The Hidden Pointe Homeowners Association has summoned the Castle Pines North Master Association to District Court to address the 1999 contract between the Hidden Pointe HOA and the Master Association. This contractual agreement that is now in question:

· Includes a commitment that Hidden Pointe homeowners will pay the same dues to the CPN Master Association as all other CPN residents.

· Granted Hidden Pointe residents equal access to the parks that were built using those dues — Coyote Ridge Park, and the new South Park that is currently being planned.

· Granted Hidden Pointe homeowners equal access to community activities sponsored by the CPN Master Association.

· Granted assurances requested by Hidden Pointe residents that the playfields in Coyote Ridge Park will not be lighted and will not be used for regularly scheduled league games.

Hidden Pointe has a unique, contractual relationship with Castle Pines North. While all other subdivisions in the CPN area were formally included in the boundaries of Castle Pines North, Hidden Pointe’s developer kept the subdivision outside the CPN boundaries, but signed contracts to obtain services from CPN.

At the time this contractual agreement was negotiated in 1999, CPN had begun planning what is now Coyote Ridge Park, and Hidden Pointe was also planning a small neighborhood park on one parcel that is now included in Coyote Ridge. Following discussions between CPN and Hidden Pointe’s developer and residents, a committee of Hidden Pointe residents surveyed their neighbors, and Hidden Pointe decided to include their neighborhood park (which would have had a small play field and a “tot lot”) in the larger Coyote Ridge Park. Hidden Pointe’s developer transferred the parcel that would have been used for the Hidden Pointe neighborhood park to CPN, and CPN assumed responsibility to fulfill the Hidden Pointe developer’s obligation to the County to build a neighborhood park.

Coyote Ridge Park was built using CPN Master Association Dues, along with funds from the developers in CPN and Hidden Pointe. The total construction cost for Coyote Ridge was $1.4 million, compared to the $215,000 that had been budgeted by the developer for the “Hidden Pointe” portion of the park. In addition, CPN agreed to pay all maintenance expenses for the entire park, relieving the Hidden Pointe HOA of the costs associated with watering and maintaining a separate neighborhood park in perpetuity.

Virtually all Hidden Pointe homeowners have paid their Master Association dues. A few residents have had questions about the complex and unique contractual relationship Hidden Pointe has with the CPN Master Association, and also about the separate relationship between Hidden Pointe and the CPN Metro District.

The Master Association has invited Hidden Pointe, through its board, to discuss the possibility of creating an annexation agreement which would provide full membership status in the Master Association, however the Hidden Pointe HOA’s elected board members have not responded.

In September, an attorney for the Hidden Pointe’s Homeowners Association filed a Complaint with Douglas County District Court, and issued a Summons requiring the CPN Master Association to respond. The Master Association’s law firm has begun work on the case, and the CPN Master Association Board will be reviewing the budget to appropriate the funds required for the legal fees.

CPN intends to vigorously defend the lawsuit. The agreement was fairly and openly negotiated between CPN and not only Hidden Pointe’s developer, but its homeowners, who were able to obtain major concessions concerning use, lighting and parking at Coyote Ridge Park. In addition, Hidden Pointe did not have to bear the continuing cost burden of watering and maintenance.

Until the court orders otherwise, CPN believes the agreement is a binding obligation and expects that Hidden Pointe residents will continue to abide by the terms of the agreement and pay their dues to CPN. Failure to pay will cause CPN to add late fees and treat any non-paying residents in the same fashion as non-paying members of CPN.

The Contractual Agreement in question is a recorded document which can be obtained from Douglas County. Cick here for a pdf (200k) copy of the agreement.