FOR IMMEDIATE RELEASE

Castle Rock, Col., (June 8, 2007) — Representatives from Castle Pines North (CPN) and Castle Pines Village (VILLAGE) have entered into a comprehensive “Revenue Sharing and Settlement Agreement” regarding the commercial area included in two separate petitions to incorporate filed by both communities last December.

The agreement, signed June 7 by representatives from both CPN and the VILLAGE, was filed with the Douglas County District Court today. As part of the agreement, both parties will request the court approve CPN’s petition to incorporate and allow the appointed election commissioners to set and administer the election.

As stipulated in the agreement, representatives from the VILLAGE will re-file their petition to incorporate with the court, and will exclude the commercial area from their new boundary map. Terms of the agreement allow the entire commercial area to remain in the boundaries of CPN, if the CPN community votes to incorporate.

If both communities are successful in their elections to incorporate, gross sales and use tax revenues generated from the commercial area will be split between the two communities; 80 percent to CPN, and 20 percent to the VILLAGE for the first five years after the last of the two communities is formed. Beginning in the sixth year, 75 percent of the gross revenues will go to CPN and 25 percent will go to the VILLAGE. If one community fails to incorporate, the successful community will be entitled to include the commercial area without sharing revenue.

According to Maureen Shul, Castle Pines North Master Association president and Preservation Committee leader, efforts to resolve the dispute over the commercial area were successful.

“Our driving motivation during the past six months was to not only do what was in the best interest for our community, but to protect the businesses as well. It would have been an enduring detriment to the entire area if this had turned into an adversarial situation, with one community fighting another and the businesses getting caught in the middle,” said Shul. “There is always common ground to be found when parties are determined to find a positive solution that is beneficial to all, and I believe that has been achieved here.”

Since December, the two neighboring communities have conducted ongoing negotiations in an effort to reach a workable solution regarding the disputed commercial area. Both CPN and the VILLAGE included the 65 businesses located in the commercial area on Castle Pines Parkway in their proposed incorporation boundary maps. Colorado law is unclear regarding a situation where simultaneous petitions to incorporate new cities contain overlapping territory comprised of commercial, non-residential areas without resident voters.

Voters of CPN will have the final voice on incorporation once an election date has been set. The Revenue Sharing and Settlement Agreement is binding only if incorporation of both communities is successful.

For the history of the incorporation effort and the Citizens for the Preservation of Castle Pines North Committee, visit www.cpnpc.org. Maps of incorporation boundaries can be found at http://www.cpnpc.org/maps. Information about the Castle Pines North community can be found at www.cpnhoa.org.

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Details of the Revenue Sharing and Settlement Agreement between

Castle Pines North and Castle Pines Village

· Citizens for the Preservation of Castle Pines North and the Committee to Protect Castle Pines Village have entered into a comprehensive Revenue Sharing and Settlement Agreement intended to allow the incorporation of both new communities to proceed as expeditiously as possible.

· Incorporation petitions of both Castle Pines North (CPN) and Castle Pines Village (VILLAGE) included within their boundaries the commercial area along Castle Pines Parkway.

· Colorado law is unclear regarding a situation where simultaneous petitions to incorporate new cities contain overlapping territory.

· The Revenue Sharing and Settlement Agreement provides that the overlapping commercial area will be within the proposed City of Castle Pines North if the election to incorporate CPN is successful.

· The VILLAGE intends to withdraw their petition for incorporation and will re-file their petition to exclude the commercial area.

· If both incorporation elections for CPN and the VILLAGE are successful, 80 percent of the gross sales and use tax revenues from the commercial area will be paid to CPN, and 20 percent will be paid to the VILLAGE.

· Beginning in the sixth year, CPN will receive 75 percent of gross sales and use tax revenues and 25 percent will go to the VILLAGE.

· If the VILLAGE successfully incorporates, it will have the right to review the scale, scope and quality of development decisions made by the City of Castle Pines North within the existing commercial area.

· The proposed Lagae Ranch development will be included in the boundaries of Castle Pines North.

· Any future commercial development on the Lagae Ranch is not included in the Revenue Sharing and Settlement Agreement with the VILLAGE.

· The obligation to share revenues will expire if one of the two new cities is not formed within five years from the date in which the Revenue Sharing and Settlement Agreement was signed (June 7, 2007.)

· If the City of Castle Pines (VILLAGE) is never formed, CPN will retain all sales and use tax revenues generated within the commercial area.

· As part of the settlement, both parties will request that the Douglas County District Court approve the petition to incorporate the City of Castle Pines North and have the appointed election commissioners set a date and administer the election.

· The petitioners for the City of Castle Pines North anticipate an election on incorporation will be held sometime before the end of September.

· Representatives from the Citizens for the Preservation of CPN view this settlement as a victory for both communities. This agreement allows both communities to vote to determine their own future while avoiding a court battle over the commercial areas that almost certainly would have been presented to the Colorado Supreme Court years from now.

For Information Contact:

Lane Roberts, APR

Citizens for the Preservation

of Castle Pines North

303-957-5300

720-253-4503

cpnpc@cpnhoa.org
www.cpnpc.org