Insights

In a recent decision, the Colorado Supreme Court confirmed that the exercise of condemnation authority by a developer-formed metropolitan district constitutes public use, so long as the purpose of the taking is for some public benefit. Under the Colorado and U.S. constitutions, private parties generally cannot exercise the power of eminent domain. For years, using metropolitan districts, real estate developers effectively exercised the power to condemn private property for public uses such as streets, parks, and utilities in connection with new development projects. In late 2017, however, in the case of Carousel Farms Metropolitan District v. Woodcrest Homes, Inc., a division of the Colorado Court of Appeals invalidated a developer-formed metropolitan district’s exercise of condemnation authority, finding that metropolitan districts could not condemn private property when the immediate purpose served only to satisfy the developer’s contractual obligation to the local government.

Denver, Colorado – Attorneys with Otten Johnson Robinson Neff + Ragonetti PC (Otten Johnson) have once again been recognized by Best Lawyers®, for 2020. New to the list this year are Julie Gifford and Melinda Beck, both for Real Estate Law.

In June, the U.S. Supreme Court issued its opinion in Knick v. Township of Scott, in which the Court ruled that a plaintiff in a takings claim need not first exhaust state-court remedies before bringing the claim before a federal court. The decision, addressing a largely procedural matter, improves prospective regulatory takings plaintiffs’ access to federal courts, and likely increases the chances that local governments may be required to compensate landowners where regulation devalues private property.

AA little known, and often misunderstood, aspect of the Tax Cuts and Jobs Act of 2017 (the “TCJA”) is Internal Revenue Code Section 1400Z-1, which permits states to designate certain “low-income” census tracts as “opportunity zones,” and Section 1400Z-2, which offers certain Federal tax incentives to taxpayers who invest qualified capital gains into these designated opportunity zones.

The 2019 legislative session in Colorado featured political fireworks relating to everything from gun control to full-day kindergarten. The 2019 session featured a few significant developments for those of us in the world of real estate, too. This is a brief review of some of the highlights (and lowlights) for real estate in Colorado.

One of the most publicized, controversial, and emotional ballot issues in this May’s election is the proposed Initiative 300 in the City and County of Denver. Initiative 300 proposes to repeal Denver’s “camping ban” by implementing a series of new rights, among those, the right to “rest” in public spaces.

Following Proposition 112’s defeat by voters in the November mid-term election, another major challenge to the Colorado oil and gas industry is on the horizon. On March 1, Senate Bill 181 (“SB 181”) was introduced by Senate Majority Leader Steve Fenberg and House Speaker KC Becker. In what state legislators have referred to as “the most sweeping oil and gas reform” the state has ever seen, SB 181 is rapidly advancing through the Capitol. Having successfully navigated three Senate committees and a floor vote, passing each strictly along party lines, SB 181 is starting to make the rounds through the House as well. If successfully passed in the House, as all indications point that it will be, the bill will find its way to Governor Polis’ desk, who has already indicated his support.

As of February 27, 381 bills have been introduced in the Colorado General Assembly. This client alert focuses on proposed legislation in four areas of interest to real estate professionals—special districts, oil and gas development, tenants’ rights, and conservation easements—because bills in these areas appear to be gaining traction in this legislative session.

Denver, Colorado – Otten Johnson Robinson Neff + Ragonetti PC (Otten Johnson) is pleased to announce that Kyle Blackmer and Heather Park Meek have been elected shareholders and directors of the firm. Both Heather and Kyle have already distinguished themselves both within the firm as well as in the community. Their new roles were effective January 1, 2019.