Evaluating Building Height Policy in Downtown Castle Rock
In the summer of 2025, the Town of Castle Rock began evaluating a proposed update to Downtown zoning regulations that would cap all new building heights at a uniform maximum of four stories. This would replace the current zone-based approach, which allows:
- Downtown Core (2nd to 5th Street): Up to 4 stories (60 feet), or 5 with variance
- North and South Downtown: Up to 6 stories, or 8 with variance
This proposed policy shift has sparked debate across the community. While the intent is to preserve Castle Rock’s small-town charm, critics worry it could reduce long-term economic opportunities and property values. This article outlines both sides of the issue, drawing on local feedback, national urban planning trends, and comparable case studies from other municipalities.
What Other Cities Have Done:
Comparing Height Limits Nationwide
Washington, D.C.
D.C.’s long-standing Height of Buildings Act (1910) limits buildings to the width of the adjacent street plus 20 feet — rarely more than 12 stories. It has preserved the iconic skyline and improved walkability but contributed to higher rents and limited supply in the city center. View article
Santa Fe, NM
Santa Fe caps most downtown buildings at 3 stories to protect its Pueblo Revival aesthetic. While the policy has preserved the city’s unique visual identity and supported tourism, it has also limited new development in the city core and led to sprawling growth in surrounding areas. Read more
Boulder, CO
Boulder restricts buildings to 55 feet citywide, aiming to protect mountain views and limit density. While this has aligned with the city’s sustainability and livability goals, critics say the cap has driven housing prices upward and created pressure to build further from the urban core. City policy
Fredericksburg, TX
This Hill Country tourist town limits new construction in its historic district to 2.5 stories. The rule helps maintain a Main Street feel but has pushed some development to the outskirts. Fredericksburg allows special exceptions if buildings meet strict design guidelines.
Concerns from Critics: Economic and Planning Challenges
Reduced Long-Term Property Value
Property owners and developers have expressed concern that reducing allowable heights lowers the potential economic value of land. In zoning, the maximum buildable area often determines land valuation. A reduced cap could limit refinancing potential, redevelopment interest, or future sales value for parcels originally acquired under more permissive zoning.
Loss of Organic Downtown Growth
Critics argue that height flexibility allows for mixed-use buildings that combine retail with housing or office space. These integrated developments bring foot traffic and economic vitality to street-level businesses. Without the ability to build vertically, future projects may be limited in scope or pushed outside the core area, weakening the economic engine of Downtown.
Fewer Housing Opportunities Near Jobs and Services
A lower height cap may restrict the supply of new housing units in one of the town’s most walkable, service-rich areas. This could exacerbate housing scarcity, drive up costs, or force workers to live farther from their jobs. In the long term, it could also limit Downtown’s diversity and accessibility.
Investor Uncertainty and Regulatory Risk
Sudden changes in zoning policy can create hesitation among lenders, developers, and small-scale investors. Critics caution that changing the rules midstream — especially for property already purchased under different expectations — may create reputational or legal risk for the Town, and reduce confidence in future planning stability.
Opportunities for Collaboration and Flexibility
While the debate around height caps often appears binary — limit growth or encourage it — many municipalities have explored hybrid approaches that respect historic scale while allowing thoughtful, flexible development. Below are several zoning strategies that have been successfully implemented in other cities.
Overlay Zones for Key Development Areas
Some cities use “overlay zones” that allow height exceptions in specific corridors — such as near transit, parks, or public plazas — while preserving stricter caps in surrounding blocks. This allows urban density where infrastructure supports it, without changing the overall character of a district.
Phased Implementation or Conditional Triggers
Municipalities may phase in new height policies over 3–5 years or tie them to specific benchmarks — such as infrastructure upgrades or community plans. This gives property owners time to adapt, plan, or respond to market changes without abrupt disruption.
Incentives for Adaptive Reuse and Mixed-Use
Cities like Portland and Fort Collins offer incentives such as expedited permitting, tax credits, or bonus height allowances for developers who preserve existing facades, convert historic structures, or add public amenities like pedestrian plazas. These incentives help encourage context-sensitive investment while achieving broader planning goals.
Design Review Boards with Local Representation
Flexible review processes involving local architects, planners, and business owners can offer a middle ground — allowing for taller buildings only when designs complement the surrounding environment. This case-by-case model fosters transparency and community trust.
Our Perspective: A Moment to Shape Downtown’s Future
The Douglas County Local Business Alliance™ (LBA) believes this discussion represents more than just a zoning adjustment — it reflects Castle Rock’s evolving identity as both a historic community and a hub for entrepreneurship. We recognize the sincere intent behind the proposed four-story cap: to preserve the town’s charm, honor resident input, and protect the visual integrity of Downtown.
At the same time, we urge decision-makers to approach implementation with care. Property rights, small business viability, and long-term economic opportunity must remain central to any policy decision. Many local property owners made long-term investments based on existing zoning, and those investments support local jobs, tax revenue, and community development.
We encourage Castle Rock leaders to consider phased approaches, overlay districts, or variance processes that protect Downtown’s character while respecting the economic contributions of local landowners, independent businesses, and residents. With thoughtful planning and public dialogue, we believe Castle Rock can honor its past while securing its future.
The LBA stands with small businesses, local investors, and community-first planning. We support policies that preserve Downtown Castle Rock’s spirit — but also keep the door open for responsible, locally driven growth.