufficient for the present and projected needs for the foreseeable future to serve all present users whether within or outside the corporate limits of the City;
e. The annexation can be effected at the time the utilities are extended or at some time in the future;
f. The City shall require as a condition of annexation the transfer of title to all groundwater underlying the land proposed to be annexed. Should such groundwater be separated from the land or otherwise be unavailable for transfer to the City, the City, at its discretion, may either refuse annexation or require payment commensurate with the value of such groundwater as a condition of annexation. The value of such groundwater shall be determined by the Utilities based on market conditions as presently exist;
g. All rights of way or easements required by the Utilities necessary to serve the proposed annexation, to serve beyond the annexation, and for system integrity, shall be granted to the Utilities. Utilities, at the time of utility system development, shall determine such rights of way and easements;
h. If the proposed annexation to the City overlaps an existing service area of another utility, the applicant shall petition the PUC (Public Utilities Commission) or other governing authority to revise the service area such that the new service area will be contiguous to the new corporate boundary of the City.
In addition to the Conditions for Annexation ratified in the UDC, the City Council recently accepted the following “guidelines” to further aid in analyzing annexations:
1. Offers housing diversity
2. Sufficiency of existing or planned roadway infrastructure
3. Sufficiency of existing or planned public safety staffing
4. Proximity/opportunity to serve employment centers
5. Diversity of development (commercial/industrial/residential)
6. Economic impact on city
7. Reasonable utilities cost recovery / ROI projections
8. Connectivity / Proximity to transportation options
9. Desirable parkland/open space
10. Ability to fund / offset costs for needed public facilities
Previous Council Action:
At the June 10, 2025 City Council meeting, City Council accepted a petition for annexation for Kettle Creek Addition No. 1 and referred it to City Staff for formal review of the annexation and associated applications. Once City Staff has deemed the application sufficient, the related files will be referred to City Planning Commission for recommendation.
Financial Implications:
The Budget Office prepared a Fiscal Impact Analysis (FIA) estimating the City expenditure and revenues attributable to the Kettle Creek Annexation and Land Use Plan for a ten-year horizon. The Fiscal Impact model incorporates the land uses proposed by the annexation and calculates the average City expenditures and revenue generated by the project. Kettle Creek Annexation and Land Use Plan annex a 19.884-acre property in the City. The result of the Fiscal Impact Analysis is a positive cumulative cashflow for the City during the 10-year timeframe. The reason for this outcome is that the use tax revenue collected from residential construction early in the development is enough to maintain a positive result for the timeframe.
City Council Appointed Board/Commission/Committee Recommendation:
The City Planning Commission has not yet held a hearing on the Annexation or the other related applications.
Recommended Action
Proposed Motions:
N/A