Colorado Springs weighs 3,200-acre annexation southeast of town for thousands of homes

Oct. 10—The Colorado Springs City Council may annex 3,200 acres southeast of the city limits this year that could be transformed into neighborhoods with up to 9,500 homes.

Some councilmembers praised the potential for more homes to help address the housing crisis, while asking hard questions about the development's need for water, at an informal discussion about the project Monday.

"I believe you will provide a service to the city," Councilman Bill Murray told developers.

The proposed community known as Amara could need up to 3,500 acre-feet of water annually once it is completely built out. The water requirement comes at a time when the West is facing intense drought and many communities are looking for ways to cut consumption. About 70% of Colorado Springs' water comes from the Colorado River Basin, an area that has seen such intense drought the federal government has asked all states that rely on it, including Colorado, to cut consumption next year by 2 million to 4 million of acre-feet.

"This water issue for the Amara annexation is critical," Council President Tom Strand said.

City and Colorado Springs Utilities staff members also presented information about other services the development will need, such as natural gas, electricity, police and fire service to Amara, an area split into two properties

Amara is asking to come into the city of Colorado Springs even though it is adjacent to Fountain, not Colorado Springs, because Fountain cannot provide the water, said Doug Quimby, president of La Plata Communities, a partner in the project. Quimby's company developed Briargate, a 10,000-acre master-planned community that is just finishing up, he said.

If Amara was annexed into Colorado Springs, it would be a "flagpole" annexation, named because it would be annexed along a road within the city boundaries, which functions as the pole or connection to Colorado Springs.

"It probably seems like not an ideal situation to you," Quimby told the council.

However, the master-planned community that includes parks could help meet the demand for housing with far more attainable homes than are offered in other areas of town, including Briargate.

"Our real intention is to have a broader spectrum and a lot more lower-price homes," he said.

For example, townhomes in the new community could sell for $350,000, he said.

Colorado Springs also has water it could provide to the project.

Colorado Springs Utilities staff members told the council the city can currently provide 95,000 acre-feet of water annually, and the average annual demand for water is 73,000 acre-feet of water a year. Utilities may need to purchase additional water rights, add water storage, and take additional steps to meet the potential demand for water as the city develops. Much of Banning Lewis Ranch, a 24,000-acre area on the city's eastern edge, has not been developed and will require more water in the coming decades.

While the city's consumption has been flat, as indoor fixtures have become more efficient, Utilities expects demand for water will grow at about 2% per year because the gains to be made through indoor efficiency have likely been fully tapped at this point, said Abby Ortega, general manager of infrastructure and resource planning. Right now, the city expects to have enough water to meet demand through 2041 and will continue working on projects to meet demand beyond that, she said.

"I know we will continue to be diligent," she said.

La Plata Communities' required fees to cover water infrastructure could reach into the tens of millions of dollars over time, Quimby said. The design of the community would also be water-conscious, with smaller lots, he said.

Councilwoman Nancy Henjum raised some questions about providing other services, such as police protection, to Amara because officers would need to drive across El Paso County's and Fountain's property to get to Amara.

Deputy Chief Mary Rosenoff told the council she could not provide estimated response times to that area at this time. The Colorado Springs Police Department has not requested a substation in the Amara area as part of the proposed annexation agreement.

The City Council expected to hear a more complete breakdown of costs and economic returns associated with Amara on Tuesday morning. The board may vote on whether to annex the property before the end of the year.

La Plata Communities could get started on development next year on the first 770 lots, Quimby said.

The company also would like to build out an additional 2,500 acres that is currently within the town of Fountain's limits adjacent to Amara and asked the town council to remove it from the community's limits earlier this year. The town council declined.