SUBJECT:
Title
A Resolution of the Town Council of the Town of Erie Approving the Consent to Assignment of Development Agreement from Stratus Stonegate, LLC to KB Home Colorado, Inc.
Body
DEPARTMENT: Planning and Development
PRESENTER: Christopher C. LaRue, Principal Planner
POLICY ISSUES:
The Town Council will consider whether it is appropriate to transfer the Development Agreement (DA) responsibilities for the Lafferty at Canyon Creek Subdivision from Stratus Stonegate, LLC to KB Home Colorado, Inc. KB Home is an established builder and is prepared to meet all DA requirements.
TIME ESTIMATE: 0
FISCAL SUMMARY:
N/A
STAFF RECOMMENDATION:
Recommendation
Approve the Consent to Assignment of the Development Agreement.
End
BACKGROUND OF SUBJECT MATTER:
The Town Council approved the Lafferty Final Plat and Development Agreement (DA) on November 14, 2023. The subdivision lies southwest of Lombardi Street and the RTD railroad tracks.
Normally, developers assign development agreements to builders shortly after final plat approval. However, the original developer, Stratus Stonegate, LLC, never completed this assignment, and the Town never received a final version for review and approval. Stratus Stonegate later sold the property to KB Home Colorado, Inc., which is now actively developing the site.
The DA for the Lafferty Final Plat outlines the Town’s standard requirements for site development and includes exhibits describing phasing and cost estimates for public improvements. These improvements include streets, sidewalks, right-of-way landscaping and irrigation, utilities, and certain private features of public value. Town staff and the Town Attorney negotiated the DA with the original property owner.
The attached Resolution assigns all rights, obligations, covenants, and requirements under the DA for the Lafferty at Canyon Creek Subdivision to KB Home Colorado, Inc.
Special Note:
In the past several months, during construction of the Lafferty development, a nearby resident expressed concern that drainage from the Lafferty site may have impacted their property. Town staff, in coordination with the Town Attorney, are actively investigating this claim. Staff notes that assigning the DA does not influence or resolve this investigation. The assignment simply ensures that responsibility for fulfilling the existing DA rests with the current owner and developer, KB Home Colorado, Inc.
Site History and Prior Approvals:
1. Annexation
• The Town Board of Trustees annexed the Lafferty site in July 2020.
2. Zoning
• Concurrently with annexation, the Town Board of Trustees zoned the Lafferty property as Low Density Residential (LR).
3. Plats
• In October 2020 Town staff reviewed a Sketch Plan for the property. A Sketch Plan is an optional, informal evaluation completed before detailed planning and engineering work begins, and it does not result in a formal decision.
• On January 10, 2023, the Town Board of Trustees approved the Lafferty Preliminary Plat, proposing 132 single-family detached dwelling units.
• On June 25, 2024, the Town Council approved the Lafferty at Canyon Creek Final Plat and Development Agreement. The Final Plat includes 132 single-family detached dwelling units.
4. Metropolitan District
• On March 14, 2023, the Town Board of Trustees approved the Lafferty Canyon Metropolitan District.
ATTACHMENTS:
1. Resolution No. 25-210
2. Town Consent to Assignment with Exhibit
3. Recorded Copy of the Lafferty at Canyon Creek DA