The Town of Telluride (defendant) passed an ordinance and a set of guidelines requiring the developer of any new construction project to comply with one of four different options intended to result in the creation of affordable housing for a percentage of new employees generated by the project. The options for developers included the creation of new housing with fixed rental rates, the imposition of deed restrictions to fix rental rates, the payment of fees to the town, or the conveyance to the town of land to be used for affordable housing construction. Lot Thirty-Four Venture (plaintiff) filed suit to enjoin enforcement of the town’s ordinance on the grounds that it violated state law prohibiting the enactment of rent control ordinances. The district court ruled in favor of the town. The appellate court reversed and the town appealed to the supreme court.