Festivaria proposal brings wastewater questions before Lyons board

Lyons is scheduled to discuss a proposed Festivaria Arts Campus on Aug. 5, including an annexation request, planned-unit-development zoning and guest accommodations for two properties on N. St. Vrain Drive. Staff materials raise questions about wastewater capacity and unresolved environmental records; the proposal has not been approved.

The Utilities and Engineering Board agenda lists the referral for 19617 and 19661 N. St. Vrain Drive as a discussion item. The record available Aug. 4 does not show a board vote or recommendation.

Festivaria proposal

Festivaria LLC, associated with Planet Bluegrass, is seeking annexation of 19617 and PUD zoning for both properties. The properties are under county zoning identified in the referral as Light Industrial and Rural Residential; the requested town zoning is PUD.

The PUD narrative proposes 30 to 45 guest-accommodation units, subject to later town review and approval through a development plan. It does not set a final number of hotel rooms or assign every proposed use or unit to a specific property.

The narrative says a renovated “Lab” building could include a restaurant, dining and patio areas, a bar, commercial kitchen, fitness facilities, banquet and workshop space, offices and lodging-support uses. Outdoor gathering areas and other improvements would be developed in phases and remain subject to later review. Existing residential and garage structures could be retained or adapted for residential, guest, storage or service uses.

Wastewater capacity

The properties have different utility arrangements. Staff materials say 19617 uses a well and septic system and receives no town utility services, while 19661 uses Lyons water and sewer.

Town utility comments say the nearby wastewater lift station and force main were designed for Eagle Canyon. Staff warned the system may need expansion or an upgrade before development beyond a single-family residence could proceed. The referral says the work could be more than a minimal improvement and should be considered in the project’s financing statement.

The packet does not establish the project’s permanent water and wastewater service arrangement, available capacity, upgrade timing or cost. The concern is a staff warning, not a completed capacity study or final engineering determination.

The issue comes as Lyons evaluates growth and infrastructure capacity. During a July 27 discussion, staff said the town’s documented water supply could support about 300 to 400 additional single-family-equivalent housing units or commercial equivalents. That estimate exceeds the 87-household need identified in the DRCOG regional housing-needs assessment, though the figures measure different things: infrastructure capacity versus households not served by the local housing market. Commissioners asked staff to distinguish actual capacity from desired or theoretical capacity.