The Colorado Springs City Council heard Monday about the potential costs and benefits of annexing about 2,000 acres near Schriever Space Force Base.

The proposed development, called Karman Line, could have up to 6,500 new homes, 444 acres of open space and 148 acres set aside for commercial and industrial space, according to a presentation by Craig Dossey, president of Vertex Consulting Services on behalf of the Norris Ranch Joint Venture, the property ownership group seeking to develop the property.

Vertex is a land planning firm headed by Dossey, the former El Paso County Planning Department director.

The development northwest of the intersection of Curtis and Bradley roads in eastern El Paso County could provide convenient housing and services close to Schriever, where about 7,000 people work, he said, in an area largely removed from housing and services.

It will also create a positive cash flow for the city, Dossey said, noting the financial report has not been finalized.

The development would require a “flagpole” annexation along Bradley Road because it does not share a boundary with the city. However, it is adjacent to city-owned open space, planned for a reservoir.

Bradley Road, which lies within city boundaries, functions as the “flagpole” or connection to the city.

The council members told Dossey they looked forward to hearing more details about the project, although they did not take any formal action on the proposal that could require tens of millions in investment.

Councilman David Leinweber noted that it seemed this area was the only area left for significant city growth.

“This is extremely logical,” Councilwoman Nancy Henjum said.

Extending water, sewer, electricity and gas services to the property could require Colorado Springs Utilities to spend between $94 million and $148 million, said Colorado Springs Utilities Development Projects Manager Bryan English. The potential impact on customer bills has not been calculated yet, said Danielle Nieves, a spokeswoman for Utilities.

At the same time, Colorado Springs Utilities needs to spend $3.4 billion between 2025 and 2029 to upgrade its existing system, The Gazette reported previously. The Colorado Springs City Council also serves as the Utilities board.

In early August, the City Council voted down a proposal to annex 3,200 acres east of Fountain, a development known as Amara, after hearing from residents and business owners about the high costs. Residents also raised concerns about how Amara could strain existing city resources, such as police and fire services.

Colorado Springs Utilities does have enough water to serve Karman Line under its existing water rule that requires the city to have 128% of the water for the city and the proposed development in order to annex it. Karman Line is projected to need 1,672 acre feet of water and the city currently has about 5,692 acre-feet of water in available supply, English said.

However, Utilities needs to have an additional 34,000 acre-feet of water to meet the demands of the city when it is fully built out, English said.

To provide fire services, the developers plan to set aside land for a fire station. They did not receive a request for land for a police station, Dossey said. He said the developers hoped to work with Schriever on a mutual aid agreement to help with police services.

Councilman Dave Donelson encouraged Dossey to have conversations with the base about Air Force Security Forces serving off base.

“I don’t see that happening at all,” he said.

Donelson questioned placing so many homes so close to Schriever.

“They put it out there for security and privacy,” he said.

Dossey said that Schriever worked to acquire land on its southern edge, but did not attempt to buy any land to its west.

He also pointed out that the development’s location was identified as a potential area for annexation through a joint Colorado Springs-El Paso County process.