Castle Rock town councilmembers Tuesday night approved on first reading a Douglas County landowner’s proposal to annex a 535-acre unincorporated ranch into town for major development, a proposal that has drawn ire from the town and residents for over 20 years.

Castle Rock Town Council unanimously approved Pine Canyon Ranch annexation, allowing landowners to move forward in its planned development under municipal guidelines.

A second vote in June will likely not require further discussion for official approval, according to town officials.

Once described as the “donut hole” in the middle of Castle Rock, the 533.5-acre unincorporated site splits Interstate 25, and east of the interstate is located north of Scott Boulevard, south of Black Feather Trail, west of Founders Parkway and east of Front Street. On the west side of I-25, Pine Canyon sits east of Prairie Hawk Drive, south of Highway 85 and is bisected by Liggett Road.

The Walker family has owned the property since 1885 and has attempted to develop it since 2003. Pine Canyon has served as a cattle ranch since the early 1900s.

Today, Pine Canyon’s development calls for 800 single-family homes, a maximum of 1,000 multi-family residential units and a 600,000-square-foot limit for non-residential development. Developers plan to retain 176 acres for parks and reserve 33% for open space and trails. The development includes a 21-acre hotel resort and spa with an option for single-family homes. A school is also possible on the site within the next 10 years, if there is a plan in place, according to town staff.

After three failed attempts to annex into town and disagreements with previous councilmembers, the family pivoted to Douglas County for development in 2020, but was stymied again last year when faced with public concerns over sustainable water and Castle Rock annexation.

The development’s water treatment would tie into Castle Rock Water’s existing water treatment system, according to Castle Rock Water Director Mark Marlowe.

Marlowe said the town’s water authority has planned to serve Pine Canyon for over 20 years.

“Castle Rock Water will reserve existing excess nonrenewable groundwater already owned to ensure appropriate amounts of nonrenewable groundwater available for the development,” Marlowe said Tuesday.

Town staff Tuesday night insisted on annexing Pine Canyon Ranch into town so that it wouldn’t go back to the county’s consideration. City staff argued that the development would be too big for it to be on unincorporated county land.

Kurt Walker, a sixth generation family member, intends to build a development to “preserve and honor the legacy before us,” he told councilmembers Tuesday. “And building upon that with the characters and themes we have planned… that runs throughout everything we’ve tried to do.”

“We have watched the town grow around us and see the changes to what it is for generations,” Walker previously told The Denver Gazette.

Since then, the Walkers’ have returned to Castle Rock for a fourth annexation attempt. Castle Rock Town Council previously approved pre-annexation for Pine Canyon in December, allowing the developers to address concerns over water usage and requiring them to meet municipal standards.

“We didn’t go to the county for leverage or negotiation tactics,” Walker previously said. “We did that because it was our only path forward.”

Castle Rock residents lamented such a development would complicate water sustainability, eliminate open space views, increase traffic, density, decrease property values and a demand for a new school.

The need for an updated traffic study, last done near Pine Canyon Ranch in 2021, dominated Castle Rock annexation concerns, both by residents and council members. Castle Rock staff said the development would coordinate with existing town roads and be built to town standards.

“This is a very difficult decision for council,” Councilmember Laura Cavey said. “My two biggest concerns are the density and traffic. Even now without that development (traffic) is really bad.”

Woodland’s Homeowners Association President Randy Reed, who served on the town council over 15 years ago, demanded to councilmembers that more traffic studies and water assessments be made before development breaks ground.

Steve Snodgrass, a local resident in Castle Rock, told councilmembers residents want Pine Canyon developers to be in Castle Rock.

In 2024, over 500 residents signed a petition to support Pine Canyon’s development into town, according to Snodgrass.

”We believed the town would hold the developer to a higher standard, mitigating the impacts on our community. This does not appear to be happening as the staff is recommending the project with minimal changes,” Snodgrass said.

“The town and developer should work together to reduce the size of this project and mitigate the impacts on our community,” he added.

For Mayor Jason Gray, he said this annexation and development is a long time coming.

“This should’ve been taken care of long before our town council,” Gray said.

“I can see the frustration with the Pine Canyon Ranch family,” he said, adding the development is “going to happen eventually.”

“Now,” he said, “it’s here. I am glad the Pine Canyon and the town have come to an agreement that I think is reasonable.”

After the meeting, Walker told The Denver Gazette “I didn’t know that we would ever see this happen.”

“This plan allows us to keep over 10% of the property doing what we’ve always done, and that was pivotal to us,” he said. “It was something we were never allowed to do in previous iterations of working with the town.”