Colorado county agrees to land transfer with local community, moves forward with mega sports complex

In a packed business meeting Tuesday, Douglas County Board of County Commissioners approved an amendment to its contract with Sterling Ranch. This finalized the land swap and the terms for the Zebulon mega sports complex to move forward.

Many community members in attendance held signs in support of Zebulon and spoke about how excited they are for new ice rinks, courts for basketball, pickleball, volleyball and baseball fields. But others are raising the alarm about how much this will cost local taxpayers.

"I heard we're gonna have our own field to practice on. It's gonna be a lot closer to my house," said Dean Lafitte, a Slammers Baseball player .

Nine-year-old Lafitte is one of many young athletes excited for the incoming Zebulon Regional Sports Complex.

"We don't have to drive as far, and I don't get bored on the drive, and that doesn't continue into practice," Lafitte said.

But others, including Democratic state Rep. Bob Marshall, have concerns about the project.

"This is a sweetheart deal for the Sterling Ranch developer, and it's not a good deal for Douglas County," Marshall said.

Douglas County commissioners agreed to the land swap with Sterling Ranch to build Zebulon. Sterling Ranch is giving the county 45 acres in exchange for about 24 acres of the county's nearby land.

"This is a historic delivery of the highest amount of recreational and sports resources that our county has ever seen," commissioner Abe Laydon said.

The land Zebulon will be built on is a former DuPont dynamite manufacturing site, with a known history of contamination.

The Colorado Department of Public Health and Environment approved site closure in 2022, greenlighting development as long as it's in compliance with a Notice of Environmental Use Restrictions. According to the notice, that prohibits activities such as digging, drilling, tilling, grading, excavation, use as an athletic field and vehicular traffic on parts of the property.

A site investigation authorized by Douglas County in 2023 found soil contamination from forever chemicals, lead and asbestos-containing materials on this "Option 1" parcel, which overlaps with the land Sterling Ranch is transferring to the county for Zebulon.

"The land that's being transferred today has no environmental issues other than a small section where there was a PFAS element," Laydon said. "That's not an issue that would be affected in terms of this development, because that's more of a water issue, and we're talking about ground development, so no environmental concerns."

Sterling Ranch Development Company's president, Brock Smethills, told CBS Colorado, "Sterling Ranch and Douglas County have worked together to respond to public concerns, and have adjusted the boundaries of the land being transferred today. None of the land being conveyed to the county contains any environmental concerns."

The agreement also releases Sterling Ranch from any future costs related to environmental remediation.

"They're doing a land swap, where they're taking contaminated land, and the county is going to be completely 100% liable for that, taking the entire burden off the developer," Marshall said.

While Sterling Ranch has estimated the first phase of the project will cost between $65 million and $85 million, it's still not clear how much of that money will come from taxpayers.

"It's too early to say," Laydon said. "With 50 entities in the private sector all expressing interest, if many of those come forward, the county contribution could be extremely limited."

The county plans to issue certificates of participation (COP) to fund the development. The COP are lease financing agreements that bypass TABOR requirements for voter approval to issue tax-funded debt.

"Certificates of participation puts us on the hook in the future," Marshall said.

"There will always be a few politically motivated individuals spreading misinformation, and it's great to be able to set the record straight. COPs are part of the toolkit in the toolbox," Laydon said.

In an email provided to CBS Colorado, a county project manager said the plan, "doesn't make a lot of sense," pointing out the county will spend $50 million on land development infrastructure without a payback agreement. That comes at a price of nearly $1 million an acre, while last year Sterling Ranch bought DuPont land for under $16,000 an acre.

"A cost-benefit analysis, this is a bad, bad deal for Douglas County," Marshall said.

Douglas County estimates Zebulon will bring $1.3 billion in economic impact and $13.8 million in fiscal impact to Douglas County from 2026 through 2036.

Sterling Ranch says its partners will fund private retail development around Zebulon that its expects will help bring major revenue to the economy. Some of that land is currently going through additional environmental remediation that Sterling Ranch is paying for.

The plan also preserves 185 acres of Sterling Ranch open space near Zebulon.