Town of Vail v. Village Inn Plaza – Phase V Condominium Association
No. 20CA1179
COLORADO COURT OF APPEALS
August 12, 2021
2021COA108
Eagle County District Court No. 14CV30259, Honorable Reed W. Owens, Judge
SUMMARY
August 12, 2021
2021COA108
No. 20CA1179, Town of Vail v. Village Inn Plaza – Phase V Condominium Association — Real Property — Common Interest Communities — Colorado Common Interest Ownership Act — Applicability of Local Ordinances, Regulations, and Building Codes
A division of the court of appeals considers whether the anti-discrimination provision of the Colorado Common Interest Ownership Act (CCIOA), section 38-33.3-106, C.R.S. 2020, invalidates a section within a Town of Vail ordinance that pre-dates the CCIOA‘s enactment. The division holds that it does. Specifically, it finds that (1) because the present-day enforcement of the ordinance is an “event[] and circumstance[] occurring on or after July 1, 1992,” § 38-33.3-117(1), C.R.S. 2020, the CCIOA and its anti-discrimination provision retroactively apply; (2) section 11(6) of the Town‘s ordinance violates the CCIOA‘s anti-
Appellant,
v.
Village Inn Plaza-Phase V Condominium Association, a Colorado non-profit corporation; Vail Village Inn, Inc., a Colorado corporation; Griffin Development LLC, a Texas limited liability company; Karin Wagner, as Trustee for the Karin Wagner Revocable Inter Vivos Trust; Meadow Drive Ventures Inc., a Colorado Corporation; Potamus Bean LLC, a Texas limited liability company; Staufer Commercial LLC, a Colorado limited liability company; VVI, LLC, a Colorado limited liability company; Richard L. Liebhaber,
Appellees.
JUDGMENT AFFIRMED AND CASE REMANDED WITH DIRECTIONS
Division II
Opinion by JUDGE DAVIDSON*
Román and Lipinsky, JJ., concur
Announced August 12, 2021
Hoffman, Parker, Wilson & Carberry, P.C., Kendra L. Carberry, Denver, Colorado; Hoffman, Parker, Wilson & Carberry, P.C., J. Matthew Mire, Vail, Colorado, for Appellant
Miletich, P.C., Walter N. Houghtaling, Denver, Colorado; Frederick G. Aldrich LLC, Frederick G. Aldrich, Grand Junction, Colorado, for Appellee Village Inn Plaza-Phase V Condominium Association
Porterfield Oliver LLC, Wendell Porterfield, Vail, Colorado, for Appellees Staufer Commercial LLC and Vail Village Inn, Inc.
Altitude Community Law, P.C., William Short, Azra Taslimi, Lakewood, Colorado, for Amicus Curiae Community Associations Institute
*Sitting by assignment of the Chief Justice under provisions of
I. Background
A. The Town‘s Ordinance, its Restrictions, and the Association‘s Amended Rules
¶ 2 The Town Code of Vail (Town Code) and its zoning regulations allow the City Council to establish Special Development Districts through an ordinance. Town Code § 12-9A-4(D). In 1976, the Town enacted an ordinance establishing the Village Inn Plaza development as Special Development District No. 6 (SDD no. 6). In 1987, the Town enacted an ordinance modifying the 1976
¶ 3 The 1987 ordinance includes several conditions of approval for developers building within SDD no. 6. The relevant condition of approval here is section 11(6), which states as follows:
Restrictions on any units in Phases IV or V which would be condominiumized shall be as outlined in Section 17.26.075 of the Vail Municipal Code and any amendments thereto.
Section 17.26.075, recodified as section 13-7-8 of the Town Code, imposes several restrictions on units converted to condominiums prior to February 7, 1995. Town Code § 13-7-8(A).1 The restrictions require that condominium units “remain in the short term rental market to be used as temporary accommodations available to the general public,” Town Code § 13-7-8(B); limit an owner‘s personal use of their unit during the “high season,” Town Code § 13-7-8(B)(1); and impose fines for violations, Town Code
¶ 4 In 1988, the Association, seeking to establish a condominium project within Phase V, recorded a condominium declaration. The declaration adopted the restrictions for condominiums outlined in the 1987 ordinance and section 13-7-8 of the Town Code as section 21(i) of the declaration. In 2013, the Association adopted Policies, Rules, Regulations, and Guidelines. In 2013 and 2014, the Association amended its rules to state that the Association would no longer enforce section 21(i) of its original condominium declaration (i.e., the restrictions from the 1987 ordinance and section 13-7-8 of the Town Code).
B. Procedural History
¶ 5 In 2014, Staufer Commercial, LLC, a commercial owner in Phase V, sought a declaratory judgment that the Association‘s amended rules announcing its refusal to enforce section 21(i) violate the Association‘s condominium declaration. The Town joined as an indispensable party and filed a cross-claim seeking a declaratory judgment that section 21(i) of the amended rules violates the 1987 ordinance and section 13-7-8 of the Town Code.
¶ 7 In June 2018, the district court granted the Association‘s motion for partial summary judgment on the amended cross-claim based on section 11(6) of the ordinance. It found that (1) although the CCIOA applies generally to communities created after July 1, 1992, it applies here because the Town‘s enforcement of the 1987 ordinance constituted an “event[] and circumstance[]” that permits retroactive application of the CCIOA,
¶ 8 The Town filed an appeal with this court, but, because the June 2018 order did not resolve the Town‘s second amended cross-claim — a claim for penalties against the Association and residential owner defendant Richard L. Liebhaber — we dismissed it without prejudice for lack of jurisdiction. On remand, the district court granted a motion to dismiss the Town‘s second amended cross-claim on the same grounds as those set forth in its June 2018 order. The court then issued a C.R.C.P. 54(b) certification, and we are satisfied that we now have jurisdiction to consider the Town‘s appeal of the district court‘s declaratory judgment order dismissing the second cross-claim.
¶ 9 On appeal, the Town argues that the district court‘s determination that the restriction provision of section 11(6) of the 1987 ordinance violates the anti-discrimination provision of the CCIOA was in error because the CCIOA does not retroactively apply to the 1987 ordinance and because the 1987 ordinance is not facially discriminatory. It further argues that, in any event, the
II. Whether the Anti-Discrimination Provision of the CCIOA Retroactively Applies to Section 11(6) of the 1987 Ordinance
¶ 10 Phase V of the development was created in 1988, four years before the CCIOA‘s effective date. As a threshold matter, the Town contends that section 11(6) of the 1987 ordinance cannot violate the CCIOA because the statute does not apply retroactively to the 1987 ordinance. We disagree.
A. Legal Principles
¶ 11 Whether the CCIOA applies in this instance is a question of statutory interpretation. We review questions of statutory interpretation de novo. Hunsaker v. People, 2015 CO 46, ¶ 11. When interpreting a statute, our primary goal is to ascertain and give effect to the General Assembly‘s purpose and intent in enacting it. People v. Cooper, 27 P.3d 348, 354 (Colo. 2001); People v. Sims, 2019 COA 66, ¶ 33. In doing so, we look first to the statute‘s plain language, and if that language is clear, we enforce the statute as written and “do not need to resort to other rules of statutory construction.” Nowak v. Suthers, 2014 CO 14, ¶ 20.
B. Analysis
¶ 12 The CCIOA applies to common interest communities “created” in Colorado after the CCIOA‘s effective date of July 1, 1992.
¶ 13 The second exception, however, provides that, for certain specified statutory provisions, pre-existing communities are subject to the CCIOA for “events and circumstances occurring on or after July 1, 1992.”
¶ 14 In its order, the district court concluded that “the present-day effect of this ordinance is, of necessity, an ‘event[] and circumstance[]’ occurring on or after July 1, 1992.” We agree.
¶ 15 “Event” means “something that happens,” or “a noteworthy happening.” Merriam-Webster Dictionary, https://perma.cc/4VTG-HNPQ. “Circumstance” means “a condition, fact, or event accompanying, conditioning, or determining another.” Merriam-Webster Dictionary, https://perma.cc/357U-LD8V. Certainly, the Town‘s current attempt to enforce section 11(6) of the 1987 ordinance by bringing cross-claims against the Association and the residential owners is something that is happening and an event with the potential to determine future events. The plain meaning of an “event and circumstance,” therefore, unambiguously includes the Town‘s current actions in seeking to enforce the 1987 ordinance. As the district court reasoned, “the relevant provisions
¶ 17 First, we are not convinced that section 11(6) of the ordinance and section 13-7-8 of the Town Code are zoning ordinances.2
¶ 18 In any event, and more importantly, the legislature has specified that, if and when events and circumstances warrant, only certain parts of the CCIOA could be applied retroactively; that is, application of the CCIOA to pre-existing common interest communities does not render entire ordinances invalid — just the parts that violate prohibitions within section 38-33.3-117. See DA Mountain Rentals, ¶ 28; Giguere, 155 P.3d at 469. Indeed, the court‘s declaratory judgment that section 38-33.3-106(2) of the CCIOA invalidates as discriminatory section 11(6) of the ordinance
¶ 19 Accordingly, we agree with the district court and conclude that the Town‘s actions in attempting to enforce section 11(6) of the 1987 ordinance are “events and circumstances” triggering application of the CCIOA‘s anti-discrimination clause under section 38-33.3-106(2) and further conclude, therefore, that this provision of the CCIOA applies retroactively in this instance.3
III. Whether the Ordinance is Facially Discriminatory
¶ 20 Alternatively, the Town contends that even if the CCIOA anti-discrimination clause applies, the district court erred by granting
A. Legal Principles
¶ 21 Under C.R.C.P. 56, summary judgment is proper when the pleadings, affidavits, depositions, and admissions show that there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law. Civ. Serv. Comm‘n v. Pinder, 812 P.2d 645, 649 (Colo. 1991). The burden of establishing the nonexistence of a genuine issue of material fact is on the moving party. C.R.C.P. 56; Cont‘l Air Lines, Inc. v. Keenan, 731 P.2d 708 (Colo. 1987). Once the moving party clears this initial evidentiary hurdle, the burden shifts to the nonmoving party to present evidence showing a triable issue of fact. Griswold v. Nat‘l Fed‘n of Indep. Bus., 2019 CO 79, ¶ 24. If the nonmoving party cannot produce such evidence, the moving party is entitled to summary judgment. Cont‘l Air Lines, 731 P.2d at 713.
¶ 22 We review the court‘s decision granting summary judgment de novo. Credit Serv. Co. v. Dauwe, 134 P.3d 444, 445 (Colo. App. 2005).
¶ 24 We review de novo the district court‘s interpretation of the ordinance. Asphalt Specialties, Co. v. City of Commerce City, 218 P.3d 741, 745 (Colo. App. 2009).
B. Analysis
¶ 25 As set forth above, the anti-discrimination provision of the CCIOA states that
no . . . ordinance . . . may . . . impose any requirement upon a condominium or cooperative which it would not impose upon a physically identical development under a different form of ownership.
Restrictions on any units in Phases IV or V which would be condominiumized shall be as outlined in Section 17.26.075 of the Vail Municipal Code and any amendments thereto.
(Emphasis added). By its plain terms, section 11(6) anticipates two distinct forms of ownership — condominium ownership and non-condominium ownership — and imposes restrictions on only the condominium form of ownership.
¶ 27 Also in plain terms, section 11(6) further states that the restrictions as described in section 17.26.075 of the Town Code (now section 13-7-8), which imposes restrictions on units converted from different types of ownership to condominiums prior to February 7, 1995, shall apply to units “which would be condominiumized.” Those restrictions, as described in section 13-7-8, require that the condominium units “remain in the short term rental market to be used as temporary accommodations available to the general public,” restrict an owner‘s personal use of their unit during the “high season,” and impose fines for violations. Critically, these restrictions do not apply to other forms of ownership.
¶ 29 Similarly, we see no merit in the Town‘s argument that the court erred by failing to require evidence from the Association to demonstrate discrimination — for example, that the developer sought to construct Phase V without any condominiums, or that the Town would not have imposed the residency restriction for the development of physically identical non-condominium dwellings, or that other buildings exist that are identical to Phase V and those buildings don‘t contain condominiums, or that such buildings were not subject to the restrictions as a condition of approval.
¶ 30 What the Town or the developer would do under other circumstances is immaterial. It simply does not matter whether
IV. Whether the CCIOA Cannot Apply Because Vail is a Home-Rule Municipality
¶ 31 The Town also argues that the CCIOA cannot invalidate the ordinance because enforcement of the ordinance‘s regulations is a
matter of purely local concern reserved for home-rule municipalities. Again, we disagree.A. Legal Background
¶ 32
¶ 33 To determine whether a home-rule city or the state has
plenary authority for purposes of
¶ 34 To determine whether a matter is local, statewide, or mixed,
we consider several factors, including (1) the need for statewide
uniformity of regulation; (2) the extra-territorial impact of local
regulation; (3) whether the matter has traditionally been regulated
at the state or local level; and (4) whether the
B. Analysis
¶ 35 Applying the four factors, we conclude that the enforcement or non-enforcement of the Town‘s 1987 ordinance is a matter of mixed local and state concern and that, because the ordinance conflicts with the CCIOA, the CCIOA preempts it.
1. The Regulation of Common Interest Communities is a Matter of Mixed Concern
¶ 36 We first conclude that the regulation of common interest communities is a matter of mixed concern, addressing each factor in turn.
a. Uniformity
¶ 37 When the General Assembly enacted the CCIOA, it intended to
create a “clear, comprehensive, and uniform framework for the
creation and operation of common interest communities.”
b. Extra-Territorial Impact
¶ 38 The extent of the extra-territorial impact of the regulation of common interest communities is informed in part by our supreme court‘s decision in Telluride, 3 P.3d 30. There, the Town of Telluride sought to enforce an ordinance that imposed an “affordable housing” requirement. The court held, first, that the ordinance was at its core a rent control ordinance and, second, that state regulations prohibiting rent control preempted the ordinance because rent control was a matter of mixed local and statewide concern. In coming to that conclusion, the court noted the extra- territorial impact of the ordinance on the state‘s objectives and other communities:
Managing population and development growth is among the most pressing problems currently facing communities throughout the state. Restricting the operation of the free market with respect to housing in one area may well cause housing investment and population to migrate to other communities already facing their own growth problems. Although such a ripple effect may well be minimal in Telluride because of its geographic isolation, it is absolutely true that the growth of other mountain resort
communities has impacted neighboring communities greatly. The fact that the Telluride ordinance is an affirmative effort to mitigate that impact does not change the fact that the growth of the one community is tied to the growth of the next, thereby buttressing the need for a regional or even statewide approach.
Id. at 39 (emphasis added).
¶ 39 Like the rent control ordinance in Telluride, the ordinance here restricts the operation of the free housing market in a way that could have an extra-territorial ripple effect. Restrictions on the condominium form of ownership — especially those requiring owners to place their units on a short-term rental market — could cause housing investment and populations to migrate to communities without such restrictions.
c. Tradition
¶ 40 Although the regulation of housing is sometimes left to local
bodies, and municipalities certainly have an interest in regulating
housing, we aren‘t convinced that this local interest outweighs the
state interest in regulating common interest communities so much
so that we can classify regulating condominiums as a purely local
matter. See Ibarra, 62 P.3d at 162. For one thing, we aren‘t aware
of any case saying that the regulation of common interest
d. The Constitution
¶ 41 The constitution does not assign the issue of occupancy
restrictions, the regulation of common interest communities and
e. Considering These Factors, the Matter is one of Mixed State and Local Concern
¶ 42 Although we acknowledge that there is a local interest in regulating common interest communities, that interest is insufficient to make this matter purely local since there are also strong statewide interests in maintaining the uniform regulation of common interest communities and avoiding the potential for an extra-territorial ripple effect. See Ibarra, 62 P.3d at 156 (citing City of Commerce City, 40 P.3d at 1280) (even where there is a local concern, the matter can still be classified as a matter of statewide concern). Thus, because the regulation of common interest communities implicates both state and local interests, we find that the matter is one of mixed state and local concern. See Telluride, 3 P.3d at 37 (similarly classifying rent control regulation as mixed).
2. Because the Ordinance Conflicts with the CCIOA, the CCIOA Preempts it
¶ 43 Having determined that this matter is one of mixed state and local concern, we next turn to whether there is a conflict between the ordinance and the CCIOA.
¶ 45 Here, there is a direct conflict between the ordinance and the CCIOA. The ordinance discriminates against the condominium form of ownership, which is prohibited by the CCIOA. Thus, the CCIOA preempts the Town‘s ordinance.
¶ 46 Because the CCIOA preempts the ordinance, the Town‘s argument that the CCIOA cannot apply because it is a home-rule municipality fails.
V. Attorney Fees on Appeal
¶ 47 The Association seeks recovery of legal fees and costs incurred in defending this appeal and the prior appeal that was dismissed for lack of jurisdiction.
¶ 48
¶ 49 However, because the trial court is in a better position to determine the amount of reasonable fees incurred by the Association on appeal, we exercise our discretion to remand the case for further proceedings on that issue. See C.A.R. 39.1.
VI. Conclusion
¶ 50 The judgment is affirmed, and the case is remanded with directions.
