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City of Lafayette v. Town of Erie Urban Renewal Authority

434 P.3d 746 (2018)

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City of Lafayette v. Town of Erie Urban Renewal Authority

Colorado Court of Appeals

434 P.3d 746 (2018)

Facts

In 2016 the city of Lafayette (the city) (plaintiff) enacted an ordinance to condemn 22 acres of land owned by the town of Erie (the town). The city council declared the land was necessary for the public purpose of preserving open space and sought to purchase the land from the town. The town refused to sell the land. The city filed an action in Colorado state court against the town’s Urban Renewal Authority (collectively, the town) (defendant). The city argued that the town was required to surrender the land pursuant to the Colorado constitution because the city had deemed the land necessary for a public purpose. The town moved to dismiss the claim on the ground that the court lacked jurisdiction because the city had condemned the land in bad faith. The town introduced evidence that the city had acted in bad faith by purposefully interfering with the town’s plans to begin commercial development on the land. The trial court determined that the city had acted in bad faith and granted the town’s motion to dismiss. The city appealed.

Rule of Law

Issue

Holding and Reasoning (Fox, J.)

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