A proposed ordinance in Castle Rock, about 25 miles south of Denver, has met criticism as officials there aim to preserve its small town character by further limiting how tall downtown buildings can be.

On June 17, the Town Council asked staff to develop an ordinance to limit new developments to a maximum of four stories within all of Castle Rock’s Downtown Overlay District (DOD), according to town officials.

Some local developers, however, criticized the Town Council for allegedly rushing a proposal they said would limit a development’s potential.

Last week, town councilmembers considered the ordinance before postponing the matter to a future date — ruling that more stakeholder input is necessary before a decision is made.

“Limiting building height in downtown could offer several benefits that support the town’s long-term planning goals,” Castle Rock staff said in its ordinance report outlining the proposal.

“Maintaining lower building heights helps preserve the visual integrity and traditional scale of the area’s historic architecture, ensuring that new development does not overwhelm existing landmarks,” officials said.

Established in 2010, the DOD split the downtown area into three smaller sub-districts, creating standards for developments to follow. The DOD’s goal is not only to modernize downtown Castle Rock, but preserve its historic charm.

Already, the north and south districts allow for six-story buildings, with a developer option to build higher. The core district only allows four-story structures with a maximum height of 60 feet.

DOD standards have long encouraged mixed-use developments built within the same building structure.

“Town Council no longer believes that a valid public purpose is served by the differing height limitations,” the proposed ordinance said, adding that developments already approved or under construction don’t apply.

Some of downtown’s oldest buildings were built out of locally quarried rhyolite stone, according to town historians. Downtown Castle Rock is home to three buildings listed on the National Register of Historic Places.

In the proposal’s staff report, town officials said shorter structures “encourages new development” to be ”contextually appropriate” when scaled with existing buildings.

“This approach also supports a more comfortable and engaging pedestrian environment, as human-scale buildings — typically three-to-four stories — foster walkability and enhance street-level activity,” officials said.

Staff added shorter buildings “reduce shadows and allow more natural sunlight to reach sidewalks and adjacent properties, contributing to a more livable and inviting streetscape.”

A few local developers, however, sent letters of opposition to the Town Council, outlining concerns ranging from lack of community outreach and preserving property rights.

Developers also warned the town that legal action is possible.

“The current code allows for more, and that framework has shaped our decisions and investments,” one developer said in a letter. “A change like this would rewrite the rules midstream.”

The Downtown Development Authority, tasked with adopting planned developments under the DOD, will decide what’s next, according to a town spokesperson.

“The next steps for continuing the discussion through the DDA have not yet been established,” the spokesperson said.