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2015 COA 127
Colo. Ct. App.
2015
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Background

  • In 2011 Aurora applied under Colorado's Regional Tourism Act (RTA) for tax-increment financing to support a large Gaylord hotel/conference center; CEDC conditionally approved $81 million in May 2012 subject to conditions and a formal resolution.
  • Gaylord withdrew; RIDA/Marriott later agreed to develop a similar project. Aurora did not submit a new RTA application for that change.
  • A group of eleven Front Range hotels (the Hotels) petitioned the CEDC (July 2013) arguing material changes required a new application; the Attorney General denied the petition as untimely in August 2013.
  • The CEDC adopted a final resolution approving Aurora’s RTA award for the RIDA/Marriott Project in October 2013; the Hotels filed suit in September 2013 (amended later) asserting APA and mandamus claims and a constitutional challenge.
  • The trial court dismissed the Hotels’ claims for lack of standing; the Court of Appeals affirmed, holding the Hotels lacked standing to pursue claims premised on alleged economic injury from the subsidized competitor.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
When did final agency action occur for purposes of judicial-review deadlines? Final action occurred when the AG denied the Hotels’ petition in Aug 2013. Final action occurred at the CEDC’s May 2012 conditional approval. Final action occurred in Oct 2013 when CEDC adopted the required written resolution memorializing the award; Hotels’ premature Sept 2013 filing did not deprive court of jurisdiction.
Were the Hotels’ APA and mandamus claims timely? Their Sept 2013 filing was timely or should not be dismissed as premature. The claims were untimely because deadlines ran from May 2012 approval. The premature filing was not jurisdictionally fatal; court acquired jurisdiction when the Oct 2013 resolution issued, so the suit was not untimely.
Do the Hotels have standing to challenge CEDC/Aurora for allegedly failing to follow the RTA (claims 1,2,4)? They alleged direct economic injury from competition and therefore have competitor standing. The Hotels’ alleged injury is indirect—harm results from the competitor’s lawful market activity—so no standing. Hotels lack standing: their economic harm is indirect and results from the competitor’s actions, not direct agency wrongdoing.
Is the constitutional challenge to §24-46-309 properly before the court? It was presented as an as-applied challenge tied to May 2012 action. CEDC/Aurora argued it was misconstrued and untimely. The court declined to reach the constitutional claim because it concluded final action was in Oct 2013 and Hotels did not press an as-applied challenge to the statute post-resolution.

Key Cases Cited

  • 3 Bar J Homeowners Ass'n, Inc. v. McMurry, 967 P.2d 633 (Colo. App. 1998) (discusses administrative finality when later written resolution exists)
  • Wilson v. Bd. of Cnty. Comm'rs, 992 P.2d 668 (Colo. App. 1999) (later written resolution can show earlier vote was not final)
  • Luck v. Bd. of Cnty. Comm'rs, 789 P.2d 475 (Colo. App. 1990) (conditional approvals are not final agency action)
  • Cloverleaf Kennel Club, Inc. v. Colorado Racing Comm'n, 620 P.2d 1051 (Colo. 1980) (competitor standing limits where harm flows from lawful market competition)
  • Wimberly v. Ettenberg, 570 P.2d 535 (Colo. 1977) (economic injury indirect where caused by third-party choices)
  • Brotman v. E. Lake Creek Ranch, L.L.P., 31 P.3d 886 (Colo. 2001) (distinguishes direct agency-caused injury from indirect injury caused by third-party exercise of rights)
  • Colorado Medical Soc. v. Hickenlooper, 349 P.3d 1133 (Colo. 2015) (standing where agency action restructured regulatory framework and directly affected plaintiffs)
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Case Details

Case Name: 1405 Hotel, LLC v. Colorado Economic Development Commission
Court Name: Colorado Court of Appeals
Date Published: Sep 10, 2015
Citations: 2015 COA 127; 370 P.3d 309; 14CA1613
Docket Number: 14CA1613
Court Abbreviation: Colo. Ct. App.
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